It's not easy to save money these days.  So many people that I know live paycheck to paycheck.  It's extremely difficult to save--especially if you're around the age of the average first time home buyer, around 29 years old.  That's why it's that much more important not to maximize your mortgage every month.  It's great that you've both been approved for a loan of $280,000 but if you can find a home that is in the right part of town and will suit your needs for the next 4-10 years that's listed at $199,900, why not go for it?  It's better to be life rich than house poor.  You know what you can afford after being pre-approved but, better yet, you already know what you're comfortable paying every month, don't cross that line. Your lender and your Realtor  and your parents and friends have absolutely no say in the matter. Don't listen to them, listen to that little voice inside that speaks with reason.   The Associated Press Reported Today that . . .

• People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
• The savings rate has been negative for an entire year only four times in history - in 2005 and 2006 and in 1933 and 1932. However, the reasons for the decline in the savings rate were vastly different during the two periods.
• During the Great Depression when one-fourth of the labor force was without a job, people dipped into savings in an effort to meet the basic necessities of shelter and clothing.
• Economists have put forward various reasons to explain the current lack of savings. These range from a feeling on the part of some people that they do not need to save because of the run-up in their investments such as homes and stock portfolios to an effort by many middle-class wage earners to maintain their current lifestyles even though their wage gains have been depressed by the effects of global competition.