Give me back my five bucks recently posted a story about how they saved for the down payment on their home.
From when I graduated in 2006, up until the present (5 years), I grew my net worth from -$20,000 to +$63,000 (a difference of $83,000). It wasn’t easy. Especially on a modest salary. Since graduating, I’ve made an average of $44,000/year at my full-time job over 5 years and 6 jobs. Not a lot of money, right? So I knew that in order to make my dream of home ownership a reality in Vancouver, I’d have to make some serious cuts to my budget and increase my income significantly.
I ended up putting $25,000 down on my townhouse, $17,000 towards paying off my car loan, and an additional $10,000 saved for closing costs, renovations, and furnishings.
I love the method of thinking that Krystal employs in her story (also love that we share the same name :)). When I purchased my home in 2008, I used a similar method of paying myself first before I bought the home so I could get used to the payments and it worked out very well. Her methods of “building a budget backwards” are an ideal solution to saving money and getting out of debt.