The common desire among Geezeo users is the wish to master our financial lives. Thankfully Geezeo has the tools and community to help on every step of your financial journey.

How do we take inventory of our financial lives? Are you 100% satisfied with your money situation? If not, what’s keeping you from having that satisfaction?

Suppose you are happy. Could you be languishing in a safe zone missing opportunities to earn, save, or give more?

I think we’ve got three basic stages in our financial lives. Managing, growing, and giving. Which stage are you living and how do you plan to move forward?

Stage 1- Managing Your Money.

Ideally we should learn the basics of managing money as children or young adults. The sad reality: Most of us learn ‘on the job’. And we screw up, sometimes hugely. In the management stage we need to develop the habits and knowledge that will allow us to create a basic level of financial security. Unfotunately, past mistakes can keep us on a financial hamster wheel if we aren’t careful. Using credit, understanding taxes, budgeting, paying debt, and having an emergency fund are milestones we need to reach before we can hope to effectively move on to growing our money.

Stage 2- Growing Your Money.

You’re a master at managing your money. Now what? Time to tackle investing and taking some risks so your money can grow. This can be intimidating. Remember you want to grow your money, not lose it. If you’re clueless don’t be afraid to admit it. It’s easier than ever to broaden your financial horizons. Check out TheStreet.com to beef up your knowledge of what’s happening in the stock market. Get over your fear of talking to a financial planner and clearly define your long tem goals.

Stage 3- Giving Your Money

Americans have a hard time with the concept of enough. We want more. I like that about us. There’s nothing wrong with wanting to amass a huge fortune. But aren’t we all here to make the world better in some way? When you have more than enough it’s thrilling to consider how surplus can be used to enrich the lives of others. Be an angel investor for a company that will create jobs. Give your grandchildren a secure financial future. Create your own organization to focus on the causes you care about. The opportunities to give are limitless and the rewards are priceless.

No matter which stage you’re living remember the point is to learn, grow, and move on. If you’re feeling stuck, hire these guys to follow you around. Apparently they’re very passionate about other people’s money.

Today we briefly explore why owning a home is a cornerstone to a strong financial future and the associated risks.

How You Make Money Owning a Home:

Plus, there are all the investment intangibles that are priceless: a place to live comfortably and call your own.

Home ownership risks:

How much can you afford to buy?

This table courtesy of one of my favorite finance books, “Left-Brain Finances for Right-Brain People” by Paula Ann Monroe. Here’s the chart she lays out:

Mortgage Affordability

1. Gross Monthly Income = $ [fill in your number here]
2. Affordable Monthly Payment = $ [Line 1 x .28]
3. Total of All Monthly Debt = [Line 1 x .36]

Line 2 tells you how much mortgage you could comfortably carry. Line 3 tells you your spending limit. This is the traditional 28/36 ratio used before the crazy mortgage calculations came to market.

Home ownership impacts a community greatly.

Here’s an article this week on this topic from CNN: “Is America’s suburban dream collapsing into nightmare?”.

Story Highlights

The current mortgage crisis and escalating rates in general are cause for attention if not concern. Owning a home impacts a community as well as your individual financial future.

No matter where you are in the home ownership process there are people here at Geezeo who are like you. Find them in any of our home or real estate groups. Also, you can find articles about home ownership and real estate on our blog.