Many of you have been asking yourself.. should I rent or buy a home. For as long as I can remember the The American dream has always been to purchase a home. It just seems like a natural part of our life cycle. By purchasing a home it’s by far one of our biggest accomplishments. But is it?
6 Financial Mistakes To Avoid After Buying A Home.
Buying a home is exciting. You’ve finally reached this milestone, the paperwork is signed, you’re all moved in and now what?
Here are 6 financial mistakes you want to avoid after buying a home:
1.) Not Budgeting. — You’ve accomplished your goal of purchasing a new home. You’ve worked hard on saving for the down payment, but if you haven’t started budgeting now is the time to do so. Start by building your emergency fund and make savings your first priority again.
2.) Buy a new car — Don’t get caught up into wanting to add a shiny new car to your driveway. Adding a new car payment on top of your new house payment can dramatically change your financial situation. Get used to all of your new expenses before you add this major expense onto your budget.
3.) Decorate all at once. — Decorating can really kill your budget, especially if you are constantly picking up items. Take a moment, live in the house and get a feel for your new place. Then plan and prioritize the items you want. Be sure to watch for sales, visit yard sales, thrift stores and consignment centers for extra savings.
4.) Factor in Maintenance. — Even though this is a new house, you’ll want to factor in the cost of upcoming maintenance. Item’s such as carpet and window cleanings, AC/furnace checks, replacing the roof etc..
5.) Start Charging. — While you were in escrow you were likely told by your lender to stop charging on your credit cards because if you continued to charge, your financial status could change and it may prevent you from closing on your home. Continue with this practice and pay cash for everything that you purchase. Don’t go into debt for material items just to impress your neighbors.
6.) Updating Life Insurance. — You’ll want to make sure your family is taken care of. It’s time to review your life insurance and ensure you have proper coverage to cover your mortgage expenses. If you don’t have life insurance now is the time to get some.
Have you made financial mistakes after buying a home? Comment below and add on to the list!
Are you considering purchasing a home sometime soon? Be sure to check out my article Buying Vs. Renting: Why you should never buy a home.