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8 Means to Getting Your Funds in Order

Excerpt from’s upcoming ebook. Check the products section in the upcoming weeks or subscribe to our mailing list for further information.

. You need to figure out where you spend your money and the best way to do that is with the aid of saved receipts or a good brainstorming session. You then can create a budget according to what you have habitually spent on in the past 6 months for instance. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.



1. Create a family budget

2. Cut down on your debt. Your mortgage will typically range between 25 percent and 28 percent of your income and generally speaking lenders look for a total of no more than 36 percent. This allots you to cut down on your other debts (such as car loans, student loans, credit card balances) down to 8 to 10 percent. The other steps will help in accomplishing that.



3. Manage your expenses. This means pay attention to the small stuff your spending your cash on because we all know they add up. Remember a penny saved is a penny earned. You can save over 1,000 bucks a year if you stop picking up that Starbuck’s coffee everyday and even more if you bring your own lunch to work. Try writing down everything you spend for one month and come up with cheaper alternatives.



4. Increase your income. You might want to see different avenues where you can generate more income whether it be a second job or your spouse picking up one. If part time and full time jobs aren’t your thing I suggest you pick up “Making a Living without a Job: Winning Ways You Create Work that You Love” by Barbara Winters. A lot of good insights.



5. Save specifically for a downpayment. Aiming for a 20 percent down payment should be the goal here. Even though it’s possible to get a mortgage with only 5 percent (or in some cases less) down, you usually get a better rate and a lower overall cost if you put down more.



6. Create a separate house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills. Better yet take a percentage out of your paychecks just like the government does. Makes it less painful.



7. Withstand your job. Showing that you have a secure job (having a job for more than two years) will help lower your interest rate. Having a job for less than two years may mean you have to pay a higher interest rate.



8. Establish a good credit history. This is the easiest step to follow but also the easiest to mess up. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly. Don’t shoot yourself in the foot!


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