Money Chatting!

Hi everyone! 

  

If you wanna live the American dream - buying a home to live with your own family, first you've got to know well about money.

You've got to know more than what you think. It is not only about earning money or saving it. That is not all. You need to understand the whole game, so that you won't find yourself in debt, or foreclosed, and have nowhere to go, coz you didn't think of all the details, which will keep crawling to you a day after day.

It's great idea to have a house, to own a place where you and your beloved ones will live. Realtors will try their best to persuade you, showing you places beyond your means. They will introduce to you methods of payments or mortgage, and will have you imagined that this is the best investment in your life. But the truth is, the Real Estate market is not that good, and investing in real estate has no longer become the best way of investing your money.

Sometimes media exaggerate about real estate situations in some States, but other times, there is some truth you can feel between the lines if not said openly.

If you want to buy a place to live in, and have 20% of the value of the place you wanna buy, and you have 10 months savings for emergencies, and if you have kids, I would say 12 months expenses, you can go ahead and buy your house. You need to make sure that:

1)  This is the place that you like to live in for at least 5-10 yrs.

2) It is affordable, within your limits and budget.

3) It is close from where you work and where your kids go to school.

4) Take it easy, take your time in making your decision, and do not be pushed by realtors or brokers.

If you feel that you are not that acquainted with money aspects well enough, and that it is better to attend some classes or consultation for you to make the right decision, do not hesitate. It is good to learn more. You will get a good piece of info from each person who would talk to you about money. 

You've got to do the numbers. You never know what will happen in 5 or 10 yrs from now. Others will not be in your shoes, coz when it comes to buying a house, it is only you who would feel how to take all the pressures. 

The best word I heard was "Try to live under your means, and within your needs", unless of course, you already made it to the six figure monthly income. In this case, we should congratulate you that you were able to figure it all out.

If you didn't, think how hard it is to stand in your truth when you're d dealing with a family, how can you stand in your truth with your beloved ones. I'm gonna tell you. Yes, coz the hardest people to stand in the truth with, is your family, so let's talk. You hear me say it all the time, People come first, so let's stop for a second n talk.

People first. When I speak about people with you, I talk about you. Are you putting yourself 1st, are you putting your truth 1^st? Are you strong enough to face your daughter when she comes to you saying: "mama, why do we have to leave our house n to go n live in a tiny little apartment.” We had to stand in the truth.

“Why can't i get all the toys?Why is it that we can't go on vacation?” can you answer your kids when they ask you these questions? It is so hard to look at your family saying “Sorry I cant afford it.” But your kids are learning from how you act. If they see you spending from credit all the time, without having a budget, or having good planning for your money, they will grow up doing the same, and the debts will continue in growing up with them.

The new American dream has to be this: “below your means, within your needs.” I am not saying within your means, I say below your means.

If you can afford a new car, it's fine, but if your car 5 yrs old, n running great, just keep it. If you live within your means and spend all the money you have your retirement plan will not cover you. Your pension plan to cover your needs. That is why you have got to live below your means, within your needs. Of course you have to buy things you need.

You have to live the truth with your children coz they are growing at a time, when it's gonna be harder for them to get jobs, harder to afford to go to school, harder to do anything, coz the debt the Americans have created, is not gonna fall only onto our own shoulders, but also onto the shoulders of our own kids.

I hope this will make you think deeper before you try to buy a house. We'll talk again soon. Love you all 🙋