Part 23 (1/1)

Let's split this task into two parts The first half, ”buy a ho

The value of a home comes partly from its price appreciation Generally, house prices increase over the long ter in 2006 was an exception

Hoet another kind of value, however They don't have to pay rent Instead, they pay on a s When renters pay rent, they never see thatequity in the property, assuative ae just before the housing bubble

And if homeowners itee interest, which is yet another financial benefit

A hoe You put down a small fraction of the home's worth in the foret to keep the gain on the entire home's value-not just the down payht a home for 300,000 with a 20 percent down payet to keep all the 200,000 gain, not just 20 percent of it

And you lock in your housing costs Rents ot a 30-year fixed-rate e, your payment will be the sa statistic: The average hoe renter has a net worth of less than 5,000, according to the Federal Reserve Survey of Consumer Finances And it's not because homeowners have 40 times the income of renters; they only have about twice as much

The second half of this ”buy a home” task is the qualifier ”that you can afford” This is where socrisis Because of weirdo es that artificially lowered the ht ho run

One rule of affordability co Adage principal and interest, plus real estate taxes, plus hoross income So, if your household income is 8,000 a month, you could afford a total ht even classify that as a ”stretch” pay you'll probably feel pinched until your income rises over the years Remember, the principal-and-interest part of your house paye So, when your income rises, the pay to stretch to afford a house payment or a car payment, the house is the one to choose

You can play with e-affordability calculators on the Internet at such Web sites as Bankratecom and dinkytowncom to hone in on a co

And this is what it's all about Re aren't really different Saving is just an intellectual decision to spend later, rather than now Iftheir , they would be far better off

And daily spendingto your phone bills to insurance You'll be far wealthier if you can develop the spending smart philosophy: Spend on purpose, rather than by accident and habit And plug the leaks of wasteful spending, so you can funnelis i

So, care about all your spending, whether you're spending today, yesterday, or tomorrow It's as easy as 1-2-3

Forat SpendingSKarpcom Feel free to e-mail me at [email&160;protected]

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