It’s never been more important than now to become a saver, not a spender… and to begin living below your means.
You see, no matter how you slice the numbers, home sellers and home buyers face the same issues in today’s real estate market. And if you haven’t given enough thought into cutting your family’s expenses… these data points may make you think again:
This List Will Inspire to Start Living Below Your Means
* Inflation is down from recent high of 9.1%, but it’s still high and the price of things we consumer don’t look like they’re dropping anytime soon.
* Housing prices are still near all-time highs, and show no fundamental changes in the foreseeable future. (Inventory is still low, while demand remains strong).
* Rents – although increases appear to be easing, they are not falling.
* Insurance rates are going almost parabolic. That goes for homeowners and auto insurance combined. And to put fuel on the fire, insurers have left states like California and Florida in droves. It’s not just due to natural disasters, but fraudulent clams, too. Your insurance policies are rising like never before.
* Used Car prices – Have a look.
* Interest Rates – Go look at a 3-year chart of the 10-yr Treasury rate. It’s gone from about 0.68% to 4.56%. The 30-yr mortgage went from 2.87% to 7.5% today. And with The Federal Reserve showing no signs of easing rates… thinking they will go lower is not a good strategy.
* Federal Reserve – After more than a year of raising the Federal Funds Rate, they are still not done raising rates. And should they decide to stop raising rates, that does NOT mean they will be lowering them. You see, The Fed likes is patient. They don’t care about your well-being. They are focused on stopping inflation. And if that means creating more unemployment or slowing the economy, so be it. As long these unknowns exist it’s imperative you are living below your means.
* Food – Daily items continue to rise. I’ve been journaling my family weekly grocery bills. Three years ago I averaged $96 per week. Today it’s $153.
* Gas – During the pandemic, oil prices fell to almost $0! Since then it ran back up to about $75. But after a drop in oil prices in early 2023, prices are back up. It takes about 3 month for oil pries to hit the gas station. That means gas prices will be rising this winter. It’s time to be living below your means, now.
I could go on. But if you’e not taking action on living below your means, you may get caught one day when your safety net of cash runs out.
Do NOT Wait – Start Living BELOW Your Means Now!
This essay is a slight deviation from my normal real estate ideas. But, it factors into the daily decisions of home sellers and home buyers. These items above eat into the pocketbooks of everyone.
Living below your means is a smart financial decision today. How to start?
Lower your entertainment expenses, use coupons, see if you can work from home a couple days per week. Become a multi-generational family where everyone moves into one house and helps each other save money. You’ll start living below your means when you can split expenses up with multiple people.
And if you’ve run out of ideas, click on the two green links below for more nifty ideas…
——————————–
*** If you’re thinking of buying a property in the near future, here are some strategies to help you save for a down payment.
*** Homeowners have money saving ideas, too. Have a look at these tips.
*** Main Photo: Again this morning. A peaceful, off-season, September Delray Beach, beach stroll – the beach has been almost empty this week.
———————————-
***Inventory is Rising FAST – UP11% in the last 67 days!
* 4 years ago there were over 54,000 properties available in S. Florida
* It bottomed in February 2022 at 14,485… a 73% drop
* Last week there were 29,749 available… a 101% rise in 20 months
*** This morning’s Inventory is 30,267! ***
