Horneâ€™s estimated payments from the closing documents say she will pay $1,000 per month now on mortgage, maintenance, and insurance for her new co-opâ€”a few hundred dollars more than she was paying in rent. â€śNow I feel like I need to earn more money because I am going to be paying more,â€ť Horne says.
Her next goal is to learn how to invest in stocks and start the process of building an investment portfolio. Currently, Horneâ€™s only investment account is her employerâ€™s pension retirement account. As a teacher in New York state, Horne is required to contribute to the stateâ€™s retirement plan and has amassed $9,000 during her eight years on the job. Her contribution to the plan is 3%.
Horneâ€™s debt is made up of a revolving credit card balance of less than $200 and a student loan balance of $1,400. The new homeowner had plans of paying off those accounts this year but now realizes that may not happen with the home purchase.
Black Enterprise and advisers Dawn Brown, a senior financial adviser at Altfest Personal Wealth Management, and Harrine Freeman, CEO of H.E. Freeman Enterprises, agree that Horne needs to create a budget and effectively manage her new expenses before making any major purchases or paying off the remainder of her debt.
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