When I started out, it didn't take me long to realize that my biggest monthly expense was rent. It came to more than half of my take home pay and as a consequence, it made me feel very poor at the end of the month. I figured the best way to counteract that feeling was to think about the day when I would own my own place and not have to pay rent. There has to be a purpose and a goal to saving money. Just to watch a bank account get bigger is not enough. Although the past couple of years have been bad for the real estate market and prices are still low making it a good time to buy, my feeling are that prices will go even lower. It will be 2015 before we touch the bottom of this market. Be ready for that day, whenever it comes by building up a nice little nest egg to put down on a place to live cheaply.
My view is to buy in a place that is undervalued for whatever reason, pay it off quick and then only worry about incidental expenses like taxes and water bills. Now some people may feel that all this scrimping and saving is bad for the soul,. But I know from my own experience that there is nothing better than owning the place you call home. It gives a sense of freedom and security that can't be matched. Yes, you might now be treating yourself to Starbucks in the morning because you work hard and you deserve. But how about treating yourself to a vacation in your own home. Abundance will surely follow. There is nothing worse than having to give up the majority of your money every month for a roof. A roof provides safety and security. A roof makes you strong. If you have your roof paid off you won't have to cower before any boss.