Budgeting for Home Ownership

We talk frequently about budgeting to purchase a new home - from inspection expenses, closing expenses, down payment, and moving expenses.

But there isn't much talk about After The Closing.  

You are all moved in and boxes are unpacked - and surprise! an expense you hadn't anticipated.  At least, not yet.

Unexpected expenses can happen at any time - like the very high electric rates this summer.  No one anticipated a $200.00 increase or more in their electric bill.

Don't worry - You can do this!  As you are budgeting for the purchase of your new home, you also need to budget for after closing.

1) Keep an emergency fund for surprises.  Start by saving $1000.  A way I found to make saving and keeping this emergency fund is to set up a separate savings account and deposit $10.00 from your paycheck each time.  Ask your employer about doing this via direct deposit.   When it is in a separate account, it's not as easily accessible for spending.  Eventually build it up to cover approx 6 months of expenses.

2) Watch your utility bills.  If your bills seem high, you can ask for an energy audit from the power companies.  Also, be sure to un-plug appliances, charges, etc that are not in use.  You would be surprised how much a plugged in toaster, blender, shaver, gaming console, etc electric is used when you are not using the appliance.  It's called Ghost Electric User.

You can also check with the utility companies about Budget Billing.  This is a way to help keep your utility bill steady, as oppose to fluctuating with the seasons.


Need more ideas about Budgeting for Home Ownership?  Reach out and lets talk.