Financial Goals for 2009 (part 3)
We are looking at financial goals for the New Year. MSN Money lists 6 financial milestones to reach before age 30. If you are already over 30, these milestones are still worth looking into, but the real question is whether or not these milestones are good goals. We will be looking at one milestone each day, today we are looking at the second milestone.
1. Scale back the credit cards
“Own a home — or have a plan”
“buy what you can afford, not what you love.” And don’t forget the new expenses that come with a house — like a lawn mower, furnace repairs and snow shovel.
I agree that owning a home is a good idea, but only if you are financially prepared. Generally, that means you have gotten rid of your debt and your emergency fund is in place. The primary cause of the current mortgage crisis is people getting more house than they can afford. The amount you can reasonably afford is directly related to the sum of your income and all of the other debt you are trying to juggle.
If you are unsure of how much home you can afford, the first rule is ‘don’t listen to the mortgage broker’. Not all brokers are bad, but for the most part their job is to get you into the biggest loan possible. That usually means you will be getting more debt than you can realistically afford. We teach that your housing expenses (mortgage, insurance, and taxes) should not be more than 30-35% of your take home pay.
If you can not afford to buy your house before you are 30, don’t feel bad. Renting is not a bad thing as long as you are getting ready for home ownership.
Related Websites - How Taxpayers are Making Your Home Affordable
- Save Time, Money and Space in Over 80 Ways
- Getting Out of Debt Quickly pt 4
- Getting Out of Debt Quickly pt 1
- Feeling Nickel and Dimed? Put a Cap on Monthly Expenses
StumbleUpon
No comments yet.