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  • Writer's pictureNate Baim, MBA, CFP®

Thinking of Buying a Home?

Video Transcript:

Are you looking to buy a home in the near future? Buying your first can be a stressful process. But you know sounds more stressful, living in the home your recently purchased, and regretting your decision to buy the thing you put a ton of sacrifice into acquiring. In a recent survey, 63% of those between 23 and 38 years old expressed regret about their recent home purchase. Common factors cited in the survey say that millenials fail to account for maintenance costs high mortgage payments, and location. In my opinion the findings in the survey points to a lack of purchasers having a robust money management program in place before and after the purchase of their new home. Having a money management program in place provides you three important things, clarity, control and confidence. A money management program provides clarity because it provides you the understanding of what it costs to live your life. It will also provide you the tool to see what your financial life looks like before and after your purchase a home. It brings your clarity to what your future life may look like. It is also provides control. The foundations from a money management program are used to improve your finances so that your can afford to purchase a home. It allows you to see the levers you control and what levers you can pull to get you where you want to go. It provides you the means "live" your future life before ever taking any action. With the money management program you can forecast what your future budget will be with be expected costs and you can manipulate the forecasts for the "what-ifs" in life. With the tool in your hands you can also see if you are leaving enough room or your values based goals. You gain control because you understand what strategy you execute when purchasing and living in your new home.

And lastly it gives you confidence. With a money management program you know what you can and cannot afford to purchase. It will help you and if you are married you and your partner, have a clear understanding where you stand. This will help you be better focused in your home purchase goals, and remove the stress of being pressured into a new home you may have future regrets about. Your confidence is built because there is less ambiguity in your plan.

So, what does a good money management plan look like? First, it starts with your values and goals.Take the time to list out your values, then write down your goals. Connect your values to your goals. Connect values to will help you better define your goals, and will help provide you the motivation to live the life you desire.

Next, you need a budget. This is the tool used to understand what it costs to be you and to forecast your future life. Everybody has an opinion, including me, on how to set the right budget. Ultimately you want it to be easy to understand, attainable, and realistic. And of course, when setting a budget your income needs to greater than your expenses. Next, you need to be continually providing yourself feedback. You need to understand if you are at or below target to your budget. Let's be real, most of us just pay off the bills each month, and we don't take the time to look closer at the bigger picture. Looking at where you spend and save each week, we find is good feedback frequency for building good habits and staying the course.

And last, you need banking structure which supports you to achieve your spending goals. We look at banking in three: spending, storage, and savings. You having your spending accounts to support your day to day living. You'll have you storage accounts for annual short-term goals or lifestyle wants. This would be like a vacation or spending for a big purchase on a hobby. And last, you have your savings possibly investment accounts for medium and long-term goals. This will be for your emergency fund, down payment on your new home, sabbatical maternity leave, and of course retirement.

We believe 50% of you financial independence comes from you money management program. Having real numbers in real time so you can make real decisions will provide you clarity and confidence to your pursuit. 40% of your financial independence comes from the right strategies or how best to allocate you savings to your goals. And the last 10% comes from using the right tools.

At Pursuit Planning and Investments, LLC, we believe a solid money management program is essential for building your financial independence. Although we help clients more traditional financial planning topics such as investments we start with the money management program first. Our money management program consists of the items previously discussed. First goals and values, then the budget, third the banking structure and last the reporting.


Have something on your mind? Schedule a free call with Nate.


Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.

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