The Financial Aftermath Of Buying A House

Buying a new home is a huge financial decision.

It’s probably the most expensive purchase you will ever make, and borrowing such a large amount of money is a big responsibility. Your home may also be the biggest asset your will own, and making loan payments on time for 10-20 years will boost your credit rating.

But, what happens financially after you buy your home?

You need to sort out your finances as soon as you move into a new home. Your financial situation may have drastically changed- often for the better- but you still need to get your ducks in order. Here are some “financial aftermath” issues that you need to consider.

If you’ve had a financial setback, this article can help.

What About Emergencies?

It’s important to start saving, so that you have a pot of money you can use as an emergency fund. A savings balance provides you with some cash you can dip into if you ever need to fund any emergency repairs. You never know when you might need to do this, because it’s impossible to know when a flood, fire, or other household emergency might occur.

It’s best to be as prepared as possible.

When you create a monthly budget, make room in your budget for a monthly savings amount- and have that amount transferred into a separate bank account. This form is self-discipline will help you find a savings account each month.

Use this site to apply for a loan Find My Rate at Social Finance Pay off credit cards or invest in a major purchase.

Budget For Decorating

You need to perform repairs and eventually make improvements, such as decorating and landscaping, in order for your home to maintain its value. You’ll also need to have a think as to how much of this you will realistically be able to do yourself and what jobs will require the help of someone like these handyman services in Flagler Beach.

If you want to redecorate your home and make some other minor repairs, you  need to start adding them to your budget so that you don’t overspend. It’s easy to get carried away when decorating, but if you budget for it, you can spend within your means.

Have a Will?

Now that you are a homeowner, you have an estate that you need to keep in order. The best thing you can do is to contact a lawyer that deals with estate planning, such as Mobile Legal Services PLLC, so they can help you draft your last will and testament. This will ensure your new home goes to whomever choose in the event of your death.

In addition, a homeowner should have a life insurance policy that will pay off the loan balance on a home, in the event of the homeowner’s death. This strategy will allow you to pass on your home to your heirs without any remaining debt. Speak with an insurance agent about this issue.

Many freelancers and business owners may have times when cash flow is a problem. Use this site to apply for a loan Find My Rate at Social Finance in order to cash flow your business until you can collect receivables from customers.

Retirement Savings

In addition to your home, the biggest asset you may accumulate over your life is your retirement savings.

Buying a home may reduce the amount you’re able to invest for retirement. To remedy this, you should start saving again as soon as you are able to. Once your new home purchase is complete, start funding your retirement plan again, and increase the amount you invest over time.

Home Insurance?

In addition to life insurance, it’s important that you obtain insurance for your new home. Your homeowner’s policy can cover damage due to weather or theft. Even though you might think that the premiums are costly, they are  cheaper than paying for repairs out of your own pocket.

Once your purchase your new home, use these tips to get your other finances in order. Then, you can really settle into your new home!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0