Crystal Paine from the blog, Money Saving Mom wrote an amazing article on how her and the husband paid cash for their home. Yes you heard the words correctly, they paid cash for their home. This is something that is really unheard of in the United States because what usually happens is we go to bank right after college and marriage and buy the biggest home for the loan we can get. We instantly become house poor which means we are struggling to pay for the mortgage along with our other bills. A home shouldn’t be a burden in our lives financially and if it is, we have done something wrong.
In Nicaragua a guy told me a joke once and it has stuck with me until today. “What do you call a person with a mortgage”? A American. Nicaragua is the poorest country in Central America and yet 75% of the people there have no mortgage. But the reason for this is that they buy a few bricks every paycheck they get. Once they get enough bricks they build a home. Why do we do it backwards in the USA? Patience was suppose to be a good virtue right?
Now let me break down some of the article. Crystal Paine and her husband started off with a solid goal. They said if they continue to live simple and frugal and brought home income from side jobs. In five years, they would have enough money to purchase a starter home.
They wanted a home around the price of $100,000 to $110,000, so they divided the price by 60, which represented 60 months. Since they wanted to pay for the home in five years, they had to save $1700 a month to reach the goal.
From listening to Dave Ramsey show I have learned, that when people make goals and stick to them, they usually accomplish their goals faster than they expected. This definitely was the case with Crystal and her husband.They accomplished their goal in half the time.
Enough of me rambling please read this amazing article and please comment below. Let me know what you think.