As you recall from previous posts, my wife and I have started to make more money than ever before. Between her raise and my income from my blog, we finally have a little bit of extra cash without looking under the couch cushions. It’s a nice feeling, yet at the same time, I know that I need to keep directing our extra cash towards financial goals of ours. If you have been following my blog for any time, you know that financial goals are important for me because it keeps me working towards something instead of having cash burning a hole in my pocket.
A New Savings Goal – Down Payment for a House
Just recently, my wife and I talked about where we will go after she finishes with her graduate degree. Nothing is set in stone, but we don’t see ourselves in the greater NYC area for long term. With that said, we realized that as long as we don’t move to an equally expensive location, we will be able to afford a house if we save for it now. First, I needed to set a figure amount because it helps me keep track of my progress. Using a mortgage calculator that I found online and the common knowledge that I will need about 20%, it is easy for me to figure out how much we need to save for a down payment.
What Saving Now Offers Us
While many of my friends spend their extra cash on drinks or going out to party, my wife and I are going to choose to put money away for our future. While it may seem like it to many, this doesn’t mean we are missing opportunities to enjoying our lives now. It just means we are establishing our future as a priority. It allows us some flexibility with our future mortgage. While some may be forced into a mortgages that cost them big time or interest only mortgages, we will have option of choosing the best one for us because we will have a large down payment for a house after only a few years. This means we will have a smaller loan and more options.
Taking time to establish some priorities with your finances can allow yourself some flexibility in the future. Find out what is important to you, set tangible goals, and work hard to accomplish it. That’s what we’re doing.
This post was provided by Emortgage Calculator.