So you bought your first house. Now what?
Right after you get done choosing paint colors, it’s important to ensure the rest of your financial house is in order. We’ve developed a checklist for young professionals to utilize after buying your first home.
Pop Some Champagne!
You’ve just hit a major milestone in your life, you certainly deserve the opportunity to celebrate. So, grab some champagne and enjoy the moment in your new home.
Why put off the inevitable? Gather your favorite ideas for paint colors, furniture and décor. Get the fun stuff out of the way before you dive into ensuring the security of your financial future.
As a young professional, you understand the discipline it took to get to the point of purchasing your first home, it’s important to remember now is not the time to stop putting money away. We recommend setting aside two separate emergency funds:
- Your contingency fund: This is meant as a cushion if you should ever lose your job or your employment is interrupted for any other reason. The purpose of your savings is to cover your basic expenses during this time. Many experts recommend this fund to be equivalent to three to six months of your salary.
- A fund for home repair / improvements: In addition to a contingency fund, it’s important to set aside money for unexpected home repairs. When you buy a home, you also take the financial responsibility for anything that goes wrong. Some experts recommend having on hand 2% of your home’s value.
Buy life insurance.
Sure, it’s not fun to think about what might happen should the worst occur but it’s important to do so. Your house is likely your biggest investment, and a life insurance policy can ensure that a spouse or family member doesn’t lose the home. We recommend ensuring you have enough term life insurance to cover your mortgage, debts and salary for at least a year.
Buy disability insurance.
While many people think of buying life insurance, fewer think of purchasing disability insurance. And yet, statistics tell us your chances of becoming disabled are greater than your chances of dying.
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Providing the perfect blend of powerful technology and human guidance, Lifewise is geared toward young professionals searching for a better way to make wise choices and sound financial decisions. Backed by BerganKDV Wealth Management, Lifewise is supported by a team of CPAs, CFPs and CFAs who stand ready to guide you through every financial challenge and windfall.Learn more