Living day to day on a budget gets easier as you get used to it, but there will come a time when you want to splurge on a big expense. Your savings might make it possible to afford this indulgence, however, you don’t want to blow your budget on a one-time expense. It’s not difficult to find alternative ways to fund your spending, so you can keep your finances under control.
Buying your first house
The desire to buy your first house was probably the biggest reason you created your budget in the first place. If you’ve managed to save 20 percent of a down payment, you’ll be happy to learn that you don’t have to use all of it to qualify for a mortgage – it just increases your chance of getting a good rate. A mortgage lender will also look at your income, how much debt you have, and how long you’ve been at your current job. If you haven’t managed to save 20 percent, there are other options you can look into. Your state may have its own programs for first-time homebuyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shopping around for a good deal will pay off.
Getting a car
While a car is essential, you don’t need to break the bank to afford a new mode of transport. Whether you’re saving to buy your first car, or your current vehicle has unexpectedly broken down and you need a new one fast, there are plenty of reasonable options to consider. Shop around for the best car loan interest rates to help you pay for the car you want.
Destination holidays
Although you may not have set out to save for an expensive holiday, it could do you some good to take some time away from the stress of your daily life. Shop around for some cheap holiday packages and you could enjoy up to seven nights in an exotic country at a fraction of the usual price.
Home improvements
A patio or small extension can add value to your home, but it can be difficult sticking to a budget with these expenses. Fortunately, there are many ways homeowners can fund home improvements, one of which is a home equity line of credit. This is a good option if you already have a good first mortgage. With these loans, you draw out money as you need it and pay it back at your own speed, as long as you make at least minimum monthly payments.
Wedding
While it’s possible to have an amazing wedding on any budget, some people do want a big affair. One option is to take out a wedding loan – a personal loan that will be used only to pay for your wedding expenses. This is a decision you should make with your partner, because one of you might not be comfortable paying for a wedding with money you don’t have.
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