People say it all the time. “Our home is our biggest investment.” Really? Your home is your biggest liability. What if you had no mortgage? What if your home was paid off? How much would that relieve you of worry?
Most Americans should consider the size of their home or when it is proper to rent and save and when it is part of a good plan to purchase a home. Otherwise, it is a bit like buying a house that is already on fire. You might love your home, but having a huge mortgage is like a noose around your neck.
Keep in mind that we are pro-home ownership, but we only believe you should take that step when you are ready.
So, how can you be ready?
Pay down your debt. Work to eliminate debt. Save 20% of your after tax income in each paycheck. Do more than that if you can. If you have a job today, you should be saving money. It should not be optional – if you want a future.
Do your research. Check out past blog entries on this blog on our “1% Savings Plan.” Research other ways to literally stockpile money in FDIC-insured money market savings or certificates of deposit.
Prepare yourself with a significant down payment on your home. Purchase a home that is below your means. This will allow you to be more in control of your actual lifestyle.
Work to build assets (true assets that build themselves like stocks with dividends).
Learn all you can about money, saving money, investing. Build your own plan to save and invest regularly.
You can do this!
HELPING YOUR KIDS GET AHEAD
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!