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Tips for Achieving Financial Freedom

Choosing to buy a home is one of the most important decisions that a person can make but with that decision comes a good deal of financial scrutiny.  As anyone who has purchased a home before can attest, you finances will be under a microscope!

Many of the home buyers that we work with on the Triad Dream Homes team at RE/MAX of Greensboro have questions about the money necessary to buy a home or the expenses associated with getting a mortgage.

Cultivating a few new financial habits will yield great benefits as you save toward the purchase of a new home…habits that will also help  develop a plan toward financial freedom.

Budget:  Spending Money on Purpose

To achieve financial freedom, you should create an intentional spending plan and stick with it.  It is a necessary step toward achieving both your short and long-term financial goals

  1. Housing Market Conditions in Greensboro NCList all your fixed expenses such as utilities, groceries as well as car and credit card payments
  2. List all of your irregular expenses.  These are due throughout the year such as taxes, car maintenance and vacation
  3. List your discretionary spending. This would include that Starbucks habit or weekly trip to Target for a little “retail therapy”.
  4. Do “A-B-C” to your expenses.  A’s are NEEDS, B’s are needs you could be more efficient with like groceries and C’s are wants.
  5. Total your expenses and compare them to your net income.  If expenses exceed your income, then need to take a closer look at the discretionary spending buckets and make cuts to your B’s and C’s.

Save:  Paying Yourself First

  • Make it automatic.  sign up for automatic transfer programs with your bank to make small deposits to a savings account to help develop an emergency fund
  • Look for discounts.  Talk to your insurance company and ask how changes to your deductible could help put money back into your bottom line.  Call and threaten to cancel your cable plan unless they lower your bill – you’ll be surprised at how responsive they can be!  See if you can find a ZERO percent introductory rate for a credit card and transfer your balance from a high rate card.  Avoid “transfer fees” and look for one that will offer you at least a year time period.  Avoid the temptation to spend on that card however and just focus on paying down the balance.
  • Think before you buy.  Resist impulse purchases.  Try waiting 24 hours to buy an item and see if that “urge” dissipates

Getting your financial house in order requires a diligent focus on your budget and financial goals but this focus will go a long way toward funding a savings “nest egg” or down payment toward a home.

If you have questions or would like more information on what you read here, just click the mail icon in the upper right hand corner of this post and request a copy of our guide toward creating financial freedom.  We would be happy to send you a free copy.

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