Two months in and you are rocking it.
Now that you’ve moved into your new home and (hopefully) have your boxes unpacked, most homebuyers are making adjustments to their lifestyle and their now homes.
We’ve worked with thousands of successful homeowners and have seen a lot of good & bad decisions made. Here are the two common mistakes we see for new homeowners that we want to help you avoid:
1. Spending too much, too quickly to fix up your new house.
Once we move in, we want to make our house look like the way we saw it in our dreams immediately.The costs for paint, decorations, furniture and other improvements all add up very quickly. Make a plan to take small regular steps to improve your home without breaking the bank.One common mistake is leasing expensive furniture. Now that you have a house, some people lease expensive furniture to fill the house. Payments that feel small up-front start to feel increasingly larger as time goes on and the furniture becomes worn out. We recommend buying second hand to start – there’s always time later!
2. Not tracking your spending against your budget.
It’s time to dust off, or discover for the first time, your budget spreadsheet or money-management app. Learning how to effectively budget, plan, and manage your money is the single most important thing you will learn while working with us! Budgeting is a fun artform of looking at your expenses and income and making sure that you are living within your means. Done correctly, keeping track of your spending will remove the daily stress of financial woes.
Here are 3 tips to help you budget successfully during your first year:
Develop a budget where every dollar is accounted for each month.It's easy to spend a few dollars here & there that end up adding up to hundreds of dollars by the end of the month. Check our website for a list of recommended resources!
Start planning for big or unexpected purchases now.Ensure you think ahead and set aside funds for big expenses like braces for your child or gifts for the Holidays.
Live by your calendar!Know what expenses are set for which times of the month and ensure you match these with your payroll deposits.This strategy will help you avoid costly bank fees.