Lynne Eliopoulos
ERA Key Realty Services | 508-832-1032 | [email protected]


Posted by Lynne Eliopoulos on 12/30/2018

Buying a home will likely be one of the largest financial decisions you will make in your lifetime. While this may seem scary at first, itís worth noting that buying a home can also be a valuable financial investment.

When it comes to preparing to buy a home, many people just wait until they run out of room in their apartment before deciding that they need to upgrade to a home. A better approach, however, would be to start planning for your first home a year or more in advance.

Saving for a down payment is a vital step to making the best long-term financial decision. A larger down payment can help you pay off your home sooner, pay thousands or tens of thousands less in interest, and start using your home equity as an asset.

But, saving for a down payment is easier said than done. So, in this post, weíre going to talk about some of the ways you can aggressively save for a down payment so that, when the time comes, you can achieve long-term financial security from your investment.

Setting your savings goals

The first thing you should be thinking about when saving for a down payment is what your goals are in a home. Setting realistic goals in this phase will make saving for your down payment more feasible and less discouraging.

Think about what you really need from a home at this point in your life and compromise where you can.

Remember that on top of your monthly mortgage payments, youíll likely also be paying for taxes, insurance, utilities, homeowners association fees, and more.

Save on a timeline

When setting your savings goal, make sure youíre aware of the timeframe youíre working with. If you want to buy a home next year, youíll need to focus on short-term savings options. However, if youíre okay with renting for the next 5 years, investing your money could be a better option.

Lock away your savings

Treat your down payment savings like an emergency fund. Open a separate account, automatically deposit a portion of your pay into the account, and never withdraw from it. To do this, you will, of course, need to already have an emergency fund with a monthís expenses in it.

However, once youíve established your emergency fund, start immediately depositing into your savings account.

Pay off credit cards

It may seem like saving for a down payment is more pressing than paying off old debt. However, the numbers will show that making interest payments on your credit cards is essentially throwing away money that could have been used toward your down payment savings.

Adjust your spending habits

While it isnít easy to start spending less once youíve built a standard of living, there are ways to spend less money and still lead a fulfilling life. Think about where your money goes each month, including bills and services you might pay for.

Now could be the best time to cut the cord and start using a service like Hulu to save $50 or more each month.

Time for a raise?

If itís been some time since your last pay raise, now could be an ideal time to speak with your employer. To improve your chances of success, donít discuss reasons outside of work that might be influencing your decision to ask for a raise (such as saving for a down payment). Rather, back up your request with evidence of your accomplishments at work.





Posted by Lynne Eliopoulos on 12/17/2017

If it always seems like your money disappears as fast as you earn it, you're not alone. All too many people live from paycheck to paycheck -- even when their income is well above average.

Why is this condition so widespread? Well, the reasons are as varied as people's spending habits, lifestyles, and financial obligations, but there is one factor that is often overlooked: self-defeating attitudes toward money. Here are a few examples you may be able to relate to:

  • "I don't have the time or patience to compare prices." The truth of the matter is that it doesn't really take that much time to do a few quick price comparisons when you're in the supermarket, department store, or on the Web. During the course of a typical week, you probably make dozens of spending decisions, many of them almost unconsciously. By simply increasing your awareness of how much you're spending and what the alternatives are (if any), you can often save hundreds of dollars a month.
  • "People who use coupons are penny pinchers." Although the term "penny pincher" is frequently used to describe someone who's stingy or overly careful with their spending habits, some people consider it a badge of pride to be frugal and careful with their money. It's all a matter of perspective. There are numerous blogs, small businesses, and newspapers that have no reluctance about including the words "penny pincher" in their name While few people want to be thought of as cheap or stingy, frugality has different connotations. It's associated with being economical and thrifty.
  • "I don't want people to think I'm cheap." This can be a tough self-defeating thought to overcome because it's often so deep rooted. However, if you're a compulsively high tipper or often feel obligated to pick up the check at restaurants (rather than splitting it with your fellow diners), this could be a contributing cause of your budgetary problems. Generosity is a wonderful thing, as long as it's not based on a desire to be liked, accepted, or approved of by other people. As a side note, concerns about being perceived as "cheap" is one reason some people don't take a closer look at their retail receipts, restaurant bills, and other invoices. Remember this: There's nothing cheap about being unwilling to pay extra for cashier or restaurant staff mistakes -- which are more common that you might think -- and unauthorized or redundant fees on bills.
Another factor which contributes to tight household budgets is not having a budget at all. If you don't take the time to identify your expenses and deduct them from your monthly income, then it's next-to-impossible to gain control of your finances. While there's no panacea for spending beyond your means -- and some people clearly need professional advice and help in dealing with financial management and debt problems -- sometimes a few simple attitude shifts can make the difference between scarcity and surplus in your life.




Categories: budgeting