In our last post, we discussed how to determine how much house you can really afford. Now that you’ve chosen your home and are enjoying being a homeowner, it’s time to examine some of the biggest budget busters that homeowners face each year. Expenses such as property taxes and automobile registrations might only come around once a year, but being prepared for these costs can protect your savings and monthly cash flow. In addition to protecting your home with a comprehensive Ann Arbor Home Insurance policy, consider the following advice.
According to Money Management, periodic expenses are those that are not paid on a regular monthly basis. For example, both holiday and tax debts are periodic, meaning they are not part of regular monthly expenditures. In that regard, they join the ranks of other expenses such as auto registrations and vacations. Often, it is known when these events will occur, but many still fail to plan for them.
Unfortunately, not preparing for these costs can put a damper on your savings and credit lines. To avoid this, consider these tips:
- Evaluate what you spent last year on period expenses and assume you will pay the same amount this year. This will help you get a grasp on how much extra money you need to put aside this time around.
- Auto repairs, birthday gifts, and maintenance costs on your home should be jotted down, as well. Just because you don’t write them down doesn’t mean they won’t need te be paid, so be thorough in your budgeting.
- Determine which expenses need to be paid more than once per year, such as taxes and insurance premiums, to save accordingly.
Total these costs and divide by 12. This will give you the rough estimated amount of money you should be putting away at the end of every month to account for these extra bills. If it makes it easier, put this money in a separate savings account or in labeled envelopes throughout your house. However, if you choose the latter, ensure this money is protected and won’t be spent frivolously! It’s easy to spend cash when it’s in plain sight, so be cautious.
About Thayer Innes and Freeman Bunting Insurance Agencies
At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.