Why Aren't Mortgage Rates Lower?

I've had several calls from previous customers looking for lower refinance rates since the Feds cut the interest rates.  Mortgage rates should be lower than they are right now.  What's the deal?

Mortgage Markets Freeze as Volatility Continues

A Mortgage Broker Can Save You Money

Why use a Mortgage Broker for obtaining a loan?  A Mortgage Broker IS a "middleman" but that's a good thing! 
Read More


Mortgage Brokers May Save Buyers Time and Money

JoAnn Young, Realtor & Mortgage Broker, since 1996
321-243-4917

A few simple rules for saving from Dave Ramsey

Dave Ramsey featured  I felt this was worth reblogging for the purpose of saving for that down payment for a first home or trying to pay your mortgage off early.
7 Impulse Buys to Avoid

How to Film a Home Inventory in 6 Easy Steps

Information from AAA.com  How to Film a Home Inventory in 6 Easy Steps from AAA.com

Copied from AAA.com
Going through your house to list every item, as your home insurer advises, can be daunting.

But creating a home inventory can make the insurance claims process much easier. To catalog your belongings, film a video walk-through of your home, speaking about each item and capturing it using a digital camera or your cell phone. In addition to helping your insurance company process your claim, a video often helps jog people’s memories about items they’ve lost. Here, six tips to get started:

1. Start with an exterior shot of your house. A shot of the entire house provides great reference when piecing things back together and before going into detail of each room.

2. Next, do a room-by-room inventory. Take wide-angle shots of the entire room, and then several close-ups to capture your possessions. Don’t forget the basement, attic and garage.

3. Open closets and drawers to video their contents. Remember small items like jewelry, and video any written appraisals, as well.

4. Take shots of all major electronics, appliances and furniture. Either video or read aloud the model number and serial number. When describing each object, be specific—such as “Apple 13-inch MacBook Pro laptop computer”—and include the price you paid for it. Also, film your computer’s home screen and show or say aloud each software program on it.

5. Lay large, valuable collections (such as dolls, coins, etc.) on a table and record each piece. Don’t forget tools and hobby supplies.

6. Don’t keep your footage on your filming device. Upload it to cloud storage—or store it on an SD card (Secure Digital card), external hard drive or flash drive, and keep that in a safe place, such as a fireproof safe or bank safety-deposit box. Label with the dates the video was taken. Update your video footage when you get something new.

Are You Prepared?

Beat the Cyber Hackers

I received this some good information today from Quickbooks:

A message from Frank Abagnale, Intuit Partner and Fraud Expert

As a consultant to the FBI for over 4 decades, I've seen how criminals target businesses. In fact, small and medium-size businesses are hit by nearly two-thirds of all cyber attacks — about 4,000 a day! Intuit asked me to share my top 5 tips for protecting your business. Here they are: 1. Use a firewall to block hackers from accessing your computer. 2. Don't put your birth date and birthplace on Facebook. 3. Pick unique passwords with 8 to 14 characters and don't reuse them. 4. Don't use debit cards for purchases; use credit cards instead. 5. Use up-to-date software because hackers look for vulnerabilities in older software to gain access to your system. Thanks for choosing QuickBooks and stay safe. Frank started consulting for the FBI in 1974, after serving time for various fraud schemes. He's become one of the nation's leading experts on fraud and helped develop programs to counter cybercrime. His life story inspired the Academy Award-nominated film, Catch Me If You Can.

Retirement Savvy People

I am always eager to read anything from Dave Ramsey regarding finances:
Click the link to read the article.
10 Things Retirement Savvy People Do Differently

Live more, worry less

Overcoming Common Mortgage Problems Part 1

Understanding and selecting a mortgage is not all that hard to tackle after you cut through the jargon and know how to think about your overall goals.  Unfortunately, when you apply for a mortgage, obstacles may get in your way.  I'll attempt to show you how to glide by these irritating and sometimes not-so-trivial challenges.
Few things in life are more frustrating than not being able to have something you really want.  If you buy a home and you cannot finance the purchase of it, odds are that your dream will have to be put "on hold".
Don't despair.  You may have to exhibit a little bit more patience than usual.  I've not met in my 21 years in the business, a person who was determined to buy a home and was not able to overcome credit or other problems.  My hope is to be able to show you how to get the financing you need and deserve!

The first topic in this series I would like to address is:

Insufficient Income
Your lender may be inclined to reject your loan application if you appear to be stretching yourself too thin financially.  Although getting angry is a natural first reaction, you should actually be grateful.  Why?  Because the lender may be doing you a huge favor by keeping you from buying a home that will prevent you from saving money and achieving other financial goals that may be important to you over time.
If you know that you can afford the home that you have your sights set on, here are some keys to getting your loan approved:

1.  Be patient.  When you have a low income (for example, if you're self-employed and have been deducting everything but the kitchen sink as your business expense), you may need to wait a year or two so that you can demonstrate higher income.

2.  Put more money down.  If you make a down payment of  25 to 30 percent or more, you avoid mortgage insurance and higher payments. In some cases you will get a better interest rate in return.

3.  Get a cosigner.  You always knew that you'd hit your parents up again someday for help!  If your folks are in good financial shape, they may be able to cosign a loan to help you qualify.  Make sure they are aware of the commitment they will be making.  Be advised, if you default on the loan or make payments late, you'll not only blacken your credit but also the credit of your cosignor's.  Have a frank discussion about such issues before you enter into such an arrangement and be sure to write up a loan agreement.


This topic is the first in a small series I will be writing about.  Hopefully, I can help you to avoid some stress in loan application process.

If you are in the process of looking for a home and are in need of a Florida mortgage or maybe you just have some unanswered questions before starting the process.  Give me a call (321) 243-4917 or email me and I will be happy to answer any questions you might have.

Get Your Credit Score for Free

If you are a JP Morgan Chase credit card holder, you can now get your credit score free.  I received an email inviting me to enroll for the Transunion Vantagescore.  After verifying some pertinent information regarding my identity, I was able to view my score.  

My score will refresh weekly when I sign into Chase's website.  There is also a score simulator to find out how my score may be affected when I pay off debt, open more accounts and more.  What a great tool to find out a credit score without someone pulling your entire credit report!  

How Does Your FICO Score Rank in the National Average?

Have you ever wondered where you are in the credit score ranking? The chart below shows a graph of the national average of credit scores.

Your credit score is derived by 5 main criteria.  There are 3 scores used on a mortgage credit report.  A lending institution uses the middle score of the three reporting agencies.

Many credit card companies are now providing a monthly credit score on a consumer's statement as a  free service.  

The above chart & graph provided by TransUnion.  A service of Bank of America

2 Day Approval!

Someone is going to be moving sooner than we thought!

VA Interest Rate Rollover Refinance

If you are a Veteran and currently own a home, you should be thinking about a streamline refinance if your interest rate is above 4.00%. Current rates are in the low 3's. We are unsure of how long they will remain at this rate once the Feds meet on Friday.  Call me to get the ball rolling!  321-243-4917
JoAnn Young 
Licensed Mortgage Loan Originator for over 20 years.

2 Wonderful Things Changing in Obtaining a Home Loan!

Since the Housing Market Crash it seems the news for obtaining a home loan has been basically

negative news.  There are a few positive changes on the horizon that will take place June 25, 2016.

CHANGE #1 - For the first time in 25 years, we will have a change in credit reporting.  A new concept called "Trended Credit Data" will greatly impact borrower's credit scores.  Credit reporting agencies will now track the way a consumer pays revolving debt or credit cards. Paying the minimum payment vs. paying more than the minimum payment for the most recent 24 months.  A borrower will now have the ability to improve their credit assessment by making higher payments than the creditor requires.  For instance, If a consumer has 5 credit cards and has a $10 per month minimum payment but pays a significant amount more than the minimum payment each month or pays it off in full each month consistently, they will have a better risk assessment of their credit or a higher credit score. Consumers who make only the minimum payment each month will also be tracked and are considered to be a "higher risk" for lenders. Lenders believe this "Trended Credit Data" will give them are more clear picture of a borrower's credit use.  This form of reporting only applies to revolving credit debt.

CHANGE #2 - Fannie Mae is coming out with a new version of underwriting software.  Version 10.0. In the new version, borrowers will be able to use non-traditional credit.  Meaning, if a borrower does not have enough credit, 12 months (or more) trade lines can be added to the credit report such as Utility bills, Cellular Phone bills, Insurance payments, Rental payment history,  etc.  In the past this form of credit assessment could only be used for FHA financing. More and more younger consumers are buying homes today instead of renting.  Not every borrower has 5 trade lines on their credit report but they may have cell phone bills and have paid rent somewhere.  Also, renting from your parents is now allowed!  You will need 12 months cancelled checks (front and back) to prove your payment history.

As always, you can call or text me for more information on how to qualify for a home mortgage loan and as a Realtor, I can also take you house shopping!  JoAnn Young 321-243-4917, Email me

Rent vs. Own in Today's Market

The national statistics are in owning a home versus renting a home nationally.  The percent of income spent on mortgage payments versus rental payments across the nation is 29.8% paying rent and 15.1% own a home with a mortgage indicated in the fourth quarter of 2015.

People are spending almost double the amount renting than they would if they were buying.  There are now more affordable mortgage programs available for homebuyers such as the Home Ready & Home Possible,  programs with lower down payments options.  3% down can get a renter into their own home.  This is the buying season.  Huge opportunity for people!

Call or text JoAnn Young 321-243-4917 for more information. Email me at JoAnn@MyFLDreamHome.com 

What Really Happens if I Co-Sign?

Definition of a Co-signer:

A co-signer is a person who agrees to pay a borrower’s debt if he or she defaults on the loan. The person asked to cosign a loan usually has a good credit score and a lengthy credit history, which greatly improves the primary borrower’s odds of approval.

I've heard story after story in my 20 years of signers defaulting on a debt and affecting the co-signer who had no control except to pay the debt himself.  

Recently a mortgage applicant called to do the right thing:  Pre-qualify for a condo before placing a contract on it. What this applicant did not know is that the student loans he had co-signed for his son a few years prior had gone into default with 3-4 months of late payments prior to.  The son did not have the money to pay on the loans and was eventually able to get both of the student loans deferred. The damage was already done.  The father had no idea his credit was compromised and his credit score lowered.  
Many people think that co-signing means if the first person cannot pay the obligation, then the co-signer will.  That is true but there's more!  The co-signer is equally liable as the signer.  It is not just your credit score or income being used to obtain the loan.  You are also liable for this debt and the more debt you have, the lower your credit score and other detrimental factors.  You also cannot remove yourself as the co-signer. You are there for the long haul until the debt is paid in full.  Truthfully, you may not know the end result of the payment history until it is beyond too late.

There have also been some success stories but less of them.  The following is a few tips on trying to avoid co-signing:

1.  Help your children when they are young to begin to understand credit and financial obligations (debt) and to live within their means.  Teach them to save.  A good foundation in finance will help to prevent having to co-sign later.

2. Help the person build their credit.  Most co-signers need help because they have no credit or possibly bad credit.   I added my son as an authorized user on two of my credit cards. I did NOT give him the credit card.  In fact, I don't think he even knew he was an authorized user.   I only added him for the purpose of helping him establish his own credit. When he was ready to buy his first used car with his own income, he had two trade lines showing on his credit report with a decent credit score.  If someone has bad credit and asks you to co-sign, consider the risk carefully.

3.  Look for other alternatives other than co-signing. Possibly buying a cheaper vehicle that fits the signer's budget or a less expensive college closer to home.  If it is a vehicle purchase, renting an apartment or buying a house, it would be more advantageous to help put more money into the transaction than to co-sign

4.  Find out if the financial obligation is a need or a want.  What is the priority for that debt in the signer's life and yours?  Many do not realize that the monthly payment also counts in the debt to income ratio (DTI) of the co-signer as well.  It may have priority in the signer's life but may be critically indifferent to your own.

Ultimately, it’s your credit on the line. Always ask questions about the debt to which you will be obligating.  Find out the terms and conditions of the loan and present questions to the signor as to how they intend to pay the debt if they lose their income or circumstances change.  You’ve spent years building an excellent credit history, and it only takes a few skipped or missed payments to undo your hard work and reduce your ability to qualify for lower rates – or even get financing when you need it most.
by JoAnn Young, Real Estate and Mortgage Finance since 1996.  321-243-4917

New Disclosure Process Coming Soon for All Mortgage Transactions

On October 1st, The Consumer Financial Bureau (CFPB) is instituting new disclosures to inform borrowers of mortgage transactions of their closing costs with new time frames.  "Know Before you Owe" will be changing federal regulations and forms that have been in place for over 30 years.

In this process the CFPB is renaming some of the forms associated to the mortgage process. 
On October 1, the Good Faith Estimate & Truth In Lending will be going away and in its place with be "The Loan Estimate", which is a combination of the two old forms.  See a sample of the new form here.

• The Loan Estimate: This form will be provided to consumers within three business days after they submit a loan application. It replaces the early Truth in Lending statement and the Good Faith Estimate, and provides a more detailed summary of the key loan terms and estimated loan and closing costs. Consumers can use this new form to compare the costs and features of different loans.

The next form change will be the currently named HUD 1 Closing Statement.  This will also take on a new name of "The Closing Disclosure".  See a sample of the new form here.

• The Closing Disclosure: Consumers will receive this form three business days before closing on a loan. It replaces the final Truth in Lending statement and the HUD-1 settlement statement, and provides a much more detailed accounting of the transaction.

The purpose for the changes as per the CFPB are to improve consumer understanding, better comparison shopping, and avoiding costly surprises at the closing table.

Identity Theft

as your identity ever been threatened or even stolen?  I've recently had a charge appear on my credit card bill that was fradulent but that is as close as I've come to having my identity stolen. 

We've met with a client who has had their identity stolen. Our client was applying for a mortgage refinance on their home.  Their credit score was affected by derrogatory accounts that they never created.  None of this they realized until they applied for credit themselves.  Their mortgage process was "on hold" untuil they could get the accounts straightened out.  This is why it is so important to check your own credit report once a year.  The Federal Trade Commission has set up a way for you to check your own credit for free annually.  Your credit score is also available if you want to pay a little extra.  It is advisable to check all three credit reporting agencies as each might carry different information than the other agency or accounts that may show up on one bureau and not another.  The website to navigate to is :  http://www.annualcreditreport.com/ This is the website the government agency has set up for the consumer's use.  Other sites may have a similar name and charge fees to obtain your credit report.

Visit the FTC's website for more information about identity theft and how thieves on the prowl retrieve your valuable information. http://www.ftc.gov/

For more information about credit issues and identity theft call our office 321-243-4917 - People's First Financial Services or email me, JoAnn Young at JoAnn@PeopleComeFirst.net

5 Ways To Pay Off Your Mortgage Faster

by JoAnn Young, Florida Realtor, & Mortgage Broker. Melbourne, FL

Pay your 30-year mortgage off early and live a debt free life before you’re too old to enjoy it!

Facing down a 30-year mortgage can be financially daunting. It’s depressing to think that most people will be in their 60’s or 70's before they finally pay off their mortgages.

Know what else is depressing? The fact that the interest on a 30-year loan is astronomically more than the interest on a 15-year loan. On a $200,000 mortgage, you’ll pay more than $100,000 extra for a 30-year mortgage versus a 15-year mortgage. That’s more than half of your total loan amount in extra interest payments!

One solution to solving these financial issues is to pay down your mortgage early thereby reducing the amount of time that you’ll be stuck with the monthly payments. It will end up costing you more each month, which may create even more psychological stress, but at least the end will be in sight.

Tax deductions are another benefit of paying your mortgage off early. The majority of your early payments go towards the interest on the loan, which is tax deductible. Pay more towards the mortgage in those early years and you might break even on taxes.

Here are a few popular strategies that homeowners use for paying down their mortgage early:

1) Refinancing: Refinance your mortgage for a shorter term at a lower rate. You will likely be paying more per month—how else would it be possible to pay off the same loan amount in half the time?—but the term will be much shorter. The one downside to this approach is that you will have to pay the closing costs, which means that it may take a few months to break even.

2) Large annual lump sum payments: Use your tax return, bonus, inheritance, or other big check to make one annual lump sum payment per year. If any of these amounts are unexpected yearly windfalls to you anyway, then you’re not going to miss them by paying off your mortgage with them. You’re also not going to waste that money on impulse buying.

3) Paying a little bit extra every month: Try to pay a set amount of extra cash every month on your mortgage. It can be something like 15% or perhaps just $100. One trick is to pay a separate payment and notify your lender that the payment is only to be used for the reduction of principal in order to build equity more quickly. Most lenders who allow on line payments have a section for adding additional principal.

4) Bi-monthly mortgage payments: Work it out with your lender to pay your mortgage bi-weekly instead of monthly. The way that the weeks work out, you’ll end up getting in an extra mortgage payment per year.

5) Paying whatever whenever: If your finances aren’t settled enough to pay down extra money regularly, just pay what you can when you have it. No matter how small, it all helps to lessen the length of your mortgage.

Some financial experts caution that there are times when it doesn’t make sense to pay off your loan early. This is mainly when you have debts that charge more interest than your mortgage rate.

Whatever your choice, there is a strategy that will likely work for you. Anything that you can pay ahead of time will result in a shorter mortgage loan period—which will help you to achieve the dream of a debt free life just a little bit earlier.

If you want to talk to someone about refinancing while interest rates are SO LOW!  Call JoAnn Young, 321-243-4917 or email Peoples First Financial Services, Melbourne, FL

Home Affordable Refinance Program (HARP) 2.0

By JoAnn Young - Owner / Principal Broker - Peoples First Financial Services. 

Many have already saved thousands on this program since it's inception!
Recently,I mailed my customers in my database a postcard with news about the new HARP 2.0 for homeowners that are currently underwater on their mortgages.  Several have called and asked about the program guidelines so I decided to post a note here for more explanation.

HARP 2.0 provides much needed relief to underwater borrowers who have been making their payments and who have stayed in their homes but unable to refinance due to lack of equity in their homes.  Note:  This type of loan does not excuse any of your current balance.  The current full 1st mortgage balance is refinanced plus closing costs if you decide to roll them in.
Please keep in mind that the HARP program is OPTIONAL for banks to participate. Not all banks are offering the program and the banks that do participate add to or restrict the guidelines that the government has laid out or have made the cost so hih that it makes no sense to refinance.

The primary changes to HARP are the reduction of pricing adjustments (points) on all HARP loans which allows borrowers to save more money than they could have before and the ability to not require appraisals on many loans. Also allows homeowners to refinance any amount over 80% financed with no limits.
The guidelines I am posting are from a combination of mortgage lenders that I currently have a wholesale lending relationship with who has the closest HARP guidelines to the government's program.

You do not have to go through your original bank or lender for this program!!!
1.  First, you must find out if you current loan is owned by Fannie Mae or Freddie Mac.  Go to this link and type in your information:  Fannie Mae.  or here Freddie Mac If you think your loan is owned by Fannie Mae or Freddie Mac and you get a message that your loan is not eligible, call me.

2.  Your current loan to value if over 80% now excludes any second mortgages -they don't count anymore!  This cap will be lifted in the third week of  March of 2012.  If you have a second mortgage, you must request the second mortgage lien holder to remain in second place (re-subordinate).

3.  You cannot have any late payments on any mortgages in the last 12 months. Some lenders will accept 6 months depending on the credit score.

4.  HARP 2.0 can be used for Primary Residence, Investment Properties and Second Homes.  My wholesale lender will also accept CONDOS!  But condos only up to 125% & it must be a primary residence condo.

5.  You and a Co-Borrower (if applicable) must have a minimum credit score of 640.  Out of the three credit bureaus, it is the middle score.

6.  Income must be fully documented.  W-2's & paystubs. If self-employed then tax returns also.
7.  If your current loan started with or now has mortgage insurance, there are certain circumstances where the mortgage insurance can be transferred and you can still qualify.

8. In some circumstances, a short sale or foreclosure will be accepted by FNMA as long as the credit score is strong.  (In most cases it is where the borrower is reducing his term.  i.e. from 30 years to 20 years.)
9.  If the value is stated onthe loan application properly, FNMA will not ask for an appraisal for this product.  Saves you even more money!  (Approx. $400)
Interest rates are great for this program right now!
Now, who wants to refinance???
Contact JoAnn Young - direct line  321-243-4917 or email me JoAnn@PeopleComeFirst.net  and let's get started saving you some money!

What To Do With An Extra $100 Per Month

Another successful HARP 2.0 refinance closing! This customer was 4 years in to his 30 year mortgage and decided to shorten his term to 15 years. Over the next 15 years he is going to save over $117,000 in interest. Smart move I say!
Which caused me to think about how the average person working a salaried job in today's economy could improve his financial situation.

Times are tough and uncertain for many.  If you have the opportunity to get out of debt sooner, why not?  Sometimes paying off a mortgage seems like it would take a lifetime but it doesn't have to be that way.  If people would spend smart and prioritize their money and budget, they could have a little more financial freedom.  The expensive clothes, pricey cars and extra "toys" are not really necessities.  And when you have to finance those items and pay interest on them, it becomes more of a liability.

Why not change your spending priorities?  The roof over your head IS a necessity!  When you make a mortgage payment, pay a little more each month.  There is nothing that says you have to make the minimum payment.  In fact, paying $100 extra a month is an additional $1200 a year.  On a 30 year mortgage that is an additional $36,000 not to mention the interest you will be shaving off!  $100 is not really a lot of money today.  $100 is about the cost of dinner for two at a casual restaurant twice a month!

If you do not have an extra $100 per month, how about just rounding up your payment?  If your monthly mortgage payment is $644, why not pay $650.  On a $100,000, 30 year mortgage it could mean saving four payments at the end of the loan.
Finally, the vehicle that is used to pay off the loan faster is the rate of interest you are paying.  If you are paying more than 1.5% - 2% than today's current rates, you should really think about refinancing your debt on your home.  Today's interest rates are historically low.  Some homeowners are swapping out a 30 year mortgage for a 15 year mortgage and keeping the same monthly payment.  There are closing costs, but if you can recoup them within two years by your monthly savings, you are doing good.

We currently have a program for homeowners who have been making their payments on time and are paying on a higher interest rate but tapped out on their equity.  If you are considering a refinance, call me as soon as possible - even if you think you have no equity.

JoAnn Young - Owner & Principal Broker - People's First Financial Services, Melbourne, FL 321-243-4917 email JoAnn@PeopleComeFirst.net

Financial Responsibility - Where Does it Start?

By JoAnn Young,  Mortgage Broker & Real Estate Agent, Brevard County, FL  321-243-4917

Good morning friends and blog readers!  Lately I have been involved with teaching a young man a little bit about finance and budgeting.  I was his same age when someone showed me how to have a budget book and actually helped me set it up.  I have lived by this book and the principles and concepts for over 25 years and have never had an unpaid bill - even through unemployment in the mid 90's and other eras of financial crisis.  I would like to share a few key points in helping a young person get started as I've observed and have used in helping this young fella get started on his financial journey through his life.

1.  You cannot have a budget without a job.  Stating the obvious I am sure!  You have to start somewhere.  If you are not retired, income is a must.  If you are having difficulty finding a job.  Keep searching for one and spend as many hours searching as you would working one.  Learn how to write a resume',  techniques for interviewing and put on your walking shoes and start knocking on doors.  Employers know you are serious when they see your face & shake your hand.  They also see the initiative that someone really does want to work because you are out making contacts.

2.  Once you have a job, sit down and write out your goals.  Prioritize your goals and put them in the order of importance on a sheet of paper.  Start two columns.  One labeled "Needs" & the other labeled "Wants".  If your need or want is to buy a car with your income, write it in the appropriate column.  If your goal is to save up money to go to college, put it in the appropriate column.  If you need to pay rent, this item should go first as it is a "need" not a "want".  There are items that will be needs that will take up a good portion of your pay.  Don't be alarmed.  This is realistic.  This is life!

3.  Plan a budget.  Those items in the "needs" column must be itemized.  Figure out how much each will cost per check.  If you are paid weekly, set your budget to pay those items weekly.  For instance, if you find that putting gas in your vehicle costs $160 per month, set a budget for 4 weeks (4 average weeks in a month) and divide up into 4 weeks.  You will set $40 a week aside to buy gas for your vehicle.  Do the same for rent, groceries, etc.  If you are paid twice a month, divide by two.  Once all of your needs are categorized, you can then plan how much you will spend weekly on just yourself.  This item of spending is NOT a priority but needs to be categorized.  Trips to the movie rental machine, additional clothing, entertainment, out to eat, Internet shopping, gym membership, extra money for gas to get to those entertainment spots or the gym.  Everyone likes to have spending money but it has to have boundaries.  Do not budget for spending money until all of your "needs" are all categorized and are realistic.  For instance, do not put $30 a week for groceries down when it is actually $50.  You know how you spend.  If you are not sure, start keeping receipts and total up what you spending on your needs.  Whatever is left over after your needs are categorized, is what you have to work with for spending.  If you feel you are in the "red" or don't have enough, you need to work more hours at your job, get a part-time job or get a better paying job that will give you more per hour for your time.  You must also have an "emergency" fund set up for things that come up that you absolutely have no control over.

4.  Once you have your budget in place, do not vary unless emergency.  Say "NO" to that urge to splurge!  Once again, you have to start somewhere.  You will not reach your goals and wants if you overspend and you control these items.  Sometimes you just have to say "no" to those extra outings with friends or that item that you've been wanting and no longer want to wait for.  The road to success and achieving your goals is not going to be paved by your friends. Instead, start thinking of things you can do with friends that do not cost money.  Make a list and decide to do.  When you have no plan, you WILL spend and will more than likely spend more than you intended.  You must have a boundary.

5.  Use coupons.  I know, it's not cool.  But so what?  It's your money.  It goes further when you get a dollar off here or something for free somewhere else.  Subscribe to online blogs where they alert you to freebies and coupons.  You know the old adage "Easy come, easy go"...it works in reverse with coupons and it only takes a few minutes to print a coupon or clip from the newspaper or mail piece.

6.  Shop online or at thrift stores to find better deals on your needs or even your wants.  Be willing to wait patiently for a deal.  Humans get the idea that we have to have it right now and that is where we get into trouble.  Shop around for those items.

7.  Be disciplined.  There's no sense in having a budget if you are not disciplined enough to follow it.  It is the same if you are trying to lose weight.  You count calories all day and exercise and blow it with late night snacking.  You have to put safeguards in place to keep from "binge eating".  In your budget, you have to put safeguards in place for "binge spending".  How will you handle spending your gas money on going out with friends and having to wait 1-2 weeks before you have spending money again because rent or our car payment is due??  Do you deprive yourself later or do you have self control and discipline now?  Don't "rob Peter to pay Paul" in your budget.  You will get behind.  You will then will find yourself looking for a part time job to pay for those extras that you feel that just cannot live without.  There goes your free time.  If you have to get a part time job because of undisciplined spending, then it is no longer "free" time.  And let me say here, DO NOT BORROW because you did not control your spending.  This is a lack of financial responsibility as well as not having your priorities in order and immature spending.  We want to see you make it with your finances.  Those from whom you intend to borrow do not want to see you with your hand out asking for more when you had it in your hands already.

8.  The last part of your budget - saving!  Once you have your needs and wants separated, you can figure out how much weekly you can put away for saving for that goal.  There is a great sense of accomplishment that you saved for something and spent well when you pay cash for an item.  You are also more cautious with your money when you pay cash.    Sometimes we save up for an item and the price has come down by the time we are ready to buy it OR we find out that we no longer wanted that item as we thought.  It is very smart to save up for an item than to borrow for it.  Do not get into the habit of borrowing. Especially if you don't have enough income to pay it back.

One of the best books I ever bought (and I may have even borrowed it) was a book titled "The Tightwad Gazette"  by Amy Dacyczyn  aka The Frugal Zealot.  Though some of her tips were "out there",  I learned so much from just the concepts in the mid-90's that have carried me through my financial journey.

There's so much more to learn about setting up finances but this outline is just the start of financial responsibility.  It works!  If you stick to it, you are on the start of your journey to financial success!
Call JoAnn Young, 321-243-4917 or email me at JoAnn@MyFLDreamHome.com .