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Basically you can get financed for 2.5X your household income. My wife and I knew we wanted about a $750 payment. We got approved for $160,000 we said no thinks and got a small "starter" house for $105,000.
You sound like us. Bank approved us for way more than what we were comfortable paying. We looked down the road and knew that when kids came along we really wanted to be able to have me stay home with them. We opted for a smaller house, further up the road than planned. We also stayed there for longer than we planned and while I was still working full-time socked away as much as possible and paid more on the mortgage. It benefited us then, as well as when we bought this house 10 years ago.
You used you common sense rather than getting talked into something you didn't need. Once we get our house paid off we will either remodel because we really like the neighborhood or we will move to a bigger house with a bigger kitchen a famly room and theater /office room and a MUCH nicer master suite. I want to do a second floor addition above the half of the house above the garage but I thin it may be cost prohibitive.
You sound like us. Bank approved us for way more than what we were comfortable paying. We looked down the road and knew that when kids came along we really wanted to be able to have me stay home with them. We opted for a smaller house, further up the road than planned. We also stayed there for longer than we planned and while I was still working full-time socked away as much as possible and paid more on the mortgage. It benefited us then, as well as when we bought this house 10 years ago.
You used you common sense rather than getting talked into something you didn't need. Once we get our house paid off we will either remodel because we really like the neighborhood or we will move to a bigger house with a bigger kitchen a famly room and theater /office room and a MUCH nicer master suite. I want to do a second floor addition above the half of the house above the garage but I thin it may be cost prohibitive.
Exactly. A lot of people hear 'you can afford xxx' and go with it, never stopping to think about the reality of actually living with a mortgage at that number and never consider downsizing in order to save money. Our mortgage will be paid off in a few years.
Top 5 Mistakes We Make Teaching Kids About Money
by ivillage_manageyourlife, on Mon Sep 28, 2009 7:37am PDT
123 CommentsPost a CommentRead More from This Author »Report Abuse
By Laura Rowley
We all make stupid money mistakes. Find out if you're making bad money decisions with this advice from Kodak spokesperson and money expert Laura Rowley.
1. Becoming a Human ATM Machine
Give children an allowance and let them know what they have to pay for out of their own stashwhether it's the ice cream truck, the goodies in the $1 aisle at the discount store or that Scholastic book order form that comes home from school. This reduces nagging, allows them to develop math skills and learn from their mistakes. It's amazing to see how much more they value the things they paid for themselves.
2. Overlooking Every Day Lessons
Don't miss opportunities to discuss simple economics in every day settings. While grocery shopping, explain why it's smarter to choose the package that costs less per pound, or the more affordable generic brand; and why it makes sense to stock up when an item is on sale. Explain why savvy savings habits make sense: "By saving just $15 a week using the grocery store's loyalty cards and coupons, we'll have almost $800 at the end of the year to spend on something fun."
3. Not Involving Kids in Longer-Term Goals
Solid money management comes down to two things, planning ahead and making choices. If you're planning a vacation, talk to the kids about the budget: airfare, lodging and entertainment. Take a coffee can and label it the "Vacation Fund" and throw in your loose change at the end of the day. Take the coins to the bank and show the kids how the money is adding up; and how the bank will pay you interest for storing the cash in a savings account. Give them a specific budget for souvenirssay $15and suggest they increase it by earning cash for the trip through lemonade stands, dog sitting or lawn mowing.
4. Missing the Opportunity to Motivate Their Savings Habits
If your kids put money in the bank, match their contributions. I took my kids to our local bank branch when they were 8, 6 and 4 and opened savings accounts for all of them. I matched the money they deposited, using the opportunity to discuss how a 401(k) plan works and why someone should contribute up to the amount of the company match (free money!).
5. Not Explaining How Plastic Works
According to a study by Nellie Mae, the student loan firm, the average college freshman has $1,500 in credit card debt, and that figure doubles by the time they graduate. Some 56 percent of college seniors carry four or more credit cards. That's when the real trouble starts, because if teens lose the battle to understand and manage credit cards at 18, the damage can haunt them for years. An estimated 70 percent of employers check credit scores before they hire. Over time, a low credit score will suck tens of thousands of dollars out of your child's pocket when they seek financing for an auto or a home. Consider allowing a teen to practice with a pre-paid, reloadable debit card such as Visa Buxx. It has fewer fees than competing cards and features parental controlssuch as setting a weekly cash limit. Parents can also get email alerts showing when and where a teen used the card, setting the stage for discussions about wise spending.
When I bought my house, I qualified for way more than I spent.Now, why the hell would you want to be personally fiscally responsible like that?Basically you can get financed for 2.5X your household income. My wife and I knew we wanted about a $750 payment. We got approved for $160,000 we said no thinks and got a small "starter" house for $105,000.
You are obviously to stupid to be a congressman.
<yes, that was sarcasm>
Yeah I could've has a WAY bigger kitchen and I could even have someone cooking my soup FOR me.
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Check out what the middle class family had and did back in the 50's and 60's. Today? How many televisions, computers, computer and video games. Look at how often they go out to eat. Cleaning and lawn care hired help. Vacations that cost in excess of $1000 per person, sometimes 2 or more times per year. How many cars? I know my mother would freak at a monthly phone bill over $100 per month, which includes a cell, cable, and computer hook up.
Twenty year olds want what took their parents years to provide, but they don't want to wait and they don't.
If a family with an income of $40k wanted to live on that, they can, but their standard of living will be more like that of the 50's and 60's.
That's a lot of what I see as the root problem too Annie.
"Twenty year olds" are certainly impatient today, but there's also far too many of their parents that should know better, who are just as bad, or worse.
I truly believe that if you can't pay for it, you can't afford it, and don't "NEED" it. Aside from a home, and maybe a reasonable amount for a vehicle, there is no excuse for being in permanent debt. No, it's not easy to do, quite the opposite, but life isn't supposed to be easy.
Slow and steady will usually win the race of life. I can only hope my kids that now think I'm an asshole at times because I won't by them this or that, will eventually understand, same as I thought my dad was an asshole many times while growing up, but was eventually grateful for.
Parents today are FAR too permisive. Buying their kids BRAND NEW CARS. EVERY electronice device man can create. The nicest cloths from ONLY the right stores. SPOILED FIG RATS if you ask me.
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
You must spread some Reputation around before giving it to Zoom-boing again
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
mine spent 4 years building this
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
Moms work harder than anyone else.
mine spent 4 years building this
Impressive to be sure, but birthing and raising you was harder.
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
I was never a mom, but I was a single parent. I worked plenty hard.
I would say your statement was too generic.
Single parents work harder than anyone else.
that was the post war boom. moms didn't have to work. she just finished up 4 years working in war plants.
Moms work harder than anyone else.
I was never a mom, but I was a single parent. I worked plenty hard.
I would say your statement was too generic.
Single parents work harder than anyone else.
Did you guys ever know a guy in school who got a BRAND NEW CAR for his B-Day in his junior year? By the time he cam back for senior year he was driving the biggest piece of shit on campus. LOL!
Did you guys ever know a guy in school who got a BRAND NEW CAR for his B-Day in his junior year? By the time he cam back for senior year he was driving the biggest piece of shit on campus. LOL!
I see quite a bit of that with my oldest kids buddies and their atv's. Many of them had their atv's(good ones) from a very young age, while my kid drove me fuckin' nuts to get him one. I resisted, explaining I didn't have the money to outright buy him one, and wasn't going in debt for a toy.
Well, when he was 14 he came home with this old antique thing that had a seized engine, and was in pretty rough shape, that he bought from a friend of his dad for $50. He scrounged the parts up and worked on it through the winter and had himself a bike in the spring for $500. Certainly nothing special, but he was riding and had a little money left in his account for maintenance.
He rode it until that fall when he sold it, more than doubling his money, and put the money with what he earned that summer and got himself a nice 4yr old bike that fits in with his buddies now.
Their bikes are all beat to fuck and he polishes and maintains his after every ride. Now he sees and understands why I'm so "anal" with the way I look after my stuff.
Anyway, just an illustration of you really do appreciate what you've worked for, and it is rewarding to eventually see your kid pull it off.
You must spread some Reputation around before giving it to ba1614 again.
