Congratulations! You’re a homeowner! After scrimping and saving for years, you’ve now poured your life savings into your dream home. Life is good! But life is also about to get a bit more expensive…
There are moving expenses (even if you move yourself) such as trucks, dollies, boxes and tape. There are utilities to turn on, appliances and furniture to buy, window treatments to secure, home maintenance necessities such as tools and a lawn mower to purchase, landscaping to complete, the basement to finish, etc. And with your savings all but gone, how will you afford to do all that still needs to be completed?
1. Prioritize Expenses
The first thing to do is to list all of your expenses, look over the list and determine needs vs wants. Some obvious needs are utilities, dishes, cooking items, bedding, bathroom supplies, and appliances. Wants would include new items to replace any of your perfectly functioning older items simply for cosmetic reasons.
When prioritizing expenses, wants can wait; needs must be filled. But before rushing out to purchase everything on your needs list, remember your friends and family may have some of those exact items collecting dust in their own homes. Send a quick email or text or post a plea on Facebook. You’ll be surprised how many people you know have items they’re ready to part with.
2. Search for Bargains
There will still be some items you’ll need after your friends and family come through for you, but bargains are everywhere: wholesale clubs, online marketplaces, clearance racks, and thrift stores. There are even bargains available when setting up utilities. For example, when choosing an internet provider, there is usually more than one company to choose from and different tiers of service within each company. Bundled services often offer even deeper discounts. Shop around. Go basic if you need to and upgrade when you can.
The same advice applies when shopping for the remaining dishes and bedding and bathroom items--shop around, go basic and plan to upgrade once you can afford it. But with all of the budget-friendly marketplaces, chances are you can find exactly what you want at reasonable prices without settling for something you are just hoping to replace later.
3. DIY or Trade Services
A great way to save money on some of your new home expenses is to do it yourself if you can. YouTube has videos to cover how to do almost any home improvement project you might be contemplating; Pinterest has links to numerous home improvement and home decorating ideas for individuals on a budget.
For larger projects, you may not be able to do it yourself; however, if you have a marketable skill or service to provide such as tax accounting and you need to hire someone with a marketable skill such as plumbing, negotiate a trade: you offer to do his or her business taxes in exchange for plumbing your basement bathroom. A great way to get some of your contract work completed.
4. Credit Cards
There will be some necessary things you can’t find in thrift stores or trade services for--items that you prefer new or items, like appliances, that you would like to purchase with warranties. Appliances should last several years so spend a little more to get the best deal on the appliances with the features you can’t live without.
Of course, you don’t want to purchase everything on credit, but big ticket “needs” like appliances may require financing. When applying for a credit card to cover these items, it pays to be picky. Credit cards are designed for specific credit scores. Individuals with better credit scores qualify for better financial benefits (lower interest rates and monetary incentives). To maximize your credit card perks, apply for the best credit card for your credit score. if you have average credit, you’ll want to find a good credit card for average credit so you can get the best possible interest rates and buying power.
You have a new house to enjoy--furnish it and make it your own. Prioritize your needs and separate them from your wants. Look for bargains to fill those needs. Do what you can yourself and trade services for bigger projects you can’t finish without a professional. If you need to finance some of your needs, look for the best credit card to maximize your buying power. You can do this! And it won't break your bank!
