Budgeting is the first step you should do when you want to buy a new house.
Even before looking at properties online or finding a realtor or mortgage broker you should decide how much you are comfortable spending.
Why is budgeting important for families? The main reason is to show you where you are financially and help make better decisions about money in the future.
It improves your life by giving you a guide for how to spend and save your money.
Consequences for not budgeting may include debt and stress over your fiscal situation.
Budgeting 50-30-20 is a simple financial tool you can use to decide if you allocate your money efficiently.
Needs, wants, and savings are the categories. If you spend more then 50% on needs or you should probably consider downsizing your lifestyle.
If you don’t save at least 20% then you should consider putting away more for emergenciesl.
Personal loans may be a good tool to pay off credit card debt in some situations.
There are other tools, and you start by writing a financial plan with a budget before you decide which approach is right for you.
You can use your 401(K) to pay mortgage, but wait til you retire first.
It’s very hard to get a hardship, and you pay a 10% penalty to withdraw your money early.
If you are retired whether its is a good decision depends on your financial situation and priorities.
Should real estate be in a trust? That depends on the type of property and your situation.
If it generates income and liabilities, usually rental and other investment, it should be in an LLC.
Your primary residence should be in a trust, and you should consider a domestic asset protection type if you have a lot of equity.
How to transfer real estate into a trust requires careful planning. Assess, transfer, and distribute your property carefully
You must deal with many tax, title, and insurance issues to set it up right.
The time you put into setting up your living trust correctly greatly helps your loved ones later on.
Equity in real estate is the difference between what you owe on the property and what its fair market value is.
It is real money, and it builds over time. You can use it as collateral for other loans, to pay off debts, to buy other property, or fund your retirement,