How to Save Money as a New Homeowner

Owning a home is a thrilling milestone, but it also comes with new financial responsibilities. These tips will help you make the most of your money while enjoying your new space:

Published on 2025-02-13

1. Review Your Budget

Your finances probably look different now that you're a homeowner. Expenses like mortgage payments, insurance, utilities, and maintenance add up quickly. Take time to reassess your budget, prioritize your spending, and adjust to your new financial reality. A well-planned budget can save you stress later.

2. Get a Good Insurance Policy for Your New Home

Homeownership is a big investment, and protecting it is essential. Look for a reliable insurance policy that covers accidents, natural disasters, or unexpected repairs. It’s a small price to pay for long-term security and peace of mind.

3. Prioritize Repairs Before Decor

As much as you'd love to dive into decorating, focus on essential repairs and upgrades first. Addressing structural or functional issues like plumbing, roofing, or electrical work should be your top priority. Once your home is in good shape, you can slowly work on making it your dream space without overspending.

4. Take Advantage of First-Time Homeowner Tax Benefits

New homeowners can unlock valuable tax benefits! You might qualify to deduct mortgage interest, property taxes, and even costs for energy-efficient improvements like solar panels or insulation upgrades. These savings add up, so don’t miss out.

Check out these resources for more details:

5. Keep Receipts for Home Improvements

Every improvement you make to your home matters—not just for comfort but for your wallet. When you sell your home, the cost of improvements can increase your home's basis, reducing the taxable gain on the sale.

For example:

  • If you’re single, you can exclude up to $250,000 in tax-free gains from the sale of your primary residence (or $500,000 if married and filing jointly).
  • Keeping receipts for home improvements can further reduce your taxable income by increasing your home’s basis.

Learn more in the IRS’s Publication 523: Selling Your Home.

6. Build an Emergency Fund for Your Home

Homes come with surprises, and not all of them are pleasant! Set aside an emergency fund for unexpected repairs or emergencies. This safety net will give you peace of mind and keep your finances stable.

7. Embrace DIY Projects

Want to save even more? Tackle small DIY projects like painting or assembling furniture yourself. Not only will you save money, but you’ll also add a personal touch to your new space.

Smart planning and a little patience go a long way when you’re a new homeowner. These tips will help you enjoy your new home while keeping your finances in check. Welcome home!

Looking to learn more smart ways to save money? Read all about it here. Or better yet