House Budgeting Heading into 2020

House Budgeting Heading into 2020In the 1920s, the twenties were referred to as quite an age of decadence. Think about movies like The Great Gatsby. Those were parties for any decade, let alone one that was leading into the Great Depression for many different countries. We’ve come a long way since then, but that doesn’t mean that thinking tactfully about the ways that you’re spending your money are any less important. Some things never change, but some things do. Some things like having far better resources and information to ensure that you’re making the best decisions. The New Years’ season is most popularly the best time to start making goals, and the vast majority tend to have something to do with money. It doesn’t matter if it’s how you save it, how you spend it or how you donate it, the end of December is a gut-check to stop, think about it and determine exactly how where your wallet’s contents will go over the coming months.

It can be stressful! And that’s the purpose of today’s Restumping Melbourne message. We want you to be proud of the money that you’ve made and excited about the ways that you spend it. Here are some tips and tricks as we say farewell to the year that was 2019.

First of all, you need to look at your debt and the best ways to manage it. Easier said than done, right? Well not if you ask experts like Dave Ramsay, who knows exactly what he’s talking about. His tips include the following:

  • Start Emergency Fund
  • Pay off Debt
  • Build Emergency Fund
  • Invest
  • Save for College (if applicable)
  • Pay off Mortgage
  • Build Wealth and Give to Charity

Once these are in place, it’s far easier to think about where your money can go – be it to improve your current home or plan a whole new one!

Yes, this is where the math comes in. And sometimes, math is no fun. But, it’s unavoidable. Here’s where we tapped Investopedia:

  • “To determine if a home is affordable, calculate your entire debt-to-income ratio: all your monthly expenses divided by your gross income.
  • Homeownership involves a variety of ongoing costs, including homeowners’ insurance, property taxes, and repair/upkeep expenses.
  • Affording a home means being able to make at least a 20% down payment on it; otherwise, you’ll incur costly private mortgage insurance.”

The best part is that we live in a day and age where you have all of the tools possible right at your fingertips. You can take advantage of applications like mint or these shared from Nerd Wallet.

And while we may be a *wee* bit biased, and probably say that far too often on our blog posts, we truly believe that the best way to get your questions answered is when you work with a company that reinforces homes from the ground up – literally. From your foundation to your finances, the Restumping Melbourne team is not just there for you during the holidays, we’re here year-round.