Minimalist to Homeownership

Things have really chance since the recession started and from small or no down payment, we now need a minimum of 20% to make most sales work, sometimes even more.  With the tighter budgets in American households, saving up for the down payment is a daunting thought.

But here’s a tactic that will help you save-up for your new home faster: embrace minimalism!

Sounds a little bit of a contradiction: to be a minimalist in order to buy a home.  But minimalism is a lifestyle that will allow you to become a homeowner faster and enjoy your home more.

Minimalism is about living with less because you realize you need less.  It is a process, and you can’t just transform all your spending habits at once.  But you can find ways, starting today, to save just a little bit.  Maybe in a couple of weeks you’ll find a few other places to save.

The key is to not feel deprived of anything.  This is why you must see what works for you.  Everyone is different.  One woman may be unable to fathom herself without a pedicure, another couldn’t care less.  The point is to start with the little expenditures you can forgo.  Are there products or services you are buying which you can do on your own?  Are there things you are buying you really don’t use much?

If you think the little things don’t matter, they all add up.  For example, my husband and I decided to cut our household expenses.  We started with the big things, like the gym.  It was awful.  We felt  we are depriving ourselves of something, as going to the gym was part of the daily routine.  We were exercising less, which was bad.

Instead, we said we’ll try to cut out buying coffee and we’ll only drink coffee at home or in portable mugs.  We also cut out restaurant expenditure and enjoy picnic with our daughters outdoors on the weekends.  We buy fewer clothes, and do a little bit more laundry.  Those things have all added to savings without deprivation.

Now it has become a little sport to find ways to get creative instead of spending money.  We’ve coupled that with getting rid of items we don’t use much.

The whole point of minimalism is to only have the things you use and let go of the rest.   This will also help you save for a down payment faster.

When showing buyers homes, we always look at the closet space, where to put stuff.  One buyer once told me she needed a two bedroom condo.  Since she could only afford a one-bedroom I asked her why she needed a second bedroom.  She said, “for my stuff.”

It hit me!  We are paying for a bigger home, taking out a bigger loan and paying more interest to house items of little or no value.  Maybe we don’t need all the space we think we do.  With less stuff, you may find yourself satisfied with a smaller home, thus lower price and smaller down payment.

Another great benefit of minimalism is that it reduces your environmental impact.  Buying less, consuming less, means less waste.  I don’t know how it ties in to a down payment, I just thought I’d mention it.

A couple of inspiring resources on the matter:

http://zenhabits.net/

http://www.amazon.com/Joy-Less-Minimalist-Living-Guide/dp/0984087311/ref=sr_1_1?ie=UTF8&qid=1310660248&sr=8-1

>