Tuesday, February 13, 2007

Loosing a dream home

Nancy (not her real name) called me on Friday, February 9th, regarding her parents. She had given them enough money to cover four months of their mortgage payments so they would not loose their "dream home" in foreclosure. Six months later they are in the same position. I held a call the next day, Saturday, with Nancy and her parents, Mike and Vicky.

Many of the following details have been changed so the confidentiality of their situation will not be breached. It turns out that Mike and Vicky were living in England a few years ago and Mike decided he wanted to move back to the US and settle in Virginia where they used to live. They build a custom home and then sold it and built a bigger home, their "dream home."

Unfortunately, no one bothered to see if the costs to maintain that home fit into Mike's budget, and they don't. Vicky used to do art work and write. Now she has to do work she can't stand to bring in more money to support the "dream home" and it is still not enough. They are now back to a similar situation like the first time when Nancy gave them money to save the house.

Mike and Vicky are in their 50's, so it is not like they do not have the ability to earn money any longer. These are not parents in their declining years. Of course Nancy does not want to continue to support her parents who seem to lack the forsight to plan ahead. Yes, the house is for sale, but it has been on the market for six months now with no buyer in sight.

What is the point of all this? When you look down the road at any plan you have, new home, new career, retirement, college for children, whatever, you must factor in your ability to handle the financial challenge. While very few people have been taught by their parents or in school how to budget, the information is out there. The forms to use are out there. Workbook and cassette programs are out there. Books are out there. If you have an interest in a SIMPLE budgeting form, let me know, and I will post it to the blogsite. I do not yet know how, but I will find out.

My book, Wealth On Any Income, is a great start.
Amazon link: Wealth on Any Income: 12 Steps to Freedom
Rennie Gabriel
12:28:00 PM

No comments: