The Millennial Reality
Owning your own home is the American Dream. Renting for a bit prior to owning is the millennial reality.
Drastically saving for a down payment only to get into huge debt makes no sense at this point in my life. I have a plan though. Eventually I want my own space that has my name on it, right now I’m happy.
Right now, down payments are working out to a ton of money down in stressful increments.
15% + 15% + 15%
Rent for now…
Paying tent is ok! A thousand a month sounds like a lot, but I have no house related bills other than rent. This allows for freedom and independence from your parents.
Game plan for the future…
My plan is to meet smaller goals leading up to the home. I have determined 4 phases necessary to reach this point. You can do the same!
Credit card debt. The reason why I am in this predicament can be found on this post…Credit Limit Increase
Car debt. I want to make my car payments $0! Not thinking about that direct payment would be amazing.
Emergency Fund. Based on current expenses and multiplying the number by 3 to cover 3 months of living. This is for the unexpected appliance breaking or if you crush your glasses or need your car serviced.
Saving for the down payment. Think about the value of a home you can afford, figure out the down payment necessary to buy it and that is your goal.
You can do it too!
Look at your income, your spending, your debt and make a plan to pay it, create an emergency fund and save!
Say something in the comments below. Who has rented or already bought? Any tips?