Why People Overspend and How to Stop
With many Americans finding it challenging to live within their means, experts reveal that budgeting skills alone aren’t enough to curb overspending. Social pressure, lifestyle creep, emotional spending, inflation, and credit misconceptions are common culprits that drive overspending.
To curb overspending, try these strategies:
- Set Clear Goals: Establish specific financial objectives to help you focus on saving rather than spending.
- Avoid Credit Dependence: Use cash or debit cards to limit spending to what you have, reducing debt accumulation.
- Control Lifestyle Creep: Reassess your budget when income increases to avoid unnecessary expenses.
- Identify Emotional Triggers: Recognize emotions that lead to impulse spending and develop healthier ways to manage them.
- Adjust for Inflation: Track expenses and adjust budgets to accommodate rising costs.
Overspending is a common challenge, but with thoughtful planning and self-awareness, it’s possible to create lasting financial stability. Start today with small steps, and remember that each choice brings you closer to a healthier financial future.1
The Benefits of Using Equity to Make a Bigger Down Payment
Homeowners today have a unique advantage when buying their next home, thanks to rising home equity! As home values have increased over the past few years, so has the equity in many homeowners’ properties. This allows sellers to use that equity toward a larger down payment on their next home. According to recent surveys, the median down payment is now at a record high of $67,500, a nearly 15% increase from last year.
A bigger down payment offers major benefits: it reduces the amount borrowed, potentially leading to lower interest rates, smaller monthly payments, and avoiding private mortgage insurance (PMI) if putting down 20% or more. However, many options for lower down payments are available so don’t let this stop you from buying a home. Reach out to me if you want to explore these options together!2
Are Student Loans Keeping Buyers in Rentals?
Although student loan balances are higher than in previous decades, recent changes in repayment terms and interest rates have helped ease the financial impact of student debt. With more manageable payment-to-income ratios, homeownership is becoming more attainable for many young adults. For instance, the student loan payment-to-income ratio for young households decreased from 7.4% to 5.9% between 2016 and 2022, even as average loan balances increased.
Millennials today are achieving homeownership at increasing rates, supported by stable income growth and favorable payment ratios. Regardless, homeownership is a goal within reach for generations of all backgrounds as they move into prime homebuying years, each with unique strengths and paths toward long-term financial stability.3
Did You Know?
Homebuyers with a single income and no kids—known as SINKs—are an emerging segment in today’s market. Typically in their 30s to 50s, SINKs often focus on career and lifestyle, valuing homes with spaces tailored to relaxation, work, and personal hobbies. They are also usually willing to pay more for homes with energy-efficient, eco-friendly features.4
Start Prepping if You Plan to Sell Your House in 2025
Are you or someone you know planning to sell your house next year? Consider preparing now, allowing you to complete repairs and updates gradually, reducing stress, and ensuring the best presentation when it’s time to list. Real estate experts strongly recommend starting early since nearly half of sellers take over a month to get their home market-ready.
Potential sellers should prioritize updates that add the most value in your area, whether it’s minor landscaping, a fresh coat of paint, or key upgrades like a kitchen refresh. By tackling your to-do list now, you’ll have plenty of flexibility to complete tasks right, avoid last-minute rushes, and ensure your home is appealing to buyers. Starting early not only enhances your home’s look but also maximizes your chances of selling quickly and at a great price when the time comes.5
How a VA Loan Helps Active-Duty Military and Veterans
Are you an active-duty service member in the military or a veteran? VA loans offer invaluable support for these groups, enabling homeownership with zero down payment, no PMI, and competitive interest rates. This government-backed mortgage program makes buying a home financially achievable, helping eligible individuals invest in a place they can truly call their own. They can benefit from flexible terms, allowing them to own homes despite military order changes.
Beyond financial benefits, VA loans provide lifestyle stability and community roots—key values for those serving our country. Whether it’s managing PCS moves or planning future upgrades, VA loans help build equity and offer a sense of permanence and financial wellness. With guidance from VA loan specialists like the RWM team, service members can maximize their well-earned benefits.6
Sources: 1 money.usnews.com; 2 keepingcurrentmatters.com; 3 blog.firstam.com; 4 nar.realtor; 5 keepingcurrentmatters.com; 6 rwmloans.com
