Stage Seven to becoming debt free and setting up for financial success

Now that we have started to get our finances on track it is time to start looking at what we can do with any cash we have after paying all our bills and paying money into our retirement fund.

One of the things we want to look at doing is paying extra payments into our house as a minimum we really want to be paying off at least one extra monthly payment a year but if you can afford to pay off more it will mean that your house will be paid for that much quicker and you will be able to become totally debt free. By doing this you not only own your house, but you also save a lot of money on interest payments that you no longer have to make. read more

Stage five to becoming debt free and setting up for financial success

Now that we have our emergency fund set up so if those inevitable problems happen it is now time to start setting ourselves up for the long term. For people who do not own a property for themselves this is the stage at which we start saving for a property to live in.

Really we want to save a large deposit so that we do not have to take on a big mortgage, most mortgage companies will be looking for a deposit of at least 15-25% so that you can access the lowest possible mortgage rates. read more

The Normal Persons money for housing

Rather than continue talking about debt I thought it would be a change to look at housing again and how much we should be spending on our housing. I have written quite a lot about debt and paying off debt but housing is one of those things that people wish to buy that will more than likely require the taking on of some debt. This is mainly due to it requiring several years to be able to pay for a house out right so it is more than likely that you will need to take on some debt in the form of a mortgage. But one of the most important things to consider when buying a house is your ability to afford the house payments. If you are struggling to save money when you are renting and your rent is not equivalent or more to the proposed mortgage payment then you will need to look at either saving more money or probably not looking at buying but continue to rent. read more