No question that being a new homeowner is exciting and fun. You can do whatever you want, which isn’t always what you’re used to as an adult. However, it also comes with a list of obligations you have to deal with that many homeowners get wrapped up in. One of these is paying your bills as a homeowner and managing them well, but we’re here to help solve some of the difficulties new homeowners face.
1. Use a Budgeting App
One of the best ways to ensure you have enough money to help paying bills is to clearly understand what’s coming in and going out each month. To do this, use a budgeting app. These apps help you set up monthly budgets that’ll allow you to see at a glance whether or not you have enough money to pay all of your bills on time. Many people find they don’t have enough each month to cover all their payments, so having a plan for how you can save toward a goal allows them to ensure they have an emergency fund in place, which could help avoid late fees and other penalties.
2. Sell or Rent Out Some of Your Space
If you’re starting homeownership and don’t have a lot of equity, one way to get out from under the weight of your mortgage is to rent out some of your space. Renting out a portion of your home will help increase your income and remove some of the expenses of owning a home. However, if you have a mortgage and have only put down 20 percent on your house (which is not uncommon), you’ll need to consider refinancing shortly after buying your home to free up more equity.
3. Ask for Help From Friends and Family
For many new homeowners, it can be overwhelming to manage the day-to-day expenses of homeownership. While some people can afford their homes independently, others might not have enough income to cover basic living expenses and mortgage payments. Suppose your situation is similar to this one. In that case, you should consider asking a friend or family member for help paying your bills until you have a steady income and the resources necessary to handle everything on your own.
4. Asset Liquidation
Asset liquidation is selling your assets and collecting the money from each sale. You’ll need to meet with an accountant, prepare a plan for selling your investments, and ensure you have a buyer for every asset. For many first-time homebuyers, the most daunting task of homeownership is paying their mortgage. Many new home buyers don’t have traditional sources of credit, such as credit cards or a bank account that they can use to pay their monthly bills. In these instances, it can be helpful to look into asset liquidation so you can sell off some of your things and help you pay your house payment.
5. Cut Costs by Changing Your Spending Habits
One critical step to kicking your household spending habits into gear is to recognize what you’re already doing. Sit down with a pen and paper and jot down everything you spend money on outside of bills and necessities. Try not to focus too much on the luxuries of your life, but rather look more at areas like eating out and taking trips.
6. Get an Affordable Home Insurance Policy
After you’ve purchased a house, there will be significant expenses like mortgage payments, home remodeling projects, and moving costs. The best way to deal with those is to get an affordable policy that covers everything you need and includes all the bells and whistles you want.
7. Use a Debt Interchange Account
Many financial experts suggest that new homeowners start with a Debt Interchange Account, which helps them become more financially secure. The good news is that it’s easy to open one, and the interest paid on the money stays with your account. With a debt interchange account, you can consolidate all your balances into one low-interest rate loan. This makes paying off your bills more manageable since there’s only one monthly payment to worry about instead of multiple ones.
8. Start a Side Hustle
One of the best ways to get ahead is through side hustles. Starting a side business is an excellent way to build your skills and find additional income streams when you’re new to homeownership. “A successful side hustle can provide financial security, challenge you to work on your entrepreneurial skills, and offer a new lifestyle.
You can’t always avoid surprises, but you can be prepared to handle them. A little flexibility goes a long way in making homeownership much easier when there’s a hiccup, and greater flexibility means less stress. Paying home ownership on a single income can seem impossible for some new homeowners. It doesn’t have to be, though, as getting help paying bills and maintaining your credit score is possible. You have to know how.