how do yall save up for houses?

How do you guys save up for houses? I bought one this past year, but I transitioned from renting, so i had money to put down and didnt have to worry about sellin nothin

but those of you that own a house how do you deal with sellin and saving and buying a newone?

Im startin to save for a new house, my dream house out in the country built how I want but what do yall do as far as finding a place after your house is sold but your new house aint bought? Im saving 100 bucks a paycheck, but compared to how much homes are it dont seem like much

just curious on the best way to start savin lol

 

I've never bought one yet as being active duty I've moved 6 times in the last 8 years. I grew up in a not-so-well-off-single-mother-with-3-kids-home, so I save as much as possible to try to ensure my kids have it better than I did. I live pretty frugally and could bank half my check if my damn wife didn't talk me into getting a joint account. 80% of my tax return goes into savings each year.

Budgeting is key and determining what necessities are. Gas/food/rent/bills. I don't go out drinking every weekend, or eat fast food everyday, or have to have the latest shoes/clothes every season, or trade my cellphone every 6 months or... etc. That shit adds up fast and gets you nowhere. All the guys I work with are always "boohoo I'm broke, but I spent 300$ at the bar this weekend." If you aren't wasting money on dumb shit, it will be easier to save.

 

At the time I sold all of my toys, fast cars, street bike etc. Drove a 97 civic for about 2-3 years.

I suggest Saving as much cash as you can, for years I did 100$ pr/wk through my direct deposit payroll at work . Only way I'm able to save money, cause once that money hits my normal account it never makes it over to the savings.

Also try to keep your credit score high

I Kept things bare bones for a while, no cable, brown bagging work lunch vs eating out, eating dinner at home more then out. Ive learned to love this lifesyle and rarely eat out now.

After a year of house ownership I was able to by my 2013 taco, and its now my toy and daily . I also managed to convince my wife to help me build a baddass two car garage on the house.

G/luck

lol man I work with the same type of guys, give me shit for having a brand new truck. I've had a few guys say smart ass shit like "must be making to much money" . When the same guy smokes 2 packs of cigs a day at 10$ per pack, drinks a 6 pack a day or goes to the bar, and eats out every meal of the day...

And I agree , bank 80% or more of your tax returns, those large $ sums help big time !

 

Just stay out of the bars!!
Just LOL.
Serenity prayer.

 

I bought my first house 3 years ago and at closing they handed me the keys and a check for $875. Financing at 3.99%, it doesn't really make sense to pay it down quicker...especially when your annual interest on your IRA is yielding twice that.

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Document where your $$$$ goes--cut out what you really do not need.
ie. $$ spent on going out for lunch daily while working-(conservative)
$7 X 5 days= $35 week= X4= $140 month.

 

Kind of what everybody else said. When I purchased my first home, I saved for about an entire year straight. I did what ^^they^^ said and was extremely frugal with my money. Granted you don't have to be boring and not do anything. Everyone needs a break and time for themselves, but be smart with your money. You can have a drink or two, eat out sometimes, but you don't need the best of everything. Spend money on quality things so you don't have to replace or repair. I was actually able to find a lot of cheap/free things to do.

Budgeting is key for anything. I was fortunate to get that $8000 tax credit way back when and that helped me buy certain things I needed for the house. But, I was able to save ~15K in that one year (without tax credit), and now I still save as much as I can (granted I'm back in school and can't work). But you get my point. It made me get in the habit of budgeting and saving.

Create a plan and stick to it, because it will help you out in the long run.

 

IF you have a retirement account!!!
IF not--PAY IT OFF ASAP.
Best thing I ever did-No house payment-MAXIMIZE your investments after--Markets are NOT a sure thing.
WHO knows what could happen.
BTW--currently totally vested in the market.

 

Do with any tax returns or credits would it be better to make it an extra payment on my mortgage or to save it as down payment on my next house?

 

Haha, yeah those guys seem to be everywhere. I work with a ton of them. As soon as they get a little coin their blowing it on bullshit.

You want to save money you got to sacrifice - plain and simple - Don't buy shit you don't need with money you don't have. I save a large portion of my check every payday. Pay rent / bills - and keep a little bit to play on - That little bit certainly isn't enough for me to piss away on eating out lunch everyday. I bring my lunch to work every single day. Very rare occasion I go out.

Also having NO DEBT other than Rent / mortgage and Truck Note makes all the difference in the world. Better not to have Truck Note either though but that's hard for a lot of us.

 

I've been working my ass off non stop the last few months as well to try and save for my second home. It's not much fun, really disheartening, working 7 days a week to save up for 20% down on $500k.

 

i'm in the process of purchasing a second home as well and i had to cut down on alot of unnecessary spending. my fiance and I also welcomed our first child which definitely put my priorities in check. no more bars, clubs, spontaneous trips, unnecessary truck/motorcycle upgrades and more of diapers, baby clothes, and a college fund. I paid off my credit cards, second car, motorcycle and will try to pay off my student loans. i purchased my property for 78k back when the economy was down and my mortgage is $480. That was 4 years ago and now the property is $190k and I rent it for $1200. So now I have two options where I can sell the house and have a nice down payment or save for a few years and have supplemental income to aid in the mortgage for the second house. I plan on purchasing in San Francisco and unfortunately houses in the bay area range from 500k and up and a 3% down payment really won't make a dent in the loan. Hopefully you encounter the same circumstances as I have, best of luck!

 

I wish I could find a place for sub- $80k! Time to get the effff out of MA!

 

subbed... really cant get enough advice about how to become successful. im loving the posts on this thread!

 

my fiances family has been very supportive in helping us move back to the bay. they have a house here in vegas that they rent to us for $300 which helps us save tremendously. thankfully the prices of bay area homes are starting to level out.

 

Borrowed downpayment from family friend for the first house. Payed that part back within 2 years. Then, put enough work into all the other houses (I'm kind of handy) that I made enough profit to put down on the next one. This is the 4th one the wife and I have owned.

 

I like to do the same thing. I always like to hear from people who know more than me. Never stops.

 

i also agree with saving your tax returns. to many people have the excuse that its money that they never had and therefore they're entitled to spend it. when IMO that is exactly what a tax return is, "Money that you never had". Put it away and pretend like you've never had it.

 

Before I married I paid off my only loan--a 2 year old car--and decided to stay out of debt. I banked about 35-40% of my pay. We lived frugally. We bought 5 acres and a house that needed a lot of work, making payments to the owner through a title company until it was paid off in about 6 or 7 years. The frugal living paid off when the company I worked for offered a fantastic stock program that made, probably, 20 or 30% on our money for 3 or 4 years. I put the maximum allowed, 10% of my salary as I recall, into the program. That, coupled with the savings we had accumulated during that time, allowed us to build a new house on the property. We contracted out concrete and block work, but did the rest ourselves, paying for materials as we needed them. The stock program was a lucky break, but living without debt for anything but a house is doable by almost anyone and it pays off in the long run. BTW, in my view, getting a sizable tax return is poor financial planning. I would rather adjust my withholding to approximately match the tax due and invest the difference.

 

It seemed hard at the time, but cutting out unnecessary expenses helped a lot. No convenience stores, shopped sales, didn't have a car that required payments.
As for saving cash, I set up an account with a credit union. I set up direct deposit from my payroll into it. No atm card or checks, so in order to access the funds I need to go down in person to withdraw. The inconvenience alone makes it a lot easier to save.