Things to consider before you purchase a home.

1. You need 20% for a down payment, any less and you’ll need to purchase mortgage insurance, paid for on a monthly basis until that 20% is met.  It’s best to have the 20%.  There are other legal fees at time of closing, so you’ll need extra money for closing costs.
2. You want to be sure of the area you’re choosing, and why.  Location, location, location.  If you have children, you’ll want to check the school system., and kid friendly neighborhood. If no kids, or none in your future, you’ll be thinking more of your commute to work.
3. Don’t buy more house than you need, or can afford.  Check out mortgage rates and get in touch with a reputable mortgage lender – they’ll ask income, outstanding debt, they’ll check your credit history etc., and get back to you with an answer if they’ll take you on,  along with pertinent information for a loan – how much, according to your income to debt ratio, you can borrow for the mortgage and at what interest rate you fall under with the info given. A good Credit Score = lower interest rate. Ask for a pre-approval letter.  This gives the seller proof that you’re a serious buyer and what you are approved for.  This letter can also mean you get your dream home over another buyer without one, yet looking at the same home.
4. However, the lender you chose, will give you the highest figure that you could possibly squeak in your budget.  A suggestion would be to look for a home below that figure.  Do your own due diligence. Crunch your own numbers.  No one knows your budget like you do.  Just because the lender says one figure, you will more than likely be more comfortable with a lower one,  This gives you some wiggle room, for ‘unexpected’ expenses – which will, as anyone who owns a home will tell you, will most definitely occur.  There are plenty of homes on the market.  You don’t want to be ‘House Poor’.  You want to sleep well at night.

You can do this….

Buy the store brand whenever possible.  The store tries hard to have the same quality and taste you’re used to in the name brand products, but at a cheaper price.

Stop buying bagged snacks and candy. They’re costly, and can add $10. – $15. to your total bill with just a few bags. A bag of popcorn kernels you pop yourself is cheap and gives bowls and bowls of popcorn. Buy carrots, celery, peppers, cucumbers, zucchini, summer squash etc., add your favorites, mix it up. Wash, slice, and enjoy as is or with a dip…better for you health too.

Stop buying soda.  Water is very refreshing.  Swap out a soda, opting for water, and make that two the next day, three the following and so on.  Tap water is great.  Fill a bottle and put it on the door of the fridge where it’s handy.  You can also add a slice of lemon and or lime to it.

Cut back on meat, you don’t need it every day. To get enough protein less expensively by adding more eggs, lentils, black/white/kidney beans to recipes.  Eat more vegetables, they can be cooked in various ways, adding spices to vary the taste, most can be eaten raw.  A bonus is that they’re low in calories.

Some grocery stores go through their produce each day, package up those that are no longer  ‘up to their standard’ and put them on a shelving unit at the back of the store.  This produce is now about half the price per pound of what is in the nearby produce bins. If you don’t see it, ask the manager if they do this, and go shopping around the time it’s usually put out.

The same holds true for the bakery department.  The sell by date is the previous day, so setting it out a treat, even for guests, is fine.  Put it on a pretty plate, toss the packaging, and enjoy.

Scan the internet for new recipes.  Make up your own.  Be creative,  Cooking your own meals is far cheaper than eating out or ordering take-out. Oftentimes restaurants add a lot of salt or salt type spices.  If you’re watching your blood pressure, watching salt intake is a must.  Processed foods are also high in sodium.  Cooking at home can alleviate this problem.  Just don’t add salt.

Even if you think you can’t cook, you’ll find that it is so much easier than you think.  There are numerous easy to prepare recipes online geared to a ‘new cook’. A hint to the clean up… Once you’re through with a bowl, spoon, etc, wash it.  Get used to doing it that way and you won’t have things piled in the sink.  Clean up as you go.  If something does need soaking, fill with soap and water and while you’re enjoying your meal, it’s soaking and will be ready for easy clean up by the end of dinner.

Enjoy!

How to change gift giving issues.

It’s always nice to give (and receive) a gift.  It lets the recipient know that he/she is remembered on a Special Day, or for a specific reason.  And some gifts are given/received….just because.

That said, as nice as it is, it can also get out of hand, and often does.  We all feel as though we have to give a gift to the individual(s) we received gifts from….and so, the gift giving cycle goes on…and on…..even feeling guilty if we receive a gift and don’t have one at the ready, waiting in the wings.  We’ve all been there.  But if it’s not in your budget, stop the cycle.

Years ago, you could set up a ‘Christmas Club’ at a neighborhood bank, and deposit an amount you chose each week.  Around Thanksgiving, the bank would mail a check for the amount saved in the account, minus a few dollars to keep the account open so you could continue the process each year, giving the saver cash to Christmas shop without worrying about where the money for the gifts would come from.  They don’t have these any more, but you can do something similar by saving a specific amount each month set aside specifically for gift giving….depending how many gifts you give, but even more importantly, only if your budget can handle it.  This will allow you to see just how much your spending on gifts, and thoughts of who you might be able to remove from your list.

There is no shame in saying you’re trimming your gift list, and you may be surprised to find that the other person is glad you brought it up. It is mind boggling how people continue to struggle with debt, yet continue on so others ‘won’t know’.  If you’d still like to do something for others, bake something, make something, or give of your time.  It’s the thought that counts.  And more likely than not, will be appreciated just as much, if not more.

Just a remembrance of their Special Day with a phone call or card works well.  The idea is to remember the person, and let them know you did.  It is not meant for you to go in hawk.

Start saving early…. every time you receive money.

• Save a part of whatever money you receive, and whenever you receive it.
• Deposit it into an interest bearing savings account.
• Interest compounded daily is better than monthly or annually.
• When there’s enough to open a CD (Certificate of Deposit), find the best rate for the length of time you choose.  CD rates are usually higher than regular savings, but come with rules.
• At maturity of the CD, you can take it out, or roll it over adding money to it, or just rollover.  If you let the maturity pass by, it will be automatically rolled over as stated in your original agreement.
• Add beneficiaries (one or more) to your account(s).  Should anything happen to you, the account will go directly to those of your choice. If not, the state handles it, and maybe those you wouldn’t choose yourself, will now own it.
• As your account grows, separate it into three, liquid (immediate)  accounts — emergencies, a 6 months to 1 year ‘cushion’ account, and the third, a retirement account(s) which can be opened when you receive earned income.  Once opened, continue adding to each.
• Over time, be more generous with your savings accounts than you are with your immediate gratification purchases. You will be more than happy when you retire and have enough saved in not only your retirement accounts but, if you didn’t need to use the ‘cushion’ account, or liquid emergency account, they’re still there as well …(along with interest).
• These are all gifts to you from you!  The idea is to save.  Save every penny you possibly can.

We all have it….but we don’t always use it

Common sense is the logical way of doing something to get the best results in the smartest, and usually easiest way possible.  We all possess it, in one way or another, and we all use it to one degree or another.

It is, in itself, an education. There are those who live on it.

Most, if not all, use it every day.  Common sense tells us if we step out into traffic, we could get hit by a car.  Or if we take a pan out of the oven without using potholders, we’ll burn our hands. These, and hundreds of other examples are ways of using common sense.  We even teach children, at a young age to use it…. put on your jacket so you won’t be cold,  tie you shoelaces so you won’t trip, if you save one hundred pennies, you will have a dollar and so on…and every penny counts…it’s all common sense. You get it.

The point is, if you live beyond you means, spending money that is not there….. that you do not have, knowing this yet still doing this, common sense will tell you that you will be, if you aren’t already, digging a financial hole for yourself….one that not only, depending on how much debt you’re in, can take years to get out of. And the stress it causes can take its’ toll on your health.  Hopefully, you like yourself enough not to do this to yourself.

Reading pages posted herein, will, using common sense, help keep you from getting into a financial hole, where you can choose the ideas that will work best for you and your budget as you move forward, while saving in a way that will bring you to having enough for retirement.

Or, if you already find yourself in a financial hole, again using common sense, choose ideas that will help get you out and with continued discipline on your part can put you on a path to freedom from debt. And then, moving forward, you too will be saving for your retirement. Each person has their reason(s) why and how it happened, but surely you didn’t have getting into debt as a goal.  With hard work on your part, and determination, you too can become debt free. You need to do the work. You need to be continually and consistently budget savvy. It takes discipline…….

It’s common sense.

Why are You Paying Fees?

You save up some money, open a bank account, and they hand you a pamphlet with a “Fee Schedule”.  It’s your money, they will ‘use’ it, and they’re charging you to do this?????

Look elsewhere.

There are still lots of ‘brick and mortar’ banks, although most individuals prefer the ‘online’ version.  Whichever you decide, check around – you want the most interest, and no fees.

Although with ATM’s there are sometimes fees, if you use one – for convenience – that belongs to a different bank, or if you use one too often within a statement period, you will incur charges.  If this is the only way you can do your banking, be vigilant on the rules and stay within the perimeter to avoid extra charges.

If you are allowed only a certain amount of transactions per statement period, find another bank.  Not everyone fits into their numbers.  If you need to deposit or withdraw from your account, you should be able to do so freely……. and Free.

If you don’t check around, you will notice that your account is taking a financial hit because of fees and charges you’ve incurred.  Money wasted…. which could be in your Retirement Account. And if you overuse the transactions, fees are taken out immediately, so unless you constantly check, you could be making a withdrawal without sufficient funds in the account.  Another fee…your overdrawn.  Be diligent.

A strong suggestion….. use a paper check register.  Be vigilant about entries into and out of your account.  If you do this, you’ll know exactly how much is in your account at any given time. Should you write out a check, you subtract the amount when you do.  The bank will subtract the amount when the check is cashed….which gives you a false amount in your account.  And thinking you have more than you do, you write another check, only to find you have overdrawn your account.  Fees, fees, fees.

Be account savvy….. it’s a benefit to you.