Having the recent purchase of your dream home under your belt, don’t know how, when and on what should you tighten your belt? This blog helps you have your finances under control after buying a house.
1. Build a fortuity fund
After all the expenses on home buying fee, down payment, closing, having appliances or car repair in cue can become a financial emergency. Most finance experts advise you to have equal parts of four to six months of your income in a savings account. Rebuilding your emergency fund might be your first priority now. By having savings money in your finance pocket, it can be useful at times like unemployment. It can cover your basic expenses like debts, insurance payments, and utilities.
2. Commit to penny-pinching
Do some penny-pinching to have your money saved for future purposes or to spend on other important things. Don’t spend too much for daily expenses by buying things unnecessarily. You’ll have the extra cash spending on things unnecessarily will be saved in your pockets for buying home.
3. Commit to smart shopping
Always shop wisely on groceries and other house consumables will be your best money-saving strategy all times. Fewer times you go to store, the less you spend. Keep a regular routine of going once in a week for weekly groceries. If you are out of things during the week, just wait until next week to hit the store. Meanwhile, hunt the cupboard for chips, or pudding mix to keep up. Ensure you make a list of items to be purchased for the week. Buy the items only which are on the list. Try recipes using economical items like beans, potato, and rice instead of going out.
4. Commit to simple entertainment
Are you a person who spends more time outdoors? If yes, think about your monthly expenses you spend outdoors. Would you like to go for a movie this weekend? Instead of spending 500 bucks for a movie and snack, rent out a movie and spice up the evening with popcorn at home with friends. Or spend the game night once a week. You can save up to 15000 bucks monthly in a year.
5. Don’t amass new debt for a year
Buying a house is a big investment in your financial ventures. Accumulation of more debts after purchasing your new home is likely ready to bench press more money than your personal best. Be sure you can handle your already signed up debts before adding up a new one to the list.
6. Abstain yourself from purchasing new furniture
You have plenty of time to spend in your newly bought home. Spend some more time using the same old favorite couch and coffee table. Save the next asset buying for the upcoming years. If you want to purchase new furniture so badly to get your home a new classy look, then you are digging deep in the already drained savings account to make things worse. Just hold back the desire to buy new appliances and furniture for a few more months until you are ready to afford it. Till then check out the trending ideas online for home decorations and plan the ideas of furniture buying to dwell in your new cozy home.
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