Can I Really Buy A House If I Earn Minimum Wage?

Buying a house can be achieved by anyone who is earning a low income if you create goals and you work hard to stick to it! It’s not easy to balance your finances especially when you find yourself running on empty before your next pay day, but there are ways you can save and watch your money grow so that you find yourself in a position to make an offer on a home.

The Reality of Buying a House on a Low Income

There’s no two ways about it, but when you earn a low wage, it is more challenging to save every month to create a deposit or ensure you have the installments to settle your mortgage.

It is not going to be a quick process. Remember, your earnings have to go a long way. You need to cover groceries, your current rent, medical, transport, and other expenses in your daily life. In addition to these costs, you need to put away a sum of money that you can afford towards your future goals. It may take you 3 to 5 years, but it is not impossible to buy a house when you earn $12 to $16 an hour.

First Determine How Much You Can Afford

What can you afford to put away every month? If you are 25 years old, you’ll need to save at least $172 every month to cover a 10% down payment by the time you reach 35 years of age. The younger you are and the sooner you start saving, the easier it is to put away some cash each month to afford the down payment on a home.

Look at your finances, your expenses and your income, and first consider what you can afford to out away to save. 

Save Your Taxes 

Saty up to date of your taxes and look at ways you can save towards your home buying plan. Managing your tax return is one of the best ways you can save. 

Are You Disciplined Enough to Build Savings

Remember, the money you put into a savings account will need to remain untouched! It can be hard not to dig into your savings when you’re stretched really thin financially by the end of the week or month but it’s something you have to get into the habit of doing.

Find a Savings Account with the Best Interest Rates

You should always find ways to get your money to work for you! This means opening a savings account that offers a competitive interest rate. This means raising some change to put back into your original deposit, so you have a little bit extra when you decide to withdraw your funds. Fixed deposit accounts usually offer the highest interest, but it also means depositing a lump sum and tying your money up for a few months. If you want to access your money during the active term, you may have to pay a penalty. Compare rates and the terms associated with each type of account to make the right choice.

Research, careful planning, and learning about the property market to understand the average prices can go a long way to help you build your finances to buy a house.