After the ink has dried on your closing papers, it’s common to feel shock over all the things you need to purchase for your new home. Whether the expenditure involves furniture, appliances, paint, or a handful of repairs, take some time to assess your priorities. Don’t waste money for the sake of convenience or because you didn’t know better. Consider these tips to help save big money over the first year and beyond in your new home.
Do it yourself on simple repairs. Be prepared to pay a professional $50 or more per hour on any type of repair. Now that you’re a home owner, it’s a great time to learn how to fix a few things on your own. Leaky toilets, a loose shelf, or a hole in the drywall are examples of things that you can try to tackle yourself before calling someone for a simple repair. There are tons of DIY articles online as well as YouTube tutorials.
Pass on the extended warranties for major appliances. Consumer Reports (August 26, 2016) concluded that most extended warranties on appliances aren’t worth the expense. By the time an appliance fails, it’s likely time to get a new one anyway. Save the money for the actual repair, if it’s ever needed.
Furnish your home slowly or buy low-end items for the interim. Many buyers drop a lot of cash or max their credit on furniture they think is needed to fill empty space. If you already have many expenses, why rush to get all your furniture at once? Slowly fill the space based on what you really need. If the empty space bothers you too much, buy lower-end stylish items to serve as temporary fillers.
Switch to LED bulbs as the old ones burn out, not all at once. Incandescent bulbs are definitely cheaper, but they cost you more on your energy bill. LED bulbs are more efficient and you recoup your cost within a year’s time. But they’re more expensive, so don’t buy them all at once. Simply replace as needed to stagger your cost over a longer period.
Throw out, donate, or sell items rather than pay for storage. The average cost of storage units are $50 to $300 a month. Do some serious trashing or donating if you’re paying to store things you can’t fit in your home. You can probably pare down what you need to fit the space you live in. You might even make a bit of money selling items through consignment or online. Overwhelmed by the decision-making? Hire a professional organizer for around $25 to $35 an hour.
Get rid of PMI as soon as you can. If you couldn’t put down at least 20 percent down payment, you’re likely paying private mortgage insurance (PMI). The first couple years of holding a mortgage with PMI are the best years to make extra payments. You’ll get rid of the PMI faster and reduce the lifetime interest you pay on your mortgage.
Shop around for better insurance. Did you call only one recommended insurance company without comparing others’ rates? Companies can vary as much as around 30 percent in insurance premiums for similar coverage, so take the time to shop around now and see if you can get a lower premium.
You’re investing a lot in owning a home, so take smart steps to reduce your expenses. The sooner you start, the more money you’ll save.