It is easy to believe that people will quit their jobs to follow their dreams. We have heard this done many times before. Some people became truly successful while others have failed. We have also heard of people dropping out of college and becoming millionaires years later.
Lets just look at Mark Zuckerberg, he drooped out of Harvard and created Facebook. He is now worth 45 billion dollars says The Forbes 400. While looking at some stats I began to wonder what would people consider an extreme sacrifice to follow their dreams. This brings me to today’s topic: Would you sacrifice your house to for that dream?
Home Ownership in America
In a chart from Statistic Brain Research Institute, 67% of Americans own their own home and only 30% are free and clear for 2014. Free and clear is the term used to describe a house that has no liens or mortgages.
|Year||Percent Who Own Home||Percent Free and Clear|
|2014||67.35 %||29.75 %|
|2013||64.5 %||29 %|
|2009||67.4 %||27 %|
The reality is most American home owners are stuck in long 30 year reacquiring mortgage payments. These mortgages can average anywhere from $400 up words of $2k.
In February of this year, the Bureau of Labor Statistics (BLS) released its Consumer Expenditure Survey for 2013. If you’ve ever bought a house before, you know that you actually pay more than just your mortgage every month. You have your property taxes, interest on the mortgage, insurance, and regular maintenance.
These expenses can run a couple thousand dollars alone.
How has the economy effected home ownership?
The U.S. home ownership rate fell to 63.4% in the second quarter of 2015, according to the U.S. Census. That is down from 63.7% in the first quarter of the year. This marks the lowest rate of home ownership since 1967.
Home ownership reached its peaked in 2004 at 69.2%.
“It is now just five-tenths from the record low seen in 1965 in data going back also to 1965,” noted Peter Boockvar, an analyst with The Lindsey Group. “All the governmental attempts (certainly aided and abetted by many players in the private sector) at boosting homeownership has gotten us to this point in time with all the havoc it wreaked over the past 10 years. It’s just another governmental lesson never learned, of don’t mess with the free market and human nature.”
In an article by the LA Times, there was a total of 895,521 foreclosure notices filed on U.S. properties during the second quarter of 2010. It was believed that, if the economy had not turned around, this number would reach a millions by the end of the year.
During this year the U.S. economy had reached record highs and non of them were good. Unemployment was still rising, foreclosure was through the roof, and a large percent of Americans lost faith in their economic system.
The term “job security” had began to fade.
Where does it all lead to?
Statistics show that a large percent of Americans pay 55% of their take home income on maintaining their homes. A home that they don’t have time to enjoy, spending most of their day at work.
In Juliet B. Schor’s The Overworked American, she states, “In the last 20 years, the amount of time Americans have spent at their jobs has risen steadily.” According to her calculations, the average worker is on the job one month longer per year than his/her 1969 counterpart.
With Americans now understanding that job security does not exist and banks, that own your mortgage, can put you out at any point, where does that leave you?
You currently work 60 to 80 hours for an employer who can at any time say, “Your Fired.” He also knows that you can be replaced. Replaced by someone who will do the same job for less pay or a machine that doesn’t ask for a raise. You spend all this time away from your home and are now worried about loosing it.
The facts are that you can fail at something you don’t like. You can be put in positions that you have no control over. There are no guarantees in life especially dealing with other people. The only person that should be able to control your life is you.
If you are going to have that home, at least use it to build something that is going to help you with your future. You could start a home-based business to help with those bills. It could also assist in you not having to spend so much time at work to keep your home.
If you are currently living in a house paying $900/mo mortgage, why can’t you live somewhere that’s only $600/mo. You could take that extra 300 to invest in your future. I know of a platform that helps entrepreneurs create a successful home-based business for less than that three hundred per month.
Most people want even click that link to see what it is. But why should they? They obviously have everything under control. They make more that enough money to pay their bills. They have a job and a boss that they love and loves them. They never have to worry about anything.
Can you afford to take the chance that you are wrong. Can your family afford for you to take that chance? It’s not just your future but it’s also their’s. In my opinion if I could not budget the amount of money needed to live my dream life, then I would sacrifice my house. That’s just me though and I know it is only temporary.
P.S. If you are interested in what that platform is, take a look here. This could be what will change your life. If not now WHEN?
P.P.S. Remember sharing is caring – Share with someone on social media that you think may benefit from this.