Making a Way Out of Rent
Written By Lawrence Gonzalez, LS Financial Literacy Blogger
If it was not for a lack of knowledge, I would have purchased a home long ago. I honestly think the same hold true for you.
In 2017, Americans spent $485 billion in rent, with the average coming in at $11,300 a year or $941 a month. In some places like DC or New York, you can’t even rent a shared studio for less than $1,000. I once stood in a 3 bedroom, 3 bath home that overlooked the cemetary selling for north of $1 Million. I am familiar with the struggle.
Homeownership seems like a far away goal for the priviledged and wealthy however my younger cousin, a single mother of two purchased her home in Homestead when everyone thought the travel was too far. She was 25 at the time. The experience did change her commute in and out of Miami however she was ahead of the curve.
It’s not just probable but highly possible. You have to make the adjustments to your life and really define what you want. As the old adage say, “the person who says they can and the person who says they can’t, are both right.”
A home is a basic need, it doesn’t have to be a financial death sentence. For an affordable home, the calculation is simple. It’s 25% of the remaider from your take-home pay minus your savings.
To help with the process, Damien Peters, Founder of WealthNoir.com, provided his 8 Ways to Save on Rent and Homeownership:
