RULE # 7
This rule came straight out of Dave Chilton’s The Wealthy Barber Returns in his
chapter “Under House Arrest.” Some of us
think we have to keep up with the Joneses by purchasing more and purchasing
better things. This is also apparent with major purchases- purchasing homes and
purchasing furnishings. A lot of students are now thinking about buying their first
home if not right after they graduate, but in a couple of years, so it’s
important to address this issue.
Buy something
you can afford. Perhaps you have been saving for a down payment for a
couple of years now and you are thinking about buying your first home.
Remember, your first home is often not your dream home, so keep that in mind
when you’re in the market. Monthly payments should be affordable and should not
prevent you from taking a week or two off of work to spend time with family or
to go on a vacation. Think about the
lifestyle you will have when you commit to making large monthly payments.
Beware of
handy-man specials. These “deals” can be tricky. The price of handy-man
homes is often affordable for new graduates, but long-term – maybe not. Before you purchase a handy-man special, think
about the money it needs for repairs.
Conduct a cost sheet by going to the local hardware store and looking at
prices for new floors, kitchen cabinets, bathroom tubs and toilets. Secondly,
if you can’t do the work yourself, get a professional quote, maybe have a
contractor come with you to tell you the overall price for repairs. Handy-man
specials look affordable, but think about the cost once you have implemented
repairs and renovations.
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