Paying Cash for a House
Written By: Dan Stanley | Posted: Monday, September 10th, 2012
The title to this looks like a possible scam. But it is the farthest thing from that. Did you know there was a time when people bought a home with cash? My own father bought the first home he and my mother owned with cash. It was $2,500 in 1951. How times have changed. Today, almost without exception, people have been raised to think it is necessary to borrow in order to buy a home, and it is nigh unto impossible to pay cash barring some unexpected inheritance or winning the lottery.
All of this thinking is because we have gradually changed from a society of people who save for what they are going to buy to borrowing for what they are going to buy. Needless to say, the burden and extra costs from borrowing are horrendous and long term. Most recognize this, but dutifully resign themselves to this as the only alternative to home ownership.
Recently another example of being able to pay cash for a home is taking place. Two young men (early twenties) have saved for years, investing their savings with a moderate return. The result is today they are able to pay cash for the home they intend to buy. This was not done by some fantastic, unbelievable plan. Rather it is the result of saving a percentage of their earnings since childhood.
If you want your children to be able to pay cash for their home, have them start when they are young. Under normal circumstances they should have no problem. If you are not sure how to help them do this, call or write for information. My book Becoming Debt Free has a section in it that explains how to save money. It gives a four step plan to money: earning it, giving it, saving and spending it. Notice last is spending, not first! If you want a copy of this book, request it from the U S Journal and it will be sent free for no charge.
And even those who are past their childhood can begin the process that would enable most of them to buy a home for cash within ten to fifteen years or less. What a relief and blessing it is to save up and buy versus always borrowing and make payments. Greater yet is the blessing that this can be done regarding the largest purchase we will make during our lifetime - the purchase of a house that is to become our home. - Dan Stanley, firstname.lastname@example.org