Post Money Plan: Recent Episodes
Dallas Post
www.postmoneyplan.com
How to decide whether to buy or rent: o Duration The longer you plan to live in the same place, the more it makes sense to own it The shorter you plan to live in a place, the less it makes sense to own it o Costs Compare apples to apples between an owning choice and a rental choice Compare only money that is being “thrown down the drain” Remember that principal payments when owning are not “down the drain” those you are trading for more ownership (equity) in your home
Things to consider in buying your first home: 1. Plan as much for the long term as possible, but be aware things can change 2. It’s unrealistic for your first home to be your dream home 3. The purchase price you agree to ≠ actual total cost you’ll pay you also have to account for closing costs and fees 4. Lower monthly payment ≠ lower cost you may end up with a higher interest rate and paying more in interest and have less cash to show for it in the end 5. Recurring home ownership costs o Principal o Interest o PMI if down payment < 20% o Home owner’s insurance o Property taxes o HOA fees o Repairs 6. Keep your debt/income ratio well under 33% when considering the amount of mortgage to take on 7. Keep a financial margin of safety and err on the side of conservatism when taking on a mortgage 8. When you buy, you become responsible for all the repairs and maintenance (and to pay for it!) 9. As a renter, you can just call your landlord and have them fix and pay for maintenance 10. Old appliances and equipment that need to be replaced can cost a lot of unexpected money 11. Full inspections are valuable and can tell you about problems 12. A fixer-upper may take more investment and effort than you expected 13. If you have or are going to have kids, the school district where the house is is important 14. Ask as many questions as you can before buying
Process to follow as a first-time homebuyer:
- Define your lifestyle, what you want in a house, and your budget a. Wants: determine your time-horizon, location, size, quality, convenience, cost, etc. b. Consider all of the costs that go into buying a house i. Mortgage down-payment ii. Mortgage principal payments iii. Mortgage interest payments iv. Private Mortgage Insurance (PMI) premiums if down-payment is less than 20% v. Home Owners Association (HOA) fees vi. Property taxes vii. Home owner’s insurance premiums viii. Repairs if stuff is old or broken c. House price budget: make your mortgage payment/income ratio much lower than 33% (ex. $3,000/month income monthly mortgage payment needs to be less than $1,000/month) d. Down-payment amount: Put down as much as possible without straining immediate needs (keep 6 months of living expenses in savings) e. Keep your expectations in check
- Qualify for a loan a. Approach a lender by reaching out to a bank or lending company b. Provide personal information documentation i. Pay stubs ii. Tax returns iii. Bank statements iv. Rental history v. Net Worth c. Get pre-approved for a mortgage loan d. Be careful, remember the bank is not your friend, they’re trying to make money off of you
- Shop around for houses a. Use real estate websites like zillow.com to search for candidates b. Hire a realtor with expertise and share your desired criteria with them c. Whittle down options to ones worth viewing in person d. Get to where you have at least 3 options that you would be willing to buy (necessity never makes for a good purchase)
- Make offers and negotiate with sellers a. Bid under the asking price on your first pick b. Ask for ancillary benefits to be thrown in with your purchase (a free inspection, replaced utilities, repairs, etc.)
- Get the house appraised
- Get the house inspected
- Buy home owner’s insurance
- Close the deal a. Sign off on all the final paperwork b. Obtain the title c. Get the keys
Supplemental Resources: Zillow Trulia
www.postmoneyplan.com
With the turn of a new year, the cliche practice of New Year's resolutions comes to mind. That being the case, it's worth considering how you can take the tradition and make it something personal, purposeful, and motivating so that you actually follow through and execute on them.
-Content Level: Beginner-
In this episode we discuss:
The value of planning and setting goals How to set goals How to achieve goals What goals to set Post Money Plan goals for 2017
The episode is hosted by Dallas Post - the founder of The Post Money Plan, joined by Jason Colwick.
www.postmoneyplan.com
In consideration of the Christmas season and the cultural theft of the meaning behind Christmas towards consumption and buying things, we delved into a discussion on Anti-Consumerism.
In Part 1 of the episode, we discussed:
What we mean by consumerism Why consumerism is bad The results of consumerism
In Part 2, we cover:
The causes of consumerism The capitalism vs. socialism debate What people should do instead of participating in consumerism The benefits of reduced consumerism
The episode is hosted by Dallas Post - the founder of The Post Money Plan, joined by Michael Fares - professor of Arabic at The University of Houston.
www.postmoneyplan.com
In light of the Christmas season and the cultural theft of the meaning behind Christmas towards consumption and buying things, we're delving into a discussion on Anti-Consumerism.
In Part 1 of the episode, we discuss:
What we mean by consumerism Why consumerism is bad The results of consumerism
In Part 2, we’ll cover:
The causes of consumerism The capitalism vs. socialism debate What people should do instead of participating in consumerism The benefits of reduced consumerism
The episode is hosted by Dallas Post - the founder of The Post Money Plan, joined by Michael Fares - professor of Arabic at The University of Houston.
www.postmoneyplan.com
Support behind people like Bernie Sanders has shown a recent desire for policies such as a hike to the minimum wage in the U.S. Similarly, we’ve seen momentum building behind the call for a $15 minimum wage. In a two-part series, we delve into the reasoning and arguments for and against the minimum wage.
In Part 1 we covered:
Reasons for the recent rise in discussion around a $15/hour minimum wage The intent of people who support and people who oppose the minimum wage Repercussions of the minimum wage Who the minimum wage currently effects in the U.S. History around minimum wages
In Part 2, we cover:
Economic arguments for the minimum wage Economic arguments against the minimum wage
The episode is co-hosted by Dallas Post - the founder of The Post Money Plan as well as Murray Williams – a former bond broker and fund manager, and Tom Dickens – a commercial insurance underwriter.
www.postmoneyplan.com
Support behind people like Bernie Sanders has shown a recent desire for policies such as a hike to the minimum wage in the U.S. Similarly, we’ve seen momentum building behind the call for a $15 minimum wage. In a two-part series, we delve into the reasoning and arguments for and against the minimum wage.
In Part 1 of this episode, we discuss: • Reasons for the recent rise in discussion around a $15/hour minimum wage • The intent of people who support and people who oppose the minimum wage • Repercussions of the minimum wage • Who the minimum wage currently effects in the U.S. • History around minimum wages
In Part 2, we’ll cover: • Economic arguments for the minimum wage • Economic arguments against the minimum wage
The episode is co-hosted by Dallas Post - the founder of The Post Money Plan as well as Murray Williams – a former bond broker and fund manager, and Tom Dickens – a commercial insurance underwriter.
www.postmoneyplan.com
In a two-part series, Dallas Post interviews a retired couple to get the view point of how a financially conscientious couple has approached their personal finances over the course of their lives.
In Part 1, Dallas speaks with Loretta - the wife - who gives her perspective on how the couple handled their approach to finances and planning for retirement.
In the interview, Loretta touches on: -The challenge of saving when you feel like you don't have much money -Only buying what you can truly afford -The value of saving no matter how much you make -The impact of starting to save early
In Part 2, Dallas will be speaking with Larry - the husband - who will provide his perspective on the same set of questions.
www.postmoneyplan.com
In this episode, Dallas Post interviews Cameryn, a high school student who is preparing to go to college.
In the interview, Cameryn touches on:
-Her background and work experience to-date -Having to become personally responsible for managing her own finances -The value of learning through experience before going off to college -What she has been taught about personal finance in school -What she has learned about money outside of school -Topics within personal finance that she has yet to learn about -What she would like to study in college -Preparing for college -Considering the cost of college and planning for that -the predominant financial philosophy of high school students
Key advice for high school students and parents with kids preparing for college: 1. Start working and saving as much as you can before college 2. Work hard in high school 3. Get as much college credit as you can in high school (via AP or IB programs, etc.) 4. Apply for as many college scholarships as you can 5. Pay attention to financial aid and the interest rate on potential student loans