FINANCIAL HEALTH’S IMPACT ON WELL-BEING
Do you ever think about how your financial situation impacts your well-being?
Not being able to afford what we want is frustrating, but not being able to afford what we need is seriously stressful. Whether it be a vet bill, a surgery we need, rent or mortgage, books for school, transportation or even healthy food, we can get so stressed out, especially when we take on debt from using a credit card with interest. Money doesn’t buy everything, of course, but it can buy peace of mind and comforts as well as necessities like a roof over your head, clothes on your back and food in your dog’s bowl.
A lot of it is relative, though. Some of us have champagne taste on a beer budget. And if we just opted for the beer, we wouldn’t be in the red, right? We could make ends meet and be less stressed.
In our household, we recently budgeted for home shopping … as in buying a home. The budgeting process gave us peace of mind and more control over our finances and over our stress. I highly recommend budgeting in life rather than hoping you can pay your bills, and rather than piling up debt on a credit card. I’m no financial expert, but I’m buying a home and not losing my shirt in the process. Keeping reserve funds for health emergencies and other bills is a responsible thing to do and reduces stress so that you protect your health more. Stress is bad for our health, so let’s use tools to mitigate it.
I’ve got a few tools I use with clients (and myself) outlined below:
Wellness wheels I customized for dog parents and dogs – that help us see where our lives are lacking balance and optimization. In the human wellness wheel, money is one spoke in the wheel. Reach out if you want a session to get these exercises and work on finding balance. It can actually be fun!
Breathing exercises have been shown to reduce stress by lowering blood pressure and activating the vagus nerve for a deeper state of calm. Meditation and affirmations can also help.
Working on our money mindset is a big thing, too, when we’re working on financial health - how we think about money, spend it, manage our debt, if we save, if we live within our means rather than beyond them or in an all-too-frugal way.
Budgets and use of our budgets help, plus using financial apps and finding all deductions to take at tax time.
I will admit that I have lost balance in life lately, and sometimes that happens because one thing must be prioritized. But getting a handle on our financial situation and focusing myopically on house hunting and finding the right place for the lower end of our budget means we now have less stress and less expenses. Owning a home can be cheaper than renting one, by the way.
If you’re in the market to buy your first home, know that it requires a major time commitment. Some more tips to prepare:
There are online courses and coaching programs to help set you up for success. Your lender may even require you to take a specific course. My friend Nobu has some: https://coinsandcredit.lpages.co/links/
Work on your credit score.
Try to pre-qualify for a mortgage.
Know that not all mortgages are based on your debt-to-income ratio, so there may be a better fit out there for you even if your current income is low. You can find a good mortgage broker to investigate for you without doing a hard pull of your credit.
While in the process, don’t make any expensive purchases like a car or vacation unless you consult your mortgage broker.
Using a real estate broker can save you a lot of headaches, though it may depend on the market you’re in.
You should consider all monthly fees when buying - not just the purchase price because a 650k home with a $350 HOA may be a better deal than a home listed at 600k where the HOA fee is 1k per month. And it may be hard to get the insurance you may want for a home in a flood zone or fire zone, for instance.
Consider if it’s turnkey or needs renovations and get pricing for the bare minimum you need to make it functional and comfortable for you.
Get ready to read lots and lots of documents and sign lots and lots of forms with deadlines.
Some of the players who’ll send you documents to review and/or sign are realtors, escrow agents, lending brokers, lenders, condo/HOAs or co-op boards, home insurance reps, the state RE: potential environmental hazards, inspectors, appraisers, and sellers.
Your broker will likely suggest a home inspection, a pest inspection, possibly a mold inspection and others of your choosing.
You may have surprises like termites or mold to remove that have costs.
You may be able to negotiate with the seller even after your initial offer is accepted.
Pre-qualification for a mortgage doesn’t mean you’ll definitely get approval for a particular property or for any, but it’s a big step in the right direction.
If a deal is going through, get ready to move!
That’s where we find ourselves. On that precipice. Time to pack and give notice to our rental building!