How To Test Budget A Mortgage Before Buying A Home : The Saturday Weekend Review #250

LIVE LIKE YOU OWN THE HOUSE BEFORE YOU BUYING   Think about the above statement for a moment and ask yourself how that may have changed your past or current budget before buying your home. You may find that had you created a test budget before that purchase you may have noticed that you shouldn’t have spent so much. Typically you wouldn’t hear me say anything about using a test budget because a budget is a budget, however there are times when pretending to budget comes in handy. Forget about the word pretend for a moment and consider the reasons why you would want to prepare a test budget and how it would benefit you as a potential homeowner. Can I afford the house Can I afford the house Can I afford the house   Start Young Finish Free   I often like to believe that anyone who starts learning about finance from a young age will have basic knowledge to make financial decisions that may not impact their lives the way someone who did not. This is why I urge parents to teach themselves about finance FIRST and pass that knowledge on to their kids. Even then there are […]

Buy the least expensive house in the most expensive neighbourhood

BE PICKY WHEN HOUSE SHOPPING   Typically we like to buy quality when we shop which included shopping for our home. This is why we scoured every available neighbourhood around our city for the best deal. The only thing we don’t like is paying full-price which meant we had our work cut out for us. Thankfully, it worked out in our favour. When buying a house you want to make sure that if you are buying a $400,000 house that the neighbourhood matches the price tag or you might struggle to sell as fast as you’d like down the road. This is why we hear over and over not to over-renovate but then again a smaller house in a bigger neighbourhood might have more luck finding a buyer than a house that costs far more than smaller surrounding homes. Today I have an email from a guy who is a first-time home-buyer with his wife and wants to know if they should spend the money and get the biggest house they can or a smaller house but in a more expensive area. Note: If you have a question for me please send me a detailed email similar to below so […]

Killing Your Mortgage In 3 Easy Steps

Killing your mortgage in 3 easy steps I was honoured when Mr. CBB invited me to share some mortgage tips on CBB.  It’s evident that he really values his readers so this is a real honour. I’m speaking from experience. Derek and I became mortgage free at 28 (we purchased our first home at 23, and built a new, bigger home when we were 25.)  These are the 3 most important actions we took in killing our mortgage early.  In the interest of full disclosure our current home is worth between $280,000 and $300,000.  It’s a lovely home, but the bank would prefer us in something bigger and more expensive. Pay your mortgage first and last. We’ve all heard the concept that you should pay yourself first. If you’ve been living under a rock, avoiding any personal financial advice, this means that you should set aside your savings as soon as you’re paid before you spend a dime.  The story goes that if you never have access to the savings you won’t miss it, and you’ll be forced to live within your means. This works unless you’re a credit addict, then cut up your cards and return to step one. Decide how much […]

Just Married! We’re Newlyweds And Need A Budget

Were you Just Married or planning to tie the knot soon? Get yourselves on the right financial track with a little preparation today. It’s that time of year Wedding Bells are ringing all over the world. Bliss is happiness until all the hoopla fades to the background. I sometimes get panic emails from newlywed couples looking for tips on budgeting or tips to help them out of a financial mess they’ve created. I do however always suggest they seek professional guidance as I am merely a man who understands money and budgets. None the less they want answers or anything to help them see a ray of light. I typically ask them some questions right from the start. 1-Why do you want to budget? 2-How much debt do you have? 3-Are you both committed to budgeting? 4-Have you ever used a budget before? 5- Do you know your credit scores? These questions help me to get a better understanding of their budgeting knowledge and a small picture of their debt and spending habits. It also helps me to understand who is in charge and whether or not they keep any money secrets. I’m a firm believer that couples should understand their finances before […]

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