How to Save Yourself from the Credit Crunch

September 19th , 2008

W hat do you do when the news te l l s you tha t the Rea l Es ta te marke t i s i n shambles? Change your spend ing hab i t s . Become a ‘Cash Buyer ’ , wai t to buy your nex t home unt i l you can rea l l y a f fo rd i t , and eva lua te your own happ iness wi th what you cu r ren t l y have . Yea rs ago when c red i t was not so read i l y ava i l ab le , peop le wou ld ren t , save , and buy a home i n cash . To supp lement the purchase pr i ce and i nc rease i n month ly expenses many wou ld take on ‘ boa rde rs ’ (as my Grandma has a lways ca l l ed them) . Obv ious ly cu r ren t home pr i ces are we l l beyond most peop le ’ s ab i l i t y to buy i n ‘ cash ’ . But by buy ing a home wi th a s ign i f i can t down payment , you save thousands on i n te res t and i n su rance cos t s , a l l the whi l e mak ing you l e ss vu lne rab le to c red i t c r i ses l i ke the one we’ re exper ienc ing today. Becoming a ‘Cash Buyer ’ requ i res pat i ence o f course . A l though c red i t ca rd compan ies have cond i t i oned us to buy now, pay l a te r , we s t i l l have the ab i l i t y to choose our own f i nanc ia l hea l th . The f i r s t s tep i s to l ea rn how to wai t f o r good th ings to come.

By wai t i ng you l eave yourse l f open to end less poss ib i l i t i e s tha t can resu l t i n your own f i nanc ia l we l lbe ing . J us t th ink , i n s tead o f buy ing tha t b ig mor tgage , I mean home (oops ) , l a s t year , you cou ld have wai ted unt i l now to buy at a s ign i f i can t cash sav ings ! W le money i s an ext reme ly impor tan t par t o f our l i ves , happ iness i s s t i l l nu hi mber one . I f you ’ re not happy i n your cu r ren t home, what makes you th ink an ext ra 500 square f ee t wi l l make i t so? Look at what you have and what you can a f fo rd .

I f your f ami l y i s grow ing i n s i ze or your i ncome has i nc reased over the pas t year , then o f course you cou ld probab ly use a new home. But i f you a l ready have l uxur ies you don ’ t use and f ee l you have to move to show o f f to your f r i ends , the ext ra cos t s o f your new home wi l l on ly be a burden on your se l f and your f ami l y.

Ul t imate l y the c red i t c runch has put many peop le i n a tough s i tua t i on . Many are home less and have l o s t the i r l i f e sav ings a l l whi l e des t roy ing the i r c red i t h i s to r y. By becoming a ‘Cash Buyer ’ , exe rc i s i ng pat i ence , and do ing on ly what t ru l y makes you happy , you can on ly bene f i t f rom t imes l i ke th i s . With cash i n your pocke t and l ow month ly b i l l s you and your f ami l y wi l l be ab le to weather any s to rm. So en joy your l i f e , and make the dec i s i ons tha t su i t you bes t . And t r y not to get caught up i n the promises o f i n s tan t gra t i f i ca t i on .

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