Many new homeowners who have recently taken possession of their property experience the feeling of trying to maintain financial stability with their mortgage. No matter how prepared you are, it can still be a tricky adjustment period as you settle into your new financial obligations. However, you are not doomed to suffer from financial struggles! There are certainly some strategies you can use to help strike the right balance as a new homeowner with a mortgage. Here are some tips to help you get started.
Create a monthly budget
Now that you have a big financial commitment, it’s important to find out how you can successfully integrate it into your life. Before you had a mortgage, you may have had more financial stability and freedom. It’s possible you had no real need for a strict budget, because your income was always higher than your expenses. Now, however, this has likely changed. Your monthly mortgage payments are an additional cost that will require you to think carefully about how you spend and save. Creating a monthly budget that takes into account all of your expenses can help you stay on track. Think about how much you spend on groceries, utilities, entertainment, internet, and now, mortgage payments. This will tell you how much money you will be spending and saving monthly, and whether you need to limit your spending in one area to stay within a budget you can afford.
Try out a budgeting app
If you’re not sure how to budget for yourself, you’re not alone. Luckily, there are several financial and budgeting apps out there that can help you get started. These apps use various strategies such as the envelope system or spending trackers to help you manage your money. Many of them are free, and most apps these days allow you to connect to your online banking account. This means you can get notifications of upcoming due dates and spending habits from within the app itself. Budgeting apps can be great tools to help you regain a feeling of financial stability while you’re adjusting to your new mortgage. You can read our full list of app recommendations here.
Keep contributing to your rainy day fund
Your rainy day fund or emergency fund is an important savings account to maintain. This account helps soften the blow when unexpected expenses pop up, as they do in everyone’s lives. Sudden vet care, dentist appointments, or medication expenses can catch us off guard with their price tags. Your emergency fund provides you with backup savings to cover these costs.
Although you are likely preoccupied with your mortgage payments, do your best not to neglect your emergency fund. Make a point of adding to it regularly, even if you need to decrease the amount you can contribute. You just never know when you might require some extra money, and these types of savings improve your financial stability.
Do not miss any mortgage payment due dates
This seems like a no-brainer, but it’s a good reminder to hear once in a while! Your mortgage contract specifies your payment schedule, how much you owe, and what interest rate you have. If you are late with mortgage payments, or miss one entirely, this could get you in some trouble. You will likely face a penalty from the lender, which will only increase the amount you owe. It could also reflect poorly on your credit score. Once this cycle begins, it can be hard to break free, especially if you are already on a tight budget. Make it a priority to always be on time with your payments so you can avoid extra fees. This will help you stay on top of your finances and limit your extra expenses.
Contact a mortgage broker!
Finally, a mortgage broker plays a huge role in building your financial stability! When you use a broker to help you secure your mortgage, they will be with you for the long run. Your broker doesn’t disappear once you take possession of your property. We are here to help you discuss your mortgage options at all times, and guide you through any issues you may have. We can assist you with renewing, refinancing, dealing with debt, and anything else to provide you with financial peace of mind.
Balancing financial stability with a new mortgage can feel tricky. However, this balancing act is made much simpler with proper budgeting and professional guidance. If you are a current or future homeowner with concerns about your mortgage, reach out to us! We can help you get on the right track to ensure your financial future is bright.
If you have any questions about your mortgage, get in touch with me!