As you grow older, your responsibilities certainly change. If you’ve been working hard for a few years and you’re finally ready to break out of that four-bedroom apartment and get your own place, you need to know what you’re getting yourself into. Now that you’re finally making good money, it’s time to think about making those major milestone purchases. There are two that come to everyone’s mind right away: a home and a vehicle.
We’re going to go over what you need to think about before you dive right into spending a fortune on certain items.
Here are some important things to consider whenever you’re in the process of making a major purchase in your life:
Buying a Home
Stick to your budget
The average sales price in Manhattan was $1.9 million for condos in existing buildings in the third quarter of 2017. Unless you’re a professional athlete, movie star, or happened to have won the lottery — you should probably quit browsing for condos and real estate with six zeros attached to the number…
Instead, start tracking all your finances and work on developing a strict and realistic budget. Without properly budgeting, you won’t be able to successfully pull off any major purchase. At least without getting yourself into some serious financial trouble. Budgeting is one of the most important things you can do before, during, and after a major purchase. And make no mistake about it, buying a home is THE most important purchase you will ever make — so it’s worth it to take some extra time and carefully detail all your spending money, money coming in, and what you can afford.
Talk to a professional
Buying a home is honestly one of the most complicated things you’ll likely ever accomplish. Even if you’ve purchased one or two properties in the past, it is still a very overwhelming process. That’s where professionals come into play. It’s best to search on Google to find qualified and experienced professionals.
Thankfully, there are plenty of hardworking and trusted professionals who have decades of experience in the real estate sector. These professionals can help you with every aspect of the homebuying process. From appraising a home to refinancing and inspection, it can be extremely tricky to understand. That’s why it’s imperative you work alongside a trusted real estate professional.
Buying a Car
Stop looking at those expensive sports cars
In 1965, a Ford Mustang was transported in 4 separate pieces to the observation deck of the Empire State Building, using resident elevators, where it was reassembled and photographed by helicopter. The car was later reassembled inside the building until it was eventually taken apart and removed from the building 5 months later. Very cool car. Very unrealistic purchase for you right now.
Keep working hard and saving money and you’ll undoubtedly be able to afford the car of your dreams in the future. But right now… since you’re just getting a hold on your financial situation, you need to invest in a realistic, safe, and reliable vehicle.
As a car service, a Sedan can fit one to three passengers plus their luggage. Sedans are much more your speed!
Consider used if it’s financially responsible
If you’re not in a great financial situation, don’t feel like you absolutely must buy a brand new car. New vehicles are obviously great options, but they are much more expensive than their used counterparts.
For some reason, so many people believe that because a car isn’t brand new, it’s lacking. This couldn’t be further from the truth. Sure, a vehicle from 1989 isn’t going to be all that great. But a used car from 2013? There is a pretty great chance that vehicle is absolutely perfect for what you’ll need.
Working with a professional can help you with any major purchase. As long as you’re carefully taking a look at your finances, budgeting realistically, and talk to someone with experience — you should be fine. Good luck and congrats on all your future purchases!