A simple sacrafice is all that is needed get into a home.

Real Estate Agent with Taking a break

A few days back I was talking with a young couple that wanted to know how they would get into a home with the market the way it was. I thought about that statement for a moment and asked them if their credit was ok. They said that for the most part it was good but needed a little work. Ok! That would take some time but not forever. They both had a good job, that was good also. They had about 10 months left on a car loan and hoped to have all their credit cards paid in full or at least under 30% within a year.

Looking at the home prices right now and the market, I still fill that it is a buyers market for most situations. Notice I say most but not all. I think they will have time to get the credit bumps taken care of and clear some credit debt out of the way within a year. Having a paid off vehicle will help 

The biggest concerns were coming up with more of a down payment and being able to adjust to all the cost of owning a home. Those nice little costs we do not think about until it's broken and needs to be fixed.

I thought about that also and how that is sometimes a real eye opener also for first time home buyers

Well with $5000.00 in savings as of right now and a little work ahead of them I started to get my wheels turning. I thought about these young people that have a dream, a goal to own a home but looking at all the things that would make it hard.

Sometimes we must sacrifice something to gain something else. We must decide what is important. In the middle of the 2 starting to get somewhat depressed in the conversation and almost loosing hope, I asked if I might be straight forward with some questions and my own personal suggestions. They agreed and were interested in what I had to say.

But what was I going to say I thought. I had been watching the both of them chain smoke cig after cig and then it came to me.

The Answer is simple, but not easy I said.

Getting some paper out I and asked a few more questions.

Based on what I was told, I came up with a plan that I would use if it were me.

 I asked if I could SHARE my plan with them at the end on what I would do if it was me 

They were interested. So I showed them the paper with all my notes.

Smoking! 2 packs a day   $2920.00       Not smoking $ 0

Mocha's and lattes + tip  2 a day $ 3285.00  Coffee at home and on the go $365


Cable and movie channels  $960.00               Blockbusters unlimited( they already had it)

Movies, popcorn, drinks     $522.00               Blockbusters ......

Drinks and Pool                  $ 2080.00  limit it !!!! $700.00

Video Poker                        $600.00                Powerball 1 time a week $52

Dinners out                          $2400.00             Happy hour once weekly   $780

Bought lunches                    $3120.00             Take you lunches $1510.00


$15,887.00      MINUS       $3407.00


$12,480.00 SAVED in 365 DAYS

A small sacrifice! You bet!

That is what I would do if it were me and I needed some money in 365 days

I could see the wheels turning at that point.

We all must ask what will we give up to gain something new.

In this case it was explained to me that in 365 days the couple would have saved another $5000 to make a total of $10,000. If they started to modify their spending in the LUXURY area, they would save another $12,480.00 in that same 365 days if they stayed on plan.

NOT BAD!    Just think what percentage of that money saved could be used to help with the mortgage later on also.

Even if it was 50%  That is an extra $520 ($12,480 *.50)/12 towards the mortgage payment and maybe the other part could be used for those unexpected things that come up or maintenance.

I explained to the both of them that I really am a simple person and if it were I this is how I would do it because it would be a simple way to get from point A to Z. I like simple.

Sometimes things are so simple we don't see them until looked at from a completely different view.

This works  in this case, It may not work for you. Really Its YOU that needs to figure out what the simple sacrafice is. Its that simple.

Best to you and yours!

Timothy S. Butterworth
Oregon Realty Company
215 SE 102nd Ave
Portland OR 97216


Cell 503-960-4589

Office 503-254-0100
Fax 503-252-6366
VM 503-493-6711

Comments (6)

Margaret Oscilia
Creative Concepts-Home Staging and Contracting, Salem Oregon - Salem, OR
Home Stager, Salem Oregon

Timothy -- I love it that you were able to share these insights with this couple.  As a mom of 4 grown daughters (who always think they have no money) - I can see how much money can be saved by cutting back and living a little simpler!  Hope they stick to the plan so they can achieve the goal of buying a dream!  It's worth the small sacrifices.

Dec 05, 2008 01:34 AM
Timothy Butterworth
Taking a break - Portland, OR

Margaret   I was trying to look at it in a way were one did not give up everything and still had some of those little pleasures also, just not as often. For me looking at the situation it became a no brainer. I try to think of times i wanted or needed things and did not want to put them on credit cards. I would figure out what i could give up for a time to get what i needed. Sometimes it not always clear were our dolars go if we do not really look at the whole picture.

unless forced to start this way of thinking, many people will want to that extra money to just pop up out of thin air.  I hope they staythe course also, its really up to them.


Dec 05, 2008 02:32 AM
Tony and Libby Kelly
Keller Williams Realty Portland Premiere - Lake Oswego, OR

Right on!  Most people don't know where there money goes.  It's just how things are done now-a-days and to put it down on paper and make a plan of it is not only enlightening, but motivating, and yet so simple.  Something we should all do periodically. Good post!

Dec 05, 2008 05:11 AM
Joyce Marie Marsh
Joyce Marsh Real Estate LLC - Ormond Beach, FL
Luxury & Ocean Homes in Central Florida

What a wonderful presentation to show a buyer that if there is a will, there is a way!  I will definitely refer back to your example in the future.  Thank you.

Dec 05, 2008 09:41 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Wow Timothy, great numbers. As a former smoker, I can't believe how much that costs every day, but I didn't consider that lattes were actually more, although they net the same.

Dec 05, 2008 10:44 AM
Timothy Butterworth
Taking a break - Portland, OR

 Tony and Libby  Thanks so much for stopping in for a look and great comment. The reality is I have had to do this many times in my life and its works :) I still try to budget .

Joyce  Thank you for the comment and please use it as a example

Fred  Thanks for stopping by and the great comment. Yeah even with both of them smoking a pack a day or a total of two packs. The lattes came out more because of the tips. They also would have 2 latte's a day at times but i did not figure that in. I think the numbers were showing them already that it was allot of money. More then likely the latte's were higher than that even. I suggested to drink coffee from home and take it to go, Buying flavored creamers. That way they still have the fix but at a lower cost. I was guilty of that one real bad at one time, I am ashamed to say .

Dec 05, 2008 12:27 PM