Congratulations! After going through the long process of finding
and purchasing a house — and signing your name seemingly
hundreds of times on all that closing paperwork — you are
now the proud owner of a house you can call your very own.
Now that you have the keys to your new place, you are chomping at
the bit to transform your house into a home. Of course, after
plunking down a great deal of money for a down payment and closing
costs, you are not exactly swimming in spare money, so you'll have
to keep your budget in mind when decorating your house.
No worries, intrepid new homeowner — with a combination of
financial smarts, knowing what you need and what you can pass on,
and determination, it is more than possible to have a beautiful
new home without breaking the bank. Use this guide to maximize
your furnishing budget.
Make an Inventory of Your Furniture and Your Belongings
The best place to start when furnishing a new home is by
taking an honest look at what you already have and making a
detailed inventory list. Evaluate each piece of furniture
and put it into one of three categories: keep, unsure, and
donate/discard. Once you have everything sorted on paper,
take a look at the first two categories and decide where
everything will go in your new home; this should help you
determine if you can use an item or if it should be donated.
Creating this inventory has additional benefits. In addition
to helping you decide what you need and what you can purge,
the list is helpful to have on hand should you ever need it
for making a claim on your homeowner’s insurance policy. To
stay organized, take digital photos of what you own and also
jot down serial numbers of your electronic items.
Prioritize Which Items You Need First
While decorating your new home will be an ongoing process
you can enjoy over time, to get settled as quickly as
possible, you will need some basic items. These include a
place to sleep, a place to sit, and a place to put things
on. If your current mattress is on the old side, consider
upgrading to a new mattress, and if you can, a decorative
bed frame to go with it. A comfy couch, a coffee table, and
a number of lamps are also essential items that every house
needs to become a home. If you are an avid movie watcher,
upgrading your television may be on your priority list as
well.
Just keep in mind that furniture costs can add up. So if you
don’t feel like you need to upgrade items right now, you can
always save for a few months and purchase new items down the
line. Instead, put some money you may spend upgrading items
you already have toward purchasing furniture you don’t have,
like the dining table that wouldn’t fit in the tiny
apartment you previously lived in or outdoor seating for
your new patio.
Create a Budget
Once you determine what you have and what you need, it’s time to create a budget that will help bring your interior decorating dreams into reality. While some experts suggest spending between 10% to 50% percent of the price you paid for the house on furniture, this might be out of reach for many people.
Instead, use your checking and savings accounts as a guide to determine what your monthly expenses will be in your new home. Include expenses like your home loan, insurance, taxes, food, and utilities. Multiply this number by three to give you an idea of what you should have on hand for savings. Whatever you have above this amount is what you can spend on furniture for the first round of shopping.
In other words, if your monthly expenses will be about $5,000, your three-month savings goal should be $15,000. Any money you have on top of this can be spent right away on furniture.
Buy It Cheap or Secondhand
Thanks to online classifieds like Craigslist, consignment
shops, garage sales and flea markets, and thrift stores like
Goodwill, it is quite possible to get some really nice
new-to-you items that will help you save money. Once you
change your address through the U.S. Postal Service, you
will probably also get inundated with coupons from a number
of big-box retailers; this can be another great way to
furnish your home at bargain prices.
Also, furniture shops typically hold great sales during a
number of holiday weekends. If your move will coincide with
Presidents’ Day or Martin Luther King Jr. Day, chances are
good you’ll score some great deals at local stores. The same
is true at the end of seasons, when retailers are clearing
out old inventory to make way for new things.
Don’t be afraid to ask friends or family if they are getting
rid of any furniture or know anyone who is. You may even be
able to score some stuff for free! But what happens if the
couch you were offered isn’t exactly your taste? Don’t
worry, you can always upgrade later on. If you are really
strapped for cash, getting secondhand furniture from people
you trust can be a great alternative. This allows you to
have the furniture you need in your home without breaking
the bank right away.
Enjoy Your New Home and Shopping For Furnishings
You should be commended for wanting to furnish your new home
in a budget-friendly way. Fortunately, it is quite possible
to have a nicely appointed home without spending a ton of
money. Remember, you don’t have to purchase all of your
furniture immediately when you move. If you need to space
purchases out over time, do what is best for your financial
situation.
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In addition to setting aside some funds for your new home, speaking with a financial advisor may also be the next step in your home journey. Owning a home can take a hit on your finances, so speaking with a professional about how to afford your home while also saving for life events such as retirement or your kid’s college savings can help ease financial stress.
