We talk a whole lot about new home buyers or first time sellers, about loans and fee’s. But what happens after you get the house? Here are 7 financial tips for after escrow closes.
- Emergency fund: There are a lot of expenses that go into buying a home, all the closing costs and the down payment.. and if you’re anything like me, you went out and bought new furniture to match your new home. If you took money from your emergecy fund to pay for some of these unexpected (or expected) expenses, your number 1 priority should be to build that fund back up. This might not sound like a good time, but you can make it fun by giving yourself goals, and when you meet the goal, do something cool! (maybe something that doesn’t involve money.) Do something that will make you a little bit excited to put some money away for the “just in cases”
- Commit to a no spending month (or months): This one is really hard for me, but totally worth it. Don’t buy anything except the necessities. The money you save from cutting back a little bit could come in handy somewhere down the line.. like when you realize the house you bought in November didn’t have any hoses attached to the spigots! Dip into that fund and buy yourself some brand spankin’ new hoses, my friend. (This actually happened to my mom)
- Food-shop smarter: Food takes 10-30% of the money in your budget, be smart about it. COUPONS COUPONS COUPONS!!!! Seriously, coupons. You’ll thank me later.
- Keep entertainment simple: Instead of going out to the movies or dinner, try pizza and game night! Do the math, by not going out to eat, I saved over $500 a month!
- No new debt for a YEAR: No new credit cards or cars. Get serious about the commitment you just made! Be sure you can handle the thousands of dollars of debt you just signed up for before you add anything new.
- I’ll say it again, hold off on the new furniture: Try to find the good in your old couch or dining room table for a little bit longer. The most typical way to acquire new furniture is accruing new debt or raiding your savings. Plan your decor, make lists of what you want.. and even save for special items! But be prepared for them and plan.
- I know I said not to spend.. But don’t let your house get out of control with needed repairs. If you leave a small repair for long enough.. more than likely it will become a bigger one! in the long run, it will cost you more. This is the one thing to definitely consider dipping into your savings for. Its important to keep up on repairs around your new home.