Investing in yourself

[Glenda Nash]

When you own a home and pay a mortgage, you’re basically paying yourself instead of a landlord. Think about it. Say you’re paying $500 to $1,000 or more for the privilege of living in someone else’s property. That’s money that you will never see again because it’s going into someone else’s pocket. If you’re paying $500 a month, that adds up to $6,000 a year of your money that you are handing over to someone else. Live in the apartment for 10 years and there goes $60,000 out the window. Your landlord is sitting pretty, banking big bucks. You’re not only paying his mortgage, but you’re funding his landlord lifestyle. He’s at the beach while you’re slaving away, handing over your hard-earned money every month. How do you change the status quo? Start an aggressive savings plan. Bankrate.com offers a “calculator” that tells you whether you should consider entering the housing market. The first question asks if you have a lump of money or access to someone else’s lump of money. When you answer no, the calculator tells you to start saving before you start looking. So save every extra penny possible, get a handle on your outstanding credit balances and give yourself a timeline based on the money you will be saving. You’ll have to make sacrifices, but they’ll pay off when you’re no longer handing over rent checks but investing in your own future.