Why Having an Organized Home Can Help You Thrive Financially

Recent surveys show that around 25% of Americans admit to having a clutter problem in their home. Most homes have a whopping 300,000 items or more and many of these items have some kind of sentimental value to home dwellers. It may be hard to let go of things you no longer need, but doing so is necessaryy for your mental well-being. In case you need further motivation, take a look at how an untidy home can also affect you where it may hurt considerably: your pocket!

Decluttering Affects Your Psyche

American author, Suze Orman, recommends that families dump all their unwanted items in one central area in their home. Seeing everything that is taking up space unnecessarily, all together, can create feelings of embarrassment and perplexity. How did all this junk find this way into their home? She recommends that family members take a photograph of themselves with this communal pile. If you do this one small exercise, you will find that it causes a profound mindset shift. The next time you’re at a shop and you’re tempted to spend money on something that will take out space without increasing the quality of your life, remember that photo. Recall what a pain it was to put everything in bags and take them to the trashcan. 

Freeing Up More Space

Do you have a gorgeous outdoor terrace that is overtaken with boxes, tables, and items you never use? Are these items sitting and gathering dust, leading you to avoid cleaning up your outdoor spaces? Letting your flooring, walls, and guttering can all result in significant expense. The home services industry is booming, with many households shelling out thousands of dollars to renovate areas such as kitchens, bathrooms, and patios. By keeping your outdoor zones clean and well-maintained, you can ensure that your renovation budget goes to the parts of your home that will make a real difference to your lifestyle. You can reduce unnecessary expenditure on flooring and other areas that can look great for years with a little maintenance and care.

Cleanliness Boosts Productivity

Being productive and going after your goals depends on many factors, one of which is your environmental health. We’re not talking about global warming or the great outdoors. This is more about your surroundings; the cleanliness of your workplace, your home office, and the places where you interact with others, rest, and sleep. Research proves that cluttered spaces impact our stress and anxiety levels, food choices, sleep, and our ability to focus. One study showed that too much visual stimulation restricts the brain’s ability to process information. As visual clutter increases, our brain’s ability to focus on vital tasks decreases because, like our home, our minds only have a certain amount of “space.” 

Saving on Expenses

How many times have you bought a stapler, ruler, or glue, only to search frantically when you need it because you don’t remember where you kept it? More precisely, are you brave enough to open the drawer stacked with items you have to remove, one by one, to find that stick of glue? In a tidy home, things are always placed in the same spot, meaning you find what you need. Regular deep-cleaning and tidying sessions allow you to find and sell valuable decorative pieces, furniture, or equipment you no longer use.

Providing Inspiration

A tidy home can inspire you to sort out other affairs as well, including your finances. The World Economic Forum reports that financial literacy in the US has hovered at around 50% for eight years straight and has dropped by 2% in the past two years. Many people put off aspects such as choosing a sound saving method, creating and sticking to a budget, and making their first forays into investment. Putting off financial organization can have a major impact in one’s senior years, which is why embracing organization in all aspects of one’s life is vital.

If you wish to put your finances in order, embrace organization in all other aspects of your life—including your home. A tidy home can help boost your focus and productivity. It can also ensure you sell valuable items that you no longer need in your life.

Financing Your Dream Home: How To Balance Style And Budget

Buying a home is one of the most important financial decisions you’ll ever make. For many buyers, shopping for a home involves a careful balance of style goals and budget. Here are a few ways that you can get the home of your dreams without compromising too much on the style you want.

Set Priorities for Home Design

Before you start shopping for a home, you should do some homework. Make a list of the most important styles, design elements, and amenities that you’d like to have in your home. Get a sense of the types of homes you like and don’t like. Consider indoor and outdoor elements, from the look of the kitchen to the layout of the backyard or patio. If you’re buying a home with another person, you should each make a list and come to a consensus about your priorities. That way, you don’t waste your time looking at homes that don’t meet your needs.

Discover Your Buying Power

While you are working through your list of must have items for your new home, you should also learn what your realistic home-buying budget will be. Although you can get some general information from online calculators, your best bet is to get pre-approved for a mortgage. Mortgage pre-approval involves a careful and accurate look at your finances, so a lender can tell you how much they’d be willing to lend. With this information, you can go shopping with the comfort of knowing what is in your budget.

Be Realistic When Shopping for Homes

Buying a home is the biggest purchase most people will make. When you start looking at homes, be realistic about your expectations and your budget. Look for the absolute best homes in your price range and start there. Keep an open mind and shop for homes with great potential, not just the ones that look perfect to start. You may decide to put an offer in on an older home that you can customize to fit your style goals perfectly, instead of paying more for a newer home.

Budget for Upgrades

Even if the home you buy is brand-new, you may still need a little room in the budget to make it your own. Set a few realistic goals that you can achieve before you move in, such as buying appliances, upgrading the flooring, or painting the interior. If you have bigger plans, like remodeling the kitchen or finishing the basement, you should make sure that you can afford to finance it after you close on the home.

Plan for Monthly Housing Expenses

Once you buy a home, it is important to take into consideration all the expenses that come with it.. Start by determining how much money you’ll need for your monthly housing expenses, such as insurance, utilities, and your mortgage payment. Fixed-rate mortgages have a set monthly payment for principal and interest that remains the same for the entire loan. If you have an adjustable-rate mortgage, you may need to plan for the payment to change over time. The amount you have left after all your expenses are paid can be used to personalize your home.

Buying a home can be a dream come true, particularly if you start the journey with realistic expectations. By setting your sights on an affordable home and making plans to make it your own over time, you can have peace of mind that you won’t break your budget.

Erin Schlachter is Mortgage Sales Manager (NMLS#: 645889) at Right By You Mortgage, a division known for offering a comprehensive range of mortgage products. Backed by the strength and stability of Fidelity Bank, a trusted institution with more than 115 years in the financial services industry, Schlachter and his experienced team of loan officers provide personalized guidance at every step of the mortgage process, ensuring that clients receive expert support and a seamless experience from start to finish.

SOURCES

https://www.militarybyowner.com/resources/5-steps-to-balance-your-home-buying-dream/

https://www.build-review.com/6-tips-thatll-help-you-find-your-dream-home-within-your-budget/

Estate Planning And Homeownership: Protecting Your Assets

If you own a home, you have a good reason to form a plan for what happens to it after you die. Estate planning is not the most exciting of topics, but it can be incredibly important for your loved ones. With this information, you will understand the importance of setting up an estate plan for your home and your other assets.

Types of Homeownership

Leaving property to your loved ones can be a significant addition to their potential inheritance, but the amount depends on the type of ownership. Common ownership arrangements include:

• Sole Ownership: One person owns the property, which may transfer to their estate or their beneficiaries when they die.

• Joint Ownership With Right of Survivorship: Multiple people own the property. When one of them dies, the others automatically gain ownership of that person’s share of the property, without passing it to the estate.

• Joint Ownership Without Right of Survivorship: In this case, multiple people own the property, but they do not gain any of another’s equity when that person dies. Instead, the equity of the person who died passes to the estate.

• Ownership by Contract: A person owns a home and has control over it until they die. Once they die, the property passes to beneficiaries specified in the contract, bypassing the estate or probate.

When you start working on estate planning, be sure that you understand how you own your home. The type of ownership, as well as the extent of your estate planning, may affect how quickly your heirs can gain control of the property or the equity in it.

Challenges to the Estate Settlement Process

When you think about estate settlement, it might seem like an easy process, especially if you only have a handful of major assets to settle. Settling even a small estate, however, can create a variety of potential challenges, especially if you intend for your loved ones to inherit a property they can live in:

• Lack of a Will: If you fail to leave a will or a trust, your heirs will have to go through the probate process. This process can be faster if everyone agrees on the best way to settle the estate but can take months if there is any disagreement.

• Contested Will: Even if you leave a will with clear expectations, it’s possible that your heirs will disagree over the settlement. A contested will or probate can be expensive and time-consuming to resolve.

• Mortgage: The presence of a mortgage on the property may affect whether your heirs can maintain the property or if they must sell to settle the mortgage.

• Late Payments/Taxes: If payments for the mortgage or property taxes are late or several months behind, heirs may have to catch up on the payments before they can decide what to do with the property.

An experienced financial advisor working together with your attorney to create a clear estate plan can potentially minimize or eliminate most of these possible challenges.

Leaving Property to Your Loved Ones

If you want to avoid many of the possible challenges that heirs face during the estate settlement process, creating a will or a trust is the best way to ensure it. Much of the probate process involves researching the person’s assets and debts, so that the debts can be settled and the remainder of the assets handed down to appropriate beneficiaries. If the information about your wishes is not clear, the probate court may take months to sort it out.

By comparison, if you set up a trust for your assets, you may be able to bypass the probate process entirely. As an added benefit, the financial institution setting up your plans for the estate may also act as an executor, ensuring that the estate is settled according to your wishes as much as possible. 

The best gift you can give to your loved ones on your death is a concrete plan that they do not have to find on their own. Grieving the loss of a spouse, parent or sibling can be less stressful when the settlement of the estate is handled by a competent party with all the information.

Author bio: Jonathan Kuiter is the Director of Business Development at Brown and Company, a wealth management firm dedicated to simplifying its clients' financial landscapes by removing uncertainty and providing clear, tailored strategies.

SOURCES

https://trustandwill.com/learn/property-ownership-estate-planning

https://www.fidelity.com/learning-center/personal-finance/estate-planning

https://www.thebalancemoney.com/overview-of-types-of-property-ownership-3505420

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Brown & Company and LPL Financial are separate entities. Brown & Company and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.

5 Ways to Enhance Your Home and Finances With Equity Solutions

We understand that managing a household can be a challenging, but rewarding endeavor. That's why we're here to offer you five practical and effective ways to use your equity to improve your home and financial situation. Whether you're looking to increase the value of your property or simply make some extra cash, we've got you covered. So sit back, relax, and let's dive into this helpful neighborly guide on using equity solutions for your benefit.

Renovating for Increased Property Value

One of the most common ways to use equity is by investing it back into your property. This can be done through renovations, upgrades, or even adding additional living spaces such as a basement suite or extra bedroom. By using your equity for these types of improvements, you can increase the overall value of your home and potentially see a return on investment when it comes time to sell.

Not only does this benefit you financially in the long run, but it also allows you to enjoy a more comfortable and updated living space while you're still in your home. Just make sure to do proper research and budget planning before diving into any major renovation projects.

The cost of renovations can vary greatly depending on the type and scale of the project. For example, a minor kitchen renovation could cost anywhere from $10,000 to $15,000, while a major bathroom remodel could cost upwards of $25,000. Be sure to carefully consider your budget and prioritize which areas of your home will benefit most from renovations before deciding how much to spend. It may also be helpful to consult with a professional contractor or real estate agent for advice on which renovations will add the most value to your property in your specific market.

Paying Off High-Interest Debts

Another way to utilize your equity is by paying off high-interest debts such as credit cards or personal loans. By using your home's equity, you can potentially secure a lower interest rate and save money in the long run. This can also help improve your credit score as it shows responsible financial management and reduces your overall debt-to-income ratio. Keep in mind that this option may not be suitable for everyone, so it might be a good idea to consult with a financial advisor, such as someone with a HELOC payment calculator, before making any decisions.

Investing in Home Energy Efficiency

Making energy-efficient upgrades to your home not only benefits the environment but can also save you money on utility bills in the long run. By using your equity to invest in solar panels, energy-efficient appliances, or insulation, you can reduce your household expenses and potentially increase the value of your home. Additionally, many local and federal governments offer incentives and rebates for homeowners who make energy-efficient upgrades, making it a smart financial decision.

To ensure that your energy-efficient upgrades continue to provide benefits, you need to properly maintain them. This can include regularly cleaning and servicing appliances, replacing air filters, and checking for any signs of wear or damage in insulation. By keeping these systems well-maintained, you can extend their lifespan and continue to save money on utility bills—a win-win for everyone!

Starting a Home-Based Business

If you've always dreamt of being your own boss and starting a home-based business, using equity can be a great way to finance it. Whether you need money for startup costs or want to use your home as collateral for a business loan, utilizing your equity can provide the necessary funds without putting too much strain on your current finances. Just remember to carefully plan and research your business idea to ensure its success.

There are countless home business ideas that you can pursue. Some popular options include freelancing, online retail, pet sitting or dog walking services, tutoring, and event planning. You could also consider using your home as a rental property. The possibilities are endless and with the right planning and dedication, you can turn your passion into a profitable business right from the comfort of your own home. Just make sure to research the market demand for your chosen business idea and create a solid business plan before diving in.

Creating an Emergency Fund

Life is unpredictable, and having a backup plan is always a good idea. By using your equity to create an emergency fund, you can have peace of mind knowing that you have some financial cushion in case of unexpected expenses or job loss. This allows you to avoid taking on high-interest debt or dipping into your retirement savings in times of need.

The amount of money to maintain in your emergency fund can vary depending on your personal financial situation, but it's generally recommended to have at least three to six months' worth of living expenses saved up. This should cover essentials such as rent or mortgage payments, groceries, and utilities.

However, if you have a higher income or more significant financial responsibilities, you may want to aim for a larger emergency fund. It's always better to be over-prepared than underprepared when it comes to unexpected expenses. So take the time to assess your finances and determine an appropriate amount to save for your own peace of mind.

Utilizing your equity solutions can provide numerous benefits for both your home and finances. Just be sure to carefully consider all options and consult with professionals before making any major decisions. With the right approach and use of equity, you can enhance your home and financial situation for a brighter future. So go ahead and make the most out of your equity today!