Make a budget to buy or sell Reston real estate.As 2020 approaches its end, a lot of people are starting to think about possible resolutions for the new year. One of the lessons that 2020 has underscored is how economically fragile so many Americans are. Perhaps you’re thinking of ways you can shore up your financial security. If so, the new year is the perfect time to start. Getting your finances in order is also vital if you’re considering putting your house on the Reston real estate market.

1. Make a budget. A good way to start is to round up your bills from the last few months and get an average payment for each one. In order to start saving, look for places where you can cut expenses. You don’t have to eliminate all fun spending. A budget allows you to set your priorities so you spend on what’s important to you. So budget for an emergency fund and a fun money fund. There’s no contradiction there!

Get Credit Card Debt Under Control Before Buying a Reston Home

2. Plan to pay down credit card debt. The average household owes nearly $8,000 in credit cards. That takes a big bite out of the budget every month. As you become more aware of your spending, you’ll be able to use credit cards less to cover emergencies, since you’ll have an emergency fund. You should also make sure that you’re paying more than the minimum payment each month. Use a credit card calculator to figure out how much to pay each month to get the card paid off in a time frame that makes sense. When you go to get a mortgage for a new Reston home, having a low debt to income ratio will help you get a better deal.

3. Make sure your credit cards are working for you. You don’t want credit card debt to weigh you down. Check out cards that offer 0% APR on balance transfers for at least 12 months. This will help you pay it off more quickly. The other thing to look for is a card that offers rewards you can use. Maybe you want cash back on purchases. Or points to use to travel (when that’s safe again!). Do a little research and find cards that will be a help to your financial goals.

If you’re planning on buying or selling Reston real estate this year, having a strong financial plan will help you find the home of your dreams.