Have you considered how much wiggle room you need to leave in your home budget to enjoy life?
Here are six factors to think about before buying a home:
[1] TRAVEL
+ Where do you want to go?
+ What do you want to see?
+ How long are your ideal trips?
+ How much would you need on an annual basis to make your travel goals possible?
+ Is this already factored into your budget?
+ Will you need to cut back to fund your monthly mortgage payment and home expenses?
[2] YARD WORK
If you don’t enjoy yard work, you could be looking at an extra $100 or more a month for professional landscape maintenance.
[3] POOL
The maintenance, servicing, energy, and insurance costs of having your very own pool are expensive and could take away from your other, more important, financial goals.
[4] CHILDREN
If you are planning on having kids, factor in daycare costs to determine your monthly cash flow and to see what home you can afford.
[5] ENTERTAINMENT
If you like dining out or attending concerts and sporting events, aim to strike a balance that won’t leave your feeling restless by forcing you to cut back fully on the things you enjoy. If necessary, reduce the amount of home you purchase so you can enjoy yourself in the ways that are important to you.
[6] RETIREMENT
If you are in your 20’s, you should save 10% of your income. For those who are in their 30’s, they should be saving around 15%. If you need to cut back on your retirement savings, figure out for how long and when you will be able to go back to your ideal contribution.
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