Usually, when people are looking to buy a new home, they don’t go around telling all of their friends and family “Aki! I can’t wait to buy this new home, because we’re saving so much money!” What Kenyans would love to know how to save money even when spending.
On a general note, homes cost money to build, rent or purchase. If you really wanted to save money, living somewhere that was free, like with your parents, would be saving money. But we have great news! As impossible as it sounds, you can save money when you’re purchasing a home! Don’t believe us? Go ahead and read our list of things you can do right now to save money on that new house.
LITERALLY … SAVE MONEY
The first way you can save money in a new home is just that. Literally, start saving money. If you don’t already have a savings account, go to your bank and open one up. Then, start putting 10-15% of your paycheck into the account. Now, you might be wondering why you should start saving money when you’re attempting to buy a brand new house.
Saving money lets you start a rainy day fund, for when something in your home fails, you have to clean your carpets, or you don’t have enough money to pay the bills that month. Most realtors assume that you’re purchasing a home because you have a well-paying job. There may be a time when you are in between jobs and you have no income to pay the bills on the home.
I don’t have any money, but I could pay you in soil? We have all wondered.
Setting up a savings account can get you and your family through the rough patches without having to go into debt. Using a credit card or a loan on home repairs make you have to pay more in the long run because of interest, so it’s better to dip into a savings account than run up charges on your credit card.
GETTING HOME INSURANCE
Yes, getting home insurance can save you money. Maybe you are thinking, “Why would I get home insurance when I could just pay for the expenses of a repair or replacement with my savings account you just told me to start?”
First off, home insurance doesn’t just repair or replace your home. It covers you in case of a tragedy like natural disasters. So not only can you get your home for your peace of mind, but it helps with your savings account balance as well.
BUY ENERGY EFFICIENT APPLIANCES
Unless you’ve been hiding underneath a rock, you probably have heard a little bit about the green movement, and how to be environmentally friendly. One of the ways you can do that is by buying energy-efficient appliances. Not only does that save the environment … but it also saves you money!
I haven’t heard about energy efficiency because when you live under a rock, you don’t really need appliances.
That’s right. The fridge, lights and cooker that saves the world, save your wallet. So when you start shopping for things to purchase for your new home, if they are energy-efficient, it’s a good idea to buy them.
Although these appliances are generally more expensive than other non-energy efficient appliances, you’ll save a lot more money. It means they use up less energy, and that means less energy that you have to pay for in the long run. But pay attention when you’re buying appliances for your home that you…
DON’T BUY FURNITURE JUST TO FILL UP A ROOM
Chances are, you’re buying a new home because you’re growing out of the old one. Maybe you want more space, or you’re moving from an apartment to a house. Either way, you’re probably not going to have enough furniture to fill up the entire home. That’s OK! There is no rule in the non-existent “Rules of Home Ownership” book that stipulates you have to put furniture in all of your rooms the second you move into your home.
I could have sworn that it was rule #4092 … but wait, no you’re right. That just says something about making sure your furniture can actually fit in your house.
It’s OK to have empty rooms. You should save up your money and spend it on furniture when you can actually afford it, and when you need it.
SHOP AROUND FOR A MORTGAGE
When you start looking at buying a home, make sure that you look around and do your research on a mortgage. That’s a lot of money you can save if you shop around for a good mortgage. Unless of course, you’re a billionaire and you can just pay for the whole home at the drop of a blink. In that case, you probably don’t need to worry about finding the best mortgage.
Related: Mortgage Considerations
