Home buying

Where to start

Meet Mr. & Mrs. Shimo

Sue and Dan Shimo are a middle aged couple They have a 7 year old child Struggling with bills due to Sue becoming disabled recently Emergency savings is quickly disappearing Theyve never kept good financial records Living paycheck to paycheck Starting to fall behind on bills Credit is getting worse Sue has recently given back her car because they simply cant afford the payments anymore

Closer Look
Name: Age: Expenses: Sue & Dan 37 & 42 Mortgage Car Payment Credit Cards Everyday needs Monthly Income: Monthly Budget: Savings: Credit Score: $8,250.00 $687.50 $1,200.00 624

Current Situation

Sue has been disabled and has been unable to work for the past five months She is awaiting a verdict on her application for social security disability insurance in a few months Previously earned $24,000 in addition to Dans $33,000 The family has lost 42% of its income

Owe $8,400 in credit cards. $200 min payment/mo $450 out-of-pocket expense for medications every month $1,165/mo mortgage $296 car payment Total household debt is $101,880

How to better their situation

1.

Know your starting point

Review the money you have coming in and break down

your spending
2.

Evaluate your largest expense

Mortgage is a big one. It might be time to refinance your

mortgage or look for a new apartment or house.

3.

Plan ahead
Keep updated maintenance on your assets and your

body to avoid needing to use emergency funds

4.

Protect yourself
And your possessions with the necessary insurance .

Renters Ins, health ins, life ins and car ins

5.

Setup a savings plan

Despite the best preventative measures, unexpected expenses

still arise. So, most experts recommend that you have three to six months living expenses saved in case of unforeseen financial needs.

Know your starting point

Find a financial agent who can guide you in the right direction Keep your mind open to new ideas on how to manager your money better Take a chance to better your situation

#1

Evaluate your largest expense

Needs, Wants and Expectations

Price Range Location Duplex or Small Home Bedrooms Baths Garage Space / Yard School near by

#2

Plan Ahead
Make short term goals and long term goals Keep reminders around of why you have these goals Review your goals often to make sure your on track Sacrifices might need to be made in order to keep with your goals

#3

Protect yourself

The number one thing to do is have insurance to protect yourself and your assets. This will help in the long run Keeping everything on track can also help prevent an emergency fund from being used

#4

How to start a savings plan

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Set a clear goal Use a jar Buy generic Do it yourself Plan a garage sale Pick up a pen Cut your overhead Tax yourself Make saving a family priority Automate as much as you can Do something regularly to remind yourself why your saving

#5

Listing their house on the market

Properties available

Rent is $450 a month 2 Bed 1 Bath 700 SqFt Suitable for a couple with no more than 1 child Well insulated High efficiency gas furnace Large separate laundry room with storage Outside storage shed Tenant pays all utility bills Washer and Dryer hook-ups

Properties available

Rent is $560 a month 2 bed 2 bath 1933 SqFt Remodeled home Nice neighborhood Loft can be used as office space or another bedroom Washer / Dryer hook ups

Dream Home

1893 Sq. Ft. .13 Acres Built in 1894 3 bed 2 bath Central Air Cooling Forced Air Heating $299,000 to Buy Close to schools Close to library

15 year vs 30 year