Buying a Home?

Winning With Money is all about you achieving financial success in your life. It is nearly impossible to win with your money if you live in a home you cannot afford. There is a term in our society we call "house poor." Being house poor simply means you have bought a home that takes most of your income to pay for each month, leaving you with very little money left over to live the rest of your life.

To avoid the dreaded "house poor" position, you first need to determine how much "house" you can afford. Most experts will advise you to never have a mortgage more than 25% of your take home pay.

First, determine your monthly take home pay. Not your gross pay, but the amount of money that actually ends up in your checking account each month. Next, multiply that amount by 25% - or 0.25.

Monthly take home pay = ____________ X 0.25 = ____________

Your mortgage, including property taxes and insurance, should not exceed the amount listed above. If it does, reconsider the house you want to buy. If you have a home now and feel crushed each month by your mortgage, possibly consider moving to a more affordable home.

This might not be the figure your were hoping for. Keep working hard, set goals, read Winning With Money, and learn how to create wealth that will allow you to raise this figure in no time.