Latest / Becoming Financially Confident / I Bought the House - Now How Do I Budget for Everything Else?

Transcript

I Bought the House - Now How Do I Budget for Everything Else? · Becoming Financially Confident

• 0:00
  Ralph: Moving into a new home, what a feeling that can be.
• 0:03
  But once those boxes are in packed, then the reality of other cost of
• 0:07
  home ownership start to sink in things like property taxes, insurance,
• 0:11
  and those unexpected repairs,
• 0:14
  You start to ask, how do I budget for all of it?
• 0:16
  So your dream doesn't become a source of financial stress.
• 0:20
  Well, stick with me because I've got the answers for you on today's show.
• 0:38
  Hey there.
• 0:38
  Welcome back to your Daily, financially Confident Christian.
• 0:41
  I'm Ralph, and it's so great that you chose to join me again as we
• 0:44
  continue to answer that big question.
• 0:47
  How can I become a financially confident Christian?
• 0:50
  And we're continuing our series through dealing with the stress of money worries.
• 0:55
  Now, yesterday we talked all about navigating the financial waters of home
• 0:59
  buying, and the last few days we talked about how to figure out how much you
• 1:02
  can afford and get that mortgage and all that process and closing costs.
• 1:07
  Today we're gonna move beyond that purchase itself and we're gonna talk
• 1:10
  about what happens after you get the keys.
• 1:12
  Yeah.
• 1:12
  After they hand you the keys and you ask yourself this Ralph, I bought the house.
• 1:18
  Now how do I budget for everything else that comes with it?
• 1:22
  Listen, I get it.
• 1:23
  Focusing on finding a house, man, that is a fun process.
• 1:26
  That's a tough process.
• 1:27
  You probably felt like, oh, I thought I would never get to this.
• 1:30
  Then you got to the mortgage process and you made your way through that
• 1:33
  process and went through underwriting, and then went to settlement, and
• 1:37
  you came up with the closing costs.
• 1:40
  Then you get moved in, you get all the boxes unpacked, or hopefully
• 1:42
  you got most of your boxes unpacked.
• 1:44
  And then to open up the bills and, and then comes a property tax bill and that
• 1:48
  that bill's larger than you expected or maybe larger than your escrow.
• 1:53
  And the next thing happens, your homeowner's insurance
• 1:55
  costs more than you expected.
• 1:59
  And then one Saturday afternoon, you and your wife and kids are, are sitting
• 2:02
  there enjoying some afternoon television.
• 2:04
  All of a sudden you hear a drip, drip, drip and the roof starts
• 2:07
  leaking or maybe the furnace breaks down or some other repairs.
• 2:12
  You're starting to feel the stress, aren't you?
• 2:15
  And these things can cost thousands of dollars.
• 2:17
  It was hard enough to even get the house in the first place.
• 2:19
  You've drained all your savings and now you're feeling that financial strain
• 2:23
  and you're thinking about, Ralph, do I charge up my credit cards again?
• 2:27
  'cause honestly, I've completely used up my, emergency fund.
• 2:31
  But here's the thing I want you to understand today, and
• 2:34
  I'm talking to you directly.
• 2:36
  Don't forget.
• 2:37
  Home ownership is a true blessing.
• 2:39
  It just is.
• 2:40
  It's a beautiful thing, but you've got to remember, it's your largest asset
• 2:44
  that you will probably ever purchase.
• 2:47
  and as such, it does require some ongoing stewardship.
• 2:51
  The same as you would maintain all of your possessions.
• 2:53
  Your car, your, your, your house is just one of those things.
• 2:57
  The Bible speaks the importance of maintaining what you have.
• 3:00
  I wanna share with you Proverbs chapter 24, verses three and four today.
• 3:04
  That's what it says.
• 3:05
  It says, by wisdom, a house is built and through understanding it is established
• 3:12
  through knowledge, it's rooms are filled with rare and beautiful treasures.
• 3:18
  Well, you've done that part.
• 3:20
  You filled the rooms.
• 3:21
  You understand how the house was built.
• 3:23
  You got through that process.
• 3:25
  But now you've gotta prepare for the upkeep, sort of
• 3:29
  like the walls of Jerusalem.
• 3:30
  In the book of Nehemiah.
• 3:32
  They had to have an ongoing effort to repair and maintain those walls.
• 3:37
  When you own a home, it's the same kind of thing.
• 3:38
  You've got planning, you've got budgeting, you've gotta have wise
• 3:41
  foresight, and you gotta have diligence.
• 3:44
  You gotta have these things because you gotta protect that investment because
• 3:49
  this investment is gonna help ensure your financial stability for the next 30 years.
• 3:53
  Maybe you got a 30 year mortgage, you're like, Ralph, this
• 3:55
  thing needs to last, 30 years.
• 3:58
  But right now, I want you to just pause for a second and think about
• 4:01
  all you've gone through to get this house that saving, putting
• 4:04
  aside the money, and scrimping and saving, doing all those things.
• 4:09
  I just want you to take a second.
• 4:10
  Just trust God for provision and trust him for wisdom.
• 4:13
  Now let's move into what we can do.
• 4:15
  Here's one of the things that I think you absolutely must do, and I'm gonna
• 4:18
  encourage this today on the show.
• 4:20
  Establish a consistent savings plan.
• 4:23
  That way you have money set aside for future maintenance and
• 4:26
  repairs, and it's a proactive way.
• 4:29
  Because then it's being predictable and you get to be prepared for
• 4:33
  those unpredictable expenses.
• 4:34
  So here's your one item action for today.
• 4:37
  I want you to go look at your budget.
• 4:39
  I hope you have a budget.
• 4:40
  If you don't have one, it's a great time to really do one.
• 4:43
  I want you to add some budget lines to your, to your budget, some what
• 4:47
  I call dedicated budget categories.
• 4:49
  We definitely wanna add property taxes.
• 4:51
  We wanna add homeowners insurance.
• 4:53
  Hey, maybe you've got a house where you pay HOA fees and
• 4:57
  plan for when they're due.
• 4:58
  Put those right into your budget because oftentimes they're not just monthly.
• 5:02
  They may be once a year, twice a year, maybe once a quarter.
• 5:06
  You can create funds to handle those.
• 5:08
  So that's the first step.
• 5:09
  Add these things to your budget, these categories.
• 5:12
  Second thing I want you to do, I want you to create a home
• 5:15
  maintenance and repair fund.
• 5:17
  This is separate from your general emergency fund.
• 5:20
  This is a separate savings account, what I'll call a sinking fund.
• 5:22
  Now, a lot of people say to me, Ralph, how much should I be setting aside?
• 5:26
  You ready for this one?
• 5:27
  When I did research for this show, this is what I found.
• 5:30
  You wanna plan for about one to 2% of your home's value annually.
• 5:34
  So here's a simple example.
• 5:35
  If you've got a $200,000 home, you better be planning for 2000 to $4,000
• 5:40
  a year in repairs and maintenance.
• 5:42
  Yes, if you're doing the math, it's almost $400 a month, but create
• 5:47
  that fund and be prepared for that.
• 5:49
  Another I wanna really encourage you to do is research typical maintenance costs.
• 5:53
  That way you're not surprised.
• 5:55
  Understand the life expectancy of that HVAC system or that, or that water heater.
• 6:01
  'cause it's gonna do two things.
• 6:02
  It's gonna provide you motivation to save and it might give you some
• 6:05
  ideas of how to make them last longer.
• 6:09
  And finally, last but not least, you gotta review and adjust, especially as
• 6:12
  your house gets older, be prepared to adjust that you're gonna spend more.
• 6:17
  This may be a time, and I don't have time to talk about it on today's
• 6:19
  show, but consider a home warranty.
• 6:22
  Now you might be saying, great, Ralph, I think this is going to help.
• 6:25
  Well, let's talk about why it helps.
• 6:26
  It helps because it fights that struggle of those unexpected expenses,
• 6:30
  and all of us are gonna have those.
• 6:31
  I remember when I bought my first townhouse, I was about 21 years old.
• 6:34
  I was in there about two weeks, and the HVAC system blew up.
• 6:38
  I need to replace the whole thing.
• 6:40
  So it's gonna fight that struggle of the unexpected.
• 6:42
  It's gonna ensure you've got the money and you don't have to
• 6:45
  go charge up your credit cards.
• 6:47
  Another thing I think it does is it protects your emergency fund it
• 6:50
  preserves your asset, that house.
• 6:54
  And last, but certainly not least, it gives you peace of knowing that you are
• 6:58
  prepared for whatever comes your way.
• 7:01
  Well, let's pray together now.
• 7:02
  Father God, thank you for the blessing of a home.
• 7:05
  We're so grateful of what you've given us, Lord, and we confess that the
• 7:08
  ongoing cost of ownership, especially those unexpected repairs, Lord,
• 7:13
  they can certainly bring us stress.
• 7:15
  So we just ask that you would grant us wisdom, Lord, and grant us discipline
• 7:19
  again to budget faithfully for those property taxes and for those insurance
• 7:23
  and those maintenance and repair costs.
• 7:26
  Lord, we ask that you would help us consistently set aside funds
• 7:29
  in that repair account, trusting that you'll help us, Lord, you'll
• 7:32
  help us maintain our home wisely.
• 7:35
  And we just ask that you, Lord, protect our home from those
• 7:38
  major unexpected issues, Lord.
• 7:39
  But help us to be prepared financially when they do come up, Lord.
• 7:43
  And may our homes be a place of peace and not a source of
• 7:47
  overwhelming financial burden.
• 7:49
  And we just, ask this in confidence.
• 7:51
  In Jesus' name, Amen.
• 7:54
  So today, here's your task.
• 7:57
  You've got to start budgeting for all the costs of home ownership.
• 8:00
  It's an act of wise stewardship, it helps protect your investment, and it
• 8:06
  brings you greater financial peace.
• 8:07
  And Isn't that what we all want?
• 8:09
  Greater financial peace.
• 8:10
  Don't just budget for the mortgage, budget for the home and budget for your life.
• 8:16
  And I'm just gonna encourage you today to share this episode with someone else.
• 8:19
  You know, you may know somebody that is just bought a home, or maybe they had a
• 8:22
  house for a while and you think, you know what, they could really benefit from this.
• 8:25
  I'm gonna encourage you to share this episode and you can
• 8:27
  find resources and connect with the show right at our website.
• 8:31
  I. Financially confident christian.com.
• 8:34
  And while you're there, I've got a special gift for you on your journey.
• 8:37
  Hey, this is another homeowner's gift.
• 8:39
  If you go to financially confident christian.com/master, I'm gonna
• 8:43
  give you a free copy of my book.
• 8:45
  It's called Mastering Your Finances.
• 8:47
  It's quick.
• 8:47
  It's a powerful read, designed as a starting point to help you
• 8:50
  break that cycle of financial shame and really step into confidence.
• 8:54
  And again, you can go to financially confident christian.com/master
• 8:59
  to get you a free copy today.
• 9:01
  Now, tomorrow we're gonna be moving away from this whole home buying and mortgage
• 9:05
  process, and we're gonna be talking about how to become more proactive and
• 9:08
  intentional with your spending and your savings decision, and do that overall.
• 9:13
  And we're gonna talk about creating some personal spending rules.
• 9:16
  Now these aren't the restrictive kind of rules, but trust me on
• 9:18
  this, we're gonna reduce some stress tomorrow, so you don't wanna miss it.
• 9:21
  So make sure you join me now.
• 9:23
  Let's all go out there and be financially confident.
• 9:27
  Christians, you can do this.
• 9:29
  I have confidence in you.
• 9:31
  Have confidence in yourself, and I just encourage you to stay financially savvy.
• 9:34
  God bless you and you have a great day today.