Homeowner Spending Mistakes To Avoid: Some Tips To Consider

No one plans to waste money purposely… but sometimes it happens, especially when it comes to our homes.  

Owning a home can come with added expenses when you least expect it. At any point in time, you may have to spend money unexpectedly for a repair or a replacement of anything from an appliance to a roof, so always be sure you have enough savings on hand and avoid making any costly spending mistakes.  

I’ve put together some tips that are important for every homeowner, whether you just moved in or have lived in your home for a while:

Wanting a HGTV home right away. Do you love design and renovation shows and want your home to be like the “after” shots as soon as possible? I know. Me too. But, if you’ve just moved, try to slow down and make yourself live in your home for a while with your existing stuff before you make major purchases (i.e. sectional couch, bedroom furniture, dining room table), too many minor purchases (i.e. lighting, window treatments, rugs) or commit to drastic renovation decisions (tearing down walls, upgrading cabinets and countertops).

I recommend you wait a year or so until your house starts to feel like “home.”  Spend time in it before you do too much, learn how you live in your home first, and then buy accordingly.

Don’t try to fill empty rooms with artwork, furniture, or décor as if you’re up against a deadline, like on the HGTV shows. Make thoughtful purchases and save up for the pieces you’ll love for years to come. Enjoy the process of making over your new home by taking your time – you’ll save money along the way and your rooms will reflect your personality better than if you rush.

Bypassing Do-It-Yourself attempts.  You probably have a yard now that needs to be mowed and raked, or a larger home with more bathrooms to clean. Try to see if you can manage some of these new chores yourself before you hire a lawn care service or a cleaning service. This can save you hundreds of dollars each month.

Some fix-it tasks don’t necessarily require a handyman or a plumber. Learn to handle some DIY skills on your own. You can check out YouTube videos, get step-by-step instructions from home improvements websites, or ask your friends for a tutorial. I have a friend who is a fantastic gardener, and she has been nice enough to come over and help me spruce up my yard. It was a great way for me to learn, and now I enjoy keeping it looking nice.

Not updating some of your old “habits.” Do you buy a cup of coffee every morning on the way to work? Do you need to pay for cable or will a streaming service handle your needs? When you move, you can reevaluate some of the things you’ve done before. Buying a new home is like a clean slate where you can start some money-saving habits right away.

You now might have more counter space for a coffee maker (or a coffee bar) and can brew yourself a cup (or cups) before you head out. The upfront cost will pay itself off before you know it!  Or, maybe it’s time to rethink how you watch your favorite TV shows. There are so many choices out there that can better match your TV-watching style while saving you money.

Keep looking for ways to save in your new place. Maybe now is the time to cancel that rarely used gym membership and work-out at home? Or, can you enjoy cooking in your new kitchen and ditch the expensive take-out habit?

Paying for that extended warranty.  Sometimes major appliances aren’t included with your home purchase or they don’t need to be replaced right away. Most of us look for sales and good deals before we buy a refrigerator, washer, dryer and other appliances. That’s why you should think twice before you agree to an extended warranty. That extra money could be better used or saved for your own cash flow purposes.

If something does break, it can cost less than what you put into the warranty OR that particular problem might not be covered at all. You should also check your credit card also to see if it offers a year of extended warranty on purchases. 

Last piece of advice about home warranties—you could pay annually for one and it will cover all appliances and more!

Not shopping around for homeowner’s insurance. Don’t get into a rut when it comes to insurance. Look for a policy that better protects your home and your pocketbook. Many new buyers stick with their previous renters or auto insurance company. That’s great, but make sure you really know what’s being covered and the cost for their homeowner’s policies AND then compare this to other companies. A good insurance agent should be willing to shop for better policies for you when it’s time for your policy to renew.

Keep in mind that having more than one policy with the same company might get you a discount. Be sure to ask about any savings if you purchase both your auto and homeowners insurance policies from a company. Also, be sure you know if your auto insurance covers roadside assistance and towing. If so, maybe you can cancel your AAA policy.

Not taking your home’s energy efficiency seriously enough. Your home can cost your hundreds of dollars a year and you might not even know it. Get yourself an energy audit to see where your home is wasting energy.

I hope these tips help you save some money and help you be a more confident homeowner.

I’m always here for you after you move into your new home to answer questions and help you make decisions.  Your home is likely your biggest investment, and I am your go-to resource for all things real estate related, so don’t hesitant to call or email me at jennifer@skeltoncompany.com.

Not buying or selling a home anytime soon? I’m still here for you. Call or email me at any time.