If you ever want to get out of renting a house or apartment the rest of your life, you are going to need to set some goals in order to be able to buy a home. And there are several factors that you need to consider first, and then make out your financial plan.
First, you need to have a goal of what you want for a long term house. This includes anything from the location where you want to live, how many children you hope to have, and what lifestyle you intend to operate at. Now, I know that everyone wants to live in the million dollar home, but make these goals realistic.
You may have the opportunity to get the big home, but have a reasonable goal first. After all, owning a small home is better than renting the rest of your life and waiting for the “big ship to come in”.
Secondly, assess your current income and expenses. Do you have any disposable income? If you don’t, you really don’t have a place to start, and you are going to need to increase your income and/or reduce your expenses if you ever hope to own your home one day. This may mean getting more education (this doesn’t necessarily mean you have to go back to school, some business training may be all you need to get you going), or taking some risk and asking a family member or friend to borrow some money to start a business. Or you might just need to tone down the spending a little bit.
Just take the example of buying a single coke every day at $1 per bottle. That’s $30 per month you could be saving. Listen, the saying is true “A penny saved is a penny earned”. The more you can save, the better you will do, and you can build up a nest egg for use as a down payment for that home you want to buy.
Third, you need to take massive action. This is one of the biggest keys to getting anything in life. If you want results, you have to take action. This doesn’t necessarily mean that you work yourself to death for 30 years, but you may have to in the beginning to get some money going, then you can hire out folks to help you make more and more money.
So that’s it, identify what you want, assess your financial situation and what you need to do to meet the needs of that goal, then take massive action to get there. Pretty simple but that doesn’t mean it’s easy…