Today a person was asking me for help to try and find a home of sort that would fit her budget and lifestyle. Now like most people one of the things that people worry about are the fees associated with owning like a home. However, in this case I tried to get the person to think about that while telling me about her monthly income to see if it is doable and makes sense so that she doesn’t have to stress out about money.
She was insistent though that it doesn’t matter as in her mind all she needed to do was find a home that she could afford. She budgeted it a little strange too in my view such as if she had $250,000 for example then in her mind finding something that is $200,000 will be good enough. Essentially, there are no factors such as if her monthly income will match her living expenses or if the fees/taxes that are associated with owning the property will be negligible.
While it’s a nice confident boost I guess like in that example to have $50,000 sitting in the bank, if that number is always going down with your plan then it needs to be re-thought I say as big purchases are often money guzzlers in other ways post purchase.