4 money tips for new homeowners

posted on January 23, 2018

There are numerous expenses associated with owning a home. Here's how to handle them.

Create a new budget

Spend a few months tracking all of your expenses and update your budget to reflect the actual costs of living in your new home. You may come to find that you're spending more than expected, in which case you'll need to adjust.

Prepare to spend money on repairs and maintenance

Aim to pad your emergency savings so that you have funds to tap if a significant repair pops up unexpectedly. Most people need at least three months' worth of living expenses in an emergency fund, but as a homeowner, you should aim for six months.

Expect your property taxes to go up

Property taxes have a tendency to rise, even when home values drop. To protect yourself, leave some wiggle room in your budget. This way, if you're hit with a significant property tax increase from one year to the next, you won't be scrambling as much to make those payments.

Don't get caught off guard when big payments come due

Most homeowners pay property taxes quarterly. Rather than scramble to come up with that money, be sure to budget $333 a month for property taxes. If you're required to make that payment all at once, you'll need to set aside money each month in anticipation.

Leave a reply

Learn More