How to Make Your Clothes Last Longer: Clothing Care

by Jessica Sommerfield · 0 comments

Clothing is a substantial and unavoidable expense for most households, especially if you have growing children.  There are many ways to save money on clothing purchases, such as only shopping sales and hitting the second-hand stores. But taking care of the clothes you have so that they last as long as possible is also a great way to save on your clothing budget. By taking proper care of your clothes, you can avoid unnecessary replacements due to stains and other accidents or improper cleaning techniques.

First of all, you really should read and follow the care instructions on clothing labels. It may be nearly impossible to meet all the specific recommendations for each piece of clothing without spending way too much time on your laundry, but you should try to follow the basic care instructions to avoid destroying delicate fabrics, shrinking 100% cottons, accidental bleaching, or color bleeding.

Although some clothing which says ‘dry clean only’  may also be hand-washed with mild soap and air-dried, you should generally take the clothing manufacturer’s word on the best washing conditions in order to preserve the life of your clothing and save money in the long run.  If you don’t want to spend money on dry-cleaning, look for this when purchasing clothing.

  • If clothing is dark and appears to be dyed, you may want to wash it alone or only with like dark colors the first time to avoid the dye bleeding into other lighter clothing. Of course, you should always wash dark clothes with other dark clothes, but color-bleeding of new items is another concern.
  • Delicate clothing can be further preserved with the use of protective garment bags.
  • Never pour detergent or bleach directly on your clothes in the washer. Put these in as your washer fills to let them be diluted first.

Do less laundry. This may sound contradictory. After all, our clothing should be clean, right? But the problem lies in how frequently we wash our clothes. In the course of a day, most of us change outfits several times for work, at home, or for specific activities. Some items are only worn for a few hours at a time while you’re not engaging in physical or dirty work. Use your own judgment, but keep in mind that the more your wash your clothes, the faster their fabrics break down and the faster, in turn, you will need to replace them.

  • Tide to Go sticks work well for treating spots on otherwise clean clothing without having to wash them after the application.
  • Wear plenty of deodorant: the less you sweat, the less you dirty the inside of your clothes.

Store clothes properly. Hang dresses and dress shirts and fold sweaters. Sweaters get stretched when placed on hangers, and the fabrics most commonly found in dress clothing are prone to wrinkling.

Keep the spare buttons. Most button-up clothing will include a spare button or two when you purchase it new. Place these in a jar or drawer and collect them for future use. You never know when you will lose a button and without the spare, your clothing becomes unwearable. And, if you don’t know how to sew on a button, you should learn. It’s one of the easiest problems to fix yourself.

Taking care of your clothing from the time of purchase is the best way to ensure your wardrobe lasts as long as possible. It’s much better to have to discard clothing due to decade style changes than to abuse or improper care.

Flower Preservation for Year Round Beauty

by Gina Blitstein · 0 comments

Now, smack dab in the middle of Summer, we’re enjoying the constant blooming of flowers; they’re plentiful and oooh so beautiful. Soon enough, however, all those luscious flowers will be done blooming for the season and will leave our midst for many months. Considering how vibrant and alive blooming things make us feel, wouldn’t it be nice if we could enjoy the beauty of flowers all year ‘round?

We may not be able to keep flowers blooming throughout the year but we can preserve them at the height of their beauty. Preserved flowers can be used in home decor and craft projects, keeping their memory alive all through the year. There are several methods of preserving flowers at home, inexpensively and easily.

Preservation methods

Drying

Air drying – Tie flowers in small, loose bunches and hang upside down in a warm, dark location for 1 to 3 weeks

Desiccation agents – You can make mixtures at home that will draw moisture from flowers. A homemade concoction of half borax, half corn meal, oatmeal or sand will do the job in about 2 weeks.

Silica gel is a descant which can be purchased at craft shops and dries flowers effectively and quickly in as little as 2 days.

Based upon the shape of the flowers themselves, decide whether they will look best dried vertically or horizontally.

To dry vertically – Place a shallow box over the open top of an 8” tall one. Punch holes in the bottom of the shallow box for the stems to stick down through, spaced far enough apart that flower heads will not touch as they rest on its bottom surface. Pour the drying agent gently over each flower, under and between all petals, completely, but lightly covering.

To dry horizontally – Cover the bottom of a box with at least an inch of drying agent. Make small mounds in the mixture on which to place the flowers, face down. Gently pour more drying agent around each flower until completely covered. (Stems don’t need to be covered.) To keep flowers from having a flat appearance, insert a long pin up through the center of the flower with the head of the pin resting on the bottom of the box.

Oven drying – In shallow pan, pour one inch of sand and place the flowers on top of the sand. Turn the oven to its lowest cooking temperature. Cover flowers completely with additional sand and place in the oven for 1 to 2 hours.

Pressing – Place flowers and foliage between six layers of newspaper and weigh them down just enough to keep them flat for 5 to 10 days.

Glycerin – This method preserves foliage. Heat two parts water, then add one part glycerin to dissolve. To prepare foliage, pull back the bark on branches and crush the base of stems 4 to 6 inches up. Place 4 to 6 inches of the branch ends in the solution as soon as they’re cut. Soak for 2 to 6 weeks.

Shellac – Clear shellac thinned with denatured alcohol can be used to hold berries and seed pods to branches and twigs. Spray or dip branches in the mixture, then hang to dry.

Considerations when preserving flowers

  • Pick flowers and foliage when they’re dry
  • Dry flowers immediately after cutting
  • Wire flowers (to lengthen stems if desired) before drying
  • Flowers dried or stored in the sun will fade; store dried flowers in a dark, dry, airtight container to preserve their color

Keep the beauty of flowers alive throughout the year by preserving your own blooms. It’s an inexpensive way to bring natural beauty indoors.

How do you preserve the blooms of Summer?

Are You Making These Investing Mistakes?

by Miranda Marquit · 2 comments

One of the ways that you can build wealth, and live a little more abundantly is to invest. Investing can provide a way for you to put your money to work on your behalf. While there are risks involved in investing, and the possibility of loss, you can reduce some of that chance of loss by avoiding some of the more common investing mistakes.

As you consider investing, and how to build a portfolio that works for your situation, here are some common mistakes to avoid:

1. Panicking with the Crowd

It’s easy to get scared and panic — especially when everyone else is doing it. However, you need to be careful about when you sell investments. While there are some very good reasons to sell a stock, it’s rarely a good idea to sell a stock just because everyone is in panic mode.

Instead, take a step back and look at the big picture. Are assets losing ground because the whole market is tanking? If so, you might not want to pull the trigger too quickly. Instead, consider the fundamentals. If the fundamentals are still solid, there is a good chance that your assets will recover in time.

2. Trading Too Often

This can be tied with panicking, but it can also be its own problem. Too many of us get caught up in to day to day movements, and think that we need to trade a lot. While there are day traders who manage to make good money on regular market movements, it’s important to realize that these traders are dedicated to what they do.

Most of us regular folks are better off trading at wider intervals, or employing a dollar cost averaging strategy. Trading too often can cost you in terms of transaction fees, and there is a bigger chance that you will lose out.

3. Lack of Diversity

If you want to reduce the overall risk of your portfolio, you need to remember to diversify to some degree. You need to make sure that your investments are diversified in terms of asset class, as well as across different sectors and industries. It also doesn’t hurt to diversify geographically and include investments from other countries. Avoid investing heavily in your company’s stock.

It’s fairly easy to start investing, and to diversify. There are index funds and ETFs that allow you to diversify easily, while at the same time helping you avoid some of the bigger risks that can come with  investing.

4. Failure to Understand What You’re Investing In

One of the reasons it’s good to start with stocks and bonds, and investments that are based on them (like index funds and ETFs), is because they are fairly easy to understand. You shouldn’t invest in things that you don’t understand. Take a few minutes to learn how different asset classes are traded, and how different investments work. It is also worth to learn what factors influence different investments. Get a handle on how different investments work, and you will be far more likely to find success and avoid some of the pitfalls that bring down investors.

Give Your House a Vacation, Too

by Jessica Sommerfield · 0 comments

Vacation money-savings tips abound, but what is often forgotten are the expenses left behind. Yes, your house is costing you money even when you’re not there using it. While you can’t exactly suspend your mortgage payment, there are ways to save on utilities and extras you won’t miss while away on vacation, leaving you more money to spend on your trip or at least your bank account a little less light after your vacation spending. Here are a few ways to give your house a vacation, too.

Suspend certain services such as phone, Internet, cable, etc.
If you’re planning to be away more than a week or two, you might consider suspending amenities you won’t be using while away, but will still be racking up a bill. Many phone companies allow you to put your land line on vacation mode, which suspends your normal service with the exception of emergency calls to 911.  Surprisingly, you can even suspend your cable, Netflix, or Hulu account for periods of time without damaging your service contract. If you don’t already know if your cable or Internet service providers have vacation options, find out. If they don’t, you may still be able to bump your plan down to a minimum while you’re away. You might even discover once you get back that you didn’t miss them at all and decide to save money more permanently.

If you’re taking your cell phone with you, you might want to save yourself roaming charges and temporarily switch to a nationwide plan. These are more expensive than state-wide or area plans, but way cheaper than roaming charges. Determining to simply not answer your cell phone can also work as long as you don’t cave in, but you may need to in case of an emergency.

Another useful tip is to turn off ‘data roaming’ on your smart phone if you’re out of the country to avoid hefty overage charges. Utilize your Wi-Fi settings and locate free Internet locations such as cyber cafes if you need to check your email.

Unplug major appliances and re-set heating and cooling temperatures.
You won’t be needing hot water at 6am while you’re gone, so reset the thermostat and timer on your hot water heater as well as your home’s heating and/or cooling system and your refrigerator. Major appliance such as the computer, television, stove, washer, and others pull electricity even when they’re not being used. Unplug anything that doesn’t need to be working while you’re away.

Pull blinds and close curtains to keep out the sun and maintain the temperature in your home naturally; also close doors to rooms without vents that don’t need to stay cool (or warm).

If you are using a security light system to turn your lights on automatically at various intervals, change these lights to CFLs to save even more electricity since they’ll be getting used more heavily.

You’ll be surprised how much you can save by following these tips – as much as 10% of your electric bill, 25% of your home cooling and heating bill, and potentially several hundred dollars on suspended amenities.  So the next time you go on vacation, make sure you’re letting your house take a little break, too.

Affordable Travel: Finding a Good Deal on Accommodations

by Gina Blitstein · 1 comment

Now that Summer’s here, thoughts turn to hitting the road and getting away from it all for a while. Whether you go by car, plane, train or pack mule, you still want to find a pleasant, affordable place to stay while you’re away from home sweet home. Lodging is easily the most costly part of travel. Where and how can affordable accommodations be found for your getaway?

Check the Web

These websites help you find suitable accommodations and book online. You can locate a place to stay according to a particular location or you can search for lodging by price, date, amenities, interests or desired activities. Many of these sites provide recommendations and/or reviews to assist your decision-making. Most send email notifications of deals, enabling you to plan a spontaneous, affordable getaway or take advantage of a good deal for a future trip.

Keep these tips in mind when using these websites:

  • Most discounted deals are advertised on Tuesday and Wednesday mornings.
  • Many deals on lodging are contingent on also booking a flight or renting a vehicle.
  • Many deals require a minimum stay or a stay which includes or excludes certain days

Think Outside the Motel

Accommodations can be had at places besides motels. Look into these alternatives that may fit your lodging needs:

Bed and Breakfasts/Lodges – Proprietors of bed and breakfasts and lodges work for themselves and can offer specials at their discretion. They frequently offer discounts for multiple night stays or in the “off season” to stimulate business for their establishment. As a destination in and of themselves, if you’re looking for a “get away” more than a “go-to” vacation, a bed and breakfast or lodge may fit the bill by offering quaint surroundings, quiet atmosphere and food prepared on site in a homey environment. Do be aware, however, that some bed and breakfasts and lodges don’t allow children to stay. Find a bed and breakfast for your getaway at BnBFinder.com.

Vacation Rentals – Some people have the luxury of owning property precisely where you’d like to stay. When they’re away from home, they may be willing to rent their home, condo or apartment to you. Because people live there, these places feature all the comforts of home, like a kitchen, laundry facilities and a generally “homey” environment. This is a good choice families, large groups or reunions because there are common areas for gathering and entertaining. Oftentimes these rentals have yards, beach access and are close to other attractions while offering more privacy and space than a motel. Many websites, including VacationRentals.com will put you in touch with places to rent, deals and suggestions based upon your interests and budget.

House Swapping – Similar to a vacation rental is the option of house swapping – in other words, you stay in another person’s home while they stay in yours. Whether it’s across the country or across the globe, you enjoy free accommodations by providing free accommodations. The advantage of house swapping – other than the fact that there’s no cost involved – is that you often get the opportunity to stay in a neighborhood, rather than a town or city, which may enhance your experience as a tourist. Check it out at HomeExchange.com.

There are lodging deals to be had – if know where to find them. Peruse lodging websites, sign up to receive email notifications of deals, keep your options open and remember that accommodations away from home don’t necessarily have to be at a motel.

What techniques do you use to find affordable lodging?

Trying to Get Your Money Back After Being Scammed

by Jessica Sommerfield · 2 comments

Scams, whether they are over the phone or Internet, or through the mail, occur frequently, and are only continuing to increase with the ready public access to phone numbers and personal information. Although much can be said about avoiding scams – tips such as don’t give out personal information over the phone, shred unwanted mail and documents, and check your bank and credit card statements regularly – you may still fall prey to any number of new strategies. The key to avoiding scams, beyond these basic tips, is to stay aware of the new scams that are out there.

Checking sites such as scambook.com, hoax-slayer.com and the FBI’s listing of recent e-scams at fbi.gov/scams-safety/fraud is a good way to stay aware and avoid scams, as well as to verify if you’ve been the victim of one of them.

But what do you do if you’ve already fallen prey to a scam? A lot of people just let it go, but you owe it to yourself and to others to fight for your money and to report the site, company, or individual for their illegal activity. Here’s some advice on how best to handle a few possible scam situations.

In any type of scam, you’ll want to keep records of all your receipts, bank and credit card transactions, emails and other proof of purchase and communication with the seller. Records are the key to proving the transaction was a scam and getting your money back. For this reason, it’s a good idea to keep records of all your purchases for up to a year.

Contact the company that scammed you and request a refund.  Avoid in-person confrontations, if possible. If these people are capable of scamming innocent victims, they may be capable of more. Try to keep this as formal and non-hostile as possible. They may be scared simply by the act of confrontation and refund your money without a hassle, but don’t count on it. If they’ve been scamming people for some time, confrontation may not faze them; and, if the scam is really good, you might not even have a point of contact – they will have vanished into thin air.

If you are the victim of a scam involving a purchase from a website such as eBay.com which protects the privacy of both sellers and buyers, your best bet is to keep in contact with the seller through email to let them know you aren’t just going to give up, as well as to follow the site’s guidelines for reporting a scam. It’s best in this situation to let the site deal with the violator, which will likely affect their reputation as a seller on the site or even their ability to sell at all. One good point of using these sites is that you will be more likely to get your money back, especially if you use PayPal for your transactions, because you can file a dispute with PayPal as well.

Dispute the charge with your credit card company. Most companies allow disputes of charges within 60 days of their hitting your statement. Call and request information about filing a complaint by mail as well as over the phone so that you have proof in writing. Provide your credit card company with all the information they will need to prove the charge is fraudulent. Keep in mind a dispute may take a while to resolve, so you won’t be getting your money back immediately.

Report scams to law enforcement offices in your area and other areas that might be affected to save other people from falling into the same trap. Uncovering and bringing down a scam may take a little time; meanwhile, a scam alert will keep them from hurting more people.

Take it to court. In more extreme cases, you may need to sue the individual or company. Don’t be afraid to use this as a threat in your negotiations, if you intend to follow through. As a consumer, your right to satisfaction with your purchases is protected; if not by the seller, than by a court of law.

Whatever the case, don’t give up. Persistency is the key to being reimbursed for your losses and ensuring that those who scammed you won’t be able to do it again, to someone else.

Start a Garden from Your Groceries

by Miranda Marquit · 16 comments

If you are interested in saving money on food, you don’t have to get into clipping coupons. You can, in fact, grow your own food. Indeed, gardening can be a great way to get a little exercise, spend some time outdoors, and eat healthier. From edible landscaping, to a more traditional garden, it’s possible to turn your next trip to the grocery store into a starter garden.

Before you make your meal from what you’ve bought at the store, take a few minutes to turn some of your produce into something you can plant. You’ll get more bang for your buck, and you’ll have a way of getting more food without needing to shop for it all the time. Realize that some produce items are better for this than others. You can even can or bottle some of the produce from your garden so that it lasts all year.

Bell (and Other Types) Peppers

While you are likely to get mixed results from planting these peppers, it’s still possible to grow them from seeds. When you slice up the pepper, save the seeds from the inside. Keep them in a cool, dry place so that they don’t rot. If you want, start them inside the house, in small pots. You can start them in a sunny window, and once the seedlings have grown, you can transplant them outside to your garden.

Green Onions

I love green onions to flavor my cooking. If you don’t know where to start, start with what you buy at the store. You can cut off the last inch of the onion, providing you with the roots, as well as the bulb. When you plant your green onions, cover the bulb completely, leaving a bit of stem to stick out of the dirt. If you want to get continuous production over the summer, just cut off the green part as it grows.

Potatoes

It’s fairly simple to prepare potatoes for planting. All you need to do is cut about an inch chunk from the potato. You do need to make sure the chunk you cut has at least one eye (two is better). Let the chunk sit for a couple of days. The now-exposed parts will skin over a bit, and the chunk will dry out. You can then plant the potato. Make sure that the side with the eyes is facing up.

Celery

Most of us, when we buy a bunch of celery, hack off the bottom and throw it on the compost heap. However, you can grow your own celery in the garden if you save it. This only works with a bunch, and not with individual stalks, since the bunch usually still has the root. Cut off the bottom inch of the bunch. Then, place it in a bowl, with the cut side facing up. Add enough water to completely cover the bottom of the celery bunch. After a few days, leaves and roots should appear. Once you see the leaves, you can plant the celery in the garden. Make sure to cover the root, but leave the leaves above the ground. You can cut of your celery stalks. The celery will keep on growing as long as the root is in the ground.

What are your tips for growing a garden from grocery produce?

Ways to Save Money on Air Conditioning

by Jessica Sommerfield · 0 comments

Summer’s here and so is the heat. July and August can be some of the worst months with temperatures often in the upper 80s or 90s throughout most of the U.S., particularly in the South and West. Just as northern states complain about heating bills in the winter months, hotter areas of the country may find themselves cringing when their electric bills come in the mail after these hot summer months. The following are some practical ways to save money not only on your air conditioning units or system, but by keeping your home as cool as possible to reduce cooling expenses.

Air Conditioning Systems

When you shop for an air conditioner, be sure you are getting the correct size unit for your purposes. Larger rooms will need higher BTU models, whereas smaller units are fine for smaller spaces. If you get too large of an air conditioner for the space you are cooling, it might be nice and cool, but you’ll be  using more energy and electricity than you need to. Most air conditioners have information right on the box that will tell you how many square feet the model is recommended for.

Also be sure to check the energy efficiency rating. If you already have an older air conditioner or central air system, you should consider replacing it in order to save yourself money. Sure, the old one may still work, but it will not be working as efficiently as a newer model designed to save you money (and be a good steward of energy resources).  If you have central air, you’ll want to look for a level 13 or better; if you are buying a window unit, you’ll want a rating of 11 or better.

Be sure to properly maintain your air conditioner by changing/cleaning the filter, providing it proper space outside to disperse hot air, and, if possible, providing a shady spot for it.

While you’re using your air conditioner, the higher you program the thermostat, the less energy you’ll use. Seventy-two to seventy-eight degrees should be a sufficiently comfortable temperature while you are home. If you’re wearing long-sleeved clothing while indoors, it may be a sign your air is set too low. On the other hand, you may want to set it for as high as the low 80s while you are away. You don’t want to set it so high that it takes a long time for your system to cool it back down once you are home, but turning it up when you won’t know the difference is a great way to save money.

More Energy-Saving Tips

To keep your air conditioning from having to work as hard, here are some tips on how to keep your home cooler, naturally:

  • Keep direct sunlight out of your house; plant shade trees and shrubs outside to keep out the sun.
  • Turn on a ceiling fan instead of the air conditioner on cooler days, or to disperse air conditioning more efficiently so the air conditioning doesn’t kick on as often.
  • Make sure you are not cooling the outdoors. Seal up holes, cracks, and drafts promptly, just as you would for winter months.
  • Avoid generating heat inside your home on hot days, such as lights you aren’t using, electronics, dryers, or the stove.

Ensuring that your air conditioner is efficient, properly maintained, and accommodated, as well as following simple steps to reduce your house’s need for air conditioning are the easiest ways to save money on your energy bills this summer while still beating the summer heat.

Lessons Learned from New York City’s Food Stamp Challenge

by Gina Blitstein · 1 comment

Recently in New York City, the Food Bank of New York issued a challenge to raise awareness of the plight of those who rely on food stamps to procure enough nutritious food for themselves and their families. That challenge to the general public was to eat for one week on only the food you can buy with the amount in food stamps the average person receives: $1.48 per meal.

No, that’s not a typo – $1.48 per meal.

I realize that food stamps are intended as a subsidy and not meant to cover the entire cost of the food required for a meal. Their purpose is to help people achieve and maintain a suitable level of nutrition for themselves and their family when finances are especially tight.

When I shop for groceries, $1.48 here or there doesn’t make an impact in my overall purchasing decisions. Considered alone, $1.48 does indeed seem like a meager amount; but multiply it by 3 meals per day, 7 days per week and you have $31.08 per person. That’s an amount I can relate to in my grocery budget.

New York’s Food Stamp Challenge raised my awareness of the fact that, when it comes to purchasing groceries, thirty bucks a week can make a big difference, whether it’s the lion’s share of your budget or, like mine, just a part.

This led me to ponder this question: If low-income individuals are faced with the challenge of feeding their families with so little, what could a comfortably middle-class person like myself do with that same amount of money from my grocery budget? Could I be as frugal and responsible at procuring nutritious, affordable food with it as food stamp recipients must, by necessity, be?

My Own Grocery Challenge

I devised a mental challenge of my own: Earmark an amount of my own grocery budget equivalent to the subsidy we would receive in food stamps and spend it as if it were the majority of my money for food. (As a family of two, we would receive a little over $62 a week in food stamps.) My challenge would stipulate that I would need to spend that money only on nutritious foods that would be acceptable under the food stamp rules and regulations.

How would I spend carefully?

  • “Invest” in cheaper-per-unit bulk foods, like rice, beans and pasta which are nutritious and keep well to build up a well-stocked pantry of affordable staples
  • Purchase frozen vegetables which retain nutrition longer
  • Buy fresh vegetables and fruits in season when they’re cheaper
  • Look for and stock up on “Manager’s Specials” and sales to stretch my dollars farther
  • Devise and implement a strong coupon strategy
  • Plan meals in advance and shop accordingly
  • Make a list and buy only what’s on it
  • Frequent thrift and outlet stores for discounted, high-quality groceries and breads
  • Shop warehouse stores for food items in bulk at discount prices
  • Avoid convenience stores

My challenge really begs the question, “How can I maximize a portion of our household grocery budget to get absolutely the most nutrition for the money?” Fortunately, I don’t have to shop for groceries primarily with a limited subsidy – but what if I did? What if it were sheer necessity, rather than an exercise in frugality? My challenge provides an eye-opening perspective: There is a lot of power in the ability to choose to live frugally. Not everyone is fortunate enough to have that power in the marketplace – so recognize and appreciate it if you have it. I know one thing: I’ll never think of $1.48 as insignificant again.

How would you feed your family on less if circumstances demanded?

Can You Afford the Cost of Home Ownership?

by Miranda Marquit · 0 comments

Often, when we start looking for a home, we get hung up on the price of the home, and wondering how much we can afford in terms of the total price of the home. Indeed, it’s very easy to get hung up on a number like $200,000, and forget about some of the other costs associated with owning a home.

Before you decide on a big number, instead look at how much you can afford each month. And realize that the cost of homeownership doesn’t stop at your monthly mortgage and interest payment. Some of the additional costs of home ownership include:

You need to estimate these costs before you start thinking about shopping for a home. Also, realize that your interest rate will affect how much you pay each month.

Consider What You Can Afford Each Month

Before you begin your house hunt, think about what you can afford to pay each month on housing costs. The rule of thumb, of course, is something like 30% of your monthly budget should go to housing costs. (Personally, I think total housing costs should be capped at 25%, and mine are more like 20%.) There are calculators that can help you estimate various costs of home ownership, on top of the traditional principal plus interest payment. It’s a good idea to build these costs into your estimate.

Once you know how much you can actually afford to pay each month, you can use that as a basis to look at the price you can afford to pay for a home. You want to make sure that your payment fits comfortably into your budget. You want to make sure that is room in your budget for setbacks. Build up an emergency fund, so that you are prepared. If your cost is too high, and it prevents you from making your mortgage payments, you could face foreclosure and losing your home. This risk makes it clear that you need to be prepared for that sort of setback.

What Can You Afford, Anyway?

You do need to be realistic about what you can afford, however. Sometimes, it’s easy to think that you can stretch to make the payments on a home, and that you can afford something bigger. However, if you have to stretch, you might not be able to afford it. Also, realize that the interest that you pay has a lot to with your monthly cost. You’ll need to know how your credit score is going to affect matters, since that can add to your monthly cost. If you have poor credit, you might be better off waiting until you improve your score before you start applying for mortgages. You’ll get a better interest rate, and a lower payment.

Be honest with yourself. Do the research. And only buy what you can afford.

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