- No.1 - Renovating the outdoor space immediately
- No.2 - Having an outdated insurance policy
- No.3 - Buying stuff to fill up space
- No.4 - Extended warranties
- No.5 - Going overboard with yard maintenance
You probably know this by now but it is worth repeating: buying a home is a huge expense.
After spending all of that money, it is very easy to spend even more on stuff you don’t really need at the moment.
You have a big, shiny house so surely you must fill it with new, shiny things, right? Wrong!
Whilst it is important to buy things, you need to make sure that you focus on the necessities first and the niceties later. Here are five things new homeowners generally waste their money on:
No.1 – Renovating the outdoor space immediately
You might be looking forward to having your first braai which is why your outdoor area seems like the most important thing you want to renovate.
However, your outdoor space should not be your first priority especially if you are tight on cash.
There are more important things that you should purchase first like appliances and furniture. These things are vital for the functionality of the house.
If you are building, the same rule applies: work on the house first and then tend to the garden. And do not do these two things together.
No.2 – Having an outdated insurance policy
Many buyers still use the same insurance policy they took out when they were renters. This is a big no-no.
Your needs changed: you are now a homeowner so your insurance should change as well.
Shop around and see what is on offer. You may choose to stay with the company but go onto a better policy or you might see something better elsewhere.
Just because the company offered a great policy for renters does not mean that their homeowners’ insurance will be amazing. Go through your options, take your time, and do adequate research.
No.3 – Buying stuff to fill up space
If you are moving from an apartment or granny flat, you are going to be surprised to see how much space you have in your new home. You might even have a dining room and another bedroom!
Do not feel like you have to fill all the rooms up at once. This will only cause you to buy unnecessary stuff that you do not need and you will end up spending too much money at once.
Give yourself time to grow into your home and for your personality to emerge.
No.4 – Extended warranties
Homes do not generally come with new appliances which means that you are going to buy everything brand new.
When offered an extended home warranty on these purchases, decline immediately. You do not need it.
The chances are slim that everything you own will break at the same time. Sure, you might have one or two malfunctioning appliances but repairing them will cost you far less than paying an extended warranty every month.
If you are happy to run that risk, you will save in the long run.
No.5 – Going overboard with yard maintenance
It is exciting having your own yard and you are going to want to do everything to make sure it is in perfect condition.
However, whilst it is important to keep it healthy and fresh, do not go overboard with yard maintenance.
Do you really need someone to help keep your garden tidy? You can cut the grass yourself and trim the shrubbery with a borrowed pair of shears until your finances are back on track. A gorgeous lawn is achievable without spending a small fortune on maintenance.
Do not fall into the trap of overspending when you buy a new house. It is a huge responsibility and as a homeowner, you initially need a relatively stable bank account to maintain it – at least until you’re familiar with its monthly costs!