You've waited a long time. Now, you have the good news -- your loan modification has been approved. You can't wait to tell your family and friends about it. And in the rarest of events, you even plan to call your mother-in-law to discuss the good news.
But wait. Before you put all your loan modification documents inside your closet and dream your life away, make sure that you keep your feet planted firmly on the ground. Don't forget that you have crossed out only one problem for now. The next step is to make sure that you keep that problem away for good. Try to follow these four simple principles to make the transition easier for you.
First, know your loan modification terms by heart. The document was given to you for a purpose. It's not meant to become a secondary paper weight. It's meant to be read. While you're exercising your optic nerves, take note of the following things: your next due date, the payment changes, details that are highly significant to your current loan, and other adjustment periods. They are important to remember at all times.
Next, cut out all unnecessary expenses. Remember those cool, alligator shoes you bought yesterday at $450? Or maybe the great date you had with your girlfriend at this exclusive bar in Beverly Hills. The question, however, is this: Do you actually need them? And another follow-up: Do you actually need to spend so much on these things? Remember that you're saving to make your payments. Spending up on unnecessary things will make it much more difficult for you to budget your money.
If this is hard for you, make a set of your priorities, and try to see which you can live without. Also make sure that you include "payment for loans" on your top three list. When you see that, you will be more motivated to cut back on your spending.
After this, think of the amount you plan to save every month. The rule of thumb in savings is usually to deduct 10% from your salary. So if you are a marketing manager and your monthly salary is $3,500, then you should take away $350 from it. Of course, it's just a rule. If you want to deduct 20%, then go ahead. More is definitely better in this case.
Lastly, create a budget plan that you can follow. I am highlighting the phrase, "you can follow" here. Make sure that proactivity occurs after you write it on paper.
There you have it - simple and effective. Waiting for you loan modification is a stressful period; however, maintaining it takes up even more demands than anything else. Try to follow these guidelines, and you will wake up one day and realize that your home is right where you want it to be.
