Everyone knows that the cost of their home is a major expense. On Average, a homeowners’ mortgage, insurance and Real Estate Taxes are around 40% of their monthly expenses. But, recent surveys have found that other homeowner costs can add as much as $1,000 per month to your monthly expenses. Some things to keep in mind, and some easy ways to save money:
Water & Sewer Bill – Depending on where you live, this can be a marginal expense (Somewhere like mid-Missouri, average is below $45 per month) to the highest in the country (Atlanta, GA average is over $300 per month). This can add up to a huge expense that not all new homeowners think of.
Trash & Recycling – Most areas will be around $30 per month, but some cities can reach as high as $100 per month. Another substantial bill you need to remember.
Lawncare Expenses – Lawncare expenses are a huge expense for many homeowners’. Rates can easily exceed $300 per month for basic lawn-cutting and weed-eating work. HOW TO SAVE: Do it yourself, of course. I am a big fan of electric lawnmowers and weed eaters (Most of your upkeep is simple, no gas, no oil, just charge the batteries and go). Most electric lawn mowers can be had for $300-$500 and have at least a 2 year warranty on mower AND battery. Weed eaters are generally around $100. You can easily save thousands of dollars per year.
Cable Bills – We will have a full article on this soon, but most people have an internet and/or TV bill of well over $100 per month, something to keep in mind.
Utility Bills – The average utility bill in the US is roughly $270 per month, on average. We will have a full article upcoming that speaks to how to lower your utility costs as well.
Repair Costs – Roofs need replaced, Air Conditioners get old, Pipes spring leaks, anything can go wrong that you may need to replace at any time. A separate savings account to deposit roughly 10% of your mortgage payment into for any needed repairs.
If you are thinking of buying a home, these are just a few of the things you will need to keep in mind as expenses you may be subject to, so think ahead before you buy.