From Rags to Riches: How to Afford a Million Dollar Home by Retirement
The average American household has just a few thousand dollars sitting in a savings account. When you think about that, the prospect that most people have under 10 grand in cash sitting around, you might be wondering if any of them will ever achieve the income mobility necessary to buy a million-dollar dream home.
Even more important, will you be able to achieve that sort of income mobility?
Building wealth so you can understand how to afford a million dollar home, or one that’s much more expensive, is a skill that can be learned. If you’re interested in knowing what you can do now to pave the way towards the future you’ve always wanted, keep reading.
Below, our team shares the basics of what you need to know.
Get Educated
People that are college-educated tend to make much more than those that don’t have formal educations. This, if nothing else, is a bi-product of most higher-paying jobs requiring a 4-year degree as a barrier to entry.
It’s important to note that not any college degree is going to net you an ROI on your education spend. So, as you look to get a degree, prioritize ones that directly funnel into jobs in high-demand. Also, look to get those degrees from cheap public schools.
Work Hard
You’ve got your degree, now what? Hop on LinkedIn, start making inroads with people in your industry, grab an internship, pick up a job, and work.
Oh, and while you’re working, make sure you give it all you have.
It only takes a few months of hard labor to start building a good reputation on your team, at your company, and even in your industry. That reputation will be worth a lot of earning potential down the line.
Ditch Loyalty
There’s this perception that the most successful people, and consequently, those that eventually achieve their how to afford a million dollar home dreams, are the ones that stay most loyal to a company. That’s not true.
The biggest pay bumps you’ll get in your career will be the ones you’ll seize via hopping to a new job. If you do that every couple of years, you may very well double, triple, or even quadruple your salary in a decade. That means no more needing to get cash for your Apple products to buy nice things!
Believe us when we say that no single company is going to give you steady raises that’ll equal 400% growth over your initial salary.
Use Leverage
With steady, substantial earnings coming in, head to a financial institution when you’ve found that million dollar house you want, and talk to a banker about leverage. Leverage is when you put down a small amount of money and use somebody else’s cash to close the rest of a deal.
Put more simply; you can head into a bank and put down as little as $35,000 via an FHA loan to secure your million dollar home.
With the tips we’ve shared, believe us when we say that you’ll have more than that laying around.
You Now Know How to Afford a Million Dollar Home
Knowing how to afford a million dollar home is a lot easier a process than most people think. You don’t have to know how to get rich quick to accomplish that feat before retirement.
Just get educated, work hard, and put down a small payment on your home’s purchase price.
Curious to learn more about how to get money so you can retire the way you want to? If so, explore more insightful content on our blog.
