Crucial Decisions

How do you discipline yourself when it comes to your finances? You do so by setting realistic goals and make changes as you go. Create a budget that works for you, don’t get any made up ones online because often they are modified for that specific person.

Paying off your debt is a very important aspect in your finance as everything you owe have an interest of 6% or higher. School loan stick they don’t go anywhere even when you file bankruptcy. If you are thinking of buying a house in the future you better keep your school loan payment on track.

Saving is great but the less debt you have the more you can save by doing that you will have a more steady financial support. This is what I do every month; I increase my savings, I have a high yield saving account where most of my money is besides the stocks market. My goal for this coming year is to pay at least 30% off my school loan hopefully in 3 year I can achieve that debt.

Decisions you are making today will tell how comfortable you are when you’re getting ready to retire.Turning 30 was the tipping point for me from my opinion buying a house when you are 28-33 is a great financial success. Because if you get a 30 years mortgage your house will be paid for by the time you retire. It’s not as easy as it sounds buying a house is one of the biggest financial decisions one have to make. It’s very important to put money aside for that, at least 20% of your down payment. This will make your monthly payment lower and you are more likely to get qualify for a something you can afford.

When planning to buy a house, it’s crucial not to owe money on your credit cards and don’t even think about that brand new car. Debt to Income Ratio will distinguish how much you can get qualify for.

Add up your monthly bills which may include: Monthly rent or house payment.

Divide the total by your gross monthly income, which is your income before taxes.

The result is your DTI, which will be in the form of a percentage. The lower the DTI; the less risky you are to lenders.

Always buy what you can afford, there is nothing more painful than buying a house and don’t get to stay home to enjoy it because you have to look for a part time job to keep up with the payments.

In a year or 2 me and my wife will be in the market for a house to turn into a home. The thought of it gives me mix feelings excitement and anxiety. We are in the process of saving for the down payment. That money is in a high yield saving where every month we get 2% interest.

“Always remember not to spend you working hours money in minutes.” I will publish every step I take on the crucial Decisions so stay tuned for more. 

Crucial Decisions

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