Sunday, September 25, 2011

Want to Own a Home in this New Economy?

I was watching Suze Orman's Money Class on Public Television the other day and she gave a few tips that I thought were good advice for anyone going forward in our new economy that still wants to own a home. I still believe owning a home is the American dream but the way we've done it in the past has created a nightmare and that has to change. We can't change what we don't acknowledge (Dr. Phil) and we have to acknowledge that fact in order to make that change.

I said in an earlier post on another blog http://atlanticcountyhomes.wordpress.com/2011/08/22/atlantic-county-nj-borrowers-can-get-the-lowest-prices-but-america-needs-to-get-back-to-work-and-homeowners-should-consider-paying-off-their-mortgage-sooner/

that Americans need to own their home sooner and one of the ways to do that is to make a bigger downpayment. Making a bigger downpayment may not be the only way; I'm sure there are other financially savvy Americans who have come up with other inventive ways to make that happen but this is also what Suze Orman recommends: a twenty percent downpayment and 8 months of expenses put aside before you even start the process of searching for a home. Suze suggests that "every move you make effects something else". Suze also suggests to "Live below your means but within your needs". That is not bad advice for someone who may want to accept a lower financial threshold.

Loral Langemeier, http://www.liveoutloud.com/ who worked with Robert Kiyosaki of http://www.richdad.com/ fame suggests making more money instead of living below ones means expand the amount of cash flow that you have coming into your life. I don't know about y'all but I like making more money better than just living below my means. You decide.

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