Every Penny Counts

It's six months into my saving scheme for a down payment. In taking stock, I realize I've done pretty well. Except this month with the purchase of a new car and attendant costs that have wrecked my budget. I expect to get back into shape in the coming months. I've relinquished both my credit and debit card to my mother for safekeeping. I admit that I'm suffering a bit of fatigue, depressed by the still-high price of real estate in California and the reality of delayed gratification that goes with long-term planning. There was a discussion over at the Sacramento Landing blog about the XY generation and our general lack of wherewithal to save. So, when I read this NY Times article about people my age who worked to save enough for a house payment, in New York no less with little help from parents, it was a dose of encouragement.

When Janey Lee and Pablo Agüero were struggling freelance Web designers, buying an apartment in Manhattan seemed like a dream, one clouded by credit-card debt, student loans that had to be repaid and the bills for their wedding. Their combined salaries of just over $100,000 qualified them for a mortgage, but it took a lot more for them to come up with the down payment. In a city synonymous with luxury and spending, Ms. Lee, 30, and Mr. Agüero, 35, decided to do without. They gave up smoking to cut costs, they stopped meeting friends after work for beers, they didn’t buy new clothes, and they stashed away tax refunds and as much of their earnings as possible. Whenever they wanted to buy drinks, gadgets or cookware, they asked each other: “Do I want an iPod or a house? Do I want a latte or a house?”