will your spending habits change after buying
Whether you are moving from a rental to your first home, buying a vacation or retirement home in Florida after living farther north, or just moving to a new Florida property, your spending habits are bound to change. To avoid having financial stress spoil the enjoyment of your new home, plan and save in advance for new spending patterns.
If you are still working, the cost of your commute will change. Even if you are retired, you still need to factor in transportation to shopping and entertainment. Some of the ways to reduce transportation costs include:
- Using Public Transit
- Car Pooling
- Electric Golf Carts
- Walking or Bicycling
Insurance and Taxes
The costs of homeowner insurance, property taxes, and any condo or homeowner association fees vary depending on where you live. If your new home has a pool, you may need a larger liability policy. Do not wait for an end-of-the-year surprise; investigate tax and insurance costs before buying, and see if they can be included in your mortgage to simplify the payment process.
No matter how new or how well-maintained your new home, repairs are inevitable. To avoid surprises, use the information from the home inspection you did before buying to start planning and saving for major repair expenses. Taking into account age and condition, estimate how long it will be before you need to repair or replace the big ticket items such as:
- HVAC (heating and central air) system
- Hot water heater
- Major appliances
If your new home has a bigger lawn or more elaborate landscaping, you may need a new lawn mower, or need to hire a lawn-care service. Watering may be more expensive as well. Florida’s year-round growing season increases lawn-care costs.
The size and age of your house will affect your utility costs, especially during long hot summer days. Consider investing in an energy audit to see if you can reduce utility costs by adding extra insulation, planting shade trees, or changing your energy-use habits.
Whether your home includes access to recreation facilities such as golf or tennis, or you need to invest in club membership, your spending patterns will change. If you play sports more frequently, you may need new equipment.