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Mock Mortgage payments as a way of saving...

January 21st, 2009 at 03:30 pm

Ok.. so about a year back i decided to really get serious about buying a townhouse or a condo... a the time, i had and still have a decent down payment for it... due to the high gas/oil cost, i knew that paying a mortgage plus the utilities will cost me a whole lot more than my $1000 a month rent with all utilities (except, light and cable).. By my calculations, i pay about $1200 month now .. and a townhouse or condo with utilities will cost me approx. $2200.
SO, here is what i did to just keep saving while still staying in my apt, I started Making my rent payments as a mortgage payment. Every month when its time to pay the rent, i would pay the rent as usual but also have approx to $1000(diff b/w mortgage and rent) transferred to an online savings account.. so for i have saved close $12000 that i can add to my dwnpymt when i decide to buy.. Simple concept really, but it takes a bit of discipline..Just pay yourself as if you were the mortgage company and you will rack up cash before you know it.. share some of your ideas with me!!!

Frugal? who me? really you think? THANKS!

January 20th, 2009 at 07:26 pm

so let me start off by saying that i am blessed to have been a part of history and to witness history today... Go OBAMA!!

so back to the task at hand, BEING CALLED FRUGAL.. i don't know about anyone else but the word does not offend me at all... especially in an economy as uncertain as our current one.
This past weekend, i took a trip to mall with a friend of mines to look for a wedding dress.. i was amazed at how much money she was willing to spend on the dress and everything else in the mall. I walked beside her in complete shock because the idea of buying a handbag for $500 or a pair of gucci sandals for $275 just did not and could not sit anywhere in my frugal(sane) mind. after about an hour of the madness, i finally said something about how crazy she was to for even considering such expensive product. Her response, " oh please, you only live once, just enjoy your money, and stop being so frugal." I have to agree with the first part of her response, yes, we only live once, and we should enjoy ourselves, but i am also aware that this "one" life of mines might be a long one and i plan on having some money for later so i can live a nice comfy live, especially at a time in life when i might not have the strength, health, or ability to do so..
People, think twice before you spend your hard earned money on things you can live without, and stop making all these designers rich, while you scrap to pay for your basic necessities... be blessed!!