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8 Budgeting Tips for the First Year as a Home Owner

Chara Valentine

Your journey to own your first home is far from over after moving in. The financial responsibility increases with numerous additional costs added to your budget. Homeowners often find it intimidating to change their lifestyle to manage the cost of living in their house.

The list of house-related expenses will include mortgage repayment, house maintenance, and new interior. You may end up becoming house poor if you ignore the impact of these expenses on your financial health. In addition, the various costs should include in your overall budget for hours to ensure the stress-free move in.

The Concept of House Poor for New Owners

You become house poor when you spend on the new house way outside your budget. People ignore their affordability when they decide to invest in their own house after years of savings. It leads them to invest heavily in the property, its interior, and upgrades to the existing structure.

It will get extremely tough to manage the finances as a consequence of extravagant spending on your home. You need to find the affordable amount for the housekeeping in mind the expenses accompanying the purchase. Though, you can have a very bad credit loan with no guarantor from a direct lender to manage the essential and unexpected costs.

How to Manage the Finances for the First Year as a Home Owner

You try to create a more effective budget for your house once the concept of house poor is clear. However, the right strategy doesn’t seem easy to find with the many expenses and a limited budget. You can use the following tips to plan your finances as a homeowner for the first year.

1. Prepare for More Bills

You may think of utility bills the same as your previous accommodation in the rented space. However, it will increase when you move to your own house for many reasons. The foremost reason is the bigger space that requires more electricity and water consumption.

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In many situations, people move from a shared accommodation to own their house. Now, you are the only one responsible for paying the bills without support from your roommate. Therefore, prepare your budget for an increase in utility bills if you are moving to a bigger space.

2. Budget for Mortgage Payment

A mortgage is a long-term financial commitment with instalments to pay every month. You are adding another expense to your budget for the next few years. Thus, it will require a significant change in your budget and spending habits.

Do not let the mortgage repayment affect the timeline of other financial goals such as retirement funds. Try to curb the expenses to manage the instalments within the limited income. Also, create an emergency fund to manage the instalments during a tough financial phase.

3. Find the Right Décor

The interior décor and furniture are the expense where you will find great potentials for savings. You need to find the right décor for your house within the budget to increase its appeal. However, it doesn’t require the services of an overenthusiastic interior designer.

Explore the internet or visit the house of your loved ones to find the inspiration for your décor. Also, try to find the cheaper alternative of the expensive new furniture from garage sales or online marketplaces. In the end, a few minor details in your interior can wait until the next paycheque to avoid unnecessary credit card bills.

4. DIY Lawn Care

Your lawn will require proper care to avoid the wild grasses to ruin the appeal of your house. The regular mowing and gardening practice will require a few hours from your busy schedule. You will save significant money in the long run by avoiding the services of professional gardeners.

Furthermore, gardening is a great activity to release stress from your busy professional life. You can use the time to plant fruits and vegetables for fresh, homegrown produce. Also, the garden area can host many family games and grills to enjoy some quality time together with your loved ones.

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5. Renovate in Instalments

Homeowners need to understand that the renovation can take place after a few months of their moving in. You don’t have to put unnecessary stress on your budget to make the preferred changes to the property right after the purchase. Make yourself comfortable with the sudden increase in essential expenses first.

You should make a list of renovations and start saving money for them to upgrade the house. It will help increase the overall value of your property to get better returns in the future. Contact a direct lender for affordable interest rates if you are looking for instalment loans for bad credit to renovate the house.

6. Set Aside Money for Repairs and Maintenance

You need to create an emergency fund to manage the unforeseen repairs in your new house. Many people ignore the damages during the inspection process as the previous owners are very good at hiding them. The damage can spread to cost more if you ignore it to save money.

Furthermore, the house will require maintenance to avoid spending money on major repairs. You can take an insurance policy to cover these unexpected repairs, but they will require money for deductibles.

7. No Sudden Lifestyle Change

Many people change their lifestyle with more amenities to increase the overall comfort once they move into a new house. It is the result of living in a different neighbourhood and the change in social circle. However, sudden changes in your lifestyle can have a disastrous impact on your finances.

Furthermore, you should wait for at least a few months to start a family, new business, or take another major financial decision. It will help reduce uncertainties and complications for the new house owners.


To sum up, the first year as a new homeowner can get intimidating with the long list of expenses. You will face unforeseen situations to create financial troubles. Therefore, it is important to secure your finances with an emergency fund and a detailed budget to hold the ground after buying a house for the first time.

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