Your income is not the problem its your spending
It's so critically important to understand where your money goes each month. Do you know how much you're spending on eating out? Entertainment? Dry Cleaning? These types of expenditures are automatic, yet they add up. If you don't know where your discretionary spending is going, then it's time for a CHECKBOOK CHECK-UP! Track your expenditures each month and you'll be surprised how much you're spending at Starbucks! Great advice by David Shamansky on income vs. qualifying for a mortgage, aka debt to income ratios. Please comment on his blog.
Your income is not the problem its your spending.
Do you ever want to reach across the table and let your buyer know that with 8,000, 10,000, 15,000/mo income the buyers don't need to figure out how to earn more, what they need is some financial lessons to teach them how to buy/spend better/less!
In my 20yrs of being in the mortgage industry it never ceases to amaze me at the number of HIGH income earners that have little to nothing in the bank! Sure they have the nice home, the nice cars, the toys etc but they also have ALL the debt that goes with that and at the end of each month don't have reserves in the bank, they pay all that out to a depreciating asset??
I also have to say it comes as an equal shock that many times borrowers with well less than 1/2 the above monthly incomes have 5,000, 10,000 sometimes 20,000+ saved up!
So what is the secret?
Its not how much you earn that counts its how much you SAVE that counts!
Things happen, life happens... cars break down, kids need braces, home needs repairs, your kids school needs xxx, you decide you NEED a vacation... It really doesn't matter what, the bottom line is ITS reality.
Things are nice, having many is also nice, IF you can afford them and I don't mean cover the monthly bill, I mean if YOU own them and they don't own you!
Turn the tables on debt and REDUCE it! Just because you can afford something doesn't mean you should own that. Savings is NOT an option its a must so if you are putting 5-10% of your income each month aside and want something and will not impede your savings... go ahead. If you are not saving at least 5% of your income you are headed for serious troubles later in life.
Savings and financial plans are simply not an option they are a must and it doesn't take more money it takes LESS spending!
Colorado 1st Time buyers, if you are ready to stop renting, get the many benefits from home ownership, or maybe your a current homeowner looking to move up or maybe looking into what it takes to become an investor in this incredible market, that WILL create millionaires, and you are looking for a strategy, answers and direction, please feel free to call or email me. My 18yrs in mortgage lending and 27 years in finance gives me an in depth knowledge, critical to helping others and making their dreams go from dream to reality!
David Shamansky
"Positive reinforcer, promoter, success coach, entrepreneur, team builder, wealth builder, blessed individual, business leader and professional lender"
US Mortgages
6855 S Havana St Ste 520
Centennial CO 80112
720-524-8020
NMLS#392126
Equal Housing Lender*photos used may come from my personal pictures or www.freedigitalphotos.net
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