TBT: How I Saved for My Down Payment
Nov 5, 2015
I was profiled in The Home Story on how I was able to save for my first home without completely giving up my lifestyle.
In the early days of determining my homebuying prospects, like many first-time homebuyers these days, saving for the down payment seemed like the biggest obstacle.
We all recognize that we need to make sacrifices to meet any goals in life. But no one really wants to give up an entire lifestyle for any financial goal. It is depressing just thinking about it.
Still, I sought the advice of my family and reviewed my monthly income and expenses. With some savvy counsel from my grandfather, I aggressively paid off my credit cards and refocused my income on bigger things. I didn’t completely give up dinners out with friends or summer concerts; I simply focused on short-term goals while setting aside funds for “my lifestyle.”
From The Home Story:
Burns and her grandfather sat down last year with some graph paper to look over her spending and debt. They determined how much more she’d pay out each month as a homeowner (with new expenses to pay, like utilities), and she began living within that plan — diverting the “extra” to pay off her credit cards. “That started to free up a lot of my income,” she notes. As the idea of homeownership became more “real,” Burns met with a free housing counselor and attended a workshop at the DC Housing Finance Agency. “The numbers started to add up,” she says, “and I realized I could afford to buy a home in this area.”
Check out the full story.