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First We Plan For Success, Then We execute A Successful Plan !
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Spending Plans are nothing more than a written detailed list of debts and incomes. We suggest creating a new spending plan at the start of each month. We've provided a template or you can create your own using Excel or other software you're accustomed to.
In order for your Spending Plan to be effective, it must contain accurate information. The first months spending plan may contain significantly more estimates than the second months. With practice, your spending plans will become more accurate as time goes on.
As your Spending Plan becomes more accurate, you can plug in the estimated increased costs associated with home ownership. A perfect example is yard maintenance, most apartment dwellers don't have yard maintenance costs. However, once you purchase a home this changes.
In addition to helping you determine how much of a mortgage payment you can afford, a Spending Plan also helps to save money for unexpected financial hardships. The three most common financial hardships within a year of home purchase are job change, increase in family size, or purchase of a new car.
As a matter of fact, saving reserves are so important, many lenders now require that purchasers have at least two to three months of mortgage payments saved prior to closing.
Smitty Smith
(804) 350-4139
RiverCity Blues Realty
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