Take These Steps Before Buying A Home
You may not think you can afford a home of your own in your early 20s, but if you’ve been saving and you take these steps, homeownership could be in your near future.
Decide Where You Want To Live – If you’ll be moving a lot early in your career, it’s best to wait to buy your home. But if you know where you want to spend at least the next five years, it’s easier to hone your home search.
Calculate How Much Home You Can Afford – This can be based on how much you have saved, how much of a down payment you can make, and how much you can afford in monthly mortgage payments. A mortgage professional at your credit union or financial institution can help you determine this amount, as well as how much you’ll need for a down payment.
Build Your Credit – Your credit score has a lot to do with the amount you can afford to borrow. Make sure you get your credit report and have no knocks on your credit. Pay your bills and credit payments on time and clean up any marks you may have so you can get the loan you need.
Get Pre-Approved – Talk with a mortgage professional to get a loan that fits your budget, so you don’t overpay or buy too much home for your money.
Stay On The Right Path – It may take a few years to build up the money or credit to buy, but if you don’t stray financially from your path and you’ re determined to reach your homeownership goal, you could be getting the keys to that home on your schedule.
Network, Network, Network
You’ve likely heard the real estate adage, “Location, Location, Location.” Well, a similar phrase holds true with careers: “Network, Network, Network.” Generally speaking, networking is the number one way to get a new job. Since hiring supervisors have a lot on their plate, they’d much rather receive a good candidate via a direct suggestion rather than sifting through hundreds of resumes.
You may think, “But I don’t have a network!” Whether you know it or not, you do! Family, friends, classmates, professors, old bosses and even coaches are all in your network. Make a list of everyone you know and start connecting and reconnecting. You don’t want to reach out and beg, “Give me a job!” Rather seek out advice, ask to have a meeting, request recommendations or just let these individuals know your qualifications and your near-term and long-term goals.
There are opportunities to network everywhere you go. Every social engagement, meeting and even conversation at the park is an opportunity to build your network. Be ready for these encounters by having a short description of yourself, including your achievements, education, and skills.
Here Are Some Ways To Meet People And Build Your Network:
Making It Through Tough Financial Times
Whether you are still a student or have started your career, chances are you are feeling the pinch of this economy. You may feel like you are entirely squeezed dry but when you focus on saving money, there are quite a few areas you can cut back.
Only Buy Essentials – This goes for food, clothing and life extras. Instead of buying name-brand snacks, try the store brand. Swap out takeout lunches for brown bag meals you make at home. Try to get another season out of your coat. You don’t have to exist solely on peanut butter and jelly sandwiches or walk around in rags but you do need to shop smart and stick to the basics.
Only Buy Items On Sale – When you are shopping, look for sales. Coupons also come in handy too – especially since some stores double them. If you utilize both tactics (sales and couponing), sometimes the additional discount could be applied to the overall total of your shopping cart. Another tip is to buy clothing after that particular season’s sale has begun. Or shop at consignment shops. You’ll still get high-end stuff at a fraction of the cost.
Cut Out Unnecessary Expenses – Calculate how much money you spend dining out, going to the movies and meeting friends after work. Road trips to visit buddies and vacations with family and friends is another culprit sabotaging your budget. Consider the popular “staycation” fad. Check out all of the natural, historical and interesting activities and locations in your local area. You may be surprised at what a fun “trip” you have!
Take On A Part-Time Job – Moonlighting is a great way to bring in some extra cash – especially during the holidays or over the summer. Depending on your job, a part-time gig can also provide you with a generous discount, which will save you even more money. A handy tool if it’s a location you already frequent.
Cut Back On Amenities And Utilities – How much do you watch cable? Do you really need a “smartphone” when you have the Internet at your apartment? Could you get away with turning the heat down a few degrees or switch the air conditioning off at night? Evaluate your bills and see where you can trim off some excess.
Stop Spending Challenge
Can you challenge yourself to go one month without spending cash on things that aren’t absolutely essential? This is tough work but by going 30 days without unnecessary shopping, you can help get your budget under control.
On average, it takes about a month to break a habit. If you are a big spender, this is a great way to change your behavior. It’s also a way to examine your relationship with money. Often people spend money due to emotions. Do you shop when you are stressed or upset? Do you do it when you are frustrated? By using this strategy, you will have a great understanding of how you spend money – and why.
Before you begin, you can decide what is essential to your life; however, be realistic. Is that daily latte an essential item? For the most part, try to get by on what you already have, make meals at home and think before you make every purchase.
At the end of this experiment, chances are, you’ll have something extra in your account. At the very least, you’ll have some understanding of what makes you buy the things you do and the triggers that cause you to make purchases.
Tips For Saving For That Trip
Whether you are hoping to head somewhere fun and warm for Spring Break this year or thinking about a post-grad European adventure someday, the best way to swing for a trip is to start saving…now.
Break Out The Calculator – Different trips require different levels of planning. If you are heading across the country, your trip will cost hundreds more than a trip to your local beach. Consider all costs and divide that by the number of months you have to save. Once you do that, you’ll have your savings goal.
Go Away For $3.50 A Day – Saving merely $3.50 a day turns into $25 a week, which is $100 a month and a whopping $1,200 a year! Before you make a purchase think about whether or not you’re buying something essential. Every little bit adds up!
Open A Special Savings Account – That $1,200 a year does not include dividends, which is the additional money all that cash will earn when you deposit it in an account at your credit union. Deposit your money each at the credit union week and make your money work for you.
Bump Up Your Savings – Once you have a few hundred dollars in your account, consider bumping up to a Share Certificate, which will provide you with higher yields with little risk. Often with as little as $500, you can move your money into a Share Certificate, which locks your money into a specified term anywhere from 90 days up to 5 years. This means you can’t touch the money until the certificate “matures.” If you do, there will be a hefty penalty; so plan accordingly.
Be Realistic – When you travel, you’ll need more than money for airfare and lodging. Don’t forget money for expenses like food and entertainment. You don’t want to say you traveled to an exotic location and stayed in your hotel room the entire time. If you aren’t doing an all-inclusive trip, make sure you plan for everything that might come up. Even if you are staying at an all-inclusive resort, set aside some cash for tours, souvenirs, and tips.
Tell Your Friends – Perhaps most importantly, be sure you share these tips with your friends so you have a travel partner! Bon voyage!