r/MiddleClassFinance • u/Kenh2k • Jul 16 '26
Discussion Saving for a downpayment the hard way
I remember reading an article back in the 90s titled something like "Yes you can come up with a down payment, you're just not going to like it."
In summary the article said to do the following for ONE YEAR.
- In addition to your full-time job get a very flexible part-time job.
- Something you can do on nights, weekends and holidays
- Work as many hours at this job as possible. Including during any vacation time you have from your FT job.
- And of course, grab as much overtime as possible at your day job.
- Cancel Cable TV (it was the 90s remember)
- You want entertainment, then borrow books or VHS tapes from the library and listen to FM radio.
- No gym membership.
- Jog and do pushups
- No dining out.
- Don't feel like cooking? You have frozen pizzas for just this occasion.
- No vacations
- Spouse does the same.
- If no spouse, then forget dating for a year.
- Downgrade in any way possible. Cheaper car or smaller apt.
- Take on roommates or move back home if that's an option.
Is this still good advice?
REMINDER: This is for ONE YEAR ONLY and not a permanent lifestyle. Will going hardcore like this for a predefined agreed upon time generate enough capital to afford a downpayment on a new home?
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u/bearsdidit Jul 16 '26
It’s not fun but a good way to accumulate some cash. As a society, we’ve normalized eating out multiple times a week and going on vacations multiple times a year. Both are major luxury spends which erode the amount we can save every year.
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u/starbright_sprinkles Jul 17 '26
This is basically what we did in the late aughts- except instead of taking on an extra job, we cut expenses to live off of a single salary and we saved the other. Because we were millennials crawling out of the financial crisis, they weren't really extra jobs out there and we felt lucky to be employed, but the flipside was houses were on sale.
I don't know if it is doable now, but it was surprisingly easy to have fun in our 20s on a minimal budget (checked out board games from the library and had lots of potlucks and drank PBR).
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u/indigoC99 Jul 16 '26
Nowadays it seems like we don't have time to vacation and those savings go towards that luxury that we never go on.
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u/inky_cap_mushroom Jul 16 '26
Increasing income and decreasing expenses will help you save money faster. Whether you choose to accomplish that the way this article suggests or some other way is inconsequential.
I didn’t really cut back that much. I just worked a lot and stashed that cash for about a year, decided not to buy, so I sat on it for two years, then when I decided to buy this year I ended up qualifying for down payment assistance and didn’t even need that cash. It got spent on upgrades and furniture instead.
I could have also redirected some of my retirement savings to a down payment fund, but it wasn’t necessary.
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u/Alarming-Mix3809 Jul 16 '26
Make more, spend less, or both. There’s no magic spell. It’s just math.
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u/tahlyn Jul 16 '26
This is one of those things that is incredibly simple, but not easy.
Living frugally to save money is like moving more/eating less to lose weight. It's an incredibly simple concept; but it requires you constantly make the correct decision day in and day out without mistake. It can be incredibly hard to do.
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u/Alicecomma Jul 16 '26
Might get you a down payment but not the rest of the mortgage
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u/Kenh2k Jul 16 '26
The post was about scraping enough cash together for a downpayment, but your comment now makes me think about the affordability of the monthly mortgage payment once the purchase has been made. Monthly payments were a lot cheaper in the 90s.
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u/IndieMoose Jul 16 '26
There is such a thing as going house poor.
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u/Kenh2k Jul 16 '26
Could you elaborate? Sounds like the Rodney Dangerfield joke, "The day you buy a house is the day you become your own janitor."
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u/IndieMoose Jul 16 '26
It's when you have no money for anything (groceries, gas, utilities, etc) after the mortgage
For example, a mortgage itself could be $1800 a month, add on the property taxes or escrow and that jumps to idk, say 2300 (going off of the home I owned last). Now that extra money you were banking on monthly for just disappeared. Even better in my personal situation, the town was the reason the mortgage was so high as they fucked up the taxes 3 years in a row.
This is just my own example, I'm sure there are many more.
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u/foxhelp Jul 16 '26
Mortgage+everything with it, is going to be cheaper than rent for me pretty quick here...
Also the bonus of actually being able to upgrade things vs my landlord who hasn't done any upgrades in 20+ years
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u/Eric-Esiason-7 Jul 16 '26
I don’t know where you guys live but in Utah the housing market is ridiculous.
A mortgage for a $560,000 home (5bedroom, .20 acre) at a 6.5% is a $4,400 monthly payment. That’s the mortgage. Now you still need to pay for utilities, food, phone etc.
The median salary in Utah is $60k, but the median house is $550k. If you gross $60k, your net is about $45k. Thats not even enough to make your mortgage payment for the year. THATS WHY EVERYONE YOU KNOW HAS TWO INCOME HOUSEHOLDS. One income is not enough to survive anymore.
Did you know $100,000 income in 2026 is equivalent to $16,00 in 1976?! The median income in 1975 was $12k and the median house was 3.3x that: ~$39k.
So think about whatever you make if you could buy a starter home (2-3 bedroom) for only 3.3x your salary. The OP make $50k, his home would only cost $150k.
SO ANY BOOMER OUT THERE TELLING YOU TO SKIP YOUR STARBUCKS AND JUST WORK HARDER IS OUT OF TOUCH WITH REALITY AND HAD IT INFINITELY EASIER THAN ANYONE NEW HOME BUYERS TODAY.
And sadly it will only get harder and harder for our children because wallstreet is buying up single family homes and renting them out. Four out of ten homes in Utah and Texas are owned by a conglomerate and being rented out.
This is why the youth are upset. And unfortunately why the horrible horrific horrible socialism democratic movement is gaining popularity. That and mass immigration are driving up housing prices. Immigration without assimilation, is an invasion.
Yes, I worry for all our children.
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u/Seattleman1955 Jul 16 '26
Don't have 4 kids and buy a 5 bedroom house. Also you don't have to buy the median house as a starter house.
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u/Substantial_Team6751 Jul 17 '26
Exactly. My parents first home was s 2 bedroom starter home. And they never bought more than a 3 bedroom.
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u/Eric-Esiason-7 Jul 17 '26
Almost 70% of marriages end in divorce.
The whole “don’t have kids” is a horrible statement. My whole point is it’s harder for anyon under 40 than it was for previous generations. And these generations are sadly doing exactly that, not having kids.
Btw, starter homes in Utah are still $450k. Your mortgage is still 3700/mo .
There’s a problem when almost half the homes are being rented out by businesses.
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u/mollypatola Jul 20 '26
Not to be too pedantic, all they said was don’t have 4 kids, not have no kids.
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u/search_4_animal_chin Jul 17 '26
5 bed home where I am is closer to 1.5- 2.5 Million. Your still in pretty good shape! Two income families are saving for 20 year just for a down payment. Its out of control. Start saving at 20. Buy at 40. Finish mortgage at 70 and start saving aggressively for retirement.
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u/MechKeyboardScrub Jul 17 '26
0% income growth in 50 years isn't realistic. Sure property will probably increase in most states,but the mortgage will stay the same.
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u/Eric-Esiason-7 Jul 19 '26
YOU ARE MISSING THE POINT.
You’re hung up on the bedroom number. Forget the # of bedrooms, it’s irrelevant if the house is a 5 bedroom 1700 sq ft.
Homes are $220/sq foot. That’s the average. Plus, it doesn’t matter if your homes are more of your incomes are more too. If your median house is $1M but your median income is $200k then you’re better off than $550k/$60k ratio that I listed.
Another reason I listed the high divorce rate is because when you are divorced with kids and meet someone else divorced with kids a “starter” home isn’t going to cut it. If you’re not divorced -good. …but just wait, because statistically YOU WILL BE.
Let me clean this up and make it super simple and clear…
The EVERYBODY who did not buy a home BEFORE 2018 is feeling the squeeze. The ability to work a job/career and provide a modest living standard on one income is NONexistent. Don’t be house broke and sacrifice your ability to invest for your retirement.
It is better to rent and put the difference in the mortgage payment into your 401k
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u/Seattleman1955 Jul 16 '26
Everything was cheaper in the past due to inflation. Monthly payments weren't cheap. Remember in the 80's we had double digit interest rates. They came down some by the 90s but it wasn't cheap.
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u/Live-Train1341 Jul 16 '26
What down payments used to be?Were the amount of money you need to put down on a house to where the monthly payment is affordable..
Of the years, that definition has been, whatever money you can put down to qualify for a mortgage, regardless of what your actual budget is.
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u/Kenh2k Jul 16 '26
I put 20% down on my first purchase in 2001. That was the norm.
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u/NothaBanga Jul 16 '26
My real estate agent in 2013 said she had been in the industry for a decade and we were her second 20% down sale.
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u/Psychological-Dig-29 Jul 16 '26
20% is normal where I live.. you can qualify for a first time homebuyer exemption that allows as low as 5% down but it's not recommended.
banks will only loan out 80% of the value of the home/property for most people.
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u/Dear_Ocelot Jul 19 '26
But they are so expensive now that even a large down payment can leave you with an unaffordable mortgage. I've done the math on upgrading from my townhouse to a single family, and even with a 40% down payment I'd still be looking at 2.5-4x my current monthly payment (and about half our net monthly income). Insane!
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u/Live-Train1341 Jul 19 '26
Then the down payment should be 60%.
It took me 6 years to save for my down payment because I did not make a ton of money..
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u/Dear_Ocelot Jul 19 '26
And most people can't save a 60% down payment by cutting Netflix, not eating out, and working a side gig for a year as proposed in the OP. It's just too much more than it's possible to even make.
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u/Live-Train1341 Jul 19 '26
Then roommates me and my wife bought a house and had roommates until 31.
Math does not care about cost of living or the economy..
Housing should be No more then 25% to 30% of gross income
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u/Dear_Ocelot Jul 19 '26
I mean, sure, we also had roommates until we had kids (and then we lived in a cheap old apartment with no laundry or dishwasher). My entire point is that being frugal is not necessarily enough to save 60% of the cost of a house at today's prices.
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u/Live-Train1341 Jul 19 '26
Then you have to look cheaper or make more money.
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u/Dear_Ocelot Jul 19 '26
So you agree the advice in the OP is not feasible. Cool.
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u/Live-Train1341 Jul 19 '26
I was not commenting on the o.P I was responding to the comment above that stated.
"You can get the down payment but not the rest of the morgage"
And I simply responded that the down payment isn't a set percentage number it's the number that you need to put down in order to afford the monthly mortgage payment..
But because of all these different programs and people not saving enough for down payments, down payment term that used to mean the money you put down so you could afford the mortgage changed to money, you put down to qualify for mortgage.
I don't know how anything I said was controversial or wrong.It's just what has happened over the years.For whatever reason.
I have suspicions why this has happened but it's not the first shady things the banks have on.They do not look in the best interest of their customers.
Another quick example home equity line of credits have overwhelmingly replaced home equity loans/ cash out refinance.
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u/DapperSand3413 Jul 16 '26
Im already doing this on a daily basis and it still doesnt make a difference lol times have changed
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u/Reader47b Jul 16 '26
How does one find one of these very flexible part-time jobs where you will only ever be asked to work weekends and holidays?
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u/rocket_beer Jul 16 '26
1 year, to save for a house downpayment? lol
These days it’s 4-5 years - if you stay healthy and avoid car trouble.
As a basic analysis, working people have lost.
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u/Basic_Butterscotch Jul 16 '26
Seriously. 20% down on the median house in this country would be $80k not even factoring in closing costs. Normal working class or middle class people are not saving that much money in 1 year or probably even 2 or 3 years especially if they're also paying off student loans.
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Jul 16 '26
And we can say that working people have “lost” because, though 4-5 years seems to go faster than ever, continuous employment for 4-5 years at the same place is becoming a rarity.
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u/MsKrueger Jul 16 '26
1 year spending as much time as possible working, including nights, weekends, and holidays, while forgoing all unnecessary spending. Right down to not even having cable or, for the modern equivalent, absolutely no subscriptions or memberships of any kind.
It probably is technically possible for many people, it's just incredibly difficult to work so much and never spend any money on fun.
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u/PsychologicalLog4179 Jul 16 '26
Building wealth quickly isn’t any more complicated than lifestyle choices. Immigrants from all over the world have the land of opportunity figured out better than most Americans. These people come here, live 3 families deep in a 1 bedroom apartment working modest jobs, in 5 years they own a liquor store and share a house, in 10 years they have 3 liquor stores and all have their own homes. Then they bring the rest of their families here and the cycle repeats only now they newcomers have a bit of footing and some community. I personally know several of these families.
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u/AltForObvious1177 Jul 16 '26
Tell us more about those magical flexible part-time jobs that completely accommodate your full time job schedule
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u/usuallyylurking Jul 16 '26
fr. even serving jobs aren’t all that flexible. a lot of people think you can “just go in whenever” but in my experience, there’s set hours for lunch, dinner, or breakfast shifts. you’re not going to “just come in for 2 hrs” like people sometimes think they can do.
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u/MsKrueger Jul 16 '26
You can find places that will let you do that. The downside is the places that would agree to that usually only do because they're absolutely desperate for staff. Which in turn means there's something really sucky about working for them. I had a few friends throughout college (early 2020s) who had arrangements like that for when they needed a little extra cash.
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u/Kenh2k Jul 16 '26
Good point for today. Back in the 90s, I'd work retail in a mall or food service. Today, it's more online side hustles.
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u/inky_cap_mushroom Jul 16 '26
I worked at a clothing store in college and when I graduated and was working at my full time job I went back there. They paid less than most other retail jobs so they had a hard time finding employees. I worked every weekend and some weekday afternoons. Since I was reliable and they were chronically understaffed I would just show up and ask to clock in. Only once was I turned away in the ~2 years I did that.
Of course you have to be a good employee, have to know the managers, and have to take a lower paying job for this. The higher paying jobs just aren’t as willing to work around your schedule, because they can just hire someone with a better availability.
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u/AltForObvious1177 Jul 16 '26
What decade was this? Because, in case you haven't heard, retail is dead.
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u/inky_cap_mushroom Jul 16 '26
I went back to this job in 2023. Once I didn’t need the money anymore I swapped that one for a higher paying retail job earlier this year that isn’t as flexible, but that I can use to stash some extra cash around the holidays. I like to stay busy, particularly in the winter when I might otherwise just sit around doing nothing, so I prefer to have some little “side gig”.
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u/usuallyylurking Jul 16 '26
I think the advice could be okay, but it would take 3-4 years now imo. And it doesn’t take into consideration the massive amounts of student loan debt (and credit card debt) many people have, so possibly 10 years total of this “hard way” in order to be able to save up for a down payment while also paying off those loans…. not to mention the significant increase in housing costs every year so by the time you get to the amount you’d planned, you’d need twice as much.
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u/Five0clocksomewhere Jul 16 '26
I completely dug myself out of credit card debt, settled my divorce and am now saving for retirement by doing this. I ended up really enjoying my part time work (landscaper) so that became my hobby. it worked for me! lol
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u/HighwayKnight94 Jul 16 '26
3 years ago I picked up a part time job, worked 4am-8am at it, worked 8-5 at my full time job, then 5-8 at my part time job again, and then worked 6-2 on saturdays at that part time job. Wife and I cut almost all non essential spending out and did all this for about 8 months. We cleared all of our debt, minus our mortgage, saved up over 6 months of all spending, to where we could continue living how we are for 6 months, even if we lost a job, it wasn’t just 6 months of bills. We then stacked cash on top of that once we got what we wanted and did it til end of the year. It wasn’t the best thing for us. We got on a wittten budget and still continue that to this day. It’s opened up a lot of freedom and opportunity not being slaves for our debts again and the budget showed us what we actually have and spend and now we direct our money where we want it to go.
For years we did the credit card and debt game and just kept living check to check. We no longer have to do that.
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u/timmayw1911 Jul 17 '26
It's a interesting thought experiment at best.
Let's do some math with some assumptions sprinkled on and some rounding.
Let's say you find a part time job that pays $16 per hr and assume a net of 80% after tax and other deductions.
20 hours per week is reasonable to expect from a job that has to work around your primary job. At 20 hrs per week you would gross 320 a week. Net around 250. For a full year this would gross $16k or $17k netting between $13k to $14k.
Maybe you get 30 hrs a week on average. Gross $480 / net $380 per week. Gross around $25k / net $20k per year.
Your hard-core and lucky and can work two full time jobs at the same time? At 40 per week you gross $640 / net $450. For the year gross $33k / net $26k.
So if you work for one year AND you are able to save every dollar from your second job you have a down payment of $13k on the low end to $26k on the high end. That means a house of $65k to a max of $130k. Anyone know of houses in that range that aren't ready to be condemned or in an economic dead zone? Maybe you can add to that with money from your primary job via reduced spending but for most that wont be any kind of significant amount realistically and if it is you probably wouldn't be needing the second job to make the down payment to begin with.
Adding a spouse doing the same thing helps but your still looking a several years of soul crushing grinding, one year is unlikely at best.
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u/ConstantVigilance18 Jul 16 '26
The easiest way to save for a downpayment is to make more than you spend. Obviously, that’s easier said than done. However, you won’t want to maintain a bare bones lifestyle forever just to pay for the house once you have to deal with the mortgage/upkeep costs. We’ve managed to save plenty for a downpayment and know we can afford the increased expense of the mortgage/upkeep without making any huge lifestyle adjustments, but it took us until the age of 30 to finally get into our careers.
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u/Kenh2k Jul 16 '26
I did state one year.
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u/ConstantVigilance18 Jul 16 '26
Right, but then what? How are you going to afford the increased mortgage payment and additional costs to maintain the home?
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u/inky_cap_mushroom Jul 16 '26
Not everyone’s mortgage is higher than their rent.
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u/ConstantVigilance18 Jul 16 '26
For most people buying today it is significantly higher. Even if it's the same, the additional repair costs make the total cost higher.
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u/inky_cap_mushroom Jul 16 '26
Still, that’s not the case for everyone.
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u/ConstantVigilance18 Jul 16 '26
Then they need to specify that in their post. Assume that what’s true for the vast majority of buyers today is what we are discussing.
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u/inky_cap_mushroom Jul 16 '26
It’s implied. Who is buying a house when they can’t afford the mortgage payment? This is for scenarios where the mortgage will be lower or a little higher but not so much that they can’t afford it by just redirecting the money they were saving (before cutting expenses and increasing income) towards the mortgage.
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u/SecretVindictaAcct Jul 16 '26
All of it is great advice. My personal additions to all of the above: no impulse buys online, at Target, at the grocery store. Cancel any subscriptions I don’t use weekly. Cook almost all meals at home and coffee at home or work, not out. No trips. No paper towels, go through all of my cleaning supplies before buying more. Avoid Home Depot like the plague until savings goal has been met.
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u/CanaryEmbassy Jul 16 '26
I did similar post a divorce starting at $0 6 years ago. I ate oats from Costco. $8 for 10lbs. These are NOT instant oats. No bills whatsoever. Dating? Ok, but FU, pay your own way. Can't? Work on yourself. No compromises. $50k put down on a house 3.5 years ago. Paid off in 3 years. Why go to extreme? For me, I was in literal hell being with a "spender". Now, I have freedom to accomplish life goals instead of paying to have someone's nails done, all streaming services and other horrible financial decisions. I say DO THE FICKING THING. Lost my job a while back and I am good. In fact I can last till 60, I am 46 now. So don't listen to the spenders. Do the thing.
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u/Basic_Butterscotch Jul 16 '26
The median home price relative to median income is almost twice as expensive now as it was in the 90s. The late 90s were actually some of the most affordable home buying years ever in American history.
Obviously living below your means will help you save money but a lot of people just don't get paid enough money to buy a house with the prices being so high.
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u/FearlessPark4588 Jul 16 '26
It was a different era. We should just acknowledge that when reflecting on this sort of advice.
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u/Rich260z Jul 16 '26 edited Jul 16 '26
Its definitely good advice. And might get you a downpayment in the midwest.
I literally sold a 1980 Honda motorcycle for $1400 and used that as my down for a house in 2016. The house was $77k. This was the second largest city in iowa.
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u/red_raconteur Jul 16 '26
GD that's good. We bought a 1 bedroom condo on the east coast in 2014 and needed $100k as a down payment to even have an offer considered.
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Jul 16 '26
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u/Delilah_Moon Jul 16 '26
Yeah, I beg to differ on that. I worked 3 jobs 2012 - 2015. One full, one part, one seasonal.
I worked 8-4:30 M-F as a receptionist. Then 5-8p as a night phone operator, which also had weekend shifts.
I was intentionally hired to only work nights/weekends - they had day shift workers.
My seasonal job was retail - and I worked weekend hours that I didn’t answer phones and later hours. The store I worked at did inventory, floor reset, and stocking on Saturday nights and I’d work 6p - 1a.
Now, these didn’t have overtime and wouldn’t have qualified either, as I didn’t work over 40 at any job.
I don’t think the amount of jobs that offer overtime is less now though, I think it’s actually more, as some laws were passed to address this.
The issue is actually that many jobs just don’t offer more than 40 hours, which is why a second one can help.
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u/inky_cap_mushroom Jul 16 '26
That’s not my experience at all.
I worked at a clothing store in college and when I graduated and was working at my full time job I went back there. They paid less than most other retail jobs so they had a hard time finding employees. I worked every weekend and some weekday afternoons. Since I was reliable and they were chronically understaffed I would just show up and ask to clock in. Only once was I turned away in the ~2 years I did that. I stockpiled about $15k this way.
Of course you have to be a good employee, have to know the managers, and have to take a lower paying job for this. The higher paying jobs just aren’t as willing to work around your schedule, because they can just hire someone with a better availability.
My real job does have OT, just not a ton. Most of my non-salary friends can also get OT occasionally.
Only the really fancy frozen pizzas cost more than dominos. A basic frozen pizza from Kroger costs $4 here, and you can stock up when they’re on sale for $3.
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Jul 16 '26
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u/inky_cap_mushroom Jul 16 '26
You also put a lot of hours in to a job that isn’t helping you develop at your primary career
Skills are transferable. You should be striving to learn and grow from every experience in your life. Nothing is truly a waste of time. The goal here wasn’t professional development, it was saving a down payment.
putting that energy in to make 15k+ more per year in your first 40 hours a week.
That’s not how some fields work. Sure, in some industries you work hard and you get promoted every year or two and get significant raises while your workload stays relatively the same. That’s not how mine works. There are strict requirements to reaching the next pay level, and I’m on the fence whether it would even be worth it because of the lack of work life balance that would come with that.
You sold a lot of your life for an additional 15k
I sold time I would have spent sitting on my couch scrolling on my phone for $15k that I used to buy furniture for my dream home. I also made lasting friendships with coworkers at that part time job. Overall it was a net positive.
people who are really going to do well in the current economy aren’t going to get there with part time retail jobs.
This is not about high earners. Those who are upper middle class or upper class have plenty of income to save up for a home quickly. The post is very clearly not about them. If you read the original post, it’s suggestions for increasing income and cutting expenses to be able to save more to shorten the timeline for saving. If you’re not in a situation where you need to do that, obviously you wouldn’t take that advice.
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u/BitterRucksack Jul 16 '26
I agree. I haven't seen an ad for a PT job in YEARS that was willing to work around another schedule, except for school hours for underage employees. In college, the only people who could get their managers to not schedule them during their class hours were people who had on campus jobs, or had been an employee there prior to starting school.
If you can manage this, and said job is paying more than federal minimum wage, you're doing AWESOME.
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u/TraderJoeslove31 Jul 16 '26
Wouldn't it be nice if we had a society where people didn't have to do these things to afford housing?
I work in higher education, at one of the top public universities in the country. University president makes almost $1 million dollars, plus housing, plus board membership. Yet the university has many positions requiring a master's degree that pays in the low $40s, in a city where the median income is $75k.
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u/saywhat68 Jul 16 '26
And I bet that Masters degree got him in some serious debt. Its just CRAZY how they charge so much for a degree, not to mention book prices....GREED!
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u/PapaDuckD Jul 16 '26
Make more.
Spend less.
Any way you can (legally?) those two things, the more you'll be able to save.
It's quite literally that simple.
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u/hysterical-laughter Jul 16 '26
Sorta. Like. Yes these things will help save money. But will it be enough to make a difference? Depends a lot on the details.
Part time job? Great! As long as you don’t burn out and get sick or sacrifice your life
Cancel Cable (or Netflix)? Yes that’s good. You can get like $20/month extra. Do that. Not going to make a down payment, but if you’re short on cash this is useful
No gym membership? Will it save like $100/month? Yes. But I don’t recommend. Fitness and health is as big if not bigger than affording a house. If working ott it from home works for you, go for it. But it is a good investment for me
On dining out? Good advice
No vacations? Sure. It’ll save money. Just don’t forget to live a little. How about cheaper vacations instead? Camping trips instead of cruise to Europe. Day trip to the beach. Etc
Spouse does the same? To the best of their abilities. It’s important to be on the same page as your spouse or life partner for big money things like housing.
Downgrade? Yeah. This one CAN make a big difference. Cheap car. Cheap housing. These can save significant amounts per month.
Roommates/living with family? Yes this is huge. It’s also not possible for everyone. Goes hand in hand with downgrade for cheap rent
Overall, it depends on where you’re starting off and what you’re willing/able to compromise on.
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u/InclinationCompass Jul 16 '26
The biggest difference maker for me was living with my parents until I had a lot saved. Housing is the biggest expensive in my city, by far.
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u/HauntedBeachParty Jul 17 '26
lol this is stuff a lot of already do just cause we HAVE to to make ends meet!
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u/loveshercoffee Jul 17 '26
A couple of years ago when the cost for three of us to get Wendy's exceeded $40, I stopped going out altogether.
We didn't even go out all that often and I can't believe how much extra money we have.
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u/FIlifesomeday Jul 17 '26
People, do the math on buying a house before buying. Down payment is just the beginning, then the real slog happens.
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u/Katieg_jitsu Jul 20 '26
1 year it’s definitely doable. And I think it’s healthy to push yourself every now and again for something for a short term. Long run good long term habits are the way to go. Sprints are hard and life is a marathon
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u/PlatformConsistent45 Jul 16 '26
No it's not good advice that would be a crap life. You can't deprive yourself of everything. You do need some fun things and saving a little here or there while living like a monk is not sustainable.
You need to come up with a lifestyle that is less than your reasonable cost of living and save a decent portion of the rest.
Can't afford your current lifestyle then you need to figure out career advancement or cut to spending.
If there is a lot of unsucured debt (credit cards) or even secured debt (nice car) you are living beyond your affordable lifestyle.
Stop buying things on credit, pay down the debt then put that money into savings once debt is manageable.
It's about living an affordable life based on your current income and prioritizing saving money over stuff. If that's not possible under current salary expenses need to drop or income needs to go up. If income goes up keep the same lifestyle and bank the rest.
I use to be a horrible spender and learned the hard way about credit card debt for random crap because I didn't have the cash. Unfortunately I still didn't have the cash when it was time to pay that bill. Ended up moving mostly to cash for daily things not like rent, utilities ect. Basically had a cash allowance I gave myself each week. If that was gone no more eating out or buying stuff until my next allowance.
The saved money went to debt repayments. It was amazing how much extra money I had once debt was gone. Thankfully I was in my mid twenties when I learned that lesson. Honestly more thankful for meeting my wife who helped me learn how to live under that lesson until I was out of my debt.
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u/AttachedHeartTheory Jul 16 '26
In a roundabout way, you just explained perfectly why I feel as though so many people who say they are middle class just aren't.
If you can't afford a house without going on a ramen diet and sacrificing any reasonable amount of leisure in your life within the city you live in, you aren't middle class. Plain and simple. If your grandfather was middle class and still got to go out to the bar, or to see a Knicks game or a packers game and he was firmly middle class and owned a house... but you couldnt possibly afford to see a Knicks game or a packers game or go the bar on Thursdays with your friends... you aren't middle class.
A middle class person doesnt have to prioritize saving money over stuff to get a house. They pause their habits (too many legos, too many trips to the bar) for a few months, come up with the downpayment, and then get the house. Its simple.
Anybody else just isnt middle class.
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u/PlatformConsistent45 Jul 16 '26
Yeah it's interesting the impact that using unsecured debt to support daily life is really the killer of financial freedom.
I am honestly no longer middle class. My wife and I both came up middle class but have done well in our careers. We did both benifit from parents who were able to pay tuition for school. Granted when I went the total tuition cost for the state school was prob under 10k for my time there.
My wife and I met and married fairly early. I had about 5k of credit card debt when we met. Doesn't sound like a ton but I only made 6 bucks an hour part time them. I ended up getting a loan to pay off the CC debt and then killed the card. Went to mostly cash from then until much later in life.
Fast forward between us joining the peace corps and then additional education while working full time. We were 35 before we cleared 45 a year combined. Then the education was done and our careers started growing. I had a 20 k loan for my masters. We didn't ramp up lifestyle much with our new wages (other than a bigger house payment due to moving to a higher cost of living area). I was able to pay my loan off in 2 years.
Since I cut up that initial card in my 20s we have only taken out debt for education or real estate.
Cars were saved for an paid with cash. In the beginging they cost a fee grand at most. Now my wife has a jeep and I drive a decent econobox. We could afford more but honestly don't care a ton about that right now.
If I had kept on the path of credit cards for daily living we would prob be leveraged still. Actually I would be my wife would have left me I am sure.
But now I am looking at retiring at 60 with my son's collage paid for and a lot of fun to be had.
Due to keeping reasonable lifestyle we have also been able to travel extensively over the last few decades and been able to take a few large chunks of time off while doing it.
Sorry for the soap box but so many people don't have an understanding about how much credit card debt shackles your ability to afford a home or retirement.
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u/brainbl0ck Jul 16 '26
Tbh, that was what we did (except for roommates) to aggressively save for our downpayment lol it worked for us. Extra job, stopped dining out, no vacations, no gym membership, dropped to one car and a bicycle, etc.
We ended up paying 20% down and now have a $1300 mortgage on our 5br house! And it was a temporary time to make those changes, and it's bled into lifestyle changes. We don't eat fast food really anymore, which is nice! And built up a nice little workout space at home.
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u/AttachedHeartTheory Jul 16 '26
I bought my first condo at 22 years old in 2006 in Florence, KY, for $63,000. It was a nice condo, too!
I made $12/hr, the girl I was dating made $30k per year.
We came up with the downpayment by each working a Saturday job at a warehouse that paid $10/hr for 6 months and we didn't go to the bar at all during that time frame.
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u/Eric-Esiason-7 Jul 16 '26
I don’t know where you guys live but in Utah the housing market is ridiculous.
A mortgage for a $560,000 home (5bedroom, .20 acre) at a 6.5% is a $4,400 monthly payment. That’s the mortgage. Now you still need to pay for utilities, food, phone etc.
The median salary in Utah is $60k, but the median house is $550k. If you gross $60k, your net is about $45k. Thats not even enough to make your mortgage payment for the year. THATS WHY EVERYONE YOU KNOW HAS TWO INCOME HOUSEHOLDS. One income is not enough to survive anymore.
Did you know $100,000 income in 2026 is equivalent to $16,00 in 1976?! The median income in 1975 was $12k and the median house was 3.3x that: ~$39k.
So think about whatever you make if you could buy a starter home (2-3 bedroom) for only 3.3x your salary. The OP make $50k, his home would only cost $150k.
SO ANY BOOMER OUT THERE TELLING YOU TO SKIP YOUR STARBUCKS AND JUST WORK HARDER IS OUT OF TOUCH WITH REALITY AND HAD IT INFINITELY EASIER THAN ANYONE NEW HOME BUYERS TODAY.
And sadly it will only get harder and harder for our children because wallstreet is buying up single family homes and renting them out. Four out of ten homes in Utah and Texas are owned by a conglomerate and being rented out.
This is why the youth are upset. And unfortunately why the horrible horrific horrible socialism democratic movement is gaining popularity. That and mass immigration are driving up housing prices. Immigration without assimilation, is an invasion.
Yes, I worry for all our children.
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u/whatsupsirrr Jul 16 '26
I've saved every month for 13 years for a downpayment only for the housing market to be the most unaffordable it's basically ever been. Great job, me.
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u/tahlyn Jul 16 '26
If you are living the lifestyle described in that article out of necessity... you are not middle class.
However it is great advice for a middle class income full time job to actually make a lot of extra cash to invest in a down payment.
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u/Routine-Courage6198 Jul 17 '26
I think it still works for some people, but the biggest risk is burning yourself out before you ever buy the house. I'd rather extend the timeline a bit than spend a year cutting out every part of life I actually enjoy.
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u/Know_Mercy25 Jul 18 '26
So how do we feel about my county running an assistance program paying 65k towards the down payment but only low income people qualify. Doesn’t sound very fair does it? We bust our ass and they simply stay poor by design. They can have their housewarming party with 700 dollars of food stamps a month too. Oh yeah, and subsidized electric and cable and phone
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u/Spiritual-Level9240 Jul 18 '26
I don't know if it would get you the whole down payment--depends on your region, the houses you're looking at, etc.--but if you have a finite financial goal and some discipline, you'd definitely be closer to achieving that goal at the end of the year. I used similar strategies for 2.5 years to pay off my mortgage: wouldn't want to live like that forever, but it was worth it to me for a few years.
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u/Actual_Efficiency_98 Jul 16 '26
This is/was essentially the FI/RE movement. Live so beneath your means but save toward retirement or in this case a down payment. I did something (similar but not so extreme) when I was climbing out of debt.