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Mortgage Planning: Step 1
Create a Cash Cushion
Create a cash cushion…money on hand that is readily accessible for life’s unbudgeted emergencies. This isn't necessarily a huge dollar figure. For a family of four earning $80K per year, $5K to $15K should do it. If you are self-employed or on commission-based, that figure should be slightly higher to account for irregular monthly income. The purpose for this cash is to allow the you to handle these emergencies with cash and not fall into the habit of always using credit for these purposes. The biggest point we want to make with step 1 is that personal finance is not about rates or fees or circumstances...it is all about habits. If a person has good financial habits and they consistently exercise those habits over a long period of time, things will work out for them financially. The lack of money-management produces stress - when you consider that most marriages end in divorce and most indicate money as a key factor in their divorce, we can easily see how this kind of advice can impact those we serve.
If a person has good financial habits and they consistently exercise those habits over a long period of time, things will work out for them financially. The lack of money-management produces stress - when you consider that most marriages end in divorce and most indicate money as a key factor in their divorce, we can easily see how this kind of advice can impact those we serve.
Click here to continue to step 2...
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