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Mock Mortgage payments as a way of saving...

January 21st, 2009 at 11:30 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!!!

Posted in Budgeting, Personal Finance, Saving Money | 4 Comments »

4 Responses to “Mock Mortgage payments as a way of saving...”

  1. North Georgia Gal Says:
    January 21st, 2009 at 11:33 pm 1232580811
    1232580811

    That is awesome!! Keep up the good work!

  2. creditcardfree Says:
    January 21st, 2009 at 11:34 pm 1232580882
    1232580882

    If everyone did this...we wouldn't have the some of the mortgage problems we do know.

  3. NJDebbie Says:
    January 22nd, 2009 at 12:41 am 1232584911
    1232584911

    You're a very smart lady.;-)

  4. whitestripe Says:
    January 22nd, 2009 at 05:25 am 1232601937
    1232601937

    BF started to do a similar thing when he realised we would have to get stuck into it if we ever wanted to buy a house. In 6 months he saved up $11k. We're now in the middle of settlement! Smile
    ps. dont forget all the other little expenses you might have like h&c insurance, rates etc.

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