Today we welcome a collaborative post from a talented contributor. Enjoy, C.
Buying a home is a massive commitment that requires spending a lot of money at once and then spending dedicated funds every month for fifteen to thirty years. It’s one of the most significant financial decisions the average person will make in their lifetimes, so it must be decided with good planning. If you want to buy a home and be confident that you’re ready, these are some of the financial plans to lay out first.
Create Two Different Savings
Unless you are eligible for specific grants, the average cost of a down payment for a home is 20% of the cost of the home. In recent years, home prices have skyrocketed to new heights, so you must be able to save as much money as possible. To do this, set aside two savings accounts, one for your home and another for emergencies. This way, you’ll be safe if something comes up, and you won’t have to pull money from your home fund.
Pay Attention to Entertainment
Entertainment is necessary to enjoy being alive. We need humor, art, and thought-provoking content to be fully enriched. So although you shouldn’t cut off all entertainment: you can cut the cable cord if you have it. Instead of cable, use a different subscription streaming service every month for a good rotation of things to watch. This approach will save you $70 to $200 from the cost of the cable service you had previously.
Don’t Cut Anything Off Cold Turkey
It can be tempting to make substantial life changes but don’t change everything at once. It takes time to build good financial health, so just like when you start a new eating pattern — take your time changing for better savings. This technique could mean you aim for one or two instead of eating out thrice weekly. Consider what parts of your life you can cut back on and back off them for a couple of months before reassessing your thoughts about how it’s working.
Don’t Be Afraid to Start With a Renter
If you’re still struggling with a house payment calculator and trying to make your bill reasonable, it could be time to consider having a renter move in with you when you buy your home. Interview many people and pick the person who best suits your home and personality. This approach is a great chance to have more income in your property while also having help, if needed, around the property.
Thoughtful Planning Will Help Buying a Home Be Affordable
Buying a home is expensive; there’s no arguing about the situation, so make sure you do everything possible to make it as affordable as possible for yourself in the long term! Save money, work on your finances, and set up plans and pathways to continue paying off your debt even if you can’t work.
