Personal Finance > Money-wise Advice for a Down Economy such as this (2009)

Home > Personal Finance > Money-Wise Advice For a Down Economy Such as This

I am very excited to hear phrases I have not heard in a long time. As a matter of fact, I haven't really heard of while I'm in America. "I can't buy it now, I think I will have to save a little more first, No - it's a little out of my budget right now". No is a word that had almost disappeared from the American vocabulary for a while and I'm glad it's back.

The Closet by Design salesperson mentioned it to me several months back as I shared with her that I wasn't ready to spend $4,000 in a closet. She said many of her clients told her that they wanted to save a little more first. So, gone are the days (at least it feels like it) that people are not buying on credit like they used to.

3 tips for money tips in this down economy:

1. Save cash
Build a strong cash reserve. As job unemployment is not stable and with most Americans not having enough savings to tide them through a period of unemployment, you should begin to work on a tighter budget than normal and save the rest. Eat out less, cut out unnecessarily coffee runs and see if you can live without your super upgraded ESPN sports TV package. Prepare for the storm to come.

It is advisable to save 3 - 6 months of living expenses. Depending on your marketability of your employment field, you may prefer to save 6 months or more. Personally, my business sits on a 12-month reserves of business expenses and another 6-months of operating expenses.

2. Retirement and long-term savings
Although the economy and the stock market are down, I look at it as a buying opportunity, especially when there is over 20-30 years of investment time. After saving enough, you might want to max out your retirement savings. Dollar-cost averaging will be to your advantage.

3. Buy your first home or Move up in house
Frisco TX homes for sale After you built a comfortable cash reserve and done your homework in retirement investments, it is time to consider purchasing your first home or move up in house. Like the stock market, the housing market has suffered, including the Frisco TX real estate and its surrounding cities. Speaking in somewhat of a generalization, some of the Frisco TX homes that are currently priced very attractively would have sold for more, sometimes 10-20% more. Short sales and bank-owned foreclosures seem to be the market movers.

Consult with a local real estate professional to walk you through other important first time homeownership you ought to know. Please take advantage of the First Time Home Buyers $8,000 Tax Credit given by the federal government in effort to stimulate the housing market. Read more about the FAQs of Frisco TX First Time Home Buyers $8,000 Tax Credit here.

Moving up in house is another way to capitalize in a down economy if you are financially prepared for it. Although you may not get as much as you would like in your current home, your appreciation in equity sits in your move-up house. Read about The Move Up Home Buyer Strategy while understanding realistic Pricing From The Beginning may serve your objectives well right from the get go.

Again, speak to a local real estate professional to works in your turf.

Related Articles:

FEATURED LISTINGS


	Meadow Hill Estates Frisco TX Home for Sale 4 bedrooms, 3 baths, approx 3071 sq. ft. $239,900

	3 bedroom + Study home in Hillcrest Estates 3 bedrooms, 2 baths, approx 1925 sq. ft. $179,900

	Panther Creek Estates Home for Sale 3 bedrooms, 2 baths, approx 1894 sq. ft. $178,900

	Hardwood Floor, Granite + More 4 bedrooms, 2 baths, approx 2795 sq. ft. $219,900
» More Listings

QUICK SEARCH

DAILY FIXED MORTGAGE RATES

*Rates subject to change without notice

No Down Payment No Closing Costs Loan available in North Texas

Check out the Affordability-based Zero Down Payment, Zero Closing Cost Loan Program

FRISCO TX HOMES OF THE WEEK

REAL ESTATE MARKET REPORTS

Check out the latest local real estate market reports of Frisco, Plano, McKinney, Allen, Little Elm & Prosper TX.

Be an INFORMED CONSUMER

Texas Information about Brokerage Services

Differences between Buyer Client & Customer

How Real Estate Agents Get Paid

Join Social Media Conversations In

Active Rain is the Top Real Estate Blogging Platform

About Loreena & 3:16 team REALTY

Loreena Yeo - Realtor(R) in Frisco TX | Broker
M.Sc, B.Sc
Direct (214) 783-2210
Fax (214) 231-9018
Email Me Here

>> Learn about Loreena

>> Learn about 3:16 team REALTY

>> Check out what our clients have to say on Zillow Review

3:16 team REALTY
is a proud Member
of Frisco TX Chamber of Commerce

Loreena Yeo is the broker of record of
3:16 team REALTY to practice real estate in Frisco & surrounding cities (State of Texas). Texas Real Estate Broker License Number #0507884.

CLIENT TESTIMONIALS

Read about what our satisfied clients have to say:

When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

Eric & Tomoko Quere, Plano TX

Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

Jenn & Glen Miller, Denton TX

We were completely impressed with Loreena. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she surpassed them. Knows her market extremely well, not just the technical market pricing data, but the nuances of all the neighborhoods as well. One of the most responsive and professional persons I've met in my entire business career.

Ruth & Jerry Meek, Frisco TX

I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

Sally & Phillip Barnard, Frisco TX


PRIVACY POLICY	TERMS OF USE	Real Estate Markets

		● Milford MA Real Estate