Mortgage Maven

To know where you are going you must see where you have been. To be able to save money for down payment and closing cost you need to determine first where you may be leaking money. Stop those leaks and than create steps on how to save your funds..

Here are some helpful steps to take on this deep dive…

• Create a Budget: Outline your expected income and expenses this will serve as a guide or baseline for identifying discrepancies
• Track Your Spending: Keep a detailed record of every penny you spend for a minimum of 30 days and up to 90 days. You could use a budgeting app, spreadsheet, and yet the best method I found was a simple pen and paper ledger or notepad. I found this method to be the best as it not only has you tracking every last penny but also has you very consciences to the possibly leaks. It allows you to see a physical representation of expense that you know about and the leaks you may not even be cognizant of in the moment vs waiting to input it later (its like a wake up or alarm & some will find how much they are leaking eye-opening). Think about it , 2 coffee’s a day at a well known establishment on average is 8.70 per day, 188.50 per month and 2262.00 per year. (using a 5 day week)..Might want to invest in your own coffee machine and large bags of fresh ground coffee..
• Review Financial Statements: Take a look at your last 90 days or more of bank statements and credit card statements. Look for recurring expenses, irregularities, or charges you don’t recognize. (tip here – do this every month moving forward or have automatic flag notifications set up on your charge cards to stop any unauthorized uses). banks already do this on your depository accounts and if they don’t make sure you are signed up for that too.
• Make Categories for Expenses: Split your expenses into fixed and variable categories. Expenses that stay relatively constant such as rent, mortgage or auto payments would be considered Fixed Expenses. Expenses that can fluctuate like groceries, entertainment, credit card payments need to be consider as variable expenses.

After tracking your expenses, review your spending habits. Look for areas where you may be overspending or where expenses are higher than you expected.

Look for the following areas of opportunity: List unnecessary expenses – discretionary spending that may not align with your financial goals. These could include dining out frequently, impulse purchases, unused subscriptions, or excessive entertainment expenses (including all those great in home on your channels pay per view Movies…have you binged lately?) Subscriptions can include steaming, gym, magazines, and so on. If you are not using them or viewing them – its time to hit the cancel button.

Have you reviewed your utility bills lately – good time to audit them is now electricity, water, gas, internet, cable. Maybe there are opportunities for better deals or energy efficient upgrades. Perhaps the equity in your home could assist on those upgrades – connect to take a look.

Review your credit card balances and interest rates perhaps there are opportunities to move balance to lower rate or if you are a home owner to refinance and pay those higher rate cards off. Refinance maybe a better option even if the rate on a new mortgage is higher than what you currently have – a mortgage provides for additional deduction possibilities on taxes whereas credit cards do not. Reach out to me and lets take a look at the possibilities together.

Once your leaks are stopped and opportunities have been put in place, its a great time to set up some automatic transfers to a savings or investment account. This establishes a portion of your income (net or gross) is set aside before you have a chance to spend it. This adds up faster than you think. Contact me for more ways to save and yet still allow yourself enjoyment, as I have a few things to share about making it easier and in setting up emergency fund accounts.

If you are having difficulty in identifying leaks or managing your finances, consider working with an advisor – I would be happy to be an advisor in your corner and or a resource for additional support.