Becoming a home owner is a key goal for most people. A comfortable house in a nice neighbourhood is often regarded as a symbol of stability and success. A good home can be a safe haven for families, and even handed down through the generations. The costs involved in buying a house can be considerable of course, especially in today’s economy. Nevertheless, most people would agree that investing in a home is still far better than renting.
The cost of buying a house is not the only consideration. Properly maintaining a home also involves a significant financial commitment. After all, a house is not a home without basic amenities such as plumbing, electricity, and appliances. Naturally, each of these amenities adds to the expenses that every homeowner needs to manage.
How to cut the cost of managing your home
Most people would agree that keeping on top of bill payment is often stressful, and even more so when you are a homeowner with multiple utility payments likely due at the same time. Are there ways to cut the cost of some of these regular bills? Here are some tips for saving money on your bills:
- Mortgage payment. If you have a mortgage, this probably makes up the bulk of your monthly expenses. You may consider refinancing your home to get a better interest rate. The general rule of thumb when refinancing is that you should be able to lower your interest rate by at least 2%.
- Energy costs. Energy bills can also put a big dent in a person’s budget. To cut energy costs, you can switch to a better provider. If you feel that this is too much of a hassle, you can opt for more energy efficient lighting and appliance options.
- Water supply. Water is a basic necessity, and the only way you can save on cost is to be frugal in consumption. You can impose rules in your home when it comes to water use so that each member of the family contributes to your effort to save money.
- Home appliances. Home appliances will eventually break down due to wear and tear and repairs can be quite costly. Instead of relying on a regular warranty which expires after a short period of time, with limited coverage, you can opt for home warranties instead. What are home warranties? They are service contracts that help protect homeowners from the costs of unexpected repairs for appliances and major systems not covered by a manufacturer’s warranty.
- Homeowner’s insurance. Going without insurance is risky, especially if you live in an area prone to flooding, for example. You must check for options on how to reduce your premiums. Compare coverage benefits and premiums before choosing a provider.
- Phone and internet. Service providers offer bundles where you can combine a premium plan inclusive of phone, internet, and cable charges. You can avail of these bundles for your entire family to save money.
Saving even small amount of money on regular payment, can make a huge difference over time. Owning a home does not have to be a financial burden if you are smart in the way you manage your outgoings.