What to do When You’re House Rich, Cash Poor
Moving into a new place often brings with it the idea of a fresh start and different experiences. However, it can also bring with it some real and often unexpected financial challenges. Paying movers, the cost of mortgage and rent, and (usually) new furniture can add up – quickly. If you find yourself in a situation where you need to cut back on spending, while it might seem daunting, it doesn’t have to be painful. These ideas will help you make the shift scraping by to saving in no time.
Don’t Decorate Everything All at Once
As you’re
settling into your new home, you are probably looking around, imagining exactly
how you want it to look. Odds are you have already picked out the perfect
living room rug, the gorgeous kitchen table, and the new bedroom paint. However,
if money is a little tight, it’s time to be practical about what you can do at
the same time.
While it can be a lot of fun to pin your perfect décor choices onto your Pinterest boards, you will also want to draw up a detailed budget – make sure to leave lots of room for emergencies and unexpected costs. This will let you see where your money is going and figure out what you can put toward decorating your new home each month.
Try to Conserve Energy
If you are a
first-time homeowner, there is a good chance that you are not used to paying
the household utility bills. This can be a tough adjustment as the reality is
that household utilities eat away a large portion of homes monthly budget.
However, small changes can significantly add up over time.
- Turn off lights and unplug electronics when not in use.
- Use programmable thermostats to adjust the temperature in your home throughout the day.
- Be conscious of your household water usage.\
- Look into a free energy audit. It will identify areas of your home you can update or change to save energy and money.
Bundle Your Services
Sometimes
when you get a new living space, it is also time for a new service provider.
Before making any decisions though it is essential that you shop around for a
mobile plan that meets your needs without forcing you to pay for extras you
don’t actually want. You may also be able to find savings by bundling with your
Internet and cable service.
Be Smart About the Way You Shop
When our
budgets aren’t quite as tight, frugal shopping can go out the window. Take the
time to focus more on finding ways to save at the cash register.
- Use coupons. This takes some planning but can result in huge savings.
- Stock up during sales. If you have the storage space, grab extra non-perishable items when the costs are low. If you have enough freezer space, you can also stock up on meat and other freezer-friendly items.
- Shop around and seek out good deals. Big-ticket items may be available for less at smaller or online retailers, and your local retailer may be willing to price match to keep your business.
- If you can’t tell the difference, go generic. Generic food items are typically processed in the same plants as name brands. Buying off-label clothing and furniture can also help cut back on costs.
There are plenty of ways to save money on your new home without having to sacrifice all your favorite indulgences. Small adjustments to your budget can add up quickly and help you adjust to your new household expenses.