Buying a house – working out what you can afford So, you want to buy a house but have no idea what you can afford? In this article I will take you step by step through the exact process I use with all my clients to help them work out work out what they can truly afford to spend when buying a house. The great thing about this process is that my goal is not to give advice, but rather to let the numbers speak for themselves. Meet Colin and Kate: Colin and Kate are a young couple in their late 20’s; they have been renting for 5 years and over that time have managed to save $135,000. The owner of the house they have been living in is unfortunately moving back to Australia in 3 months’ time and they will have to move out. They came to me to help them work out if they could afford to buy their own home, and if so what could they afford to pay. So here is the process I took them through: Step # 1 – What do you really want your life to look like? The first step …
So your finances aren’t going quite as well as you had hoped, the bills are rolling in and despite earning an okay income you never seem to save us much as you would like. You have been thinking about it for a while, you have been putting it off but desperate times call for desperate measures (deep breath) – it is time to set up a household budget!
A couple of weeks ago, I was approached by a friend who wanted some advice on how he could get his wife interested – and more importantly involved – in the household budget. While they were doing okay financially, my friend knew they could be doing a whole lot better. Sure – they paid the bills on time and paid off their credit card every month, but despite a healthy income there was never a lot left over. With the prospect of starting a family on the horizon, my friend was keen to establish a budget and to start managing their money in a purposeful way. But to his great disappointment, his enthusiasm to establish a budget wasn’t exactly shared by his wife. As a budget coach this wasn’t a surprise to me; not because I know his wife, but because this is a very common issue! It is rare in a relationship that both partners share the same enthusiasm for budgeting. But that doesn’t mean you can make it work. So here are three strategies I recommend using to help get your spouse or partner on board with the household budget:
Budgeting and going on dates are often a fearful combination of words. Many people think that it’s a “pick one or the other” type of scenario. However, “budgeting” and “dating” can live harmoniously together. And no, it doesn’t have to consist of cleaning up after the kids or getting work done around the house. If you are looking for fun date ideas that will not hurt your budget, why not try some of these creative ideas?
In the first blog in this series, Mortgage Advice for Young Couples Part 1: How Much Do We Need to Save For a House?, I provided an overview of how much you need to save before buying a house and outlined all the costs you need to consider. In this second blog, Mortgage Advice for Young Couples Part 2: How Much Can We Afford to Spend on a House?, I outlined the process I use with all my clients to help them identify how much they can afford to spend on a house.
One of the most fulfilling parts of being a financial coach is journeying with and helping people achieve financial goals that are important to them. One of the biggest, if not the biggest, financial goal you and I will face in our lifetime is to save for and purchase our first house. As a financial coach I also recognise that a big part of my responsibility to my clients is to give them the right advice, even if they don’t necessarily like what they hear.
One of the most fulfilling parts of being a financial coach is journeying with and helping people achieve financial goals that are important to them. One of the biggest, if not the biggest financial goal you and I will face in our lifetime, is to save for and purchase our first house.