A house. A home. The American Dream…to own and not rent. To be your own boss in your humble abode. To be able to paint your walls with chalkboard paint, add new cabinets, and throw away that nasty old tub….without having to call maintenance and get permission for, well….anything.
My 2 youngest children are married and are now in the financial position that they can start saving to buy a house. And they are so excited. They are on Zillow every day. Driving around to look at neighborhoods. Deciding whether or not the school system should be considered or not. Determining a budget for their house. Should they get a fixer upper or one that is pretty up to date? So many decisions.
And, of course, the topic of ‘How much money do I need to save to buy a house?‘ has come up many times. Being the ‘wise and wonderful Oz' that I am (haha) they have both talked to me about their thoughts. I listened, offered advice, pointed out the good and bad…and let them come to their own conclusions. With, of course, a few mom nudges now and again.
Maybe you have the same questions…maybe you are wanting to buy a house. So, I thought I would give you something to think about too when you are saving to buy a house?
Let's lean into the main stream for a minute here – Most people will say ‘You are wasting your money on rent.' Or, ‘Buy a house, you need the equity.' Which are all true statements…but from a financial standpoint you are NOT wasting your money on rent if:
First – Determine your max budget for the house. And DO NOT LOOK at anything outside your max. Because you will always fall in love with the more expensive house – it's human nature. Which then increases your down payment, interest paid and taxes.
And then set aside money for:
Tools to help you live a joyful and more fulfilled life