You Don't Have A Budget And You Wonder Why You Can't Buy A House?

By
Real Estate Agent with Douglas Elliman Real Estate in Babylon NY

You Don't Have A Budget And You Wonder Why You Can't Buy A House?

So many people these days do not scrutinize what they spend. You need to sit down and evaluate what you spend each week and on what.

I know plenty of people that can't buy a house. Why?......

  • They spend an upwards of $300.00 a month on Starbucks. That is crazy! You are only adding to their profits. What is more important, equity or caffeine?
  • Gotta get my nails done. $100.00 a month to get nails done? Why? A manicure is all you need. That costs $7 to $10 every 2 weeks. Do you really need back-scratcher nails? It's not good for your real nails anyway. Getting a manicure will keep your real nails healthy and they will grow because of it.
  • "Oh, I need those $100 jeans!" Really? Why? Enough said on that subject.
  • $600.00 a month on 2 car payments. Do you really need to get new cars every 2 to 4 years? You do not. Keeping up with the Jones's is doing no good for you. It's nice to have a new car, but if it's preventing you from buying a home, it's not worth it. Wait until you can afford to do that.
  • Buying new clothes each season. Now this boggles my mind! Even if you fluctuate with weight, keep those clothes just in case. That way, you won't have to spend $1,000 each season for clothes. That is almost a mortgage payment right there in some parts of the U.S.
  • Lottery tickets. I know people that spend at least $100.00 a week on these, "you-will-never-win" lottery tickets. The odds are against you winning the big bucks. $400.00 a month in lottery tickets is nuts! If you've been playing for 10 years, that's approximately $48,000! Are you kidding me? That money could have been put away for a down payment on a home! Hoping to win the lottery is not the American Dream!

Get my point? I'm not saying you can't have any luxuries. Cut down on them.

When I was married to my ex-husband, I figured out if we stop going out to eat 4 times a week, we will be able to buy a house in under 2 years. We socked away his paycheck, and lived on mine. We lived like we had no money but it was temporary. We bought our first home in 1.5 years after we were married.

Now I know expenses and rent have gone up since 1992, but it hasn't doubled. It does take longer these days for a young married couple to save, but you can do it.

So, sit down and figure out what you spend and on what.

Be forewarned: You will go into spend-shock!

Comments (9)

Cherry Wings Realty
Cherry Wings Realty - Traverse City, MI
Your Traverse City Michigan Realtor

Budgeting is such an important part of our lives, whether we are purchasing a home or not.  I have found that if I use cash instead of my debit card or credit card, I tend to spend less.  It really adds up quickly and sometimes you don't even realize it until the credit card statement comes in.

Mar 21, 2010 12:44 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

A million years ago...when I was in college one of our professors said...(pre debit card days) If you want to examine your value system...check out your checkbook...it will tell you what you think is important...i think I feel a blog coming on....thank you for the inspiration !

Mar 21, 2010 12:46 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Christine, you are so right! I use cash or my debit card that is attached to my checking and savings accounts. I do spen less for sure. A lot of people are shocked when that credit card bill comes in!

Hi Sally and David, yes, my high school Economics teacher taught us the same thing! And thank you for telling me you were inspired! :) I love it when that happens to me!

Mar 21, 2010 12:55 AM
Eric J
Eric J - Dream Home Financing - Freehold, NJ
Dream Home Financing

Jackie, what you wrote is very true. Not only do people have these spending problems before buying a home, but people who are missing mortgage payments and are facing foreclosure also need to cut back on needless expenses. You would be surprised how many people I speak to are apparently desperate for help, but refuse to cut out all of the luxuries in their lives.

Mar 21, 2010 01:02 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Eric, I believe it! It seems to be more important to spend on luxuries and forego that mortgage payment. Keeping your home is more important!

Mar 21, 2010 01:08 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 Apply 24/7 www.ColoradoHomeLender.com

Are they any local colleges in your area? The reason I ask is there is no doubt this subject needs to be taught in our schools. Get in front of them before they graduate, set some good habits, and when they graduate they can start looking at home ownership and will need a good Realtor! Wish I lived near you, we could do it together!!

Mar 21, 2010 01:47 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Ruth, then move!!! lol.

I was taught all this in junior and high school. They do teach this in our local schools. Not sure about the rest of our country but you are right. It needs to be taught before they go on to college!

Mar 21, 2010 01:50 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 Apply 24/7 www.ColoradoHomeLender.com

Really? I've not heard of it being taught at any of our local schools. Move? Hey, just read an article about Austin... let's go there! hee-hee!

Mar 21, 2010 04:36 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Ruth, Our local schools here do which is a great thing. You mean I gotta move too? lol :)

Mar 21, 2010 04:52 AM