Navigating Homeownership: Financial Management and Embracing Trends
Today, trends tend to influence a majority of our decisions including our lifestyles and financial choices, a fact that isn't lost on homeowners.
Whether tapping into the "mob wife" trend for cost-friendly and bold home decor or adjusting financial habits in response to rising credit card costs, homeowners are on their toes, keen on staying in tune with what's shaping the world around them.
The Decor Trend Shift
The "Mob Wife" trend, a term coined from the popular HBO series "Sopranos", is currently sweeping across, advocating for bold accessories and styles as opposed to the subdued quiet luxury that existed in the wake of the financial crisis.
This resurgence in bold glamour comes as a refreshing pause from the stealth-wealth style born from the Covid-19 pandemic that saw a division in economic circumstances among Americans. That said, while riding the wave of this trend may appear trendy and exciting, homeowners are advised to exercise caution.
According to Carolyn McClanahan, a certified financial planner, maintaining an up-to-date wardrobe according to trends can fast become a costly endeavor. She advises for the purchase of a few well-made items, supplementing with secondhand pieces for an economical, yet in-style look.
Financial Hurdles: Credit Card Payments
Paying bills is a major concern for every homeowner, and with changing economic times the search for the best payment method remains a constant quest. With the possibility of charging rent to credit cards, homeowners may be tempted to tap into this method to earn rewards and build credit.
However, financial experts argue against this, citing the potential rapid spiral in additional interest rate costs. The landlord's acceptance of this form of payment is also not guaranteed due to possible subjectivity to processing fees.
For these reasons, it's incredibly important that homeowners consider processing fees versus the potential rewards earned from paying rent with a credit card.
Interest Rate Shifts: A Closer Look
In more recent events, consumer confidence and spending have been on an upward trend, with the Federal Reserve's rate hikes for close to two years sparking anticipation for some cuts.
However, consumers looking to borrow money are advised against early celebrations. Greg McBride, chief financial analyst at Bankrate, advises, "Interest rates took the elevator going up; they're going to take the stairs coming down".
While credit card interest rates have been on an upward trend, the situation has presented a brighter scenario for savers with much bigger returns for their deposits.
Home Warranty: A Financial Buffer
In light of the financial hurdles presented by the current trends and economic times, homeowners are exploring ways to mitigate unexpected home repair costs.
Enter: home warranty plans. These plans offer homeowners some reprieve by covering repair or replacement costs of major home system components and appliances that break down. It's important to conduct thorough research and choose a comprehensive home warranty plan that offers the best value for money, as it could go a long way in alleviating the financial burden that comes with homeownership.
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