We always enjoy answering listeners' questions on the show and today we get to answer two different questions from listeners. The first is on sinking funds. Not having sinking funds in place is one of the biggest ways we can get in trouble financially. Today we discuss what they are and what kinds of expenses are good for sinking funds.
Second, we also answer a question from a listener on how much to save for a down payment on your first home. There isn't an exact rule on how much you need to save in order to have a good down payment, but obviously the more the better. The goal is to have at least 20% down so you avoid having to pay for PMI insurance. But having 20% down for your first home might be asking too much. Instead focus for 12-18 months on saving up as much cash as possible to put down on a home. I would even consider suspending your retirement contributions, temporarily, to make this happen. Please, don't do what I did and get house fever and put nothing down on a home. It doesn't give you much room for error.
Congratulations to Kim Anstaett for being the winner of the Four Week Financial Turnaround contest. Those of you can pick up your copy of the book on Amazon or at FourWeekFinancialTurnaround.com
Finally, I need your help for the final podcast of 2012. I’m trying to collect testimonials from you, the listener, on what you have done to improve your finances in 2012 as well as finding out what your goals are for 2013. Please take 2 minutes and fill out the contact form with your answers. I plan on reading all of them on the final edition of the podcast this year. My goal is to read 100 of these, so thank you in advance for your participation.
You can subscribe to future Podcasts through Feedburner, Stitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for awhile now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes. Big thanks to my friend Glen Steinson for helping me create the video.
If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me:
1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air.
2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.
You can find prior editions of the podcast at the podcast archive page.