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Since I’m dead set against taking out any new loans, including a mortgage, I’m now planning to buy a house with cash. This is not an easy task, and it means that I can’t have a $100,000 house. In fact, purchasing a $50,000 house would be a stretch which is why I’m only looking at purchasing houses that are $20,000 or less.

Savings

To have $20,000 in 12 months, I need to save $1,666 per month beyond the cost of my bills. That means I need to earn a minimum monthly amount of $3,166 or $105 a day. It’s not going to be easy. In fact, it’s going to be really hard, but I think it’s doable. I just have to remember the end goal.

Fixer Upper

Buying a $20,000 house even in this economy means that I’ll be buying a fixer upper or handyman’s special. It means that I’ll probably have to buy all new appliances, water heater, heater and air conditioning unit, among many other repairs. In fact, the only things that I need to make sure are sound are the roof and the foundation. If those things are good, I can repair or replace everything else, but that also means I need more money than my initial $20,000 estimate. So, I’ll be striving to save an additional $10,000 for immediate repairs. That increases my daily needed income to $133. That’s more of a stretch. I don’t know that I can consistently earn $133 a day for 365 days, but I’m willing to give it my best shot.

Lease

Right now I rent. I’m getting ready to sign a new lease here in a few days. If I can’t save enough money in the next 12 months, I’ll have to find another temporary place to live while I save the last remaining dollars. This could mean moving in with a relative for a couple months. It could mean living in an extended stay hotel for $125 a week and renting a storage unit, but that’s not a bad deal. My current rent is $540 a month and when I include my internet and electricity, I pay $665 a month. A $125 a week hotel would only be $500 a month. A storage unit would cost me roughly $50 a month which is a monthly savings of $115. Of course, I’d probably end up in the hotel for four or five extra months instead of the two to three if I found a relative with an extra room, but I’m willing to make that sacrifice in order to not break a lease.

All in all, I should be able to save somewhere between $20,000 and $30,000 in the next 12 months. I just have to stay motivated and keep my goal in mind. The other bonus is that if I buy a house outright, I will have no house payment, and that makes the sacrifice worth it.