“You must gain control over your money or the lack of it will ever control you.” – Dave Ramsey
I have had hundreds of potential clients come to me to purchase a home who find out that they have low credit scores and have not saved enough money to be ready for homeownership. No problem. We always develop a plan that will work. Some people may need 3 months, others may need 3 years. The key is having a plan to follow. Below are some of the tips that I recommend:
- Calculate your entire household income. Absolutely stop spending more than you make every month! Credit cards should only be used for emergencies.
- Write down the balances on everything that you owe. Keep a chart and watch the amounts decrease as you pay each month.
- Add to your savings every month even if you can only save $20. A financial cushion is needed for household emergencies.
- If you receive any bonus money or unexpected gifts save half and use the other half to pay down credit cards. Resist the temptation to “splurge.”
- Keep an eye on your credit score.
- Come up with ways to make extra cash. Do you have items in your home that you can sell? Do you have a hobby that can become a stream of revenue? How about getting a part time job for a while?
- Have a consultation with a financial planner if you do not already have one. They give expert advice.
- Most important, write down your goals. Make a vision board with a photo of the new home that you will be purchasing. After that then perhaps you can purchase a new car and/or go on a vacation.
- Take a homeownership class so that you will know what to budget for when you become a homeowner.
Use the tips even if you are not purchasing a home. We all need to be responsible with our money. Money does not grow on trees, but we can grow the money that we receive if we handle it correctly!
The Boss Lady