I am glowing up. On my road to adulting I decided to save for a house. At first I didn’t think I could afford a home with all my student loans but everyone has student loans so that can’t deter me. I started googling first time homebuyers programs to see if there were any grants available in my county. I found the NACA program. More about them later but basically it’s a government based program with No Down Payment, No Closing Costs, No Points or Fees, Below Market 30-year or 15-year Fixed Rate and No Credit Score Consideration. Sounds like a scam or too good to be true? It’s not. You can just check out this forum.
How much I needed to save.
Once I went to a program meeting and met with my NACA counselor we figured out much I could afford. He gave me a total breakdown of my financial situation and we set my plan into motion. The only debts I have are my student loans and I got those under control last year. By this time next year I’ll be a homeowner. I’m not saving for a down payment but to buy down points aka reduce my interest rate. With my NACA plan my interest rate will be 1%, yes you read that right ONE PERCENT. There’s multiple loan options and mortgage calculators out there but the rule of them is your mortgage shouldn’t be over 28% of your monthly income. Don’t be house poor. Only buy what you can afford.
I needed to get a handle on my budget. I joined Mint.com and added my bank accounts (it’s safe) and all of my purchases were separated into categories. After having about 19 conniptions and wondering why the fuck I was spending so much at Starbucks and on food in general I made a plan to trim the fat. And I had a whale of fat in those bank statements. From then on I set up max budgets for each category; food, entertainment, clothing…… I’m still working on sticking to those budgets but I’m doing pretty well. Talk about a hard adjustment. They even have a goal category that tells you how much need to save a month and the exact date you’ll reach that goal. It’s very helpful. Oh and they also send you these petty ass emails to keep you focused.
I also opened up a couple of credit union accounts. One with Navy Federal (top rated credit union) and now with Alliant. I only opened up the Alliant account because I couldn’t get into Navy Federal yet because at the time they weren’t accepting drafted vets and their family but it just so happened that rule changed like 4 days after I joined Alliant. Even though I prefer Navy Federal my Alliant savings account has a 1.11% APY which is much higher than any traditional banks.
Forums. I found several of home buying forums that I stalk daily. Number 1 is Reddit. I would rather listen to people who are actually in the process like me or already home owners than CNN or money magazines.
Putting my money where my mouth is and struggling.
Back to the bank accounts. I use Alliant for my house savings, I use the Navy Federal for all my bills and my local bank account for daily purchases. Oh and I do mean ALL MY BILLS, netflix and apple music included. I don’t even have a debit card for the credit union accounts; I do not touch any of that money. Every time I get paid over 85% of my money is transferred between those accounts. The rest is for food and a little fun, that’s it. I am living broke on purpose, shoutout to Being Melody.
Finding a side hustle.
I’m back blogging not only because I missed it but to make extra money so I can save even faster. If my job completely cuts our overtime I’ll be getting a part-time job, which is probably the smarter move anyway.
Saving for more.
Not only am I saving my buy down and future mortgage every month but I’m also saving for the utility bills, furniture and other housing fees. Who wants to buy a house and can’t afford to furnish it or have an emergency fund for all those little surprises that come with being a homeowner?
My whole strategy here is to save as much as I can and as fast as I can. I’m living like I’m poor and still want to have somewhat of a life but saving for a home is my biggest goal right now and I’m excited and serious about the next chapter. Plan, budget and find as many resources out that will help you do this as easy as you can. It’ll be all worth it in the end.