Each day we wake up, go to work, go home, and repeat. We do have those in between breakfast stops for coffee or to grab a quick lunch. Many times, our rationale is “oh it’s just a little here and there” and then it turns into an everyday event. By the end of the week you have spent $100 dollars in random food expenses that could be benefiting a greater cause. One greater cause is to purchase a home! Realtor.Com® did a fantastic article on “How Much You Need to Save Each Day to Buy a Home in 15 Top Cities.” Granted it is not done on every city just the 15 they chose, but it gives an unusual perspective and shows us how they determine the numbers and outcomes! The article relates your everyday coffee purchases to how you could use that money to save for a home. Some of the main things I would love to point out from the article are:
How they determined these numbers: This information comes from their article:
Realtor.Com® looked at the median home listing price in May for the country’s 15 biggest metropolitan areas and the average percentage that buyers in those areas put down on a home. Using those figures, they calculated the typical down payment for each of those cities.
Next, they figured out how much potential buyers need to save each day toward a down payment, over five- and 10-year timelines, to reach their goal. (We’re making the big assumption that home prices and down payment percentages remain unchanged over that time.)
To put that daily savings target into perspective, we tallied up how many delicious Starbucks Grande Caramel Macchiato’s you’d need to skip buying to reach your goal. The heavily caffeinated drinks cost $4.45, according to fastfoodmenuprices.com.
Reasoning that makes you think:
“All of this only helps you toward home ownership if you put that money away,” Corbett says. “A lot of people say ‘I’m not going to go to Starbucks anymore,’ but they don’t take that $5 or $6 per latte and save it.” Hey, do you need to drink 15 of those things a day? We thought not.” Corbet has a valid point because when we go each day grabbing that coffee and not thinking anything of it, those costs add up.
The Ability to Break it Down to The Simplest Form:
Picture analogies were used to show how many purchased cups of coffee a day are needed to make a down payment on a home in these areas for X amount of years.
The article is an excellent read! It is also great learning material for first time home buyers I highly suggest you take the time to read It over. Possibly even play with numbers from your daily spending habits to see what you could save. I think that everyone has a way of benefiting from this article. Even if you already have a home, or if you are considering the purchase of a second home this is an excellent way to start.
Here is the article: Here’s How Much You Need to Save Each Day to Buy a Home in 15 Top Cities