In my last article, I focused on the importance of having good credit, and why it was so important to the path of homeownership. Once you have started working on getting your credit in order the second step is learning to save money.
Many people will say Odest, I don’t make enough money to save anything. My response to you is that, in some circumstances, that is true but in most cases it’s more about budgeting and distinguishing between wants and needs. You need to eat, but that doesn’t mean it has to be from a sit down restaurant. You need to have transportation, but that doesn’t mean you have to lease a new car every 2 years.
2016 is here and it’s time to start getting the things you need tucked away so you can have the things you want later.
Learning to save can be an uncomfortable process but it’s worth it. So the first thing we have to do is get a savings account. This stops you from automatically dipping into your money every time you swipe your debit card.
The second thing is setting a savings amount, even if it’s just $20 dollars a month. But once the habit is in place it will become easier to find ways to save a little more here and there.
Some people are going to wonder why I am so concerned about you opening a savings account and ask what does that have to do with buying, selling or refinancing a home. And I would say everything. One of the things very rarely brought up in real estate is the fact that you generally need to have some savings or reserves when purchasing a home.
The reason for this is lenders like to see that you have a few months of money tucked away, to help you get through a rough patch. A fact of life, we all go through every now and then. But with a little preparation we can get you past this and into your dream of owning. In many cases we can even help you find down payment assistance which will allow you to save the money in the bank for something else.
At WLM Financial our goal and my dream is to teach people how to get in the position to be financially free, and with a little bit of hard work and endurance you can get there.