4 Financial Strategies Houston First Time Home Buyers Should Consider
During economic times such as these when everyone is dealing with high inflation, high home prices (if you're buying, not selling), high interest rates and a beaten down stock market, it's good to know what to do, when to do it, how to do it and with whom to speak, should you need to.
Change is constant, so the only thing we can really do is be prepared. Here are 4 financial strategies to consider to help you navigate the current economic climate.
Credit Card Debts -With the average APR on credit cards reaching 18.73% in October, and the average credit card balance at $5,221 according to Experian you may want to think about paying off your credit card balances if you have any. By paying off credit card balances, you are essentially:
Giving yourself more house buying power.
Increased credit score.
Lower your debt -to-income.
Help you get a lower interest rate.
Down Payment - You can benefit from rising interest rates by getting better returns on your saving account. While you may not find these returns at your bank, there are high-yield saving options available, like CIBC and Capital One. You just have to shop around.
Not to mention, if you are thinking of buying a home, this could be the perfect way to begin saving for your down payment. While you and I have no control over raising interest rates, this is one way you can profit from it.
Financial Advisor-speak with your financial advisor regarding how inflation maybe impacting your cash flow, and to help you plan ahead so you can stay on your financial track.
Don't forget, your financial advisor should also be able to help you avoid un-necessary taxes while helping you to build a long term financial strategy so you are always a head.
Maintain a Rainy Day Fund This is something to do regardless of the economic climate, but during these times it become more imperative. It really does not have to be a lot. Maybe $400 - $2,000 just enough to cover or help cover any sudden financial challenges.
While we don't have control over everything, we do have control over somethings. Thank you so much for stopping by. Until next time...Diana
Image Created by Diana for First Home Houston
