Throughout the process of searching for a new home, choosing the right neighborhood is equally as important as finding the right house. Various aspects of a particular neighborhood could have an impact on all members of your household – it could determine where your children attend school, what activities and amenities are accessible with and without a vehicle, and can increase or decrease your overall cost of living each year. [Read more…]
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How We Used the Proceeds from the Sale of Our House
This summer has been a crazy one. We found out in May that my husband would likely get a new job 2,200 miles away from our home, and in June, he signed the contract for the new position. We sold our house, bought a new house, and drove four days across the country to settle in our new area. Thanks to the housing shortage due to the pandemic, we made a nice profit on our old home. Here’s how we used the proceeds from the sale of our house.
About Our Old House
Our old house had almost doubled in value from when we bought it eight years ago. When we listed it, the house sold in three days, and we had six offers, two of them for over asking. The couple we picked also waived their right to an inspection, which saved us money.
About Our New House
Our new house is slightly larger than our old house and cost 8% more than our old house sold for. Unfortunately, the property taxes are three times higher. (Yes, property taxes in Arizona, where we moved from, are affordable.)
We wanted to find a smaller house that cost less than our house in Arizona. However, we only had a week to look for a home in our new area. Unfortunately, many of the places on the market were less than desirable, with moldy tubs and awkward layouts. Or, a few were in highly desirable areas and went well over asking; we had no desire to pay that much.
How We Used the Proceeds from the Sale of Our House
I would have liked to have put all of the proceeds from our house into our new home so we would have a smaller monthly payment, which is especially important in this high-interest rate environment. However, both our financial planner and mortgage broker talked us out of this.
Instead, we used the proceeds from the sale of our house this way:
Seventy percent for a 20% down payment on our new house and to cover closing costs.
Six percent to increase our emergency fund. This allowed us to grow our emergency fund from one month of expenses to 2.5 months.
Four and a half percent for home improvements. While we didn’t pay over asking for this house, we did pay the list price. The house has some issues like mold on the wood window in one of our kids’ bedrooms, which we will need to replace before winter comes. We also need to replace a leaky, cracked sink and a few other items.
Six percent to increase our car replacement fund. We’ll need a new car within the next year or two. (Our current vehicle is 18 years old.) So, we added to this fund.
Two and a half percent to cover moving costs. We had to pay for our hotel rooms and food as we journeyed across the country, as well as other miscellaneous expenses.
The rest is unassigned for now. We’ll see how we need to use the remaining money, whether for college tuition, increasing the emergency fund further, or buying other household needs like a snowblower.
Final Thoughts
We tried to use the proceeds from the sale of our house as responsibly as possible. As a result, we were able to put 20% down on our new house, and we were able to bulk up many budget categories that put us in a more secure financial position.
Read More
3 Lessons I Learned When Looking for a New House
How to Recover Financially After a Car Accident Leaves You Broke
Being involved in an accident is something that no one wants and that can never be predicted. It comes with a lot of life-changing conditions, and these can leave you incapacitated physically and financially. Read on to see some suggestions that you can follow to help you recover financially if you get into a car accident and your finances suffer on account of it.
Talk to Your Lawyer
The first step to take is to talk to your lawyer, especially if you were not responsible for the accident. If you experienced an injury, you should seek the help of a personal injury lawyer as soon as you’re able to do so. They will help you understand how the exact nature of your accident can impact your settlement. For example, if a plaintiff is found to be over 50% at fault for the collision, they are not entitled to recover any damages in some states. A good lawyer will help you avoid overpaying for medical treatments, not receiving an insurance claim that you’re entitled to, and more. Look for a lawyer whose fees are reasonable and that won’t charge you unless you win so that you’re not at risk of suffering more financially if you don’t receive a settlement.
Don’t Seek Help From Questionable Sources
While you may be pressed to seek assistance to cover your bills, it’s important to practice caution. Avoid falling prey to predatory loans that could see you pay a hefty fee back. You could try social lending or crowdfunding, in which case you may manage to pay your debts thanks to compassion from people around the world. If you have good insurance policies, these could also come in handy and help you get some money to boost you in time of need. Speak to your agents so that you can find a way forward without compromising your future even more.
Restructure Your Budget
When your finances are left in shambles, it only makes sense to rethink your future budgeting. Keep in mind that the latest figures from the New York State Department of Transportation share that the average cost of an auto accident depends on where the accident took place. It will cost $15,000 on the lower end and $63,000 on the higher end, with most accident costs falling between $30,000 and $40,000. These are considerable figures, so you may need to come up with a different budgeting strategy to deal with them effectively.
Get a Side Gig
If you are in a position to work, there are plenty of options of side gigs available to you to pick from. Even if you’re unable to do physical activities that involve moving around a lot, there are many online-based gigs that you can try out. If you have specific skills or talents, there is likely a way for you to monetize them and reap the financial rewards. Whether it’s writing or graphic design, you can find someone willing to pay for your services and this amount will help you in some way.
You can even rent out an extra room in your home after making some adjustments to your lifestyle. For example, by moving unused items to the garage to empty out one of the rooms in your house. For around 50% of homeowners, the garage is their home’s most unorganized room, so it’s important to get yours in order as doing so could help you get some money through a garage sale or clearing space for a tenant.
Use these suggestions to start your financial recovery after getting into a car accident. Don’t forget to prioritize your physical well-being as well because your health is ultimately your most important form of wealth.