Spreadsheets Are Helpful
We bought the home knowing we wanted to make many updates, and spreadsheets have been critical for helping us stay on track and on top of finances. We created a spreadsheet to help us monitor standard house-related expenses, and another to help us keep track of expenses and deadlines for our home-improvement projects.
Maybe you’re not a spreadsheet person, and that’s OK. But whether you’re buying a condo, a single-family home or a multi-unit building like ours, I cannot emphasize enough the importance of a system for managing household finances. Being organized has given us a sense of control that we really value as new homeowners.
Expect (and Budget for) Emergencies
Budgeting for fun projects and home improvements is important, but budgeting for repairs and emergencies is critical. In the year since purchasing our home, we have had our fair share of unexpected expenses.
In October, there was a gas leak in our basement, which required cutting into the drywall and replacing several pipes. Just a few weeks later, the second-floor furnace broke down. The part that needed to be replaced cost nearly as much as the unit itself, so we opted to replace the whole thing. A month after that, the furnace in the basement also gave out and needed to be replaced. All in all, we spent over $10,000 on our HVAC systems in the first six months of owning a home – and before this, I didn’t even know how to change an air filter.
Be realistic about the maintenance costs of homeownership, and if you know you’ll be too stretched to have a rainy day fund, consider buying a less expensive home, purchasing a home with newer systems, or establishing a home equity line of credit to tap in case of emergencies.
You’ll Need Tools
Before moving into our home, we lived in an apartment that is roughly the same size as our new space. And I thought this meant we already had all the tools we’d need, but I was quickly proven wrong.
A screwdriver, a hammer and a tape measure might cut it for renting an apartment, but for a three-flat…not so much. In our first few months as homeowners, we had to buy a lawn mower, weed whacker, ladder, fire extinguisher, new smoke detectors and several other tools. So, make sure to budget for those items. Pro tip: FaceBook Marketplace is a great resource for secondhand tools if you’re trying to save money.
Stay On Top of Maintenance
I remember the days of calling my landlord when something in my apartment needed maintenance. Now, I’m that person. When you’re a renter, you don’t put a lot of importance on small tasks like replacing furnace filters and cleaning out dryer vents. But these are critical jobs that, as a homeowner, will save you time, money and headaches in the long run.
Chances are you’ll learn a lot about basic plumbing, electrical, lawn care and HVAC in your first year as a homeowner. I learn something new every week. For example, did you know that electricity wasn’t in most homes until 1925? I learned that last week after we took down the old ceiling fans to discover the original pipes in the walls from when the house’s lights were powered by gas!
The good news is it’s pretty easy to “do it yourself” these days thanks to YouTube and other online resources. Apps like HomeZada and HomeKeep will also remind you of important house-related tasks.
Bottom Line
Although owning a home has definitely proven more challenging than renting, the freedom of my own space and the financial benefits of an asset that is gaining equity and providing a tax shelter makes it more than worth it.