Managing Finances after Purchasing your first Home

There is no greater experience than buying your first home. It is one of the biggest expenses we make, and it heralds a time in our lives to settle down and perhaps think of children. A new home will also increase your budget as owning a home brings with it additional expenses. These new expenses will need to be budgeted for wisely.

Along with the excitement of a new home comes a new responsibility. It is a time to look at one’s budget, which will look very different to what it was before. It is absolutely paramount to keep one’s mortgage repayments up to date, and an amount will also need to be set aside for this expense.

Mortgage companies are not very forgiving, and one will only need to miss a couple of payments to be in trouble. It might be an idea to take out insurance to cover for unemployment and this will also be another new expense to add to your budget.

Along with the mortgage, will be the necessity to have a bricks and mortar insurance. Not only is this wise but one’s mortgage provider will insist on you having cover as a condition of you mortgage.

There will also be utility bills to consider for the first time. One might need to budget for electricity, gas and water. One might also want a landline phone and Internet connection. These bills can be quite sizable, and it is important to set aside enough to cover these expenses. In addition one should have contents cover in the advent of thief or fire. A good contents insurance will cover accidental damage or spoilt food in your freezer should there be an electrical fault.

Unless your new home is brand new there will be expenses in its upkeep. Most homes need a constant regime of paint and repair work. You may need to buy tools both for the home and garden. Garden tools can be expensive if you need things like a mower, hedge trimmers and the like. You will need to budget for occasional replacements.

It will be wise to have some savings for a rainy day as things like carpets, curtains, the washing machine, the dish washer and a host of other things will need to be replaced with time. Nothing lasts forever, and most household appliances will need to be renewed at some point or another.