Learn To Do
So then faith, if you would not have works, is dead in itself. But someone says, 'You have faith, and I have works. You must now show me your faith without works, and I shall show my faith by means of my works." James 2:18
How many of us have heard someone ask: "Is it better to rent or buy a home"? Depending on their situation, the answer could be quite simple. With the development of online tools, such as "How much house can I afford" to the "Amortization Schedule Calculator", it 's much easier to make this determination. Naturally, there are pros and cons when considering both scenarios, but being able to weigh all of your options when it comes to buying definitely helps. It is better to buy a home vs. renting because there are no rental increases, more benefits of home ownership, and easier ways to obtain financing.
If you have been a long-term renter, you know the dreaded feeling associated with lease renewals. It's that happy, bright envelope from the rental office reminding you that you have a certain amount of days to either renew your lease or move out. But wait...at the bottom of the letter is your "new" rental amount for the next 12 months and it's even higher than the last 24 months! This doesn't seem fair because you've paid your rent on time for the past 3 years and barely had any reasons to call maintenance. So why the rental increase? By this time, you're either reluctantly about to renew your lease at the higher rate OR entertaining the idea of buying a home instead. But a thought comes to mind about rather or not you are able to purchase a home before the end of the lease. You wonder if you will have enough savings or eligible to receive assistance to cover the costs of closing on a home. Where do you begin?
This is a $525 rental increase! If you fall into this category, you maybe frustrated because seems to be no end to the rental increases. However, if you purchased at home in 2004 with a fixed mortgage payment of $825, your payment would have remained the same. As you can see, these numbers make a lot of dollars and "sense".
But don't just take my word for it or believe the savings are only in this state. Do your homework! Log onto the IRS' website and read it for yourself (https://www.irs.gov/pub/irs-pdf/p936.pdf). There, you will find everything you need to know from how the credits work in your favor to certain limitations that may be applied.
However, if you carefully read through the material, you will notice that these savings are specifically for buyers, not renters. Is it possible that your landlord is currently taking advantage of these savings while steadily increasing your rent? Why wouldn't they?
A 2019 rent vs. buy study from Realtor.com gave a comprehensive look at the numbers behind why your landlord maybe getting richer and richer, if you rent in these cities. Sabrina Speianu, Senior Economic Research Analyst at Realtor.com pointed out while home prices increased around 6%, rental prices also increased around 4%. Who do you think was in a better financial position in the first quarter of 2019: The buyer or the renter?
Now, you maybe thinking that it was just "luck" that she was able to purchase her home so quickly. However, this is far from the truth. My client was able to purchase her home because she acted on the very first instruction: "Get an assessment of where you are now so you will know which direction to go in later". If you have gotten to the point where you no longer desire to be a renter, then it's time to speak with a Realtor and a Lender to gain more knowledge on the home-buying process. This is a FREE assessment and only takes about an hour of your time.
Renting Vs Buying
If you've been sitting on the fence and unsure if buying a home is right for you, consider this: home ownership offers a wide variety of advantages versus renting, and home ownership is more attainable today than ever before. Still not sure if you should rent or buy?
Here's a look at the big picture
Live To Give
Money is good and giving is good. Putting the two together is where problems come into play. Giving money is touchy subject that we often face in life due to deceitful people taking advantage of someone else' s generosity.
Planning is decision making-based on anticipated conditions. Identify your needs, identify and procure your resources and you determine your steps for you and your family.
Know your neighbors and community. Also don't forget your relatives that
may need you.
Proverbs 27:10; 1 Timothy 5:8
Economic Challenges, Enough
Be wise in knowing what you will need to pay. Be realistic in what income you may or may not receive and determine the cash needs, then make plans to obtained.
Protection from weather, power outages, disease, threats and risks. The key is to keep damage and loss at a minimal.
Psalms 23 & 91
Pay attention to the current events, weather and be ready to take action.
Practice your emergency plans with
A Wealthy Mindset
Have a delayed gratification mindset, settling for short-term pain for long-term gain.
A wealthy mindset is willing to take risks with the understanding that failure/losing is part of the process of winning. Hence, they are early adapters, taking advantage of a new opportunity before others realize it potential.
Have a positive attitude, using language such as:
"If others can do it, so can I."
"I'll make time."
"What's it worth in the long term?"
Are decisive. They are quick to decide and slow to change their minds. They know that their destinies are shaped in their moments of decision. Indecision leads to in-action which, in turn, leads to unfavorable results.
Seek opportunity. They want to develop, achieve, and excel. They do what the majority are unwilling (not unable, just unwilling) to do. They realize that people who play it safe continually miss opportunities and seldom make progress.
Take responsibility for their circumstances. They know that" when you choose the behavior, you choose the circumstances." Hence they create their own circumstances by choosing actions that support their goals. The wealthy mindset attitude is "if it is to be, it's up to me."
Those with a wealthy mindset make it happen. They know that success must be summoned; it won't come unbidden. They have plans. They can tell you where they are going and how they are going to get there.
Understand and apply the law of 'Cause & Effect', as you sow, so shall you reap. They know they must give to receive-e.g. one must give respect before they receive respect. One must give value to receive value.
Mind their own business. They build business and use the power of leverage/compounding to earn residual income.
See with their minds what others miss with their eyes, hence recognizing potential where others don't.
Have a sense of urgency. All successful people are driven by sense of urgency to produce results.
Have a sense of team and a common purpose. They believe in synergy; combining and sharing the work effort.
Persist until they succeed. Like a child learning to walk, every time they fall down, they get up quickly and keep trying until they get it right.
They are results orientated and perform activities that produce the results they desire, resulting in a high quality of life. They plan their work and then execute this plan.
Have more money at the end of the month, i.e. they have money left over at the end of the month that they can invest or spend as they wish.
Focus on 'quality of life'. They will retire in comfort, maintaining their standard of living and generally enjoying more free time and better than average health.
The Poor Mindset
Having an immediate gratification mindset settling for short-term gain for long-term pain.
The general population avoid risk because of the fear of failure or loss. They wait to see what everybody else is doing, then do the same by which time it is too late to capitalize on a new opportunity.
Have a negative attitude, using language such as:
"I can't, it's too hard."
"I don't have time."
"I can't afford it, it's too expensive."
Are indecisive-they are slow to decide and quick to change their minds because, once they have decided, they start to worry if they have made the right decision. Fear, uncertainty and doubt are inherent in their personality.
Seek security. They desire a safe, secure profession/job but such a thing is virtually non-existent today, and if it was, it would provide little chance of attaining financial independence.
Do not always take responsibility for their circumstances. When things aren't as they would like to them to be, they sometimes try to justify their situation. Some even blame others: the government, their employer, their teachers, parents/children etc.
The general population let it happen. Many have no definite plans for the future or they simply don't execute their plans, hence they fit into someone else's plans.
They expect to receive value before they will give value.
Mind somebody else business. They work hard for some body else trading hours for dollars by earning a linear income paying up to 50% of their income in taxes.
See only with their eyes, often missing opportunities for improving their circumstances in life.
They tend to procrastinate. They wait until all the conditions are right before taking action.
They do it all themselves, hence they don't often achieve the big outcomes they aspire to.
Quit at the first sign of defeat. As soon as they encounter setbacks, they give up. They say" it's too hard. It hurts too much. I give up."
They are activity orientated, confusing being busy with progress. They are so busy being busy, that they lose sight of what they are trying to accomplish.
They live from pay check to pay check. More often than not their money runs out before the end of the month.
Focus on 'standard of living'. Some will work their entire life. The majority will find that their standard of living will drop 40-75%. When they retire they will struggle to make ends meet, depending on welfare or the good will of others for their existence.