“How to Budget for Your First Year of Homeownership”

You’ve finally bought your dream home — congratulations! But as exciting as it feels to hold those keys, your financial journey is just beginning. The first year of homeownership often brings new expenses that can catch first-time buyers by surprise.

Creating a smart budget early on helps you stay prepared, stress-free, and financially secure in your new chapter. Here’s how to plan for the real costs of owning a home.

1. Start with Your Monthly Mortgage Payment

Your mortgage is likely your biggest expense — and it’s more than just the loan principal. Most monthly payments include:

• Principal: The amount borrowed

• Interest: The cost of borrowing

• Property taxes: Paid through your lender or directly to your local tax office

• Homeowners insurance: Often bundled into your payment

💡 Tip: Use your mortgage lender’s breakdown to know exactly how much goes toward each category so you can plan ahead.

2. Don’t Forget Utilities and Services

Unlike renting, homeownership means covering all utilities — and they can add up quickly. Plan for:

• Electricity and water

• Internet and cable

• Garbage collection and sewer

• Gas or propane (if applicable)

If you’re moving from an apartment, expect your utility bills to rise — especially if you now have a larger space to heat, cool, and light.

3. Budget for Routine Maintenance and Repairs

Even the best-built homes need regular upkeep. A good rule of thumb is to set aside 1–3% of your home’s purchase price each year for maintenance.

Examples include:

• HVAC servicing

• Roof and gutter cleaning

• Lawn care and pest control

• Plumbing or electrical fixes

For a ₱10 million (or $200,000) home, that means saving ₱100,000–₱300,000 (or $2,000–$6,000) annually for maintenance.

4. Prepare for Unexpected Repairs

Water leaks, broken appliances, and minor accidents are part of homeownership. Instead of letting them derail your finances, build an emergency home fund.

Keep at least three months of mortgage payments or ₱50,000–₱100,000 ($1,000–$2,000) set aside for emergencies. This helps you handle surprises without resorting to credit cards or loans.

5. Consider HOA Fees and Community Costs

If your home is in a subdivision, condominium, or gated community, you may have Homeowners Association (HOA) fees. These cover:

• Common area maintenance

• Security services

• Clubhouse or pool upkeep

Review your HOA agreement to understand how often fees are due and whether they can increase annually.

6. Plan for Furnishings and Upgrades

After moving in, you’ll likely want to personalize your space — new curtains, furniture, or landscaping. While these make your house feel like home, they can quickly eat into your budget.

Prioritize essentials first (like appliances or safety upgrades) and take a slower approach for decorative items. Rome — or your dream home — wasn’t built in a day!

7. Track Everything Monthly

Use a budgeting app or spreadsheet to monitor where your money goes. Categorize expenses like:

• Mortgage

• Utilities

• Groceries

• Maintenance

• Savings

By tracking spending for the first few months, you’ll spot trends and know where to adjust before small issues turn into big financial stressors.

💡 Final Thought

Owning a home is one of life’s biggest milestones — and with smart budgeting, it can also be one of the most rewarding.

By planning for your first year’s true costs, you’ll not only protect your investment but also enjoy the comfort, freedom, and pride that come with being a homeowner.

The key? Think ahead, save steadily, and treat your home as both a financial responsibility and your happy place.