Jake Hawkes describes how he was able to pay off debt to afford a home. It was after college, and his salary had gone up with his own startup company that it was enough that he could start making a plan. He explains how as a 30-something he lived like someone in his 20s — he relied on groceries rather than eating out, he downgraded to a one-bedroom apartment, and he cut costs on travelling. These sacrifices allowed him to save the $150,000 for a down payment on his own home. He explains the process he went through for finding the perfect choice for him.
- 1Even in an expensive city like New York, it’s possible to pay off debt and save toward future goals if you know how to live frugally and have a plan and budget.
- 2When extra money comes your way through a raise or bonus, apply it toward a future savings goal, such as purchasing a home or retirement, instead of spending it.
- 3By paying off your debt and credit cards in a consistent manner over time, you can build up your credit rating, which will help you secure a mortgage and purchase a home.
Without good credit I’m sure I would never have been able to build my business … or buy my home.