When you think of the American dream, you usually think of owning your own home. You envision a beautiful house with a white picket fence and flowers in the front yard, or maybe a really nice new condo with great amenities and a view. Whatever your idea is of the perfect home, it is all part of the American dream.
What you may or may not know is this dream can be a reality for everyone. No matter who you are, what your age is or what economic background you come from, everybody can own their own home. All you have to do is a little planning to make this dream a reality.
The first step to home buying is to save some money for your down payment and for your closing costs. Whatever your income is, you need to save some of it each month. If you are finding it hard to save money, you may want to assess your spending habits and start a budget for yourself. There are many things that we spend money on and may not be aware of how much it adds up to over time.
For example, if you are a regular Starbucks kind of a guy or girl, you can be easily spending over $2,000 a year on this daily beverage. Or if you go out to eat a lot, you can also be spending several thousand dollars a year without realizing it. Perhaps you like to hydrate at the local cantina or neighborhood bar, which is another way you can spend a considerable amount of money each year.
I could go on and on, but the point is there are many ways that we spend our money on a regular basis that we do not have to spend money on. If you start looking at where all your money is going, you can then start to better control your spending and start saving it.
I have known many people over the years, from all different walks of life – some who have made incredible amounts of money and some who have not made so much. What has amazed me is that some of the folks who have made the least amount of money are the most financially sound. Many of them own property and have money in the bank.
One example in particular is a man I know who works as a janitor. You may think that this individual lives from paycheck to paycheck. But this is not the case at all with him. He has three homes that he has paid off. He also has a substantial amount of money in the bank and has no debt. How impressive is that?
Here is a man who just works an average job and yet he has a financial portfolio that is better than most. This is a great example of being financially responsible and making the best of what income you make. It is not how much money you make in life, but rather what you do with what you make.
On the flip side of the coin, I have known many people who have earned large salaries and yet they struggle with their finances. There is no legitimate reason why they should be struggling financially. But many people live beyond their means. They constantly buy the bigger, better and newer products and services that are on the market.
The billions of advertising dollars that are spent by the companies that make these products and services are effective. As a result, we as consumers are convinced to buy these items. Many of these items are not things that we even need and are certainly not more important than saving money to buy a home. You can make all the money in the world, but if you are spending it faster than you make it and not saving and investing it, then you will always be broke at the end of the day.
In fact, it is estimated that over 90 percent of lottery winners are completely broke within three years of winning their fortunes. It is essential to use your money wisely and make it work for you, like buying a home.
The message here is very simple. Just be responsible with regard to your money. Live beneath your means and always put money aside for savings. If you do not already own a home, start saving money for the down payment. If you do already own your home, you should consider saving money for a down payment to invest in an income property.
One of the most popular and affordable loans in the last few years has been an FHA loan that requires a down payment as low as 3.5 percent. So this is a very realistic way for you to purchase a home without having to have a large down payment.
Buying a home is more realistic than you may think. Particularly because mortgage interest rates continue to be low and because it continues to be a buyer’s real estate market. By doing a little planning, you can buy your own home sooner than you think and can live the American dream!
Trent St. Louis is a licensed Real Estate Agent
and a member of the National, California and
San Diego Association of Realtors. He can be reached at trent@tns.net or at his office in Hillcrest, The Metropolitan Group. DRE#01273643.
