Saving up to buy a Boston downtown condo can be difficult, especially in expensive real estate markets like Boston Beacon Hill, where the average median home price recently hit $690,000, and even a smaller condo or loft could run you about $450,000. Those staggering prices might make homeownership seem impossible. However, if you budget wisely using something called the 50/20/30 rule, owning a Boston luxury condo of your own in even the most expensive market can be a reality.
The 50/20/30 rule is a simple method of budgeting that allows you to quickly and easily set aside money each month for immediate expenses as well as future goals, such as buying one of the Boston downtown condo currently on the market, without having to get a degree in accounting. The numbers refer to the percentage of your overall income that gets placed into 3 different categories:
Boston condo: 50% portion of the rule
50% — Essential needs, which includes rent, utilities, transportation, child care, and other fixed payments you need to make each month no matter what
Boston condos: 20% portion of the rule
20% — Financial goals, which includes contributions to your savings, retirement, and investment accounts as well as paying off any debt
Boston condos: 30% portion of the rule
30% — Flexible spending, which includes money spent on the things you want but don’t necessarily need, like tickets to a concert or a new pair of shoes
Start by determining your total monthly income. Next, take a look at your spending habits. Write down everything you spend money on in a single month, from the big things like rent and car payments to the small stuff like going out for lunch on Fridays. Place each expense into one of the 3 above categories, then do the math to determine how your current percentages break down. If you find you’re spending more in one category than another, identify places where you can make adjustments until your future spending is more in line with the 50/20/30 guidelines.
Just looking at your finances this way should help you quickly realize where your money is going and how you can do a better job of putting money toward your goal of buying a Boston condo for sale. It won’t take long before that 20% category starts to add up, leaving you with enough money to take the dive into the real estate world, even if you live in a market with soaring home prices.
If you’d like to learn more about saving techniques that can help you work toward purchasing condominium for sale downtown Boston or another neighborhood in downtown, get in touch with 92101 Urban Living today. Call us at 617-720-5454, and we’d be happy to offer some tips and show you some of the properties currently available.
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