It can be done. One couple managed to save $98,000 in 5 years to buy their first house in New York. These two can-doers were by no means earning high salaries (a little over $100,000 combined by the end of the 5 years and much less at the beginning) all the while living in Manhattan, one of the most expensive cities in the world.
To save for the down payment on the $445,000 apartment, they quit smoking, stop meeting their friends for beers after work, stop buying new clothes, gadgets, and pretty much everything they didn’t absolutely need. The question they often asked themselves was “Do I want the house or an iPod? or Do I want a latte or the house?”
The beginning was especially tough because they weren’t used to skipping all the luxuries but they slowly got used to the habit of not consuming much more than the necessities. During the first year, they saved $8,000. In the next two years, they saved a combined $30,000 and $40,000 in the fourth year alone. Their savings was up to $98,000 by the fifth, allowing them to pursue their dream of owning a place they can call their own.
If they can do it, so can you. How many times have you thought about the difficulty of saving money and simply gave in to the spending temptations? With a can-do attitude, you can achieve financial freedom too.
Thank you NY Times, the article serves as an inspiration for all of us. It is also a wake up call for people who make $100,000 a year without being able to save a dime.
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{ 5 comments… read them below or add one }
Thanks for pointing out such an inspirational story. It just goes to show that anything is possible if you put your mind to it.
Lynnae: Definitely agree with you. It’s amazing how these types of stories motivate us since our efforts of being frugal doesn’t compare to these people at all…
I was raised with the saying if you can’t afford it, you can’t have it. I have done well and not gone into debt in very tough economic times. I applaud you for calling attention to this article. We are in a culture that tells us we should have everything but we really need to make choices. Many people do not realize how much money they are actually spending on those little extras. We could all probably save quite a bit. There are so many things we buy in a year that we don’t really need. How many clothing items just because we want something new, coffees and dinners out. The best thing I have done is to get direct deposit. If you don’t carry cash around, you are less apt to spend it.
A very sad story indeed. I would rather have a life with friends than a house, just to say I own rather than rent. They missed out big time.
This is a real sad story. they stopped living so they can have a house…SAD. hope they are able to get back their life once they have bought their house.