[b4freedom]

How many hours do you need to work to buy a house?

Let’s assume that you take out a mortgage for $100,000 @ 7% for 30 years. Your monthly payment would be $665.30.

Let’s assume that you make $20/hour and that you’re employer annually adjusts your salary for inflation. Let’s assume an inflation rate of 3% a year.

In order to pay your mortgage you would need to work 33.27 hours. Because your salary is adjusted for inflation, the following year you would need to work 32.3 hours in order to pay your mortgage. Assuming this continues, during the 30th year you will only need to work 13.70 hours/month in order to make your payment.