Archive for the ‘Budgeting’ category

True Cost of Home Ownership

July 28th, 2010

: Image by Getty Images via @daylife

Here is an excellent rent Vs own calculator that can help you make an informed decision about how to spend your housing budget. Home ownership is a dream when you can afford it and can quickly turn into a nightmare when you can’t.

The true cost of ownership is not just the PITI (principal, interest, taxes and insurance), but also the maintenance of the home and lifestyle of the neighborhood.

Home maintenance must be part of your budget and saved in your Momentum Account.

Keeping up with the Jones’ is a real thing. Your neighbors are will likely become your friends and your social reference so beware of moving into a neighborhood where your neighbors earn substantially more money than you do. Keeping up can lead to consumer debt.

Green with Envy by Shira Boss is a wonderful look into the lives and checkbooks of our neighbors.

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Posted in Budgeting, Home Ownership, Rent Vs Own

Tags: Debt Home Money Personal Finance

3 vacation budgeting red flags

July 5th, 2010

: Image via Wikipedia

It’s time to change your vacation plans if you see any of these red flags. And by change your vacation plans I mean – plan a less costly vacation.

These are by no means all of the possible budgeting red flags, but they are common. If you notice that

You are unable to pay cash for your vacation – using a credit card is borrowing money.
You don’t yet have a minimum of a $1,000 emergency fund.
Going on vacation will cause you to stop paying extra on your debt payoff.

Then it’s time to go back to the planning stage so that you can design a vacation that you can truly afford.

I understand that it’s important to rejuvenate by taking time off from work even if you are focused on getting out o debt. However, ignoring these red flags can make it even harder to get out of debt.

Some of the ways to reduce the cost of your vacation are to: