RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

College Grads: Sidestep Financial Traps

June 12, 2015 1:45 am

Fiscal responsibility should be a top priority for anyone, but newly minted college graduates are more vulnerable to financial traps, say experts with the American Bankers Association (ABA). These traps, identified below, can hinder new grads from securing their financial future, including the ability to purchase a home.

Not Having a Budget – Simply put, don’t spend more than you make. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.

Forgoing an Emergency Fund – Make it a priority to set aside the equivalent of three to six months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. A bank savings account is a smart place to stash your cash for a rainy day.

Paying Bills Late – or Not at All – Each missed payment can hurt your credit history for up to seven years, and can affect your ability to obtain loans and the interest rates you pay for loans. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills.

Racking Up Debt
– Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. It’s a great tool if you use it responsibly.

Not Thinking about the Future – It may seem odd since you’re likely just beginning your career, but now is the best time to start planning for retirement. Contribute to your employer’s 401(k) or similar account, especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money.

Source: ABA

Published with permission from RISMedia.


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Millennials See Value in Homeownership

June 12, 2015 1:45 am

Refuting reports otherwise, recent research from the Urban Land Institute (ULI) suggests Millennials value homeownership as much as any other generation – and then some. According to the “Gen Y and Housing” report, almost half of Millennials who do own a home believe it is a good long-term investment, and nearly three quarters of Millennials who do not yet own a home expect to be homeowners in the next five years.

Millennials who do own a home also cite the stability, privacy and square footage as positives. The majority of Millennial homeowners live in single-family homes; just a fraction live in attached units or condominiums.

Those who do not yet own a home remain steadfast in their preferences for neighborhoods with urban characteristics, such as a high degree of walkability, transportation alternatives and accessibility to shopping and entertainment.

The ULI research also noted an emerging trend among Millennials in which homeowners live in households with three generations of family members, or share housing with roommates.

Source: ULI.org

Published with permission from RISMedia.


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