Budgeting for your Homeownership
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hy is homeownership considered one of the biggest risks a person could ever make?
Homeownership has its many advantages, and before you get your keys to your brand new home, the process is painful and tiresome. First, homeownership comes with a lot of new expenses you didn’t know about as a renter. Therefore, it is important to learn how to create your budget, in the end, it will be worth it. While renting, you may be carefree with your finances and avoid budgeting, you don’t have to worry about paying any property taxes or insurance. Owning a home will change that completely. As a homeowner, one thing you will notice is that your spending habits will change. Your monthly spending starts with a check to pay for the mortgage. In a month, your mortgage payment 14
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typically may be your biggest expense and is considered by many to be the most important payment after all who would want to lose a roof over their head? To be able to manage your finance frugally, you have to know how to budget which ultimately ensures that all of the expenses of homeownership are catered for. Purchasing a house will take a toll on your bank account both on the day you decide to close the transaction and every month that follows with recurring home expenses. Many first time homebuyers have this notion that once they settle the downpayment on their home, the only thing left to worry about is the mortgage payment, which they think is a regular cost. There are THE POWER IS NOW MAGAZINE | MARCH 2020
