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Should You Build a Home in Detroit?

March 5, 2024 By Erin H Leave a Comment

If you’ve come to the point in time where you want your own home, you may be wondering about things such as the best place to get the home, as well as if you should build one or buy one. There are bound to be a number of pros and cons, but these may hold varying weight for different people. If you need some help in making the final decision in this case, here are some considerations to make before you decide to build a home in Detroit that can help make this an easier decision to make.

Familiarize Yourself with the Law

To start with, take some time to learn about the law in Detroit before you decide to call it home, especially if you’re from out of town. This should be in terms of every aspect of the law as well, and not just the building codes and such. For instance, you may benefit from knowing that Michigan recognizes a no-fault ground for divorce, which means that it’s not necessary to probe that one spouse is to blame for causing the marriage to break through abuse, adultery, or another bad act. This may be different from the law in other states, and it’s something that a married couple might benefit from being aware of.

Look for the Right Neighborhood

Next, keep in mind that there are bound to be good and bad neighborhoods in Detroit. Taking the time to shop around should save you from picking the wrong one to call home. The right neighborhood is also most likely one that can meet other needs that you may have, such as having good schools and functioning amenities. While something like the roads may not seem to be an important part of the grand scheme, especially smaller access roads, they can impact your comfort and safety as a driver over time. A neighborhood with terrible infrastructure and poor roads could see you spending more money on vehicle maintenance and repair, forcing you to get a lot more done than regular oil changes, which are recommended to be done every 3,000 to 5,000 miles.

Consider the Ideal Home for You

This consideration will impact a number of details, including whether you’re better off building rather than buying. If you have unconventional tastes or specific ideas that you’d like your new home to meet, you’ll more than likely benefit more from building rather than buying. It’s possible to find a vacant plot in an area that you like in this case but be prepared to search thoroughly.

If you’d like a regular home, on the other hand, then you’re likely to be satisfied with an already constructed one. Note that in a recent survey, 82% of homeowners in America said that they’re more interested in updating their outdoor living spaces than they were before the pandemic, according to Forbes. This is an easy update to make, so if it’s the only one that you have in mind for homes on the market, you should be able to find satisfaction in an existing home.

Think About Your Finances

Finally, think about your finances so that you can make the best call. If you intend to get a mortgage or loan, or if you have assets that you can liquidate to make money for the home, the other details should be easier. You can set a budget that you’ll be in a position to comfortably adhere to when you know about your finances. As a result, you’re not likely to end up house-poor and have to deal with the financial consequences.

These are some of the considerations to make if you’re thinking about building a home in Detroit. Taking the time to plan can save you a lot of hassle down the road and give you an amazing experience. Do thorough research so that you know exactly what you want and what you’re getting involved with, which will help lower the chances of ending up with regrets.

10 Money Mistakes You’re Making Right Now—And How to Fix Them!

March 4, 2024 By Catherine Reed Leave a Comment

When you live in the fast-paced world of today, managing personal finances has become more complex than ever, with new trends and economic shifts impacting our wallets daily. However, amidst these changes, some timeless money mistakes continue to trip us up, often without our notice. Here’s a closer look at 10 blunders that might be draining your finances right now, along with practical advice on how to rectify them, ensuring your financial health today, tomorrow, and into the future.

1. Ignoring the Power of a Budget

One of the most common financial pitfalls is the absence of a budget. Without a clear understanding of your income versus expenses, it’s easy to overspend or misallocate funds, leading to unnecessary financial strain. The fix? Start by tracking your spending for a month, categorizing your expenses, and then setting realistic limits for each category. Budgeting apps can simplify this process, making it easier to stick to your financial plan and adjust as needed. Remember, a budget isn’t a constraint; it’s a tool to achieve financial freedom.

2. Falling for Impulse Purchases

Impulse buying is a quick route to financial trouble, especially with the rise of one-click online shopping. These purchases might bring temporary joy but can severely derail your budget and savings goals. Combat this by implementing a 24-hour rule for all non-essential purchases, giving you time to consider if you truly need the item or if it’s just a fleeting desire. Also, unfollow or mute tempting social media shopping pages and emails to reduce temptation.

3. Neglecting an Emergency Fund

An emergency fund is your financial safety net, yet many overlook its importance until it’s too late. The absence of this fund can lead to debt during unexpected events like job loss or medical emergencies. Start small if necessary, but strive to set aside at least three to six months’ worth of living expenses. Automatic transfers to a dedicated savings account can make this process seamless and ensure that you’re consistently building your emergency cash reserves.

4. Paying Only the Minimum on Credit Cards

Making only the minimum payment on credit card debt can trap you in a cycle of high interest and slow repayment. To break free, prioritize paying more than the minimum, focusing on the card with the highest interest rate first. If you’re genuinely struggling to keep up with your debt payments, consider consolidating or transferring balances to a lower-interest card as a strategy to reduce the interest burden and pay down the principal faster.

5. Overlooking Retirement Savings

It’s easy to push retirement planning to the back burner, especially when it seems far off. However, the power of compound interest means that starting early can significantly impact your retirement nest egg. Take advantage of employer-sponsored retirement plans, especially if your company matches your contributions. If you’re self-employed or your employer doesn’t offer a plan, explore individual retirement accounts (IRAs) to ensure you’re steadily building your future wealth.

6. Wasting Money on Unnecessary Fees

Bank fees, late payment charges, and subscription services you no longer use can slowly bleed your finances. Regularly review your bank statements and cancel any subscriptions you don’t need. Set up automatic payments for recurring bills to avoid late fees, and consider switching to banks or credit cards that offer lower fees and better terms.

7. Investing Without Research

With the accessibility of investment platforms, it’s tempting to jump into investing without proper research. This can lead to risky bets on volatile stocks or trends without understanding the potential consequences. Educate yourself on investment basics, or consult with a financial advisor to create a strategy that aligns with your risk tolerance and long-term goals. Diversifying your investments can also mitigate risk and improve potential returns.

8. Neglecting Insurance

Underestimating the value of adequate insurance coverage can be a costly mistake in the event of an unforeseen incident. Review your health, home, auto, and life insurance policies to ensure they provide sufficient coverage. Shopping around for insurance can also uncover better rates or more comprehensive coverage for the same price, safeguarding your finances against unexpected events.

9. Lifestyle Inflation

As your income increases, it’s natural to want to improve your standard of living. However, allowing your spending to increase proportionally with your income—known as lifestyle inflation—can hinder your ability to save and invest. Combat this by consciously deciding to allocate a portion of any income increase directly to savings or investments, ensuring that your financial growth outpaces your spending habits.

10. Procrastination and Lack of Financial Goals

Finally, the overarching mistake many make is simply procrastinating on taking control of their finances or setting clear financial goals. Without goals, it isn’t easy to measure progress or stay motivated. Set short-term and long-term financial objectives and review them regularly to adjust for life changes and economic shifts. Remember, it’s never too late to start, and small, consistent actions can lead to significant financial improvements.

Win the Battle Against Money Mistakes!

Recognizing and rectifying these common financial mistakes can set you on a path to improved financial health and security. By adopting a proactive and informed approach to managing your money, you can avoid common pitfalls and build a solid foundation for your future. Remember, personal finance is just that—personal. Tailor these strategies to fit your unique circumstances and goals, and don’t hesitate to seek professional advice when needed. Your financial well-being is worth the effort, and the best time to start is now.

Using Your Refund the Smart Way This Tax Season

February 28, 2024 By Erin H Leave a Comment

Every year at tax season, you may say that you’re going to use your refund appropriately, and then before you know it, the refund has shrunk, and you can’t meet any of the goals you were thinking about meeting. You can best spend this money in several ways to benefit you and keep you in a better financial situation throughout the year. Keep reading to see how to spend your refund best this tax year.

Take Care of Home Repairs

Over the last year, you’ve probably noticed a few repairs you need to make around your home. Make a list of things you want to do and a list of things that need to be done to prevent further damage to your home. If you’re getting back a generous refund, now is the time to take advantage of the larger projects you otherwise wouldn’t have the money for, like roof repair. According to Home Advisor, the common roofing repair job costs around $1050, most falling between the price range of $380 and $1746.

Have Your Car Serviced

If it’s time to have that standard oil change, tire rotation, or even a new set of tires for your vehicle, this refund is the best time to take advantage. Remember that this money isn’t a part of your standard budget, so the extras should be done with this money while it’s available. Some larger services, like transmission services, are more appropriate for the tax refund. According to the Transmission Repair Cost Guide, a transmission has oil and a filter that should be changed every 20,000-30,000 miles or every 18 months.

Pay Off Some Debt

Regarding debt that needs to be paid, this could fall into several categories. First, protect your credit score by paying off any outstanding debts that have gone into collection or are in danger of being repossessed. These are usually medical bills and payments that were missed and, after so many days, are sent to the collection agency. Once they post on your credit report, they can impact your score. They could also impact your ability to get service at that facility.

The next type of debt to look out for is an outstanding credit card balance. You want to get your debt down to 30 percent or lower, so you must pay these cards down to that point when you get your tax refund. This is also true for personal loans. Both credit cards and personal loans accrue interest, and the longer it takes to pay them, the more money you’ll spend on this debt.

Add To Your Savings

If you aren’t sure what to do with the rest of the refund or have no large projects to spend it on, add that money to your savings account. Something will come up unexpectedly over the next year, and this money can be used to cover those costs, so you don’t have to take it out of your monthly budget. If you don’t already have a savings account, this is a good time to go to your bank and establish one today.

Treat Yourself

While there is so much good you can do with that refund money, make sure you do something for yourself. You can treat yourself to a spa service, a new piercing, or maybe even a new tattoo you will have with you forever. According to Gitnux, a smaller tattoo generally costs about $50, so you shouldn’t feel guilty spending a little more on something you want.

Make This Year Better

Give yourself a plan for your tax refund this year, and know how you want to spend so that you aren’t overspending in places that won’t help you later. You can do some fun things, but you should also be financially responsible so you aren’t in a financial bind later when you need the money or can’t put off a home repair you need. Consider these options for your tax refund and see how well they set you up for the next year.