One of the best feelings and positions in life is to be financially free. Financial freedom found from building sizable savings and being debt free can happen at any age with the proper planning.One of the biggest questions you’ll face on your path to financial freedom is whether or not you should pay off your home mortgage. There is no black and white answer for everyone as the answer depends on a variety of variables, as with most financially related questions.
I’ve always been interested in real estate. So, investing in single family rental properties has a been a goal of mine for quite some time. I’m not sure why it’s taken me so long to take the plunge. I’m sure fear was a large factor in not making a purchase. Even though I’ve listened to countless podcasts on real estate investing, read numerous books and attended meetings of local real estate investing groups, I still had this feeling that I didn’t know enough yet. I felt like I needed to learn more about it to avoid making any mistakes. Many would call this analysis paralysis which is over-analyzing a situation to the point that action is never taken. After absorbing all this information about the subject for years it was time to get serious about finding a deal. I had listened to enough of the success stories on the BiggerPockets podcast and I starting to wonder why not me? Why wasn’t I a part of this real estate investing frenzy that so many people brag about.
Avoiding these blunders will make you a much happier homeowner.
Buying a home is often one of the biggest financial decisions Americans will make during their lifetime. Homeownership is often viewed as a sign of success in America, and for many people there’s nothing quite like the feeling of knowing that you’re in control of your own domain.
But buying a home isn’t something that consumers should take lightly. It’s a major responsibility that can have big repercussions if you aren’t careful. Here are five of the most common personal finance mistakes that current and prospective homeowners should be careful to avoid.
Everyone needs to save an emergency fund for those unexpected expenses that always seem to come our way. Without an emergency fund, any unexpected expense becomes an emergency that has to go on a credit card. It could be something as small as a car repair or a lost phone. A financial buffer can keep you afloat in a time of need and let you recover without going into debt.
One of the first steps in climbing out of debt is to give yourself a way to not go further into debt. To build an emergency fund, consider these questions.
How big should my emergency fund be?
The exact answer to this depends on your financial circumstances and how much insurance you have, but a good rule of thumb is to have enough to cover three to six months’ worth of living expenses. This can give you enough time, for instance, to find a new job or supplement your unemployment benefits until you do.