We bought our dream home 4 years ago…
It is beautiful, average size, and it has a large yard in which my children can run and I can garden. It also comes with the best neighbors in the world! We searched for 7 months before we bought it and got it for an excellent deal.
But the real reason our home is our dream is because it allows us to accomplish our other dreams. Let me explain, a home is almost always the biggest purchase we will make in our lifetime, and the home you buy determines so many other things about your future. If you purchase at the high-end of what you can afford, you will be left with less money to allocate elsewhere.
What are your dreams?
When you really contemplate where you want to be in 10, 20, 50 years; what does that look like? For me, it looks like yoga on the beach in Oregon, and a humanitarian effort in the Dominican Republic. My dream is to not only teach my children, but show them how truly blessed they are. Not only that, but I want to show them there are as many ways to live and be happy as there are people on this earth. There are options and places to see. I want to roam the streets of Italy, marvel at the beautiful countryside of England, and learn from the incredible people of Africa. I want to live securely, free from stress and fights about money.
When I realized this, I knew we couldn’t purchase a home we had to stretch to afford because the house wasn’t my dream. We can easily afford our home (it costs us less than a fifth of our take home pay), and so we are able to make a bigger payment to own our home that much quicker and save thousands and thousands of dollars in interest.
What could you do with thousands more dollars over the life of your loan? What could you accomplish without a house payment?
When you contemplate this, you may discover that a big, beautiful home really is your dream, and if that’s the case, great! Just avoid overextending yourself on the payment; nobody should be a slave to a house. Make sure when you make that big purchase you keep all your other dreams in mind too.
We purchased a home we love, and we did it carefully–we took our time. We kept our goals in mind all along the way, and in that way, we really did end up with the home of our dreams.