Rules for Saving & Paying Down Debt

Saving money can be such a challenge for most of us.   When it comes time to buy a home or invest in real estate it can become even more of a struggle.   With mortgage financing, we must be sure to keep our debts low, while having  enough assets on hand to get our loan approved.  We will need to consider the budget for new mortgage payments while paying of credit card or consumer debts each month.  AND we must be mindful about putting money away into a 401K or other investments and maybe having a little extra to enjoy life. 

Image result for saving money

 

 

Below are 7 simple rules for saving your money and paying off debts. Following these rules will make it easier to get where we’d like to be financially before taking the steps to get your dream home. 

 

1. Automate It! 

Most places of employment offer direct deposit. Use that to your advantage. Set your direct deposit up for a portion of your paycheck to be deposited into several different accounts. One for your 401K, another into a savings account for the purpose of emergencies, also an account to save for home projects, vacations, etc. Then, set up your bills to be paid automatically. It would be beneficial to check with your loan holders to see if that would be an option. Ultimately, it comes down to this: if you can’t see the money then you won’t have the temptation to spend it.

 

2. Know How to Prioritize

Should you start paying down debt or saving first? Which debts should you start with? You need to know how to prioritize and compare the numbers. First, start by checking the interest rates on your loans and credit cards. The higher the interest rate, the more of a priority that should be to pay off. Save any extra money you get. Tax return? Put that into savings! Get a raise at work? Automatically deposit that extra percentage into savings each month. Eventually, you will have enough in that account for a nice down payment on your home. 

 

3. Imagine Your Future Self

Where do you want to be in 5 years? 10 years? 20 years? Owning your own home? Not drowning in debt? Studies show if you imagine where you’d like to be in the future that will motivate you to take the necessary steps for the purpose of achieving those goals.

Image result for saving money

4. Stop Unnecessary Spending

Take a good look at your finances and what you spend money on regularly. Do this with the intention of determining what can be dropped or scaled back on. Maybe a gym membership that you pay for monthly and only go once every 3 months or so. Another common unnecessary expense is cable TV; streaming services are cheaper, and they have a great selection. Additionally, rather than getting a coffee at Starbucks every day, make your own coffee at home. You may be surprised to know that could save over $100 a month. Also, eat meals at home instead of going out to eat. Even dropping one expenditure mentioned will make a huge difference on your bank account. 

 

5. Reward Yourself

You can’t live your life to save and pay down debt. Every now and then you need a reward for all your hard work. Use that as a motivation to save. Got a bill paid off? Get yourself something! Reached your goal on an amount of money you wanted to save? Treat yourself! Be sure to make these rewards sensible, but you could be getting perks while saving and paying off bills.  

 

Image result for saving money

6. Take Advantage of Bank & Credit Cards Offers & Rewards

Take a good look at your credit card rewards, it may surprise you what they offer. There may be an opportunity for you to receive a percentage of what you spend in cash back. Who wouldn’t benefit from that? Make sure your bank account doesn’t charge you a monthly maintenance fee. If it does, research how to waive it or get a different account.

 

7. Start Young (Its never early or late to Start)

If this applies to you, pay attention. Starting off at a young age will set you up in the future. Even if you’re working at your very first job, you can start taking the necessary steps. Apply the rules above and your savings will grow faster than you could ever anticipate.

By following these rules, you can save, pay off debt   Whether your goal is to save for a home or prepare for the future, it’s all possible with a little hard work and knowledge on your side.

Think that your credit is hopeless and that you may never be in a position to buy a home? Don’t!  There is always a way with a good plan and a good team.  We have helped so many buyers get into homes when they thought it would never be a reality for them.  We have a great team that can help you build the roadmap to get there.  Want to know more about how to get started?  Let’ Connect

Credit: NPR Public Radio – https://www.npr.org/2018/12/12/676120025/get-started-saving & http://time.com/money/4266906/save-for-new-home-tips/

Posted on January 3, 2019 at 6:23 pm
John and Tracey Tindall | Category: Costs and Spending, First Time Home Buyer, Helpful Tips | Tagged , , , , , , , , , , , , , , , , , , , ,

What documents to keep and what to toss?

Tax time again and a mound of documents and not sure what to do with it all?

Hopefully you made it through another tax season and found all of your documents needed to file your return.  Now, what documents do you need to keep and which ones should you toss?   Here’s a little guideline which will help you with clearing out the old paperwork, but not throwing away anything that you might need later.

What to keep and what to toss?

 

John and Tracey
Keeping it Real…Estate

John and Tracey Tindall

208-818-2365 or 2456

www.johnandtracey.com

johntindall@windermere.com

traceytindall@windermere.com

Posted on April 18, 2017 at 6:13 pm
John and Tracey Tindall | Category: Helpful Tips | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

June Snapshot – Kootenai County!

Summertime in North Idaho and our market remains Healthy! 

Have any questions about buying or selling? Wondering if its the right time for you? Contact us and lets discuss it and let us provide you all the information you need to make an informed decision to move forward or to wait.  We are here to help! 

 

 

Johnandtracey-June 
 

Johnandtracey

John and Tracey
Your Professional Agents

 

 
208-818-2365 John        johntindall@windermere.com        
208-818-2456 Tracey     traceytindall@windermere.com
Website                         www.johnandtracey.com

 


 

Posted on July 11, 2016 at 5:36 pm
John and Tracey Tindall | Category: Real Estate Trends | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

5 Myths Buyers Have About Mortgages

5 Mortgage Myths Many Buyers or 1st Time Buyers Have

Borrowers still have a lot of confusion when it comes to mortgages; from closing costs to minimum down payment requirements and questions over credit scores. Some mortgage myths are even preventing some would-be home buyers from entering the market too.

Read more: Buyers Overestimate Mortgage Requirements

The National Mortgage News recently highlighted some of the following mortgage myths that still seem to perplex borrowers, including:

1. Closing costs: New mortgage rules that took effect last fall, TILA-RESPA, are providing borrowers with a clearer picture of mortgage closing costs prior to settlement. However, those expenses can still come as a shock to your clients. They may be surprised to see the costs of closing on a home loan when they receive their Loan Estimate disclosure upfront.

2. Who can cover closing costs: Borrowers may believe that they are the only ones who can pay their closing costs. However, closing costs also can be offered as a seller concession.

3. The credit-less: Consumers who don’t have credit cards may think their lack of debt history will be a positive when applying for a mortgage. However, lenders are looking for how well consumers manage their debt and a lack of history could be problematic in qualifying a borrower.

4. Minimum requirements for qualifying: Home buyers may be under the impression that their credit needs to be a lot more stellar to qualify for a mortgage than it actually needs to be. To qualify for a Fannie Mae-backed loan, borrowers only need a 3 percent down payment and a minimum FICO score of 620.

5. Eligible tax breaks: Mortgage interest deductions are not limited to just primary residences. In some situations, second-home loans and home equity loans of credit may also be eligible.

Source: “7 Mortgage Myths That Still Befuddle Borrowers,” National Mortgage News (May 2016)

Source: Realtor Magazine

 

How to contact John and Tracey

John Tindall: 208-818-2456   johntindall@windermere.com

Tracey Tindall: 208-818-2365  traceytindall@windermere.com

Click here to learn: More about us!

Posted on May 17, 2016 at 12:02 am
John and Tracey Tindall | Category: Costs and Spending, First Time Home Buyer | Tagged , , , , , , , , , , , , , , ,