How New Homeowners Can Save Money

Verani Realty

budgeting for new homeownersThere are certain expenses that are required when buying a house, like legal and inspection fees, but some first-time homeowners waste their hard-earned money paying for items that aren’t necessary. As a new homeowner, you need to prioritize what matters and plan your budget accordingly.

Here are some ways that new homeowners can save money and spare themselves unnecessary financial stress:

  • Comparing homeowners’ insurance rates and plans: Buying homeowners’ insurance is a new experience for first-time buyers. With all the chaos and excitement of buying the home, it may feel easier to pick an insurance company and a policy quickly with minimal research. But insurance companies are not all the same, and policies can vary in both cost and coverage. How much could you save? Shopping around for the best policy can save homeowners up to 30 percent on their insurance premiums, according to U.S. News & World Report.

  • Hold off on renovations after moving in: While there may be things you want to change or replace in your new home, it pays to give it a little time. Allow yourself to settle in and then decide. Often, new homeowners underestimate their budget, which now includes a mortgage, and taking on renovation expenses adds to the stress. Also, once people live in a space for a while, they can be a better judge of prioritizing what must be done to a home.

  • Take your time when buying new furniture: While it’s true that your home is probably bigger than your apartment and needs more furnishings, don’t rush to buy all of the items needed to fill it. Think about exactly what each room needs, and shop around for things you will love tomorrow, not just today. Look for quality that lasts and furnish your new home slowly. Furniture should never be an impulse purchase.

  • Shop around for groceries and everyday purchases: Many times new homeowners head to the nearest grocery store without a second thought, but it might not offer the best prices. Take the time to get to know the area and what it has to offer in terms of shopping choices. Compare the prices of key items you always buy, or do your you main shopping at of couple different locations for the first few weeks to determine where you will find the best value.

Buying a home is one of the biggest investments you make in your life, but it should also be a time when you evaluate and prioritize your spending. Your goal should be to make certain you don’t waste money or derail your budget while celebrating being a new homeowner.

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