August 2021 – Nancy E. Johnson

5 Reasons Why You Should Save Money

Saving money is essential because it helps protects you in the event of potential financial emergencies. Saving money allows you to build your wealth, reduce financial stress, get out of debt, buy a home, and create an emergency fund.

Build Wealth

To build wealth, you must prioritize accumulating wealth. Saving money is key to your financial success. Saving money helps you develop good financial habits and increases the cash reserves you can invest. You can use a bank account to start saving money. Choose a bank that offers interest, so your money earns money. In addition, investing some of your savings will help you build long-term wealth.

Reduce Financial Stress

Life, in general, is stressful, and adding financial stress does not make life easy. Saving money will reduce stress in your life and your wallet. When you relieve financial strain, you can stop worrying about paying bills on time if you lose income or an unexpected expense like an auto repair.

Get Out of Debt

Did you know saving money can get you out of debt? Ironic, I know, but it’s true. Credit cards never get paid off if you use them for every emergency you may have. So before you start paying off your credit cards, put money into a reserve fund. The reserve fund will take the place of your credit cards. Use the reserve fund as your emergency fund.

Buy a Home

Buy a home! Buying a home will force you to save money for a down payment. A down payment on a home will need to be at least 5% of the price of the house. The bank will then consider loaning you the rest of the money you need. There are more components to purchasing a home that requires you to save money. Remember saving money will open doors to owning your own home.

Emergency Fund

Life happens whether it is a family member passing away, a flooded home due to weather, or has a car accident. Having an emergency fund, also known as a reserve fund, will allow you to handle the situations and not stress too much about money. In addition, saving money will prepare you for potential emergencies.

Build wealth by investing and collecting interest when you save money in your bank. Reduce your financial stress by saving money. You will be able to take comfort in knowing you have a saving in case of a rainy day. Build a reserve fund to use for emergencies rather than using your credit card. If you continue to use credit cards for emergencies, you will never get out of debt. Purchasing a home forces you to save money. The money you have saved, the better off you will be. Remember, accidents happen, and we can never predict when an accident occurs. An emergency fund will prevent the stress of money in an emergency. For more helpful money-saving tips, go to www.nancyopensdoors.com.

Is It Still a Seller’s Market?

In the past years, the home seller and buyer’s market has been affected. Because of the Covid-19 pandemic, finding a home for sale is more challenging, which means it is a seller’s market. A seller’s market occurs when there is more interest in buying a home rather than selling. As a result, the demand for buying a home exceeds the home selling supply. The signs that tell us that it is a seller’s market are:

Homes/properties are selling quickly and are on the market for a short time.
Homes/properties are consistently selling above the asking price.
There are often bidding wars among interested home buyers.

When it is a seller’s market, buyers tend to double down to get their offer accepted. Buyers submit offers quickly and will stretch to stay competitive. Many factors cause a seller’s market, such as low mortgage interest rates, job market growth, and development limits imposed by local governments that keep home supply low. If you are a home seller in the seller’s market, there are a few things to be aware of and keep in mind. First, do not slack off even though the market is on your side and buyers are interested in your home. Keep your home in proper shape for interest buyers. Although you may be in control, remember to price your home fairly. Usually, homes priced below fair market price can end up in a bidding war and go over the asking price. Finally, remember to vet your buyer; your highest offer may not be the most qualified offer.

As a seller, be sure to know the signs of a seller’s market and be mindful of home buyers. Homes are selling quickly, so keep your home in selling shape. Homes are consistently selling above the asking price, so price your home reasonably to begin with. There are often bidding wars, so it is important to vet your interested home buyers. For more helpful real estate tips and blogs, go to www.nancyopensdoors.com.