Before I submitted the offer and knew exactly how much the place would cost, I realized a mind shift was taking place.
Although I make decent living and have relatively low debt (student loans only), I wanted to make sure that I wasn’t spending a bulk of my income on the mortgage and association fees. So, unlike most people, I told my mortgage officer to put me for whatever will result in a similar monthly mortgage + HOA + tax & fees as much as possible after putting 10% down. Despite my mortgage officer telling me that I could qualify for $50k more than the number we were working with, that was my comfort zone.
But that 10% down number really impacted me. I started to view an extra $1,000 to equate to another $10,000 in property value. Even when I was dealing with much smaller amount, say $30 to take dessert and wine to a dinner gathering, I would think of that as $300, which was equivalent to 1 month HOA fees. $5 for lunch would be equivalent to $50, which is about my monthly electric bill. So on and so forth.
It isn’t exactly the same as compounding, but the power of money over time and what it allows you to do is the same.
Now that I have a hard number to hit rather than an elusive 10% down up to a certain amount, that 10% mind shift doesn’t really make much sense. But I try to think back to this mind shift each time I find myself enticed by desserts, take outs, and pretty baubles.
What are some of your money mind shifts that has helped you save? I would love to hear!