Why aren't you rich, regardless of what you earn? It's really no secret. You live above your means(Period). Rationalize and come up with as many excuses as you must, but that is the truth when it comes to your financial situation.
Unfortunately, sometimes living beyond your means can be a form of self preservation. You don't want to live in a high crime area just to save on rent or home ownership. Living beyond your means actually can be summarized as putting your wants ahead of your needs. Your wants require no foreseeable sacrifice but will come with a great price in the near future.
We are materialistic and tend to try to keep up with the Joneses. If the Joneses are more financially stable than ourselves, we are doomed to financial ruin. Yet we continue to spiral in debt because we want more than we need.
When it comes to money, it takes discipline and discipline requires sacrifice sometimes. That is the reality. If you want fantasy, then keep on dreaming. Eventually you will have to pay the piper. God help you if it catches up at your retirement. I know people who haven't saved or invested one red cent their entire working career and have constantly borrowed from their retirement. Their choices are work until you die or retire penniless. This is just a fact.
If you're OK with your current trajectory in financial situation, then continue to dream and prepare for your nightmare. If you want to face facts about your finances, be sure to correct what may be keeping you poor!
Wednesday, August 26, 2015
Tuesday, August 18, 2015
Gimme Shelter
Lifelong lessons come with a price. Going with traditions can sometimes cause discord in money matters. I tend to look at life and see the successes and failures of myself and others. I also see a compulsive behavior that has most of us repeating mistakes when it comes to money.
First thing I should clarify is that I, like many, hit rock bottom but swore never to return. I'm not rich, but I'm frugal and have to live within/below my means. That is the real secret. I've seen people living beyond their means and paycheck-to-paycheck. I've also been there.
When it comes to shelter, I have rented most of my life I've also owned for awhile. I prefer renting
and have my reasons beyond these valid points. Home ownership is great and has great benefits, each person has to see what is right for them.
I made mistakes when I bought a house. It was a money pit that bled me to live beyond my means. I was a naïve and trusting person, which would normally be a red flag. Then it was the era of predatory lending. The house I bought wasn't exactly in a desirable neighborhood.
Renting is great because I have no maintenance, repairs, etc., bills that most home owners must deal with. Yet, lets not forget that home owners have their home as an asset to them because it has value.
We could go on forever as to the pros and cons of renting or ownership or even the rental property ownership. Whichever scenario you are capable of and makes or saves you money should be your goal.
If homeownership is your thing, do your homework. Will the neighborhood be the same in 30 years? Can you sell the house for a "get/got" profit in the future? Can you rent it FOR A PROFIT? If it's going to cost more to maintain and the neighborhood is going downhill, it might become a money pit.
The great thing about renting is that you can get up and move after the fulfillment of the lease agreement. You don't have to maintain the property. You don't have to clear the sidewalk of snow in the winter or mow the lawn in the summer. Something breaks down or there is a major problem. the landlord should be responsible if it is reported in timely manner.
Renter beware! Read your lease carefully before you sign! Landlords are trying to shift responsibilities in leases making the renter responsible for certain maintenance tasks.
After your first year, you have a right to move by giving just a 30 day notice to a landlord. Clean the apartment when moving because landlords keep your total security by nit picking.
Bottom line: Whether you own a home, rent a home, or are a landlord, when it comes to real estate, DO YOUR HOMEWORK!!!
First thing I should clarify is that I, like many, hit rock bottom but swore never to return. I'm not rich, but I'm frugal and have to live within/below my means. That is the real secret. I've seen people living beyond their means and paycheck-to-paycheck. I've also been there.
When it comes to shelter, I have rented most of my life I've also owned for awhile. I prefer renting
and have my reasons beyond these valid points. Home ownership is great and has great benefits, each person has to see what is right for them.
I made mistakes when I bought a house. It was a money pit that bled me to live beyond my means. I was a naïve and trusting person, which would normally be a red flag. Then it was the era of predatory lending. The house I bought wasn't exactly in a desirable neighborhood.
Renting is great because I have no maintenance, repairs, etc., bills that most home owners must deal with. Yet, lets not forget that home owners have their home as an asset to them because it has value.
We could go on forever as to the pros and cons of renting or ownership or even the rental property ownership. Whichever scenario you are capable of and makes or saves you money should be your goal.
If homeownership is your thing, do your homework. Will the neighborhood be the same in 30 years? Can you sell the house for a "get/got" profit in the future? Can you rent it FOR A PROFIT? If it's going to cost more to maintain and the neighborhood is going downhill, it might become a money pit.
The great thing about renting is that you can get up and move after the fulfillment of the lease agreement. You don't have to maintain the property. You don't have to clear the sidewalk of snow in the winter or mow the lawn in the summer. Something breaks down or there is a major problem. the landlord should be responsible if it is reported in timely manner.
Renter beware! Read your lease carefully before you sign! Landlords are trying to shift responsibilities in leases making the renter responsible for certain maintenance tasks.
After your first year, you have a right to move by giving just a 30 day notice to a landlord. Clean the apartment when moving because landlords keep your total security by nit picking.
Bottom line: Whether you own a home, rent a home, or are a landlord, when it comes to real estate, DO YOUR HOMEWORK!!!
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