Owning a home for the first time is exciting. It is a milestone in life that signifies real adulthood. It is something that brings true independence.
And it is also something that is very, very expensive. Yes, home ownership is a big investment and will probably be the biggest financial investment you ever make in your life.
Naturally, then, this means that there are going to be many financial pitfalls attached to owning your first home, too. But, there are ways to avoid these pitfalls; a few of them can be found below.
Save when and where you can in regards to your home
So, you’ve moved into your first home and you’re feeling very proud and very independent. Well done! But, you’ve probably already realized that you’ve now got to spend money on bills like you’ve never had to do so before.
You’ve got the mortgage bills to pay. The council bills to pay. The utility bills to pay. The gas and electric bills to pay. And, this is probably on top of the other bills you already pay in life, too, such as your car and phone insurance bills.
Because there are now so many necessary financial outgoings in your life, you have to do all you can to save when it comes to them. Especially, this means saving money whenever and wherever you can in regards to your home insurance and your tax bills.
You can save on your home insurance by combining it with the other insurances that you have to pay and subsequently tapping into the multi deal discounts that insurers typically offer.
As well as this, you can cut down on the tax you need to pay, too, by doing things like starting your own business and drawing out the money you earn as tax-free income or getting started on starting your own family because bigger families are most certainly favored by the taxman.
The most important thing you can be doing, however, is concentrating on what money can be saved in regards to the unnecessary outgoings you need to pay.
This means being strict with yourself when it comes to grocery shopping by devising a shopping list and refusing to deviate from it, no matter how many deals are floating around the grocery store calling out to you to buy something you don’t need.
Nix your big move if you can’t keep up with the financial demands
The best thing you can do to avoid the biggest financial pitfall of them all when it comes to first time home owning, having no money left whatsoever, is nixing your big move before things get out of hand.
Yes, this might be a sad and disappointing thing to do. But, if you just can’t keep up with the financial demands of home owning, then you need to save face and move back out of your home before your financial situation spirals out of control.
Now, this could mean moving back into your family home, but it doesn’t necessarily have to. No, you don’t have to go crawling back to Mom and Dad with your tail between your legs.
You could just opt for a much cheaper alternative to independent living, and that is to look into apartment rentals.
By renting an apartment off of a landlord or landlord company you won’t have to pay the extensive financial demands of home owning whilst still retaining your independence of living away from home.
There are many financial pitfalls to face when it comes to first time home owning, and never be naive enough to think this is not the case!