Although general wisdom tells us we should stick closely to our budgets, we’ve evolved always to want more than we can currently have in life. Whether it’s better cars, better people, or a better home- it’s not uncommon that most people want to shoot for the stars. Unfortunately, our wallet isn’t always in line with massive improvements like houses that are out of our budget, so it can make some changes to make it happen.
Still, should you buy a home that’s outside of your budget?
What Is Your Budget
Take an unbiased look at your current finances. How large of a home can you afford right now? Using a home affordability calculator, or talking to a professional, can educate you on what’s financially sound for you right now. If your budget still doesn’t reflect what you want to own, there are a couple of things to consider.
Are You Due To Have Changes?
Are you lined up for a promotion at work? Are you planning a wedding, or moving in with your girlfriend or boyfriend, any time soon? These add money to what you can afford and may bring you closer to getting a larger home. Other changes to consider could be if you’re due to pay off your student loans soon. Anything that positively affects your monthly budget can help you afford a more expensive home.
Are You Willing To Make Changes.
If there aren’t any changes on your horizon yet, are you willing to make necessary changes to afford your new home? Think about what you can do to improve your situation. Do you have time for a second job? Is there a hobby you have that can make you some extra income? More than a third of millennials have two or more jobs since they monetize hobbies and work to pay off loans as quickly as possible. Some ways to make spare cash could be taking up side gigs on websites like Fiverr or looking around on job hunting sites to see anything that matches your schedule. If there’s no way for you to make more money, consider anything in your budget that you can remove to add to your house budget. Do you use more than two streaming services? Is cable charging you $150 a month? Cut out what you can, but don’t go too extreme. You still deserve to have entertainment.
What To Do If You Can’t Change Yet
If you can’t get a second job, don’t want to rent a room or two out to someone else, or can’t afford to cut anything from your budget- don’t buy a house above your price point. Unfortunately, we can’t always start with the homes that we want. This problem means that we need to focus on either saving money or buy a starter home until you’re in a better financial situation. It’s tempting to go all-in on your first home, but the reality of it is, most people move an average of nearly twelve times in their lives. Take the time you need to be ready for the house you want, and then go for it.
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