Let’s face it. Even if the turn of this new year sparked some extra motivation to tackle your goals, it can be hard to get excited about money matters. Cutting back on your lifestyle to increase your savings or accepting delayed gratification to invest for your future self doesn’t exactly measure up to that new morning routine or self-care ritual you are hopeful to start. It’s much easier to brush financial planning under the rug and hope that our jobs hold down the fort instead.
Despite a struggling economy, the real estate market is hotter than ever. When my husband and I refinanced our home in July, our loan officer told us that she was swamped with new home purchases in the Austin area. With a desire for more space after rolling lock-downs, a swift market recovery, low-interest rates, and rotation of capital into real assets, it’s no surprise that homeownership has more appeal now.
After completing two home purchases and two refinances over the past 10 years, my husband and I are no stranger to the mortgage lending process. One of the biggest decisions we had to make during each transaction was the duration and terms of each loan. When it comes to taking on large sums of debt, you want to make sure you evaluate your options from all angles. The best option may not always be the most attractive one at face value.
Whenever I hear or read about budgeting, I always cringe a little bit inside. As someone with very little self-will, the act of budgeting always strikes me as a crash diet that will quickly fizzle out a few weeks in. Nothing sounds worse than agonizing over every transaction, wondering whether or not I exceeded my monthly spending limits across ten different categories.
Many of us have a complicated relationship with debt. It’s something we’re afraid of getting too deep into yet in many cases, a necessity to afford large purchases or achieve certain milestones. Some of us will do everything in our power to get and stay out of debt. Others may lean on this route more than they should.