Generation Money-Less: 6 Ways 20-Somethings Can Prepare For Buying A Home
Will we ever be able to buy houses? Nope! Just kidding, we can, but it won't be easy. This one’s for everyone out there who's living the paycheck-to-paycheck lifestyle that will eventually give us all early-onset heart disease.
After the housing crash in 2008, banks stopped giving loans, everyone defaulted and a lot of the suckers who got talked into ARM loans ended up on the streets.
But, that didn’t really mean dick for us, because we didn’t have any money then. Six years later and we're doing a little better, but for the most part, we’re still poor as sh*t.
But, as the rich gets richer and we get more depressed, it becomes time to take action and stop paying our landlords to count our money every month and STILL NOT FIX THE POOL (or whatever is personally irking you about your current living situation).
I mean, summer is over at this point, but still… not cool.
So, in honor of those six years, here are six steps we all need to follow if we ever want to get out of the too-small, too-gross hellholes of apartments in which we currently rent, not own:
6. Open up your search area
I’ve traveled through most states and most metropolitan areas, and while cities are mostly booming (sorry, Detroit), the suburbs are going the other way.
While it used to only be the privileged who could afford to live in suburbs, now the people who live there are the ones who are patient enough to stomach the traffic, avoid getting hooked on meth and of course, keep up with the Joneses.
Unless of course, they’re on meth, in which case, you shouldn’t bother keeping up because they will be way faster than you.
5. Fix your credit
There are companies out there that will petition credit bureaus and remove bad marks on your credit for you. It usually takes about two months to see results and costs about $100.
But, if you call once and act very interested but never follow up, they will eventually offer to do it for half the cost.
4. Live like a miser
Can you go a month without going to a bar? Or having a dinner out? Good, just do that for the next five years and you’ll be about halfway there to a down-payment on a one-bedroom condo.
Seriously though, take your money and put it in savings before it ever touches your checking account. You're poor anyway, so just ignore that one week per month, before you pay rent, when you feel like you actually have money.
3. Take a month off for sanity
My financial planner (read “therapist”) suggested this. If you follow tip number two for too long, all work and no play will make you... insane.
So, try saving every penny for a few months, then take a month off to reward yourself (within reason).
You can keep your sanity and provide yourself with motivation to make it to the next "off" month.
2. Move to Detroit!
You know the city will come back and when it does, the people who got in on the ground level will be laughing.
Hell, I met a woman in Detroit who bought a house for $250 and another who said she got one through bartering after she helped someone tile a bathroom.
1. Re-think home construction
Straw-bale construction is a new trend that is sweeping the country. With this safe, chic, Earth-friendly construction model, it's possible to build a brand new home for only around $100,000.
It’s an incredibly simple twist on home building and with the right support, it could revolutionize the way our generation views the prospect of home ownership in America.
Don’t believe me? Check out Episode 2 of Wayward Nation to see what straw-bale construction is all about, and how much fun you can have with its three main ingredients: straw, dirt and water.
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