It is no secret that many Americans are struggling to keep up with all their bills and expenses. The dollar is not going as far as it used to, forcing people across the country and even in the state of Texas to spend more efficiently.
If you own a home in the Lone Star State, then you have an asset that is brimming with opportunities for cost savings or even additional income. While that home may have cost you a lot of money upfront and includes some hefty monthly bills, it can still become a vital resource that lets you save more.
If you want to squeeze your Texas home for every dollar it is worth to take full advantage of this investment, here are a few strategies to consider.
Invest in Upgrades
If you ever plan to sell your home, then it is a good idea to take care of the property so its value increases. The greater the value when you sell, the more profits you can make. Although properties appreciate naturally, you can speed up the process by making strategic home improvements. When you enter the realm of home remodeling, there are some principles to stick to. Setting clear goals, creating a budget, starting small, and staying flexible can ensure your projects go smoothly and actually add value to the house. Plus, in the meantime, you will get to enjoy the features and benefits of those upgrades before you sell.
Use Alternative Energy
Energy consumption is a normal part of homeownership. You use electricity to keep the lights on, operate the HVAC systems, and use every electrical component of your property. The more energy you consume, the higher your monthly payments are. If you have some cash saved up, investing in renewable energy resources can be a great long-term play to save money. Embracing solar power in Texas is an excellent idea since sunlight is abundant. Multiple tax incentives exist to make the upgrade more affordable, such as federal tax breaks and even the option to sell electricity back to the grid. A personal windmill is another option to harness the power of the wind for electricity production.
Learn DIY Skills
The most widely accepted number for home maintenance costs is 1% of the price of the home. If your home costs $200,000, you might expect to spend at least $2,000 each year on maintenance or repairs. When things go wrong, many homeowners will call in experts. This is smart if you want the problem handled well, but it can be expensive because of labor costs. Learning DIY skills yourself can help you save money by doing home maintenance and repairs on your own. Then, you only have to pay for the cost of materials. If you fall in love with the process of working with your hands, maybe a career in the trades could be in your future. For example, you could study how to become a master plumber in Texas to turn your new skills into a side hustle or full-time career, all while saving money as a homeowner.
Small Household Changes
In many cases, you can save money in increments by changing some common household behaviors. These will all cut down on your consumption of resources like electricity, water, or gas, lowering all your utility bills. Use lower heat settings for both washer and dryer loads. Replace old fixtures with newer models that feature low-flow technology. Skip rinsing your dishes before they go in the dishwasher to avoid wasting water, especially since most new dishwashers are perfectly capable of handling stubborn dishes. Even a simple step like changing HVAC filters can have a big impact on the efficiency of those systems.
Make Lump Sum Mortgage Payments
The amount you pay for your home during the course of the mortgage depends heavily on interest. The more you owe on the principal, the more interest you will pay over the loan’s lifetime. However, the amount of interest that you will pay is not set in stone. If you have some money saved up, or you get a nice tax return, this would be a great time to make a lump sum payment toward your mortgage as long as your lender allows it. This will reduce the principal quickly, leading to less interest paid in total.
Economy Proof Your Home With These Strategies
Markets can be unpredictable, and when inflation is high, everything costs more than usual. To combat these unpredictable costs, you can take steps to mitigate their impact. It starts with the home you own in Texas. The more your home is worth, the more you can profit from it when you sell, so maintenance and upgrades are crucial. Learning DIY skills will help you avoid labor costs for contractors when the home needs repairs. Changing a few behaviors can also lower your utility bills for additional savings. Finally, if you have some cash to spare, it might be worth making an extra mortgage payment to lower your total interest over the lifetime of the loan. With these strategies, your bank account will have a little extra insulation from an unpredictable economy.
