On January 2, 2021, I released my fourth book, Managing Your Money As A New Homeowner. This book was important to write because there are not enough resources focused on helping new homeowners adjust to their new financial responsibilities. What happens right after you purchase your first home? How do you avoid getting into credit card debt? How will your finances change? What are the most commons mistakes you should avoid? I explore all of these topics in my new book.
Here’s the introduction to Managing Your Money As A New Homeowner. If you want to read more, I invite you to grab a copy here. This book is for new and aspiring homeowners who are looking for simple ways to organize their finances and start their homeownership journey on the right foot.
How To Manage Your Money As A New Homeowner
When purchasing a home, you have the support of a team: a realtor, a lawyer, a mortgage lender, inspectors, appraisers, and contractors. However, most homeowners are left to their own devices as soon as they sign on the dotted line. While many people talk about the home buying process, no one discloses what happens afterward: the financial worry and stress that often follows.
Although I was fortunate enough to have my mom by my side, an experienced homeowner and a real estate investor, neither of us could have predicted the financial mess I would find myself in shortly after moving. Putting little thought into what life would look like after purchasing a home meant I spent the first two years struggling, living paycheck to paycheck. If you are a new homeowner, maybe you can relate. While it is assumed you understand what you are getting yourself into, it’s inevitable to have blind spots.
As I write this, I have been a homeowner for over three years. The first two years were admittedly challenging. Let’s be real. It was a shitshow. Some say the way to learn is through experience. Although I disagree, if that’s the case, I have emerged wiser. But I wish someone would have taken the time to write a book on this topic or a detailed blog post. Call me crazy, but I would rather read about someone else’s mistakes than make the same ones, especially if avoidable.
Despite all the blunders, I turned out fine. My finances are less turbulent, my spending is more consistent, and I even have money left over to save and invest every month. While I could not have written this book without the hardships, I recognize my life could have been less trying if I had known what I know now. Even though I have made mistakes, because of them, I picked up several money management skills.
This book will give you an overview of the simple ways to organize and optimize your finances as a homeowner. Specifically, a new homeowner with up to three years of experience. Use this guide to help you stay on top of your finances, protect and maintain your most valuable asset. By sharing what I have learned and the financial strategies I have since implemented, I sincerely hope you will feel more prepared to assume all your new responsibilities.
In Chapters 2 and 3, I outline my homeownership story: the lessons I learned, and the most common mistakes new homeowners make as a result of not saving enough. This is important to highlight because the decisions you make as a first-time home buyer impact everything you do afterward. In Chapters 4-7 I detail my framework for managing your money as a new homeowner: the bank accounts you need and how to stash away cash for anticipated and unexpected expenses. This book is intentionally lean so you can apply what you learn as quickly as possible.
The more informed and aware you are, the better. If you have a good handle on your finances, it will positively impact all areas of your life – happiness, physical, emotional, and mental wellbeing. Overall, managing your money as a new homeowner means being in control and creating a financial plan. It also means having peace of mind, even when things get stressful.
Although buying a home is an enormous financial accomplishment, life doesn’t stop there. Your hopes and dreams do not disappear as soon as you purchase a home. If you’re like me, they get bigger.
Right after purchasing my home, I decided I wanted to retire early. To meet this audacious goal, getting rid of my mortgage as quickly as possible became paramount. No mortgage means less financial responsibility. This sparked me to get a better handle on my finances. I started budgeting again and scheduled weekly money dates: time dedicated to reviewing my finances, paying bills, and tracking the progress I’ve made towards my financial goals. I also planned to get out of debt. Later I funneled that money to make extra mortgage payments. As a result, in three years, I paid off $22,000. While I have a long way to go, I am proud. Scraping up extra money to put towards my mortgage is not easy. Besides, I still want to travel, build wealth, dine out, and have nice things. Before we get into the how-to money management portion of this book, gather around the campfire. Let’s start at the beginning.
Did you enjoy this excerpt?
Learn more about Managing Your Money As A New Homeowner here.