I read a post over the weekend on one of the many blogs I follow asking for advice on accumulating a down-payment for a first-time homebuyer. Actually, the poster wanted to know if it was OK to ask a wealthy, older relative for their inheritance now rather than after their passing.
The poster’s reasoning was (a) they had just paid off student loans and now wanted to use that money for a mortgage payment and (b) they felt paying rent while saving for a downpayment was the equivalent of flushing money away each month.
OK. I get it. But I put myself in the position of the wealthy, older relative and if one of my progeny were to pose that request to me, well, you can probably guess my response. “Save up your own dang money!” Or, something like that.
Here’s the deal. Sure, having real estate is a good investment, but the discipline involved in saving up for the investment is the most important aspect of the purchase. If you haven’t developed the ability to put off gratification by stockpiling a huge chunk of cash, you are not ready for the responsibility of maintaining a home. Period.
Whether you goal is a home for you to live in or a rental property, you have to start flexing your saving muscles or you won’t succeed during ownership. It’s not easy and it takes time. The more you go without, the faster your money will increase. The formula is simple and there aren’t shortcuts.
Leave your older relatives alone. Do the work.
p.s. Check out the new NDQ Guide: 500 Tips the guide that will give you actionable steps to jump start your savings and investing immediately.
You may also enjoy: