What sacrifice have you made for down payment?

What sacrifice have you made for down payment?

Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes

I have heard a lot of posts about how to buy real estate with no money down, low down, first time buyer program, etc. All these paths are possible, but they are financial decisions that you are now just realizing when you want to buy real estate. If you have saved money from the start, meaning when you got your first job, then you will be in a better position.

Personally, it is either earn/save more money or cut expenses. Here are my cost cutting sacrifices.

1. My driving commute car is a 1995 acura integra that was a hand me down from my millionaire sister who drove that integra for 10 plus years. 

2. I go to goodwill to buy my work clothes. Don't knock it, I found Georgio Armani suite for $50. Retail is $2k. 

3. No starbucks coffee. I drink work coffee provided for FREE.

4. limit my lunches at work to about $2 a meal. Sometimes less as work has freebies from time to time.

5. Cut my own grass lawn, as gardener raised from $40 to $80 a month. I had gardener for 12+ years.

6. Buy gas at Costco as seem good quality and lowest price around. But doesn't that Costco card cost money? Yes, but I look like my brother, and group together to get 2% cash back card that pays for itself, and some back at end of year.

7. I buy Nikes running shoes, at the outlet mall. Can throw in washer, air dry, and look like new again.

8. I buy and sell things on craigslist. Once found kitchenaid built in refrigerator for $100, and re-sold for $900.

What have you sacrificed for saving down payment?

Terry

27Reply
412 views

Most Popular Reply

Real Estate Investor · Macedon, NY · Member since 2016 · 251 posts · 290 votes
8y

I sold a kidney on Craigslist for my first one.  

See this reply in the discussion

128 Replies

Jump to latestLatest
  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    8y

    It's wise to figure out and write down what you want in life.  Then, when you make decisions that align with those items (like saving for a down payment), you will no longer think it's a "sacrifice."  The sacrifice actually happens when you don't save...you give up the things that you really value in life for things that don't mean as much to you.

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y

    @Terry Lao I think many people get a stoic pleasure from doing these sort of things that they lose sight of the big picture. Its not about saving money its about making more and living happy.

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Lane Kawaoka

    I liked your " poop at same time every day while at work...get paid to poop".

    I go at 3pm each day.

    Terry

  • Rental Property Investor · San Diego, CA · Member since 2010 · 366 posts · 314 votes
    8y

    It would be inter

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y

    @Terry Lao I'm going to use that testamonial

  • Investor · Los Angeles, CA · Member since 2016 · 50 posts · 50 votes
    8y

    Hubs and I only drank 1 buck chuck wine for about 5 years. We still call our first dulplex the house that Charles Shaw built. 

  • Portland, ME · Member since 2012 · 616 posts · 550 votes
    8y

    I sacrificed being a princess.  Seriously, it's crazy how much women spend on their hair, nails, make-up, clothing!  I also don't go to those multi-level marketing "parties" where your friends pressure you to buy over-priced junk that you don't need.   I also hardly every hire anybody to do anything for me.  I painted my first house while 7 months pregnant. 

  • Consultant · Phoenix, AZ · Member since 2017 · 152 posts · 23 votes
    8y
    I sacrificed a first born ewe lamb. Lol
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    For me, its all in the balance....... you can't take it with you and tomorrow is not a guarantee.......I'm not going to sacrifice so much that I don't get to do some things in life that give me pleasure and enjoyment.

    I tell my wife all the time.... I'm not going to save every penny with the hope of having a huge retirement fund at 60/65 or whatever....because I may never make it to that age. And I've seen my share or people work their *** off and retire and die within a couple of years..... and the only people that get to enjoy that money is their relatives that inherit it!!!

    My vice is cars..... I spend stupid $$ on cars..... $$ that I will never see back...... but it gives me pleasure.....I enjoy them.... I don't buy them as status symbols....its my hobby. I just bought a 2016 Dodge Challenger Hellcat for 55k cash..... used with only 800 miles on it....sticker was 75k. So I paid stupid $$ on a car that will depreciate.... $$ I could have used to buy another rental...... but it was something I knew I could enjoy every day and it makes me happy.....

    We don't travel much..... are careful with eating out....take my lunch to work every day.....do my own yard work....don't buy clothes often....my wife is cheaper than me... etc...... not what I would call sacrifices, but being smart with our $$ on some stuff

    Accumulating wealth is about accumulating enough of it that you can enjoy it....or what's the point?....when is it going to be "OK" for you to spend $$ on stuff you enjoy?

  • Realtor · Grand Rapids, MI · Member since 2016 · 174 posts · 122 votes
    8y

    @Terry Lao Is this a brag post?  I find this post sad, not motivating.  I will give you a story because I think it's funny but my husband had a bachelor pad on the beach on Lake Michigan for his first home that he house hacked with a roommate.  The roommate actually paid his entire mortgage so he lived for free.  When he got a promotion from his job he did not have a down payment but he wanted to grow his income so he sacrificed by renting out his room doubling his rental income and then packed his bags for the relocation.  In order to save up the downpayment he lived in a 8 x 8 room in a trailer park he shared with a 65 year old.  Being as that he was still single, he used to joke around with people he lived with his mom rather than tell the girls he met at the bar, that he lived in a trailer park with a senior citizen.  How often does this happen right? He had to sacrifice the social life in the short term, but he got another house and another every time he got promoted. 

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Casity Kao

    Hello. This is not a brag post. It is a real story with real struggles post. The down payment will be the hardest part for anyone who is buying their first home. I'm just putting it out there what I do to save. Other people might not do the same, but it is just my sacrifice.  You can save either by increasing income or cutting expenses. What I discovered was that after the first down payment, a lot of people just continue this extreme way of saving. Another item about this post is that most successful people, are really into this extreme savings lifestyle. The people who hate this post just don't agree but they take it personal. I said this many many times in this post, this is my choice and people just still hate.

    Anyways, if you husband read this post, he would relate and understand what it takes. He might be motivated, and find it funny, that he is not the only person who thinks this way. You on the other hand, would not agree.

    Thanks for reading my post.

    Terry

  • Realtor · Grand Rapids, MI · Member since 2016 · 174 posts · 122 votes
    8y
    Originally posted by @Lane Kawaoka:

    @Terry Lao I think many people get a stoic pleasure from doing these sort of things that they lose sight of the big picture. Its not about saving money its about making more and living happy.

    This is the point Terry.  Your posts seem to come off in a way that you are saying people should be more like you.  Do you enjoy real estate?

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Casity Kao

    @Lane Kawaoka

    I never said people should be more like me. However, I do admire Lane, for be thrifty, or lack of a better word, cheap. If you read Lane's posts, you will know that he is easily a millionaire, and doesn't have to take a poop at work, but it is his choice, and it does save money. 

    I enjoy real estate, but it has its ups and downs. I look at real estate as an investment tool. I am saving for retirement, not so much for me, but for me and wife. If it were just me, I would be fine. However, my wife did not start saving or understood the importance of saving, until late in life. She just started a 401k a few years ago, and it was an argument just to convince her. I am cutting back on expenses and taking more risk too make up for her share.

    Bottom line. My point is which do  you want more? your home or starbuck's coffee (insert whatever your desire) ? if you said both, it really is starbuck's coffee. People make the sacrifice when they truely want it. 

    Just me two cents.

    Terry

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y

    @Terry Lao not a millionaire but on the way. I sort of am trying to change my cheapo ways but its hard when you have been raised that way. I realized that in the next 5-10 years that I will be in a really good place so I might as well take my foot off the afterburner.

  • Consultant · Phoenix, AZ · Member since 2017 · 152 posts · 23 votes
    8y
    I have enough trouble buying food and transportation. I have nothing to sacrifice. I want the good life now.
  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Account Closed

    The general rule is harder now, easier later. So if you take the good now, then later will be even harder. Because later will have health issues on top of whatever money issues you will have. If you throw enough money at any problem, it will usually take care of 90% of any problem. At least sacrifice the current situation because you are young and can afford without luxuries. 

    When I asked my wife, she said she does not expect to live that long. Well, its an answer, but it is the what if that will usually get you.

    Terry

  • Consultant · Phoenix, AZ · Member since 2017 · 152 posts · 23 votes
    8y

    I am 62. If you think life has to be bad before it gets good, you will always have a bad life.

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Account Closed

    Life is based upon a series of decisions. I have several cars, nothing extravagant. I take vacations, and fly coach. I don't spend recklessly. Having seven figures in the bank, and that makes me more happy than vacation, cars, or anything else.

    Terry

  • Consultant · Phoenix, AZ · Member since 2017 · 152 posts · 23 votes
    8y
    I thought sacrifices went out 2,000 years ago
  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    @Account Closed

    Sacrifices are built into our DNA. Past history to include Aztecs, Vikings, Celts, and Egyptians. Today, maybe not humans, but definitely different forms like most.........diet. 

    So why not real estate investment?

    Terry

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    8y

    Update. With the real estate market get red hot across all regions of US, there's more posts about how to get started. Most newbies, don't have the down payment, even though FHA is only 3.5% down. Everyone, including myself, was a newbie and struggled to save, and cut out things that don't matter. I always ask myself is that a " want " or a "need"? Now, if you are a person who considers Starbucks coffee a need, then more power to you.

    Bottom line, it comes down to how bad you want it. Starbucks coffee or real estate?

    Terry

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    7y

    It's a new year, and time to help those who need a good kick in the butt.

    Terry

Join the conversationCreate a free account to reply, vote on answers and follow this thread.