MANILA, MARCH 10,
2017: Home-buying is definitely one of the biggest purchases one can make
in their lifetime, and it really pays to be ready and fully equipped before
sealing that dream home deal. But the big question remains: when is the best
time to buy a home?
As observed, people often look at the current market
standing, the trends in real estate, or the prevailing interest rates set by
the Bangko Sentral ng Pilipinas (BSP)
before deciding to buy. But in this case, Lamudi
Philippines, the country’s leader in online real estate, says otherwise. It
is indeed wise to study the market and research for the best real estate deals,
but it is definitely way smarter to evaluate yourself and your financial
standing first before signing the much-awaited deed of sale.
To prepare homebuyers toward an exciting journey of
acquiring a home, here are some useful personal finance guide and checklist you
can follow.
1. Track Your Net
Worth
The capacity to buy a house really depends on an individual’s
circumstance and goals, and the best way to begin is by identifying your
financial capability. First step is to track your net worth. Simply defined,
your net worth is the difference between your assets and debts. The bigger the
difference, the nearer you are to your monetary goals. Furthermore, it is
imperative to regularly monitor your financial standing to ensure that you are
on the right track.
2. Settle Your Debts
There is a systematic way to one by one reconcile your debts.
If you have a mountain of loans, try settling all the smaller amounts as
quickly as possible. Alternatively, it might also be best to cover first the
loans with the highest interest rates to make sure that they won’t keep earning
interests, which can be quite hefty if you add them together.
3. Make a Personal Fiscal
Calendar
To veer away from late-payment penalty fees and big interest
rates, keeping a journal or a calendar that lists all your money-related matters
will help a great deal. This will help you not miss any upcoming payment or
expense and smoothly plan your finances ahead.
4. Refrain from Using
Credit Cards
Impulsive buying and unplanned purchases are empowered by
that mighty plastic card inside your wallet, so better leave it at home. If you
can try going all cash with your daily necessities and expenses, this will
prevent you from making more unnecessary overspending.
5. Set a Budget and
Strictly Follow Its
To successfully abide by this rule, discipline is key.
Working within a predetermined budget will not just let you optimized your
spending, but will also enable you to save more. After receiving your paycheck,
quickly set aside a portion for savings and bills. Afterwards, you make use of
what will remain and divide it for the next couple of days until the next payday.
6. Save and Splurge
Allot a certain amount of your funds to lifestyle spending
and firmly abide by it. This includes movies, restaurants, spas, expensive
coffee, and all other non-basic necessities. This way you will not feel
deprived as you can still do everything that you love but only in a regimented
manner.
7. Be Contented
This is the mantra that you should say to yourself every
time you dreamily eye a new gadget or an expensive pair of shoes that you don’t
really need. If you learn to savor and appreciate the things that you now have
rather than long for things that you don’t, it will surely be a big step toward
managing your money well and eventual
financial freedom.
8. Own a Home—Vision
Board
Eyes on the prize. This will greatly arm you in your
adventure toward financial freedom and being ready to finally get your dream
home. A good motivation will better drive you to follow good money habits. Even
if buying a home is your ultimate goal, you can also set smaller targets or
short-term goals like taking a trip abroad or a good-quality timepiece for your
upcoming birthday. Once you obtained these mini goals, you will have a daily reminder
that all your dreams can be achieved, including your ultimate goal of finally purchasing
your own home.
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