Is Moving Home a Sign of Good Finance Management?

Our financial situation is a good way to judge how well we’re doing in life. If you’re able to purchase the things you want and have no outstanding debts to worry about, then there’s a good chance that you’re in a great situation with plenty of good things to look forward to in the future.

However, if you’re constantly held down by debt and work from paycheck to paycheck, then there may be some problems with your money management strategies. But is the amount of money you have really the only way to gauge your success in life?

Absolutely not! There are many people that don’t rely on money as a way to judge if they’re living a good life or not. However, there’s no doubt that if you’re in the process of buying a home, then you’re probably in a fairly good financial situation. At least, that’s what we’d hope to think.

Moving to a New Home Is a Financial Paradox

Whether you’re thinking about moving to a new country or interstate moving, buying a new home isn’t always a sign of financial freedom, but it can be a sign of good money management. This is because buying a home subjects you to a very big loan–one that could take decades for you to pay off. This also locks you into a financial agreement that will take years to escape even if you’re making extra payments.

In other words; it’s a paradox. Buying a home means that you have enough money to actually afford one, but it also locks you into a financial agreement that restricts how you use your money. But does this make buying a home or moving into one a bad idea? Not always!

Mistaking being rich for financial freedom

If you’re like most people, then you’re going to need to spend money in order to live a better lifestyle and provide for your family. This sometimes involves big purchases that we can’t afford. It could be buying a car or buying a family computer–these are expenses that your entire family will make use of and you need to fork out the money in order to obtain them. Yes, they’re really expensive and will restrict how you use your money, but that doesn’t make them a bad idea.

We’ve all heard the advice that if you can’t afford something, don’t take out a loan. People will always suggest that you use a debit card instead of a credit card because if you have the money, why do you need to borrow it? This is all for the sake of building credit which allows you to pay for more expensive things in the future, some of which will be extremely costly.

In short; don’t mistake being rich for financial freedom, and don’t assume that owing someone money means that you don’t have financial freedom. The fact that you’re even considering the option of taking out finance or a mortgage means that you’re probably pretty good at managing your money. So to answer the titular question; yes, being able to move home likely means that you’re good at managing your money and you should definitely treat yourself now and then.