воскресенье, 6 ноября 2016 г.

DON’T. BUY. THAT. HOUSE! #hulksmash

DON’T. BUY. THAT. HOUSE! #hulksmash


DON’T. BUY. THAT. HOUSE! #hulksmash


I was already excited reading your article having found a blog that I COULD RELATE SO WELL TO AND THEN I SAW YOUR REFERENCE TO Alberta AND NEARLY CHEERED! yOU ARE THE FIRST PERSON IN THE BLOG WORLD THAT I HAVE FOUND FROM MY HOME PROVINCE, I FIND MOST FINANCIAL BLOGS HAVE GREAT ADVICE AND THE OVERALL IDEAS ARE WISE HOWEVER MOST DONT UNDERSTAND THE DIFFERENCE IN WHAT WE SEE FOR GROCERY BUDGETS AND HOME COSTS. wHILE WE ARE NOT Vancouver OUR HOUSEING MARKET IS A DRASTIC DIFFERENCE FROM SOME OF THE SOUTHERN STATES OR EVEN OTHER PROVINCES.


Hi Kelsey! Welcome! I love that you found me and that you relate to what I’m talking about on this blog It’s really good to hear things like that (makes me feel like I’m not just typing words and sending it out into cyberspace with no response haha).


Omg for sure! I watch House Hunters often and cry about how people can pay $250k for a triple garage, updated over 2000 square foot detached home >,< Makes me want to reconsider relocating... but then I quite enjoy Alberta, so I'll be sad to leave too. Where in Alberta are you located?


This is a wonderful post, Jaymee. Thanks for sharing. All the points you made are valid, but #3 really resonated for me. This may just be my opinion, but I think individuals need to consider a house as just being a place to live, and not an investment that is more or less guaranteed to appreciate in value.


So many factors beyond the homeowner’s control (the general or local economies and the housing market in particular, upswings or declines in the quality of the subdivision or neighborhood, etc.) influence a house’s future value and selling price.


Thank you so much for reading Richard!!


That’s an interesting take you have on housing – just a place to live. I think thinking of it that way helps one become less emotional and more practical about buying a house so I definitely agree with your point. And you’re right about all the things that is out of control when buying a house – some things that’s definitely making me nervous about buying too! >,<


“Invisible wealth is better than visible debt” – i dont know if i have seen good personal finance summed up so well before. Great post as well. The idea of asking “why” for things that we may assume or others may say is required/normal.


Aww thanks for such lovely words Tom There’s more to learn out there still! Haha!


You hit the nail on the head about the car. Man would I love an Audi S5 but I would hate the payment! My wife and I just had our first kid and we’re talking about trading in my 07 Mazda. It’s stick shift, small and she doesn’t like to drive it but we do like that it’s paid off so….we will see what we decide.


Ahh.. maybe in a few more years for me Logan! >,< But it will be worth the wait then I'm sure! Haha I can see how it might make sense in your situation to upgrade but it doesn't mean you have to go crazy to do so (say an Audi Q5 xD, one of my other favs lol). I'll check in on you to see what you come up with! Thanks for leaving a comment Logan


Congrats in the first year blog! That’s always Wellstone to have. I like your first bullet point a lot and it is what I call Stealth Wealth. You just can’t beat it!


Sam


Financial Samurai recently posted…Financial Samurai Goals And Predictions For 2016


Hey Sam, I’m so glad you stopped by! I absolutely love your blog


Thank you! And stealth wealth (new term in my vocabulary now) is something I’d like to aim for ;D


Have you ever read the book “The Millionaire Next Door”? Your #1 made me think of that & how it said most millionaires actually drive secondhand cars, live in comfortable but not-so-big houses they aren’t paying huge mortgages on, etc. It’s interesting how that goes.


I also agree about secondary education. I’m an engineer myself but I know many people who are successful who haven’t gone the university route. I have some friends who also went but took the scholarship route; some of them paid only about 10% of the regular fee because of those grants & it was a great compromise without going into debt.


All in all, great post; it made me think a lot!


Hey Daisy, I know that book but sadly haven’t read it (I lent it out to a friend years ago :P) – I’ll add that to my must-reads to devour next


You and your friends are smart! We need to inform more young people to think like you and your friends do so that they are in better positions when they graduate.


Ha the hulk gif made me laught because I pictured you being the one he was smashing. LOL, okay actually that was kind of creepy to say. But you know what I meant!


Im glad you see all the financial learning you have done. I think I was 24 when the light bulb when off and from there, life only got better. ESPECIALLY with finances.


You are on the right track!


Alexander @ Cash Flow Diaries recently posted…Is Passive Income The Secret To Happiness?


And as you can tell by my grammar in that last post, clearly “secondary education” played no part in how much money I am making now!


Alexander @ Cash Flow Diaries recently posted…Blog Income Report and Traffic Stats â November 2015 (6 months of blogging!)


Haha! I’m glad you liked that GIF Alex XD I literally felt like I was being beaten up when sign after sign pointed towards NOT buying that house. And I’m glad I listened to those signs.


I love that! You really don’t need to go to university to be successful… for the longest time, I believed that was the ONLY way to be successful. I admire you for all the progress you’ve made in real estate and your blog… glad we met!!


Our greatest lesson? We learned how to stop spending money, thanks to PF bloggers! It sounds crazy, but we learned how much better our life is when we focus on saving, not spending. I am forever grateful for the lessons of 2015.


Claudia @ Two Cup House recently posted…Weekly Recap of Knowledge and Inspiration Gained from the Blogosphere #17, Holiday Edition


Hey Claudia, that’s a GREAT lesson! Simple but a goodie one to learn I find myself feeling more satisfaction now when I save money rather than spending on something – it was the opposite before.


Thanks for sharing!!


When I started the Smart Woman on December 31, 2014, I knew that I will be learning more things about personal finance as I kept on. I knew that I will be refining and adding on to my existing knowledge about basic personal finance stuff and that I will meet people who are smarter than me about these things.


“Refined” wasn’t the word to describe how I learned new things.


This is what actually happened.


DON’T. BUY. THAT. HOUSE! #hulksmash


It wasn’t at all a bad experience. It was simply a looooooooong process for me to let go of old money habits I grew up with and replace them with, well… the truth.


When I finally let go of these beliefs and took the time to learn (or had been indirectly beaten into my consciousness until I couldn’t deny the truth of it any longer), I realized these were my biggest money lessons in the first year of the Smart Woman.


My Biggest Money Lessons of 2015


1. Invisible wealth is better than visible debt.


I use to “ooh and ahh” when I see people driving around in Audis and Beemers or marvel at their new homes with granite countertops and hard-wood floors and 5 bedrooms or see them all decked out in branded apparel and shining jewelry. I used to think, “Man, they must be rich!! I wonder what they do for money!” Do you do this too?


Nowadays, I just wonder… Can you really afford that?


My friend Alyssa from My Mixed Up Money couldn’t have written a better piece about this. Perception and reality are two different things. Just because someone LOOKS like they are well off, doesn’t always (or usually) mean they are. Their financial situation might look completely different on paper! Read it now! AND FYI, she will be debt-free this month!! Crazy right??!


Must Read: My Mixed Up Money – Can You Even Afford That?


So now, every time someone pulls up beside me in their Audi A7 S-line package (the Audi I probably would’ve bought for $70k+ had I not smartened up about money), I just look at my little Honda Civic and think… It’s all good because you’re 100% mine. Can you beat $0 in monthly car payments? No? Didn’t think so!


Takeaway: Stop with the comparison game aka “keeping up with the Joneses”. Focus on your financial goals and seek out people who actually have their financial sh*t together – not just those who LOOK like they do.


2. Going to school to get a degree… not always the smartest idea.


I had a tough time letting this one go. I grew up on this belief.


I got straight A’s in school, had always been the “teacher’s pet”, took advanced courses and joined several sports teams for extracurriculars – all to increase my chances of getting into university. Everything I did up to my convocation was designed to get me a degree.


My biggest hurdle was money and I borrowed student loans (which I didn’t give a second thought about) to get that degree. I’m telling you this to somehow relay to you how ingrained and how strong this belief was in me.


Related Posts: Money Myth – Student Loans is Good Debt, What I Wish I’d Known about Student Loans Before Borrowing


When I learned that going to school is sometimes no longer the best option, it shattered everything I thought about post-secondary. And rightfully so, because the old adage about going to school to get a good job with benefits and a pension is no longer as relevant today as they used to be.


Don’t get me wrong – this isn’t to say I no longer believe in post-secondary education. It’s just to caution you about going to school. Is it what you actually want to do or are you just doing it because you’re supposed to.


Furthermore, are you pursuing something that will actually increase your income?


My friend Barry from Money We Have tweeted me this recently and it hit me like a wrecking ball (Thanks for the simile Miley!):


I’m extremely lucky and grateful I picked Nursing which landed me in a great-paying job as a Registered Nurse. Some students aren’t as lucky… And if it’s purely education you seek, at least do so without having to borrow tons of debt to do it.


There are many people making a living, a great living in fact, who don’t have degrees. It isn’t a requirement to be successful.


Takeaway: Think twice before enrolling in post-secondary education. Live a lifetime of learning and education but know that it doesn’t necessarily mean college, university and/or student loans.


3. Buying a house isn’t what it’s hyped up to be anymore.


There was a time when buying a house was legitimately a forced savings account and an investment.


And in some ways, it still is today but only if you buy smart.


Meeting the minimum requirements of home buying just to “own a home” is NOT a smart purchase. Buying a cheaper home in the suburbs but increasing your transportation and time costs is also not a smart purchase. Buying an overpriced or too much home? You guessed it, not smart.


We almost bought a house this year… and then came to our senses during the last phase of the buying process. We dodged a bullet and the seller was actually able to sell it to another buyer for a higher price (win/win for the seller and I but not sure about the person who bought that house though… I can only hope the best for them).


Read about my experience here: We Almost Bought A House


When I learned this, I also had to discard my previous belief that “renting is throwing money away”. It isn’t and I apologize to all my friends who I scolded for “still renting their place”. It’s actually a smart thing to do, especially in this economy in Alberta. Houses are overvalued by 3% to as much as 60% – meaning you’re paying THAT much more than your house is actually worth *cringe*.


Why do people do this? Because of this permeating belief that buying a house is an investment and that you’re better off paying your own mortgage than your landlord’s… not always the case my friends.


Read Bridget’s article below on Money After Graduation about why she chooses to rent her place. She’s brilliant at explaining complex concepts like this with numbers and a bit of ‘Bridget’s flair’! (Seriously, very entertaining articles!)


Must Read: Money After Graduation – Why I’m Renting For Another Year


Takeaway: Be honest with your reasons for why you want to buy a home and be honest if it’s the best decision for YOU. It’s totally 100% okay to rent – it doesn’t mean you’re not able to buy later on.


Phew, I definitely picked a dynamic niche when I chose personal finances for my first website! There is so much to learn and I’ve only barely scratched the surface.


One thing I can guarantee: This 24-year-old and her money are in better shape for the new year! I’m excited to find out what new lessons I’ll learn in 2016


How about you? Did you learn anything new about money this year? Share them with us in the comments section below!


Hi there, my name is Jaymee. I'm a Registered Nurse by day, personal finance blogger by night (well, so to speak). I enjoy anything related to finance and I'm sharing my trials & tribulations with money on my website - the Smart Woman Blog! Check it out or hit me up via the links below!


Original article and pictures take http://www.smartwomanblog.com/my-biggest-money-lessons-in-2015/ site

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