How to make your money last longer
A few weeks ago, I wrote a column about how to make a good living.
I’m not going to bore you with a lengthy, complicated guide.
You can read that here.
What I am going to say is this: It takes a lot of work.
I’ve written about it here before.
I’ll give you an example: A few years ago, my husband and I bought a house in a rural community called Biddeford, just outside of Portland, Oregon.
The median price of the house was $1.5 million.
The average price of a home in Portland was $2.4 million.
If you’ve been paying attention, you can probably guess that this means we are lucky.
We were in good shape.
The mortgage was on good terms.
We paid $10,000 down.
The house was well-maintained.
We bought a nice car and a house that I could live in for a year or so.
This was a very healthy situation.
But there was one big problem: Our house was not well-managed.
For starters, it had not been thoroughly renovated in a decade.
We had to get rid of old paint and wallpaper, install new carpeting, and put in new windows.
Then, in a year, we needed to start paying off the mortgage.
And we were paying off it for a long time.
Our credit card debt ballooned from $1,200 to $1:2,000.
I had to make major cuts in my expenses to make ends meet.
It took about six months of work before we were able to make that payment.
What happened next is the story of my entire life.
I have to be honest with you.
The entire process of paying off my mortgage took a couple of months.
My credit score ballooned to a negative five.
I was forced to get a loan from a bank that had no credit history.
That bank, which I am proud to say, I am a big fan of, closed on my loan in less than six months.
I never knew that was possible.
In the process, I lost a few good friends and even my job.
I lost my house.
I also lost my friends who loved me so much.
My marriage fell apart.
And I also suffered from depression.
But my story is a cautionary tale for everyone who is considering taking on a mortgage.
If someone is willing to put in the hard work to get the best deal, there are many ways they can make it work.
First, be aware of the fact that your mortgage can change over time.
In a few years, you could end up with a worse mortgage than the one you got when you bought the house.
Or maybe it could change entirely.
If the mortgage is already negative and your credit score has been in the red, you might want to reconsider the deal.
And in case you are thinking that you could save money by refinancing the mortgage, think again.
First of all, it will take a lot more work to refinance than to buy a new home.
And it will be far more difficult to refile than you would think.
But in the end, you won’t be better off.
The process of refinancing will take much longer than it does to buy the house, and it will have far more consequences for your financial well-being.
For one thing, it takes more time and effort.
It may take three to four years to pay off your mortgage.
But the longer you delay doing that work, the more it will cost you.
If that’s the case, it’s better to take out a line of credit to finance the refinancing and put it toward a new house.
It will give you a much better chance at saving money in the long run.
Second, refinancing can take a while.
It can take months, even years.
And the more time you spend refinancing, the longer it will hurt you.
A third, even more important, reason for not refinancing is that you might not be able to afford to pay down your mortgage before you have to start making payments.
I made a mistake by refinaning before I had a mortgage, but I wasn’t able to pay it off before my husband got a job.
And he ended up owing a lot.
It’s a bad situation for everyone involved.
You might not get much help paying down your loan.
And you won.
But if you take the time to refocus your finances, you will be better prepared to take on a higher-interest loan in the future.
If it were possible to refind your credit, you would.
You wouldn’t have to worry about making the payments.
You would just have to wait longer.
You don’t have much time.
But you don’t want to miss out on any opportunities that might come your way.
And that’s why it’s so important to understand the basics of how your credit history works and the consequences of defaulting on your mortgage and failing to pay the principal