Buying a home is one of the biggest life purchases you can have. And depending on where you live can have a major impact on what your spending and costs will be as there are many things that go into purchasing a new home. So now that you’ve made one of the biggest purchases you may ever encounter and now have a mortgage to pay, how can you save as a new homeowner? We give you a few tips on how to manage your money with your new house in mind.
It’s times like these where people run into cash flow issues (since buying a new home is not a small purchase!) this is where there are benefits of working with us– we are here to help! It’s hard not to stress about your finances at a time like this or when making large purchases, but that’s where it comes in handy to understand payday loans and personal finance options. We partner with the most reputable financial institutions and uses the fastest tools in the industry to ensure you get the quickest service possible. Because we offer payday loans in Toronto and the GTA and beyond, our payday loan applications are accepted and processed instantly by our automated system 24 hours a day, seven days a week. Our online application tools are available anytime and anywhere, so you can get cash on the go.
Time for a New Budget
Because buying a home is such a large expense and there are many other financial implications with purchasing a home, the first thing you need to do is hit reset on your budget. With such a large purchase there are usually other expenses that are also involved- warranties, insurance, interest, the list goes on, which is why you need to do your homework when it comes to creating a new budget. You’ve definitely forecasted what your expenses will be like with your new home, but now it’s time to work our a new budget to include all your new home expenses (including things you may have never had to budget for). Not to mention everything that you still have to continue to pay for, when it comes to purchasing a home that means it’s time for a brand new budget!
Making the Place Your Own
When it comes to buying a new home, one of the first things people always want to do are home renovations. And it’s easy to know what you want (who else has their Pinterest Boards ready), but that is why it’s important that you have a budget in place before you even begin or focus on home renovations. Spend your time and money accordingly! Home renovations take time to complete. And in order to make a realistic budget for your own project, do research before you commit to something. And as much as we wish those renovations can be completed in under an hour like we see in our favourite television shows, they set up false expectations when it comes to timelines. The reality is home renovations require both time and planning by an experienced contractor. And as they say time is money, so make sure you budget for having the work done.
Choose Furnishings Wisely
So you’ve bought the home, now it’s time to fill the space! And when it comes to furnishing your new home this is a great opportunity to cut back on costs. You may have furniture that you’ve already owned or you may want to start fresh, whatever the case, once you have the basics you can go from there. So where do you purchase furniture from? The first place everyone thinks of is Ikea! Why? Because it has everything you could possibly need for your home. We’ve talked about some of the best things you can score at Ikea, but depending on your new space, Ikea may not be for you. Be patient! You don’t need to have all your furniture immediately, and shopping around may be how you find not only the best deal but also they best pieces for your home. Have you thought about buying second hand? Buying used is definitely a good way to save some cash, but finding the right products for you is much trickier. Between Kijiji, Craigslist, Bunz, Facebook groups and so much more, if you are on the hunt for certain items, all of these places and more are a great way to find used (and sometimes even new) items that can save you money. Regardless of if you purchase new or used furniture, if you’re patient with your purchasing decisions, you will find something that you are looking for at a reasonable price.
Be Proactive, Not Reactive
Is the washing machine making a funny noise? Or is the drain in the bathroom getting more clogged by the day? Are you worried about a flood in your basement after a big storm? Has your refrigerator stopped refrigerating? The list continues. When it comes to the upkeep and maintenance of your home, it is better to be on top of things when you first notice them rather than waiting until things get worse. Because that clogged drain can also lead to flooding pipes, dealing with issues when first brought to light can also save you money. Are you noticing leaky windows? Do you get a draft or is one room always a different temperature than another? It is worth getting things like that looked at as in the long run those windows can be costing you money. How you ask? Well if you have to turn the heat up more or continue to lower the air conditioning because cold or warm air is constantly getting through, you’re paying for it anyways, just through your hydro bill instead. When the professionals need to be called in and things can’t get any worse do you end up spending a lot more money to get the job done and repair any damage there may be. It is because of maintenance issues like these that often lead to unexpected renovations, which can come as a big surprise to you and your wallet.
Open the Windows and Turn Off the Lights
We’re serious – by opening the windows and getting natural air flowing through your house compared to blasting the heat or air conditioning and turning off the lights when you are finished in a room or leave for the day can make a big difference. According to Tech Hive, Heating and cooling your home accounts for nearly half of the average home’s utility bills, according to the U.S. Department of Energy. There are devices for managing the temperature in your home as these smart thermostats can also do more than help your hydro bill. They have cameras, alarms, are wifi enabled, on timers and seem like a toy for your home, but they can really make a difference in your home. And according to Hydro One, these smart homes/thermostats are an easy way to improve home comfort and lower your energy bill with savings up to 15% every year in energy costs. Not only will your electricity bill go down, you’re also helping the environment. These devices can help you regulate the temperature in your home and turn off your lights automatically for you. Smart Homes are also a way to have everything centrally controlled and are designed to make your life easier, because sometimes you aren’t home to turn off the lights, the device (if connected) can do that instead for you. Not a smart home person? Not to worry! Using fans, blocking out the sun with specific curtains, timing when you do laundry and changing your light bulbs are all easy ways you can make an effort to save money on your home without it having to be a smart home.
Get Comfortable First
You haven’t even moved into your new place yet and you are already thinking about all the renovations and work that needs to be done and all of the new furniture and pieces that need to be purchased. But before you jump ahead, you should be asking yourself what needs to be done now, and what can wait until you move in or maybe even wait a year or two until you are settled? It may be worth waiting until next patio season before putting in a new deck or waiting for the new master bathroom you’ve been wanting and putting your expenses somewhere else. You want to make your new house a home and are planning on staying there for a while so what is the rush? Get comfortable with your new budget and expenses first before you take on more debt than you have to. There will always be projects you can take on, but that doesn’t mean they have to be done right away. There are also always new trends and products coming out, so it is that much more exciting when you can easily afford them.
Get Properly Insured
To get a home it means you’ve been approved for a mortgage. And to get a mortgage there are certain things like having homeowners insurance that are required. Homeowner’s insurance or home insurance isn’t something you should eventually think about getting, it is a necessity. And not just because it protects your home and possessions against damage or theft, but all mortgage companies require borrowers to have insurance coverage for the full or fair value of a property (usually the purchase price) and won’t make a loan or finance a residential real estate transaction without proof of it. But you’re not totally covered there. If you share your home with anyone who relies on your income to help pay the mortgage, whether it’s a girlfriend or a child, you’ll need life insurance with that person named as a beneficiary so he or she won’t lose the house if you die unexpectedly. These things can get complicated, that is why Investopedia gives you the homeowner’s insurance guide and everything you need to consider when it comes to being covered for your new home.
Get You Taxes in Order
Purchasing a new home means you need to pay attention to a few more lines on your taxes. And this means that even though you don’t normally use an accountant to submit your taxes, it may be a good idea to hire an accountant for the first year that you are in your home so that you don’t drop the ball and can be sure you complete your return correctly to fully maximize your refund. Purchasing a home or new home ownership can significantly change most people’s tax situations and the deductions they are eligible to claim. After using an accountant for one year, you will then know what you need to look for when submitting in future years yourself.
Buying a new home is an exciting time, but understandably financial stress can also take over. Making sure you have all your finances in order can be a tricky one, but once you take into consideration all of the things we mention above you will be back into the financial swing of things. People are continually turning to us in times of need such as these to help them get back on track. Because that is what we are here for! That’s why at GoDay we’re speedy, simple and secure. So you can rest easy knowing that we can help you cross your financial hurdles without any complications. Apply for a new payday loan with us today and see how GoDay can help you rest easy in your new home.