Welcome back to the Kaizen Gal Podcast!

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Disclaimer:

The Kaizen Gal Podcast should not be taken as an investment or financial advice. I am not a financial planner, nor do I pretend or intend to be one.

I am sharing what works for me, that is specific for me and for the stage of life that I am in.

--> Always make sure to do your own research and due diligence before making any investment or financial decision.

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The goal of the Rags to Riches series is to share tips and habits I picked up in order to help me manage and automate my personal finances. Financial anxiety is real while scarcity mentality will hinder you from expanding the reach and ROI of your money. So here is my rags to riches story, except I am not that rich...yet ^^

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There we go: the last episode of the series Rags to Riches!

Context:  In early 2019, I started to think about taking a sabbatical year. To take a break from life.

My plan was to buy a house upon my return. Then the pandemic happened.

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The last episode of the series is about BUYING A HOUSE.

There are a few things to know and think about, in my opinion, before even starting to look at houses:

1. Where you stand regarding typical wealth ratio
2. Where you can afford to go
3. Reverse Engineer cost to budget AND budget to cost

This will lead you to ask yourself many questions. A sample of the ones I asked myself:

• What is the ratio of my cost of housing against my budget?
• What is the ratio of my cost of housing against the cost of housing in my neighborhood?
• Where do I stand against benchmarks/recommendations of specific personal finances ratios: 1) Price to rent ratio and 2) Housing expenditure ratio
• What is the impact, over 5 years (the loan term I was looking for) and 25 years (the amortization period I was interested in) of putting down a 5% down payment VS. a 20% down payment on my 1) Monthly payments and 2) Short-term and long-term goals
• What is the minimum price of the house I can afford with my current lifestyle without making crazy sacrifices and/or altering my savings objectives?

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Want to learn more? Take a seat!

If you have questions or topics you'd like me to address, email me at info@thekaizengal.com

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