In the first blog in this series, Mortgage Advice for Young Couples Part 1: How Much Do We Need to Save For a House?, I provided an overview of how much you need to save before buying a house and outlined all the costs you need to consider. In this second blog, Mortgage Advice for Young Couples Part 2: How Much Can We Afford to Spend on a House?, I outlined the process I use with all my clients to help them identify how much they can afford to spend on a house.
Before I take on a new coaching client, I let them know that there are three rules to coaching that I need them to agree to before we get started. The first and most important of these rules is that they agree to do whatever I ask them to do, even if it doesn’t make sense at the time. Experience has taught us that you can’t half do a budget; you can’t just pick the bits that are comfortable and easy to follow and leave the bits that are time-consuming or difficult to implement.
Living on an uneven income does add some complexity to budgeting however with the right system and a bit of discipline it does not need to be difficult. Uneven incomes can be broken into the following two categories:
One of the most fulfilling parts of being a financial coach is journeying with and helping people achieve financial goals that are important to them. One of the biggest, if not the biggest, financial goal you and I will face in our lifetime is to save for and purchase our first house. As a financial coach I also recognise that a big part of my responsibility to my clients is to give them the right advice, even if they don’t necessarily like what they hear.