You’ve heard the term house poor before I’m sure. It’s not something that most of us aspire to, and yet so many of us fall into the trap of being house poor, or at least extremely house strapped. If you have any debt that consumes a large part of your income, then chances are that you need to figure out a solution to lower your expenses so you can get rid of that debt (or better yet not even get yourself in that situation.)
Hindsight only works if you apply it going forward, especially when it comes to money issues. Once you buy the house, it’s hard to simply unwind it, so make sure that the house that you buy fits in your budget before you sign on the dotted line. There are all sorts of figures that you need to keep in mind before you buy your dream house, and we will go into detail on this podcast episode.
For a sneak peek, make sure that you keep your mortgage payment to no more than 30% of your gross (that means what you earn before taxes) income.
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