If you read Cari$ Rules for Financial Freedom, you’ll notice our first rule is “No Budget? No Chance”. What this means is that we fundamentally believe taking control of your finances and achieving Financial Freedom is only possible when you have a personal budget. While we provide a lot of detailed guidance in our Budgeting Series, the purpose of this post is to summarize the process of creating a budget, so you have a big-picture view before diving into the details.
In Part 1 of this post we explored some of the concepts and terms you’ll encounter when taking a mortgage. Once you get past the lingo, here comes the real question: how much house can you afford? In the case of a mortgage it is especially important you consider this question carefully, because unlike other personal loans, which are for relatively short periods, a mortgage spans 20-25 years on average and could be your single largest
In How Much is Enough Debt? – Part 1, we discussed some of the considerations to take into account in deciding the right amount of debt for you. In Part 2 , we get into further details and also focus on the conversation with the lender. As a reminder, in Part 1 we explained that you should determine what you can afford by referencing it to your budget. Once you keep your Fixed expenses to less than
This is the fifth article in a six-part series in which we walked you through, in a very detailed way, how to prepare a budget. As a reminder, so far we covered the following: Why do you need a budget What information you need to gather How to use a spreadsheet to project income and expenses for 12 months How to create your budget using our 33/33/33 approach If you’ve worked through the articles you should