You’ve put in so much financially by taking the huge leap to invest in a home, now how do you protect your investment?
Despite the relief of finally braving it, after all the work of finding and buying the property, the financial planning and budgeting don’t stop once you collect the keys to your new home.To keep the momentum going in securing this key stage in your financial life and building a firm foundation for your future, here are some imperative actions to execute:
Revisit Your Budget
Now more than ever before, you need a financial plan that is homeowner-oriented. Sitting down and working out a budget will yield huge rewards, as long as this budget is all-inclusive, thoroughly covering all the costs of owning a home. That includes any increases in expenses associated with higher utility costs, fees, maintenance or repairs. You would incur basic and minor repairs as well as major expenses, such as roofing replacement.
It makes sense that first-time buyers should set up a separate homeownership savings fund to cover bigger repairs. You’ll also need to leave room in your budget to set aside money for necessary upgrades that might come along in the future if you plan to update certain spaces.
This is not the time to max out on inciting new debts. If there are standing and existing debts, these should be the priority. This can free up more cash that you can funnel into your home savings fund, and it can give you more breathing room in your budget.
Get a homeowner’s Insurance
As a first-time buyer, homeowner’s insurance is absolutely vital which can go with a life insurance as well, which is like a self-completing plan. This is critical if you’re married with a family. You’ll also need to leave room in your budget to set aside money for upgrades if you plan to overhaul certain spaces in your home.
In addition to avoiding new debt, you should also prioritize paying off any existing debt you have, as this can free up more cash that you can funnel into your home savings fund, and it can give you more breathing room in your budget.
Buying a home creates new financial responsibilities, but with the right planning, you can keep from becoming overwhelmed. Ideally, preparing yourself financially begins before you ever buy a home, but even if you’re getting a late start, it’s important to make planning a priority.