Money Saving Mom Buys House For Cash!

**disneysteve** · 07-10-2010, 06:17 PM

I was just listening to Dave Ramsey today (the podcast of his show from a few days ago). He mentioned a story that is in one of his books of a couple that got married and rented a garage apartment for 4 years. The guy earned 50K. The gal earned 30K. They lived on her income and banked his and in 4 years, bought a 200K house for cash. Certainly not the normal American method of doing things but when you really think about it, it isn't as outrageous as it might first sound.

My wife and I bought our house less than 2 years after getting married. Until then, we were renting a house from a family member at a below market rate. We could easily have stayed there another year or two. That wouldn't have enabled us to buy our house for cash but we could have saved up another 30K probably and had a much smaller mortgage. We didn't really think about that at the time. If I had to do it again, I'd probably consider that.

**Joan.of.the.Arch** · 07-10-2010, 07:08 PM

She sure is excited. Good for her.

His story is now a half century old, but my Dad enjoys telling how he sold his first house to a buyer who showed up at closing with, real dollars-- paper money, the full amount. Supposedly the professionals were baffled as to how to proceed.

Anyone trying that these days would be suspected of criminal activity, wouldn't they?

**investingnoob** · 07-11-2010, 04:48 AM

How sweet would that be to have no mortgage. They paid no interest and won't have an annoying mortgage.

**creditcardfree** · 07-11-2010, 06:15 AM

I like that Dave Ramsey story from his book too. It can be done. It takes patience and sacrifice, but wow what a feeling it must be!

**feh** · 07-13-2010, 09:06 AM

We bought our home for cash 3 years ago. Sure did make the closing simple!

**NJDebbie** · 07-13-2010, 09:37 AM

I was so excited when I read that Crystal and her husband Jesse from moneysavingmom.com had purchased their home cash. She has inspired to really buckle down and pay off my house. I get sick every time I see $1,000 going towards interest.

**Ima saver** · 07-13-2010, 11:14 AM

My parents saved up savings bonds and paid cash for their retirement home in Fla. I did not pay cash for my first home, but I got it paid off in 10 years and have paid cash for every home since then. We have always gone up in house, so this one is my biggest and best with no mortgage at all. ( it does help that my dh is a builder, so labor is free!)

**My English Castle** · 07-13-2010, 11:43 AM

Money-Saving Mom is one of my regular web stops. She's been a blessing to everyone who reads her blog. Congrats to her!

**bjl584** · 07-14-2010, 11:43 AM

That is interesting. I guess that wasn't all that uncommon years ago, but today it is nearly unheard of. I could just imagine the look on everyone's face at the closing if I were to show up with a briefcase full of money to buy a house. They would probably call the police!

**littleroc02us** · 07-15-2010, 06:11 AM

It's a sad world we live in when paying for things with cash is suspected to be a crime.

**creditcardfree** · 07-15-2010, 07:33 PM

Well, likely it was a cashiers check from the bank...not a briefcase full of cash!

**rob62521** · 07-16-2010, 06:19 AM

What a terrific story! It's all about priorities...saving for a home was far more important than keeping up with the Joneses!

Money Saving Mom Buys House For Cash!