Invest in a house you can really afford.
Today is a new day, and what a beautiful day it is. Hopefully you just got off your phone and set up an appointment with an investment broker to insure your financial future or are doing so as we speak. I’m not going to lie, I don’t plan on calling until Monday as I am going away camping for a few days to a place where money is irrelevant. It will just be my friends, a two four, and I, bonding with nature and its creatures. I know you don’t really care about my weekend but I am really excited! I know you’re excited and curious about the other three tips as your financial future hangs in the balance so let’s just get right down to it.
4. Spend less- No brainer right? Well check out your monthly expenses and NEVER EVER (I’m stressing this so much my eyes are popping out) have your expenses exceed your after tax income. If so, you are in real trouble and need to get some help from a professional debt agency or some place similar.
5. Improve your financial life- If possible at all; look to improve your income. You can only cut your expenses so much, and I said earlier this week sometimes dating can be expensive. Look for a promotion, raise, or even a part time occupation that can generate a bit more income to help you out.
6. Buy the right house for your budget- If you’re in that stage, make sure you know your limit. During this time many people have lost their houses because they lost perspective of what is really affordable. My advice is to buy your home on your current salary and current expenses, including a savings account, and not what you think or hope for in the future. It’s important to factor in the costs of homeowners insurance and association fees. Also go check the taxes and other fees for the area as extra costs can add up. I know I would definitely need to factor in those do it yourself projects that would go wrong. Rule of thumb: Monthly house payments should be approximately 1/3 of your monthly income and shouldn’t buy a house more than 3x your annual income. Even if you are a recent graduate thinking your salary will definitely increase soon, listen to the other tips and purchase according to the present. You definitely never want to start investing in a house you can’t afford and have to sacrifice on other type of investments or privileges. Check out the article for a more in-depth look at this tip.
Hopefully you guys followed my two part series and can start investing something to protect yourself from loosing your job or any other unexpected events. Who knows, Godzilla may come out of nowhere and rip your neighborhood to shreds, forcing you to start all over again (knock on wood).
Mandi and Jere, I’m going to be following this article and will be knocking at your door for a raise very soon (haha).
Just kidding, but seriously.
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Tags: Cheaplee, Investing, Mortgage, Recession, Saving, Screw You Recession, Thaddeus Bolton
