YRe: House Loans and Down Payments
Level 1

Home loans

He wasn't saying that you should add 1000 dollars to your preexisting rent, he was saying to act like your rent was 1000. Then you take what you pay, say.. 700, and minus 1000. That's 300. To the negative, but a savings of 300. 300 a month adds up. Anything adds up if you are saving into a high yield savings account. Most are over 2% now.

I feel, as most savers would feel, is that he wasn't trying to put a price tag on exactly how much to save for a down payment, but that you do save.

If your rent is 700... start with 10%. Your rent is now 770. That extra 70 goes into a high yield savings account. Did it hurt? Not too much I bet. Try 20%. 140 extra per month earning interest. Maybe less taco bell? How low can you go when you want to really save? When you really want that home?

Small savings add up to a lot over time. I live in an apartment that you would never want to visit. Bad neighborhood, rowdy neighbors, etc.. but I'm close to buying my first home with cash. And not a cheap one. It hasn't been easy, but I can see the finish line and it's thanks to people who told me to eat ramen noodles and stop going to see movies. Things of that accord. I am frugal now. I don't think it is going to ever change. I have money making me money and still live poor.
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