How many of you have a budget? Not one that is "just in your head", or is constituted by living from one paycheck to another, or one that is made up of "spending what is left over after paying the bills" - or worse, a budget for paying bills and saving that is only established by "what's left over" after all the spending.
Whether you are an individual, a family, a business or a government, you must have a budget and a cash flow analysis. And if that budget can not be met without borrowing (such as paying for monthly expenses with a credit card), and does not allow for savings and for an emergency fund, then your budget needs to be re-calculated, re-worked and changed. Maybe more income is in order, most likely some debt needs to be eliminated, and probably a little of both.
The good news is I am now seeing more and more people, who come to me for a Pre-Approval to purchase a home, begin to budget for a paymnet below what they can actually get approved for. I am seeing more and more people getting back to the "old way" of financing their purchase; not exceeding 25 -28% of thier gross monthly income to pay for their total monthly Housing Expense. And with today's interest rates, it can definitely work.
What does your budget look like?
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