New Homeowners: 3 Ways You May Be Wasting Money

After you buy a house and move in, it can be hard to not want to upgrade your whole life.

A house upgrade can make you rethink your old furniture that doesn’t work in the new space and that sofa you’ve had since college. Then, if you replace the sofa, you’ll need a new coffee table, and, now that you think about it, some matching bookshelves and a new rug…

And, from there, it can spiral out of control.

Don’t get us wrong, though – as new homeowners, you probably have to make some necessary purchases. The key lies in figuring out where to spend your cash wisely, and where it might be wasted at this particular moment in time.

3 Unwise Purchases for New Homeowners

When you’re done moving in, don’t immediately get out your wallet. Now is the time for saving money and spending judiciously. Don’t buy stuff you don’t need, and don’t make unwise purchases. Here are the top three to avoid.

1. Backyard or Outdoor Furniture

Finally, you have a private yard! You may want to immediately run out and buy an outdoor table, a hammock, and a grill, but hold on.

First, consider the season. Would you even be able to use that stuff if you bought it right now? Next, reorder your priorities. Your outdoor space is probably the last area you should be worrying about immediately after moving in.

Buying a new mattress or replacing the heater sound really boring, but sleeping and staying warm are far more important than being able to lounge around in your backyard.

If it’s summer and you’re dying to host a house-warming backyard barbecue, consider making it an informal potluck picnic instead. Or, give up the ghost and let somebody else do the party-hosting at their house.

2. An Old Insurance Policy

Whether you rented or owned a home previously, your old insurance probably isn’t a good fit anymore. Don’t keep paying for a policy that won’t cover your new circumstances, like if your new house is located in a flood plain. Shop around and find a better fit. Only pay for coverage you actually need.

3. Space Fillers

Buying furniture just to fill up empty rooms or spaces in your new house will end up being a waste of money.

You haven’t lived in your house long enough to know how you’ll truly use each room. Making purchases depending on how you think you’ll use the space is a gamble. Plus, a hurried purchase might be a compromise, and you might see a piece later that you actually love. That’s when dreaded buyer’s remorse sets in.

The short answer: Go ahead and live in an echoing house for now. Buy slowly and purposefully to save money and make better decisions.

New Homeowners Need Spending Priorities

New homeowners, don’t fall into the money pit of moving house. Instead, hold back your spending, re-evaluate where your current cash flow is going, and buy intentionally for a brighter future.