It isn’t a secret. African Americans have historically been robbed of assets through nefarious means, from predatory lending to unfair compensation rates. It’s a lot to take in. With so much trauma connected to our collective relationship with money, it’s easy to understand why there’s a big push to close the wealth gap, and homeownership is often touted as one of the best ways to make up ground.
While there are lot of financial benefits to owning your residence or an investment property, there are also challenges. Buying a home isn’t just about having the cash. Homeowners must also be ready emotionally and mentally to cope with the stressors that accompany purchasing and managing a property. Whether it’s the shift of having to handle repairs and planning, or the added duties of budgeting and prioritizing, being in a healthy mental space is essential to thriving once you’re financially ready to own.
Still thinking of purchasing a property? Here are a few ways to know whether you’re mentally ready to take the leap.
You Want the Responsibility
Homeownership sounds sexy, but it’s a lot more cumbersome than making a monthly transfer to your rental office. As a homeowner you will be accountable for your own maintenance and repairs, as well as budgeting for present and future needs of your property.
You’re Willing to Sacrifice For It
Saving for a house is the first step; but realize homeownership requires a long-term commitment of your time and money. Your home is one of your biggest assets and you must invest in it to ensure its value increases—that means there will alway be projects and upgrades needed.
You Understand the Emotional Value of Your Home
Ownership will represent different things to different people—security, achievement, independence, safety, etc—so diving into why purchasing is important to you and what it presents will help create clarity around readiness, and offer guidance around healthy decision-making on price and budgeting.
You Know Your Relationship With Money
Between a mortgage, which is typically the largest household expense, and home maintenance, a larger portion of your income will likely be going towards your home. Understanding your relationship with money will give you a stronger standing to budget responsibly and make healthy financial choices.