Change your habits and change your life
Excerpts by CHERYL SPANGLER, Inman News
How many Starbucks coffees would it take to pay for a down payment on a new home?
Let’s use Alexandria, Virginia, as our example. According to Starbucks pricing, a Grande Starbucks Cappuccino costs $3.65. The Metropolitan Regional Information System (MRIS) and current market stats list the average sold price in Alexandria in June at $612,327; so 20 percent of the average home sold in Alexandria would be $122,465.
So it would take you not purchasing 33,552 Grande Starbucks Cappuccino’s to put a down payment on a home in the city by the Potomac. That’s a lot of years of no Starbucks, right?
Putting down 20 percent is not an easy task (and it isn’t always necessary to put down that much!) But doing so requires cutting back in other areas of your life and focusing on saving every penny to reach your goal of homeownership.
Ways to save money inside the home
- Eliminate your cable bill for one year
- Stop buying coffee outside the home
- Buy generic brands at the grocery store
- Cancel magazine subscriptions
- In-source everything household: Clean your own home, do your own weeding and mowing, etc.
- Make gifts for people versus purchasing them for one year
- Sign up for razors from the Dollar Shave Club
- Downgrade to a cheaper cell phone bill; there is usually always something better if you call in
- Request a credit card rate reduction
- Try buying used books when purchasing from Amazon for just one year
- Consolidate student loans
Ways to save money outside the home
- Try uberPOOL instead of uberX
- Cycle or walk to work if possible within two miles
- Only eat out one time per week or month
- Stop smoking or drinking, if this is something you do regularly
- Keep the tires on your automobile properly inflated; every two PSI of air you’re able to add to your tires can improve your gas mileage by 1 percent