If we’re lucky, the majority of us get on top of saving habits during our teens and twenties.m After all, these are the years during which our money is our own. Then, we have no financial responsibilities. In the majority of cases, someone else feeds and clothes us. So, we’re freer than ever to save, save, save.
That freedom comes as a blessing to many. In our twenties, lots of us go crazy trying to save for the most expensive purchase of all. We are, of course, talking about houses. Once we reach twenty-one plus, most of us spare at least some thought to the need for a down payment. And, many of us get on top of saving for this reason.
But, even individuals who master money young make the mistake of forgetting to save once they achieve that goal. They have the house and are managing their household budget. Surely they can do what they want with leftover money?
Sadly not. In fact, homeowners have more reasons than most for saving. It may seem strange given you’ve tackled the most substantial investment. But, if you take your eye off that saving ball, there’s every chance you’ll lose the house before you know. If you aren’t convinced, read on to see a few reasons savings are such a staple part of homeownership.
You’re committed to a mortgage
Your mortgage itself is the most pressing reason to save. You busted your back saving for that down payment, so don’t ruin things now your mortgage is in place. After all, even those of us with large deposits often end up taking out mortgages of at least $100,000. That’s a whole load of money when you break it down. And, you signed the paperwork to confirm you’d pay it back. What’s more, as can be seen from sites like www.alllaw.com, missing payments can lead to increased charges, and even repossession. But, life is unpredictable. People miss out on money for all manner of reasons. Even something as simple as a week-long sickness could leave you short. Make sure that never happens by getting on top of your savings. By setting aside a small amount each month, you can at least ensure a rainy day fund to cover payments if necessary. As well as taking a weight from your shoulder, that security can ensure you never lose your home.
Something always needs doing
The majority of us want to get out of rented accommodation. After all, isn’t having a house much cheaper? Yes and no. While you no longer have to worry about paying rent for no reward, you do lose benefits as a homeowner. Remember that time the boiler broke, and your landlord gave you a new one? They likely paid around $5,000 for the privilege. And, when you’re the owner in question, there isn’t a landlord on hand to bail you out if things go wrong. If your boiler breaks, you’ll be paying for a new one.
In fact, you’ll soon discover that there’s a continual list of maintenance to take care of when you own a home. You can gain some idea of how extensive that list might be from sites like www.diynetwork.com. And, that doesn’t even cover half of it. Owners in old homes will find that expensive jobs wait around every corner. Even new homeowners often feel they face one expense after another. And, though you may think you can put these jobs off, your lifestyle will soon start to suffer for it. So, get saving to ensure you can tackle that neverending maintenance without worry.
You never know what’s around the corner
In life, we can never tell what’s coming around the corner. That’s a reason to save in any situation, but especially when you have a house. Unexpected hits you can’t afford just aren’t an option to you anymore. If you lost your job, for instance, you would soon lose your home as a result. After all, how would you be able to pay your bills each month? Equally, you never know what’s around the corner regarding your home. We’ve already mentioned the cost of maintenance, but that isn’t the only worry. Disasters such as floods and damage should also be on your radar. You can’t do anything to stop them, but you can be sure they’ll sting you if you don’t save. Of course, you can seek out insurance policies which will cover some issues for you. Bear in mind, though, that insurers don’t want to payout. As such, you’d be in a much better position if you could afford the services of an adjuster like those found at millerpublicadjusters.com. Such individuals can ensure you gain as much money back as possible. But, this won’t be an option for you if you don’t have savings in the first place!
Bills don’t say stable
If you’re new to this homeowner deal, you might assume your bills are set at this rate, and that’s that. So, now you have a budget set out, what’s the use in setting money aside? We hate to break it to you, but bills are far from steady things. In fact, the majority of companies raise their rates each year, sometimes by large sums. Even your mortgage is prone to change if you opted for a variable choice. So, a budget which covered you one month may not work the next. Of course, savings can’t help in the long-run here. But, knowing you have money in the bank can at least buy you a few months to adjust and shuffle your finances. And, that could make all the difference when it comes to keeping on top.
A final word
Next time you waste your spare money, then, you might want to think twice. Far from seeing you high and dry, your homeowner status makes setting money aside more crucial than ever. At least, it should do if you want to keep a firm grip on that house you worked so hard for.