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10 savvy finance tips for new homeowners

Updated: Apr 1

Buying a new home is an exciting time in any person’s life. That’s not to say it isn’t cheap. Sometimes it’s easy to feel as if you’re losing control of your finances and the feeling can often be overwhelming.


Finance is our forte, and that’s why we thought that it would only be fitting to share some budget tips to help you take more financial control during this new chapter of your life. Even if you aren’t a new homeowner, and you’re looking for finance tips around everyday living – these strategies may even be perfect for you!


Tip #1: Create a weekly, monthly, and yearly household budget


You may think that budgeting requires a lot of will power. Truth be told; anyone can do it! Heck, there are even online budget planners that can generate your income and expenditure for you.


Step 1 – Determine household income

That may be income coming from wages, government benefits or from investments. When establishing your budget, it’s important to consider how often you’re receiving it. This will play a role in how quickly you’re spending it.


Step 2 – Determine your household expenses

It’s generally best to categorize these by week, month, and year. Splitting your budget into several categories will give you a holistic short- and long-term overview of your saving habits and can help you build wealth.


Types of expenses:

Finance tips: types of household expenses to know about
Types of household expenses

For more information or resources on how to build a budget, please check out the following links.


https://moneysmart.gov.au/budgeting/budget-planner

https://www.money.com.au/budget-planner-spreadsheet







Tip #2: Create a weekly shopping list and stick to it

Doing this can help you take better financial control and spend your incomings wisely. Planning your weekly groceries can help you to determine necessary grocery items and can minimize food wastage. When creating a weekly shopping list, it’s also recommended that you keep your budgeted grocery expenditure in mind and be careful not to spend more than what you can realistically afford.


Additional tip: look for savings and reduced-price items online to help you plan your shopping list better


Tip #3: Avoid take out and start cooking


A finance tip that can help you save money is to stop buying take out. Instead, make the most of tip two and start cooking your own meals. The more that you cook meals at home and meal prep means that you could possibly be saving anywhere between $50 to a couple of hundred dollars each week on unnecessary takeout.


Tip #4: Cancel unused subscriptions


Are you paying for a streaming subscription or gym membership that you haven’t used in months? Perhaps it may be a good time to consider cancelling that subscription. After all, there’s no point in spending money on something that you don’t use.


Tip #5: Take financial control of your energy usage


There are several ways that you can become more conservative of your energy expenditure. One way is turning off appliances when they aren’t in use, i.e., turning off fans, televisions, and air conditioning.


Another useful strategy is installing solar. While you will incur an upfront cost of installing the panels (and this differs on how many kilowatts of energy you require for your household), you will end up saving money on electricity bills. Most solar panels can pay themselves off in a short number of years.


Before you get solar panels installed, be sure to check out your eligibility for grants and incentives. Depending on where you’re located and the provider you go with, you may be entitled to savings.


Tip #6: Stop trying to keep up with the Joneses


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If you’re wanting to do your part to build wealth and take more financial control, it may be time to stop benchmarking yourself against others. Although this is more of a mindset related tip, it can really help you to be responsible for your own actions.


Buying the latest luxury items that people in your social network may have, just because it makes you look cool, can really set you back. Especially if you don’t need it.


So, don't do that - it's not cool!



Tip #7: Automate your savings


Did you know that you can ask your employer to transfer part of your pay into a separate savings account? Well, if you didn’t, you do now.


REIF finance specialists/ mortgage brokers usually recommend saving 10-20% of your income into a separate account or war chest. This can help you save for a rainy day.


Tip #8: Create financial goals


Creating goals are so important for manifesting dreams into a reality. The same goes for financial related goals. A great tip for any new homeowner who’s looking to set themselves up for financial success is to create goals and make a vision board. So long as your goals follow the SMART formula, nothing should stop you from achieving them.


Check out this blog we wrote earlier on how you can create financial goals.


Tip #9: Don’t just rely on one income stream


Our finance specialists/ mortgage brokers will generally tell you that you cannot just rely on one stream of income. If you’re wanting to generate wealth to support your long-term financial goals, it’s very important to have several income streams working for you.


Some ways that you can generate additional income include making money from a side hustle, having investment returns working for you, working extra hours, or working a second job.


Tip #10: Work with a finance specialist/ mortgage broker


If you’re a new homeowner, having someone behind you who understands current rates and lenders will be useful in your ability to save money. Our REIF finance specialists will work with you to source the most suitable finance solutions for your circumstances.


They compare the latest rates and offerings to ensure that you’re not paying any more than you need to on mortgage lending.


To get in touch with an REIF finance specialist, reach out on the details below. We’re always more than happy to assist!


Ph: 1300 130 932



We explore this topic in our eBook 'Guide to Buying Your First Home.' Check it out here for FREE!





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