If you are in the beginning stages of purchasing or building a new home, then you need to take the process very slowly and consider all of the details carefully. There is so much to think about that often people forget about important issues while getting tied up in issues that are far down the road of owning your own home. For example, many people forget about the importance of a “home loan calculator”.
Basically a “home loan calulator” is necessary because it takes into consideration your current financial situation and helps you determine what kind of loan you are eligible to receive for the building or purchase of your new home. Without taking time for a “home loan calculator” people can often get in way over their heads and wind up starting a project that they have no financial ability to accomplish. So do not move ahead any further on your own project without finding a financial consultant and asking for a “home loan calculator”.
A “home loan calculator” will take into consideration a variety of factors. Your income, current bills and debt, and other significant things you own will all be taken into consideration along with much more. A “home loan calculator” is great because it removes a lot of the questions that many people have about their accurate financial situation and ability to really finance the home of their dreams.
Even if you are in the hypothetical stage and pondering purchasing or building a home, it is a great idea to get a home loan calculator now anyway. This will enable you to really narrow down your wishes and come up with a budget that fits your lifestyle and needs rather than your dreams and wishes. I often have difficult conversations with clients who are dreaming of a house that is way outside of their price range as proven by a “home loan calculator”. They want something that they really cannot have, and sometimes it takes more than just my coaxing to truly convince them of this. A home loan calculator is my greatest ally in those situations.
So don’t hesitate to get a “home loan calculator” done. It will benefit you in every step of your process and will relieve your stress. Take a wise step closer to the home you long for by getting a “home loan calculator” done today.
Plan Well & Stick To Your Plan
6. Review your budget every month – This is where you will make any adjustments that are needed. Set aside the first day of each new month to review your income and expenditures and match them to your budget goals. By actively reviewing your finances and comparing it to your budget, you can adjust your spending habits. This gives you a chance to analyze areas that exceeded your budget expectations and make the adjustments in your spending habits or your budget. The goal here is to not forget about your budget. One tip that has worked for me is to put a printout of my basic budget goals on the refrigerator. That way every day, several times a day, I would notice my budget goals sheet. I may not read it every time, but I notice it and it reminds me that I need to stick to my budget. That is why tip number 3 is so important.
7. Set specific short-term goals – Let’s say one of your budget goals is to have all of your credit card bills paid off in two years. If your credit card balances total $20,000 that would be $10,000 a year. Divide that number further into quarterly reductions in your credit card bills, in this case $2,500 every 3 months. Now, this is a more tangible budget goal to shoot for isn’t it? I find that when I divide intermediate and long term goals into short-term tangible stepping stones, I am able to feel a greater sense of accomplishment and am more likely to succeed. This brings us to number eight…
8. Reward yourself – That’s right! Treat yourself when you reach your some of your short-term goals. Since your financial budget is really a journey, take some time to smell the roses on your way. Sticking to your budget should not be a restrictive, unpleasant experience. Not only should you take the time to enjoy your financial accomplishments along the way, but use part of your budget for fun things that you enjoy. Just make sure your rewards don’t end up breaking your budget!
9. Pay yourself first – I’m sure that one of your budget goals is to save and invest a portion of your income. One of the keys to make sure you succeed at this is to do what the IRS does with your paycheck, take it out of your discretionary income immediately. This way, the money is saved away right off the bat. Move the money immediately into a savings or mutual fund account. Many mutual fund companies can setup automatic deductions from your paycheck. Despite your best intentions to save, the hectic, daily demands of life can reduce the amount you are able to save.
10. Attitude is everything – When most people think of a budget, they picture restrictions and pain. Almost like a diet. You know what happens with most diets? They don’t seem work for long! First, if your budget is too strict, too restrictive on your spending, it won’t work either. However, you will need to limit your spending in some areas and this will take some adjustment in your attitude. I found that when I am feeling limited and sorry for myself when I can’t purchase something that I want, I remember my financial goals I set with my budget. I think about the satisfaction I feel when I reach those goals. Over time, you find that you don’t want to disappoint yourself by breaking your spending goals on a spur of the moment purchase. Now, I actually get more pleasure knowing that I am reaching my budget goals when the thought of an impulse purchase crosses my mind.
If you follow these tips, your budget plans are more likely to be a great success. By taking some simple steps you will find that living within a budget is not as tough as you imagined. It can actually be fun and rewarding!