6 tips to reduce is blog about getting finances in order to make a home purchase. I hope you find the info helpful and of course, give me a call if I can help you find your dream home. I’m Bob Gordon, Realtor, blogging everyday on Boulder Real Estate and Boulder Homes For Sale.
Part of purchasing your first home is having good credit and the funds you need for a down payment. Where to start if you want to get control of your debt? Here are 6 tips to reduce your debt in 2013.
The 6 Tips!
- Assess your debt. This isn’t necessarily about having zero debt. Some debt can be written off (like a home mortgage) while other debt is bad, such as credit card debt. Pay your credit cards off first.
- Set a monthly financial target. The second of 6 tips is do the math first and create a workable plan. This may require a second job or reducing expenditures. Don’t count on a family member to bail you out — after all, you got yourself into debt in the first place. How much money do you need each month to cover expenses and still contribute towards retirement?
- Identify smart savings. Making cuts in one’s lifestyle is never easy, but best to reduce items you can live without. Consider cutting back to basic cable or waiting to purchase letterhead. Don’t fall behind on car payments or office leases – you don’t want to compound your issue.
- Look ahead; avoid getting so caught up in the day to day life that you forget to prospect for future business or plan for a future expense such as braces for a child or a new car. Keep an eye on planned future expenses so you can gradually prepare.
- Create a worst case “what if” plan. What if you lost your income for six weeks? Be prepared to overcome a worst case scenario.
- People tend to drift away from hard things – like saving first. Pay yourself ten to twenty percent of each paycheck first to long term savings. This can be really difficult over time, but the payoff is dramatic – it is getting out of debt and being in position to buy your new home. This is likely the hardest of the 6 tips but potentially the biggest life changer.
Visit my home page for Boulder homes. Looking for more info? Check out this helpful article.
Great points, Bob. I’d definitely agree with identifying smart savings, partly so you don’t feel completely like you’re giving up everything and have some control over where you can cut back. I also think that having that “what if” plan is crucial. Always want to have a backup plan in place, contingencies to carry you through rough patches.