Setting your household budget
Time to be honest about real estate with some recent statistics. 55% of all Americans can't afford their current housing over the last three years according to a survey 2015 by MacArthur Foundation. Very scary, but time to open our eyes, be aware of our expenditures and manage our monies wisely.
Some responders indicated that in order to pay their house payment on time, they had to make adjustments on expensive food, eating out, credit card payments, saving for retirement and the like.
If you can't afford to purchase a home, there is no shame in renting a home and saving for your own home one day. Make sure you rent something affordable as well as running your household on a solid financial budget agreed to by all family participating members as well. Make sure everyone knows what the goal of the budget is and how it affects both their current lives but their future lives in the home of their dreams. Building team building decisions, just great level of common sense.
If you are going to be a renter, the first thing you should do is to make certain you are getting credit on your credit bureau for the fact that you are paying on time and have that information reported to the credit bureau so as to build credit and establish a more solid credit bureau report.
Review my FES Financial Education Services website www.MyFES.net/DJoerling and look at the product selection. You will be amazed at the various products we offer, which we continuously add to to help our clients become comletely financially fit with education and great service products.
Here are THREE items to make sure you abide by when building a budget for the purpose of staying on point and also achieving your goal for a new home:
FIRST: Stick to 35 percent of your budget MAXIMUM to be toward housing costs. This is regardless of whether you are renting or purchasing a home. Please MAKE SURE your REALTOR® knows what your budget needs to stay within, as this new payment and primary obligation will be with you for a long time. This purchase will affect the way you live your life, affect your savings and be critical to your budget goals so stay ON TASK and ON BUDGET!!!! Having the other 65 percent of your budget available gives you flexibility to save for retirement, vacation, college money, purchase cars and what I call just LIVE s. SURVIVE.
SECOND: Owning a home isn't a guarantee to make you wealthy or always build equity. That is not always true especially if you are able to build personal ownership equity by fixing the place up, buying it right, inheriting from a friend or family member, or purchasing it RIGHT at the RIGHT PRICE. Additional factors in building equity are interest rates, rapid payback of principal, and overall real estate market conditions. Typically it is not purchased for the sole purpose of making money. Remember, it is your HOME
THIRD: Run your home efficiently. Be very aware of your home, both inside and outside and be sure to maintain the outside ALWAYS FIRST. Great roof, great foundation, solid leak proof windows, plumbing that is solid and not leaking, HVAC systems in good working order (helps avoid high energy bills), electrical wiring that is safe and up to code, these are where you want to put your first money FORWARD. After these items are solid and safe, then you can work on the cosmetic items such as paint, staging, adding storage, adding outside curb appeal and the like.
As always, finding a home for yourself should be done with the assistance of an expert REALTOR® like our team at The Joerling Group. Call us when you are considering a change of residency, whether going from renting to owning, smaller home to larger home, relocating across the country. Either way, we know a network of experienced REALTORS® who can assist you if the area or State you want to sell or purchase within is not in our market. You can reach our team leader and broker, Donna Joerling at 314.808.1712 and she will help you to establish who, when, where and then discuss particulars about your purchase and/or sale of real estate.
Enjoy the journey with the help of a professional REALTOR®.