3648: Why You Shouldn't Make House Purchases Based on Emotions by Kalen Bruce of Money Mini Blog

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[00:01:00] This is Optimal Finance Daily. Why you shouldn't make house purchases based on emotions. By Kaylin Bruce of MoneyMiniblog.com. And I'm Justin Malek. Welcome back to the podcast where I read an article to you every day of the year, with permission from the authors. So let's get right to it as we optimize your life. While you shouldn't make house purchases based on emotions.

[00:01:29] By Kaylin Bruce of moneyminiblog.com. Buying a house can be an incredibly exciting experience. It sends people running all over the place trying to figure out how to find the residence of their dreams. However, just because a house is a big investment doesn't mean that it's impossible to understand what you need in order to make the best choice possible for yourself and for others.

[00:01:55] If you put a large amount of money down on a property, then you might as well make sure that you get the one that will serve your needs perfectly. Not just in the current period, but for many more years far into the future. In this post, we will discuss a very important question that you can ask yourself to determine whether you are making the best decision possible, or if you might be setting yourself up for financial failure down the line.

[00:02:23] Ask yourself this incredibly simple question. Can you afford the home you want to get? This might sound like a question that should not need asking, but unfortunately, many people fall into the trap of buying a home simply because they are falling in love with it so much that they cannot imagine not living there at all anymore.

[00:02:46] Even if a certain piece of property seems like the one and only choice you should go for, you must also consider your financial stability. Will you be able to pay off your home loan without sacrificing anything from your current quality of life? Will you be able to still put away a good amount of savings while paying off your expensive home? How many years will you have to take to finally pay off the entire mortgage?

[00:03:11] If you enjoy simple things, such as going out for a movie with a delicious tub of buttered popcorn in tow, or love to savor a delicious plate of fancy dinner at a very high-scale restaurant, then you may have to sacrifice these things to consistently make your payments on time.

[00:03:33] As much as advertising companies want you to seal the deal on the house super quickly, you have to make sure you go through each and every step of the process with a level and logical head. Many people make their buying decisions based on their emotions rather than on the facts and statistics. That is why many companies try so hard to build close relationships with their audiences.

[00:03:58] While this is not necessarily bad, allowing them to sweep you off your feet could wreak havoc on your bank account. You need to consider how it could damage your way of life. When you browse around for a house, apartment, or a condo for sale on a property listing site, you have to make sure that you set the parameters in such a way as to guarantee that you are only looking at options that are actually within your budget.

[00:04:25] As much as you want to own the residence you have always wanted to get, be as realistic as you possibly can about your financial situation. It's no use getting a beautiful place to live in only to have mountains of debt haunt you for decades after you sign the contract. This doesn't just apply to houses. The same applies to other big life purchases that many people tend to make, such as buying cars.

[00:04:52] Take this article written by Financial Samurai on the website getrichslowly.org. In it, the author talks about his experience jumping on an absolute deal for an old car, almost 20 years old, that he had been wanting to get for most of his life. He did not care that it was old and would probably experience many problems down the line.

[00:05:13] All he knew was that he got the car of his dreams for a price that he deemed a steal and let his emotions get the better of him. Well, it did not take long for him to finally start feeling the negative effects of his decision based on emotions. The car began to break down. Soon, the repairs began to cost way more than what he initially paid for the car. The same can be said for a home purchase. Do you really want to go through the same nightmare with your property?

[00:05:44] Do not let your heart get ahead of you when buying a property. You might just end up with headaches after headaches. All this because you settled for a property instead of taking the time to cross out anything that does not fit your meticulously chosen criteria. Use your heart and mind to make the best decision. As this article shows, you will need to ask yourself many questions to determine whether you have found the perfect home.

[00:06:12] But fear not, as plenty of properties are available. All you have to do is ensure you have examined all of your personal criteria for the perfect house. Make sure to keep a lot of critical thinking and scrutiny in mind. Do your research and do not settle for the first sight with the information you see. Really dig deep into the details you need and cross check your references.

[00:06:38] Do this to ensure you are not being duped into making a decision you will regret later on. As long as you always think twice about any decision and consider every possible option, you should be able to make your choice confidently and without any regrets down the line. You just listened to the post titled,

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[00:08:32] And the clear base and sides make items easy to find even when the totes are stacked. Find select shelving and tote storage up to 15% off at the Home Depot to organize every room in your home, from your garage to your attic. Visit homedepot.com, how doers get more done. Thank you to Kalen. The main question here is a simple one, but it's the one people skip when they fall in love with a place. Can you actually afford it?

[00:09:01] Seems obvious, but it happens. And of course, it's okay to love a place. It's more about not letting the emotion drive the math. Let your heart pick a few options, but let the numbers decide which one you can actually live with. But I like that he doesn't stop at the house. He points out it's the same with cars or really any big emotional purchase. The car example stuck with me.

[00:09:28] The author was Financial Samurai, who we'll hear an article from soon, I'm sure. He got the car of his dreams for what feels like a steal, and then the repairs end up costing more than the car did. Now personally, the way I handle the car version of this is that once a year or so, I'll just rent a really nice car for a day. I get the fun part, the thrill of driving it, without the payments, the maintenance, or constantly worrying about a scratch.

[00:09:56] Plus, most of the excitement is in the novelty anyway, which fades fast once you own the thing. So if you're about to make a big purchase, maybe run through that simple, can I afford this without giving up the small things that make my life good? And maybe sit with it for a day or two before deciding. And with that, thank you for being here. Have a great rest of your day, and I'll see you tomorrow, where your optimal life awaits.