• IronpigsWizard@lemmy.world
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    1 year ago

    I do want to own a home at some point before death, so I’ve cut back spending across the board. I wouldn’t say I’m financially worse off, just working as many double shifts as possible (I work in healthcare, this is easy to do right now…also not a good thing) and not enjoying life at all for…3 continuous years now.

    $115k needs to be your annual salary in USD to buy a home right now, supposedly, I read that somewhere (maybe CNN?) in the past 2 weeks. I make nowhere near that.

    Factor in inflation on grocery prices & everything else, an mind you I shop at an Aldi’s and a wholesale club, it’s not a very easy time out there. Sometimes it feels like I’m saving for something totally unrealistic.

    • Wogi@lemmy.world
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      1 year ago

      That number is very misleading.

      That’s the average salary needed to afford the average home.

      But the average home in Miami or San Francisco is much more expensive than the average home in Wichita. And while prices are inflating everywhere, that does not mean you can’t afford a home without earning that much. The only thing that number tells you is that you need to earn more today than you did ten years ago.

      I would talk to a bank about what kind of loan you can qualify for, and assume you can afford about half of that. Because they’ll absolutely lend you more than you can reasonably afford.