The largest portion of raising a child is actually housing them. Housing, in fact, makes up the bulk of any of our household budgets, which is why when you want to achieve financial peace, rather than dealing with pressure, your home is the perfect place to start.
Your home can absolutely be a source of stability in your family, especially if you own it. Not sure how to get started? Here are a few of the ways you can create a home that supports true financial peace, rather than being just another money pit.
Use it to Help Manage Your Debts
Mounting debts and skyrocketing interest rates are hitting so many people hard this year, but homeowners do have another option. You could, for example, go to professionals like those at Achieve and take out a Home Equity Line of Credit at a rate as low as 5.87% to cover all of your debts, or as an alternative for future debt.
For example, if you wanted to help your kid get the best start in life, you could get a HELOC to cover their education costs, or even to help them get up on the property ladder themselves earlier.
From paying off your own debts to helping your family build up equity, HELOC can be one way you achieve financial peace.
Upgrade Your Home to Gain Energy Independence
One of the costs that seems to rise nonstop, year after year, is energy. Whether you use just electricity or a combination of electricity and natural gas, the fact remains. Add in data centers driving up demand, conflict around the globe spiking gas prices, and you have houses that are money pits just to run.
That’s why it’s time to start looking first into any grants available in your area. Look at federal, state, and even local charities to see discover your options. You may be able to get solar panels for less or a solar water heater. Once you know your options, start upgrading your home with the most effective energy-efficiency improvements, then go further with options like solar if you’re in a compatible area.
Set Money Aside for Home Costs
Never let yourself be surprised by another unexpected bill again. If you can, create a home cost fund (many banking apps now let you separate your money with labels). This way, you can put away a certain amount per month to cover all household costs. You can even be more specific and set money aside specifically for:
- Ongoing household costs like cleaning supplies
- Maintenance costs
- Bills
- Home improvement fund
- And more
In general, a good rule of thumb is to set aside 1 to 4% of your home’s value each year for maintenance and repair costs. Split that amount up into a monthly amount and save it for a rainy day.
Set Up Automatic Bill Payments
Finally, automate your bills. Any bill that recurs monthly, like your internet, should be automatically paid each month via a monthly deposit. While you can set up automated bill payments for your utilities, just remember to set a reminder for yourself to double-check that the meter reading and your bill match up. If not, it could become a nightmare to sort out.
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