buying a home for cashHome buying has been on mind a lot lately. One of the reasons for this is that my income is starting to increase and I finally have money to stash in savings. Although I feel a little cramped in my 900 square foot trailer I know I need to stick out my living arrangements for a little while longer.

Buying a home is definitely in my future but will come only after I meet my other financial goals. And while I am itching to find a nicer place to live I’d rather wait and save up cash to purchase a house.

Here’s why.


The Benefits of Buying a Home with Cash

Just looking at getting a home loan makes me also think about buying a home with cash Dave Ramsey comes to mind. “If you will live like no one else, later you can live like no one else” just echoes in my head. That’s because it’s true.

If I am willing to stay situated in my snug little trailer for a few years and save money then I will be able to live like no one else – sooner than later.

It would be fantastic be completely debt free and own a home outright. No payments, no thirty year mortgage, and no debt. What could be better?

Of course as appealing as owning a home outright sounds it comes with a lot of hard work and a strong commitment to a savings plan.


Saving to Buy a Home with Cash

Here comes the hard part – facing the mental demons that make you want stuff and make you want it now! If you can get past those mental barriers and create a savings plan then everything will pan out.

Personally $100,000 would buy me a very nice home in my area. And honestly I could probably make do with $60,000. So if I wanted to purchase a $100,000 dollar home within five years I would need to save $1667 a month. This would break down to $416.75 per week. Since my saving goal right now is $1,500 a month this seems pretty feasible. In theory my income would grow over the next five years and I might be able to have that $100,000 saved a bit sooner.

I could really ramp up my savings if I concentrated on making frugal moves and kept my eyes on the goal. I could keep living in my trailer for another three to five years, work on bringing in extra money, and keep challenging myself to make smart money decisions.

I could also begin to house hunt when I had accumulated $60,000 and might even end up lucking out with a bargain price or find a fixer upper that I could invest in. If I was to purchase a home for $60,000 I would only need to save that $1667 for three years!

It definitely seems like 3-5 years of sacrifice and hardcore savings would be worth it in the end!


What About The Downfalls?

There are many “financial experts” who claim that you should take on a mortgage for the interest deductions you get on your taxes. I don’t buy it – especially if your interest isn’t going to meet the minimum deduction amount anyway. My ex-husband and I had a house with an $80,000 loan on it. We paid interest every year but it was never enough to deduct on our income taxes. So, how would taking on debt be better than paying for the home in cash? And, what about all the money wasted in interest payments, is the tax deduction really worth it? I think not.

Another common argument is that you should take advantage of today’s low interest rates and instead invest your money into assets with higher returns. This is all fine and dandy (and logical) but the feeling of not having debt is much better in my opinion.

I’d rather be debt free, own my home outright, and THEN invest in high interest bearing investments. Not the other way around.

Everyone feels different about this and as I always say – to each their own. What makes me feel comfortable might not make you feel comfortable and vice versa. If you feel tax deductions and low interest rates are worth taking on the debt for I can respect that.



I love saving money and I love accomplishing my goals. It would feel amazing to be able to tackle such a huge goal of paying for a home in cash. It might take a while to reach a big goal like this but it can be done. If you feel like purchasing a home with cash is right for you make a plan and stick to it! You’ll be so glad that you did!

About Alexa Mason

Alexa Mason has written 192 articles on this site..

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at

2 Responses to Living Like No One Else: Buying a Home with Cash

  1. I think buying a home makes sense if you are going to use it as a rental property or if you would have to pay a high interest rate on your home loan. With the current interest rates right now, I would rather just put down a down payment on a home.

  2. I love that Dave Ramsey quote, and I think of it a lot. I kind of tend to agree with Donny about the situation with interest rates currently, but I think that personal finance is a very personal subject and if it will make you feel better, happier, and more fulfilled to buy a house with cash then that is exactly what you should do. As you say, to each his own!

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