The second step of the financial planning process has been to analyze my cash flow. Advisors recommend aiming for a 50:30:20 ratio. This means that 50% of your after tax income is for living expenses or needs (mortgage, utilities, food, gas, etc), 30% is for working toward your goals (savings and debt payoff), with the last 20% used for fun […]
As I learned, when I interviewed financial planners and in my research afterward, the steps of a financial plan are standardized and I’m going through all of them here. The first step is to layout clear financial goals. This will shape our plan and guide how we direct our money to work toward making our goals our reality. Examples of […]
A prosperous age in which many came to enjoy the blessings of consumerism and excess,only to see it all crash around the, with the Great Depression - is this a summary of 2020 or The Great Gatsby?
Why yes, we are actively house hunting. Over the past six months we have had threats of a car being towed while parked in our reserved spot, a shutdown Airbnb, four dogs a barking and a partridge in a pear tree. The next door neighbors and the home owners association are definitely our driving factors for house hunting. And, after looking for three weekends or so we have found an area where we can downsize the mortgage and upsize the property. By increasing my daily commute by approximately 40 minutes a day, we can afford a single family home on a quarter acre of land, and save the home owners association fees I pay now (which coincidentally will offset the cost of my mother’s current home care). We will also be able to cut the mortgage from a 30 year to a 15 year and by about 35% of where I started on this condo. That means there is an actual chance we could own a home of our own in maybe 11 years or less! The key for us though is finding a buyer who will accept an offer contingent upon us selling my condo. We will be using the equity from the condo to put the down payment on the house. You do gotta love the loan agents and real estate agents who try to push for multiple loans and for us to get stuck with multiple properties […]