If this is your first time owning a home there are a lot of financial changes on the horizon. You want to be prepared and not surprised for the financial path ahead, here are some simple ways to adjust.
#1. Prioritize your luxuries.
Do you really need that latte every morning? Can you cut them back to one or two a week? What about getting your nails done, hair done, said golf game or fishing excursion? If you cut back on some of these items to leave more money in the bank for emergencies?
A really good way to adjust your finances and to understand where everything is going is to put a piece of paper on the refrigerator for groceries and food, eating out and entertainment, gas, miscellaneous expenses, which could include clothes, doctor's appointments, home improvement projects etc. Anytime you spend money on one of these items write down the amount in the appropriate column. This shows you where all of your money is going every single week. It's a little bit easier visually than a checking account and you don't have to go back at the end of the month to figure out where all of your money went. Figure out how much you're spending each week on different items and see if you can cut back on some of the items that are not necessary.
#2. Eliminate any unnecessary expenses.
Are you paying for Netflix, Hulu, Amazon, and cable TV? Maybe you can cut that back to one or two TV devices. Find out how much you are spending on digital entertainment and what you can do without. What about a cell phone plan that you don't really use?Do you have a huge amount of minutes that you're just not using? What about a landline? There are so many monthly expenses because everything is a monthly fee now, it seems. What can you cut back on? Can you cut down on expenses at a gym or other items? Take a look at all of your monthly fixed expenses and see where you can cut back or eliminate.
#3. Turn hobbies into cash flow.
If there's something that you love doing as a hobby, try to find a way to turn it into a business. You can earn a little extra and if you stay under a certain amount each month you don't have to apply for a business license. Maybe you like to knit or crochet, make blankets, prepare food or sell cookies? There are a lot of direct marketing companies out there that have you sell something that you might feel passionate about whether it's essential oils, jewelry or clothes. Maybe you want to be a blogger, photographer, or event planner. There are so many things that you might want to do for added income that are things you really love, instead of just see it as work.
Read More: Surprises most first-time buyers get
#4. Save money wherever you can, including your social life.
Going out to eat can be extremely expensive. We have found that going out a little here or there, even that latte with a friend or drinks with a coworker can really add up. Try to find online discounts and Groupons for social events, restaurants, and other activities to save you as much as 50% every time you go out.
The important thing is to have that emergency fund so in case something breaks down, you have the funds to repair or replace it. For more information for first time home buyers, check out these great tips. - First Posted on Linkedin
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