How We Paid Cash for Our House (On an income of $40,000)

Twelve years ago, my husband and I saved $30,000 in 20 months to pay cash for our home. We were raising four children on one income which averaged just $40,000 a year. In this video, we tell you exactly what we did in order to save that much money in a short period of time. Then, we give you a 7 step roadmap for reaching your own great, big, nearly impossible goals.
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WHO ARE WE?
We're Hope and Larry and we raised our four sons, debt-free on a salary which was consistently under the national US median income. We paid cash for cars, vacations, furniture - even our home! For a huge dose of encouragement - plus, tips on saving money, budgeting, paying off debt, setting goals, and doing it all with a spirit of joy and abundance, visit us at our website.
WHERE YOU CAN FIND US:
Our website: underthemedian.com/
On Facebook: / underthemedian
On Instagram: / underthemedian
OUR PRODUCTS:
Personal Finance Planner:underthemedian.com/yearly-fin...
Home Energy Savings Guide: underthemedian.com/home-energ...
Biblical Financial Parenting Video Set: underthemedian.com/biblical-f...
3 Steps to Teaching Children a Biblical View of Money (Book and Video Set): underthemedian.com/biblical-f...
Laundry photos, © Gatehouse Media, photographer, Fred Zwicky, Peoria Journal Star, June 2, 2008.

[@UndertheMedian]

Be sure to hit that SUBSCRIBE button. Thanks!

[@makeupbyknighton3049]

Yes my husband and I bought our dream home in cash that was $425,000 . Everyone thought we were crazy because we worked so much but now we are debt free and have three kids and we laughed all the way to the bank

[@UndertheMedian]

You ROCK! That is an amazing amount of money to save for a home. Well done.

[@makeupbyknighton3049]

@@UndertheMedian thank you , it was a while . But worth it .

[@EmilyGloeggler7984]

What jobs did you do to do such?

[@maxinebellows741]

My mom never had a dryer. She hung up clothes on a line from our porch. She also had a drying rack that she put in our tub to dry clothes.

[@glendagrosjean477]

Keeping things positive, working as a team, praying together often, being thankful... so many good things. You two are a light! I'm thankful for you and your under the median ministry!

[@kalevalley]

I’ve watched this video MORE than once since you first posted it! Always inspirational while we are saving for our very own cash home purchase :)

[@UndertheMedian]

We are so happy that you are finding it helpful. Welcome to the Under the Median family.

[@zainabshoka4219]

Omg this is so motivating, my husband and i are planning to pay cash for our house🤲🙏

[@UndertheMedian]

Zanib, I'm so glad you found inspiration and hope in our story. I'm rooting for you. Work as a team and then take hold of that great, big goal with both hands and refuse to let go!

[@MRSSB82]

Old budgets!!! My husband has all our budgets for our entire 15 years of marriage, save the first six months before we heard about Dave Ramsey. It is kind of fun to look back at them every once in a while and reminisce. :) Have a great weekend! You both are so fun to listen to!

[@UndertheMedian]

We have my in-law's budget book and their diary from 1941 - the year they got married. They got married at 5pm in the church parsonage. The family had a very nice dinner for them afterwards at a local home. Dad spent $3.50 on a new hat. ( I guess that was his splurge).

[@carlabridgesmason3529]

I just started listening to y’all tonight...I’m loving your channel and content. We pay cash for everything, the peace of mind is priceless!

[@kalevalley]

Excited to have found your channel! We are currently working towards my husbands retirement from the army and hoping to pay cash for a house at that time, LORD willing. Couldn’t have found your videos at a better time! Thank you ☺️

[@hopeware3511]

I am so happy you found us. God always has perfect timing!

[@buzzybee186]

So, so inspiring. Especially Larry describing just looking in front of his bike wheel. Thank you both! Universe blessings to all!

[@hferr6078]

This was my favourite video of yours so far, it was so candid and motivational. Thank you for all you do, Hope and Larry. Love from South Africa

[@lj2070]

I revisit this story often to jive my goals up

[@amywerner6116]

I'm so glad I stumbled upon your channel. The tips at the end were great.

[@frugalhappy9572]

Yes, God is very important and prayer is a must as without it nothing would be possible to achieve, your family is blessed and now you keep sharing it all with us, thank you from Wales and God bless you!😘

[@kimberlyhall9106]

I really enjoyed this video. Thank you for sharing .

[@lj2070]

Thank you for all the helpful tips and hints. Saving up for my own cash house

[@dahlia42k12]

Thank you for the video! the stories you all tell, are very encouraging.

[@tinateews9494]

Just found your channel. You guys are inspiring and adorable couple. Thanks for sharing.

[@KatrinaCrandall]

I love your blog - it's practical and motivational. Thank you for sharing all your tips and more of your story!

[@UndertheMedian]

Katrina, thank you for your kind words. It is my pleasure.

[@laurieadams5328]

This was very inspirational. Thank you.

[@jeanetteglassel2765]

This is wonderful! I'm so glad I found you guys. My husband and I do exactly these things but you have put words to our testimony! God bless you!

[@UndertheMedian]

Jeanette, you just made my day! Thanks for stopping by our channel and for your kind words of encouragement. Keep up the good work on your own great, big goals!

[@danataylor7936]

Very inspiring and helpful.

[@alexandraivanova1165]

So encouraging! Thank you!

[@mrsmarfaasmr3259]

You’re such an inspirational couple. Praying definitely is crucial in any part of life 👍🥰❤️

[@tjdueck7201]

Love your videos. Thanks for all the advice. 🙂

[@beverlymcsheffery8811]

Wow!❤ You both are so inspirational. I was impressed with the fact you gave God the credit for directing your life decisions

[@susanmark2000]

Excellent video. Thanks.

[@rachelscanlon5805]

You guys bought at (pretty much) the bottom of the market during the last crash. Great job.

[@saullucio5180]

I feel very inspired after finding your KZbin channel. Blessings :)

[@lisadurbin5994]

The moment you realize that your new favorite KZbinrs are from "home." ❤

[@UndertheMedian]

Awesome to meet you! We must live in the same part of the Midwest as you do.

[@simplysimona4562]

Tysm!! Great video!!

[@EnglishWinterRunne]

Loving your channel guys - for some reason I am finding your videos quite compulsive viewing :) You are helping teach people that the consumer model we have been raised in is wrong and the solution is just to stop spending money. We have been taught spending money makes us feel better - breaking that training is hard. Please keep up the good work - I am loving your humble, honest energy - we all need to learn to nickel and dime

[@UndertheMedian]

Thank you for your kind words. We are glad to have you with us.

[@toniannicolari5991]

I just found you channel, and I'm enjoying it immensely!!

[@UndertheMedian]

Thanks, Tori. So glad you are finding it helpful.

[@xdamarisx1]

Great couple, like a well oiled machine! LOL Great information in this video! Thank you!

[@abigailolan2959]

Love your videos , I'm really learning alot from both of you.

[@UndertheMedian]

Abigail, thanks for hanging out with us. We appreciate it. Welcome to the Under the Median family!

[@ntombifuthidlamini3372]

I love this cou especially because they are God fearing and your tips are so practical

[@valdamarielegault1907]

Simples wisdom we can always be reminded of! Prayer is essentiall!

[@UndertheMedian]

It sure is!

[@cherylm.6448]

Lovely couple ♡ teamwork makes the dream work 🙏

[@marieriddel5915]

Awesome advice ☺️🇦🇺

[@joannedibben2352]

Really enjoyed this story it made a lot of sencex

[@shirleyroberts2623]

Thank you now I have knowledge on how to make this happen.and l am going through this now

[@pamelavizina1092]

Yes you two are an inspiration for the rest of us! ❤

[@barbaral3543]

You’re boys are blessed to have you both as their parents

[@Magicallife888]

Awesome tips.thanks.

[@UndertheMedian]

Glad it was helpful!

[@eversmanfamily]

Yes, God is the most important!

[@MsLucky443]

Amazing👏👏

[@tremont86]

Great advice 👍

[@UndertheMedian]

Thanks, Chuck. I appreciate you watching the video and commenting.

[@RaceySpacey]

In Australia you can hang out your washing and it's dry within an hour haha. I mean in winter it takes a few

[@tomaszwyszkowski2253]

Another tip would be to get a part time job if possible, to increase income . Great tips, very motivating, thank you!

[@GloriaCeleste]

#Relationshipgoals You too look so cute together. No wonder you have been together for all those years ❤️ Thank you for all your tips!

[@irenenava9662]

I just thank Jesus that i came across this channel ☺️💫🙌🏻

[@ellefson1]

I find your story inspiring! I think Larry's got the better title, and Hope's should be the subtitle.

[@UndertheMedian]

Thanks. I love your idea with the title, because that makes it a team effort.

[@annachatziioannou22]

Love you guys!!! Kisses from Greece ❤️❤️❤️

[@UndertheMedian]

Thanks Anna! Right back at ya.

[@sherryeislercarroll5978]

I love your blogs....

[@UndertheMedian]

Thanks, Sherry!

[@gemma8226]

Hello from NC. I have been watching you for a while now on youtube and I have enjoyed your videos. I have mainly watched the ones of putting back food for hard times ( prepping ) and how to store food for long periods of time. I have done this for years because we have a large family and I always wanna have more than I need put back. It especially came in handy during the Pandemic and praise God we always had enough. I am not far from retirement age and my husband has already retired and we are raising a adopted second family ( 4 grandkids, all teens now) I really wanted to get our house paid for by the time I am 62 but it seems like it is not gonna happen. I paid double payments for a long time, then stopped. It seems like not much is coming off the principal. When we were young and had our first two kids, we never made enough money to even have a savings account and we were very , very frugal ! So How long did it take for you to save up enough to buy your house ? And how much was the house ? Also, as high as houses are now, how could anyone save enough to buy a house ?

[@kate01141]

Interested in how you budgeted for social things with friends? Or how about when your boys wanted to go out with friends? What money rules did you put in place? I think this would make a great video!

[@UndertheMedian]

Our boys receive an allowance until age 14 for doing chores for us. For the most part, they paid out of that to go out with friends. Although, we would often offer to pay their way and they always appreciated it. At age 14, we stoped paying them allowance. Instead, they wrote out a list of items that they were saving toward and we agreed to pay half of the cost. They earned their half of the money (from working for someone besides us). At age 16, they got part-time jobs and we didn't pay for any of their social outings. We did match the first $2000 they saved toward a car. As far as money rules, they put half of the money they earned into the bank, tithed 10% to the church (their choice although we encouraged this practice), and spent 40%.

[@bettymarshall615]

Very interesting! I thought you look like two Christian people. So, God gave you all the wisdom n knowledge how to move out n pay off the mortgage in five yrs "To God be the Glory" some people would had work two n three jobs n work themselves to death.But, you were so bless to do what you all have done to save the money by cutting some things out.

[@katiejon17]

I have become VERY frugal over the past 7 years. But I’m having trouble grasping how you saved $20k in u def 2 years on such an income. My husband earns about $53k before anything is taken out and I run through how awe could save $10k in one year. Good for you two! You definitely inspire me.

[@UndertheMedian]

We had paid off the home that we were living in. That was a huge reason that we were able to save that much. We also pretty much had a "no spend" policy for those two years.

[@katiejon17]

@@UndertheMedian you know... I think we could save that if we didn’t have our mortgage as well. We took a 15 year mortgage and pay $203 xtra each month. My husband is getting a modest raise soon, and I imagine we’ll split that between savings and mortgage. Debt is for the birds.

[@oliviafox3310]

Yard sales and thrift stores are my weakness. 😀

[@anna-lenameijer9942]

I have lived in 1 house and 3 apartments debt-free. One major lesson is that I need to work 3 hours to pay a handy-mam for 1 hour. When he has paid taxes, there is $ 15 left of my 3 hours work! So I learnt to redecorate and lay floors, paint etc. One thing at a time, debt-free. It has taken time, but I have made my money work for me and not the bank. You eat an elephant one piece at a time.

[@donnaallgaier-lamberti3933]

01: It does costs gas and wear and tear on the vehicle to go to the library plus the the coffee. 02: I would like to know just what you paid for the house and what you had to work with from the home your sold. Twelve years you could still buy a home for $120,000. 02: In 2008 we had to earn $10,000 for a flood assessment. It took my husband and I three years, working two parttime jobs to earn that $10,000. We were driving 25 miles each way and only earning $10.00 an hour during that time period. THREE YEARS to earn that $10,000. In 2018 it costs us $20,000 just to sell our home and buy another one. This included having two septic systems drained and inspected,.two wells to inspect, one $85,00 electrical repair, the realtor fees at 6% and all of the bank and paperwork filing. In Michigan the seller pays ALL THE buyers and the seller's fees.

[@CassieDavis613]

House tour? Upgrades you guys did?

[@pinkypromise111]

New sub!👍👍👍🙌🏻🙌🏻🙌🏻🤗🤗🤗

[@UndertheMedian]

Welcome to the family! We're happy to have you with us.

[@prietalinda73]

This is were my husband and I are, our town and towns around us have became so dangerous is not even funny. We can't go out for a walk because we don't trust our new neighbors anymore, the neighbor on one of the corner houses is renting rooms to people that just came out of jail, have 2 register child molester's in our street. There's so many homeless around the stores, always something crazy happening, shootings. I can go on and on and on.....

[@UndertheMedian]

I feel your pain. That is exactly what was beginning to happen in our old neighborhood.

[@sstephens2175]

You spoke of numerous house repairs. Did you do the work yourself, hire it out, or equal of both? I've watched videos where people say, we haven't purchased new appliances. Only for them to say they have a new fridge, stove or AC unit, because their parents, grandparents, or in laws bought it for them as a gift. They will also say they don't buy their kids toys, because their family buys those things, or school clothes because their family buys those things. That's all fine, but everyone doesn't have that same family infrastructure or cushion to depend on, so it's nice to hear how ppl do it without major help or prop up cushions from family or friends.

[@UndertheMedian]

You were correct in your understanding that we did not have grandparents who purchased high value items for the kids. Larry's aunt did spend about $50 each on the boys for Christmas. Generally, they asked her for Legos. But, we truly did not have the luxury of depending on others to buy things for our kids. Clothing was hand-me-downs or from thrift stores. Toys were often second hand, too. Larry's parents gave us a washer and dryer as a gift when we bought our first home. They supported us in very practical ways, like helping us paint the kitchen when we bought the house. They were very down-to-earth people who believed in loving family by offering a listening ear, words of wisdom, and an occasional fresh-from-the- oven pie. We spent many fun days with them doing things which cost no money at all. In answer to your question, we hired out home improvements which exceeded our scope of knowledge. We did a lot of painting and Larry had a good understanding of basic home maintenance and wiring. Larry's best friend put in our new HVAC in at cost. We paid him in hot coffee and lunches.

[@sstephens2175]

@@UndertheMedian your lives are definitely very similar to ours. My mom was one of 10 and my dad one of 16, so I grew up knowing time was more important to children than money spent on them. What I wouldn't give to sit on the porch swing with my mamaw and eat plums from her tree in the front yard. My best memories as a child were at her house and it was just doing things with her, and her teaching me to sew a blind stitch, or how to clean or cook something. She was raising the first part of her family during the depression, so she knew how to do more on less. I really enjoyed learning from her. LEGO'S.... yeeees.... that was the main gift for my oldest son who always said he wanted to grow up to be a Lego Master builder. Even at 25 he gets Legos for his birthday and Christmas. Generally just a small set out of tradition. Someday his children will get to enjoy all of his childhood legos. Both boys played with them, but my oldest wanted nothing but Legos. You and your husband do a great job with your videos. Your advice is much needed in today's times. You kinda transport my mind to the days I used to listen to Larry Burkett. I bought a financial book by him in the early 2000's, (used from a thrift store, but it looked new...and still had the CD in it). It was very easy to implement and follow. Which makes me think of doctor Dobson and the Adventures in Oddyssey. My boys loved those. We never had regular TV, just videos that I hand picked. My son bought Netflix and put it on my TV this year. I honestly never did care for TV watching that much, but being home so much I have watched some movies on Netflix. I still prefer true stories that inspire me. We did Feature Films for the family when the boys were little. Being in military towns I was fortunate to find them at pawn shops for 3 or 4 dollars. I never bought any of them new. Keep up the great work. 😁🤩🤗😊😍

[@UndertheMedian]

@@sstephens2175 , in August of 1988 I opened our bank statement to find that we were nearly flat broke. We'd been married for 2 months, with no emergency fund, no money under a mattress, and no budget. Literally, the next week, Larry Burkett's daily program began. I worked at the radio station that aired it. I would wait until 2pm to eat my lunch. I would walk into the control room, start his program, and then sit down and take notes while I ate lunch. I owe that man a big hug and a huge "Thanks" when I get to heaven and see him!! Larry Burkett started us on this journey.

[@sstephens2175]

@@UndertheMedian what a great find at the beginning of your marriage. We married August of 89, but we were 19. I turned 19 twenty three days after getting married. I knew how to be thrifty, but definitely didn't have any money in savings.

[@UndertheMedian]

@@sstephens2175 , yep. That exactly describes me. I had lived with roommates before Larry and I married. So, I knew about how to figure out how to pay bills and not spend a whole lot on groceries. I made so little money it was like figuring out how to survive, but not how to thrive. I had zero in savings and needed to learn to budget and set goals.

[@samanthaoneill8628]

Hope and Larry how much do you think you need for 6mths worth of emergency funds??

[@UndertheMedian]

We saved six months of our basic expenses and we keep it in a checking account in a separate bank from our account from which we pay our bills each month.

[@rachelwesterman1223]

I'm wondering if house prices differ in the US to the UK. I live in a small, terraced house, no garden or front and that cost 8 times my annual salary. My annual salary is just slightly below UK average. Council tax is over 10% of my monthly salary. I can't imagine being able to pay cash for a house no matter how frugal I was.

[@UndertheMedian]

You are correct. The prices in England are generally higher than the US. In the US prices vary, depending on where you live. In major cities, prices are quite high. Where we live, in the Midwest, homes can be quite reasonable. Our advice is to buy a home within your budget and then pay extra on the principle to complete the terms of the mortgage more quickly.

[@rachelwesterman1223]

@@UndertheMedian yes we have been. Thanks for the videos. Great money saving tips 👍

[@monicarenee7949]

The house they bought is considered extremely cheap even for the US. However, those deals are sometimes out here depending on what city it is. I was able to get 2 deals a houses for less than half my yearly salary. They’re becoming more rare now though, house prices went kinda crazy recently.

[@CuteSeamus]

where's the video on 10 strategies?

[@regionalskygirl]

Happy that I found this great information while doing my weekly #youtubequarantinetravels as a part of my #sundaymorningactivities. I plan to visit again. 👍🏽👩🏾‍✈️🤑 #December2020

[@emilyk.benson7376]

$40,000 in 2002 is equivalent in purchasing power to about $27,000 today. Tell people how to live on 27k in 2020... and still save money ....yikes.40,000 dollars 12 years ago is a lot more money than it was today. $40,000 in 2002 is equivalent in purchasing power to about $57,477.27 in 2020

[@rachelscanlon5805]

I was very impression with Larry's mountain climbing mustache (circa 1985).

[@noti3093]

wait a minute, do you mean you paid cash for downpayment of your house or is that the value of your house? what state are you from? sorry i just came across your channel that's why i'm clueless

[@breezybre2670]

I think they used that cash plus the cash from the sale of the house they were living in that was paid in full already.

[@brendaroca1049]

I save for years my tax returns when the housing market collapse I purchased my home for 19

[@Otherwise88]

30k for a house. Seems like another planet. In my county houses start at 300k...for a small tow home.

[@UndertheMedian]

We owned the home we were living in (mortgage free) and had some savings in the bank (which was set aside to buy a home). The $30K was the amount we still needed to save in order to pay cash for the new home.

[@Otherwise88]

@@christinab6047 That is fascinating. Thank you for sharing.

[@mysticseer19]

$40 k is rich 🤑 in my book.

[@olesyahaith5994]

I was always wondering why instead of this crazy saving you, guys, didn't find an additional source of income? I think, it is much easier...

[@UndertheMedian]

Thanks. That's a great question. We actually answered it in this video: kzbin.info/www/bejne/gH6zpXd_hbyiptU

[@michellewalker9436]

Did you own a home at this ppint when you were in this bad neighborhood? Were you renting at this time and trying to get a second home? A bit unclear..

[@UndertheMedian]

We bought our first home in 1992 and paid off the mortgage off in five years. So, at the time we saved money for the new home, we owned the first home outright. In the 18 years we owned the home, the neighborhood, sadly deteriorated.

[@joycegonzales4994]

So you basically saved $1500 per month? Right? $30,000 in 20 months?

[@UndertheMedian]

Yep. Although, some months it was a little more and some months a little less.

[@kaythegardener]

@@UndertheMedian That is 20% more than my monthly income!!

[@tasharichardson9618]

How much was the house you paid cash for?

[@UndertheMedian]

$120K

[@breezybre2670]

@@UndertheMedian Yes, that is mindblowingly cheap for a house BUT.....great job!!!! Saving that kind of money, even if some of it is from a house sale is hard!!!

[@breezybre2670]

Our mortgage is 620,000 and so now we are using nickels and dimes to pay our other bills every month. But....it's ok. We moved for similar reasons to you....wellbeing of the children. :) Every day I see them running around on the 5 acres.....the sacrifices are worth it. And my husband works from home so now there is lot of space for his office which used to be in our closet.

[@UndertheMedian]

@@breezybre2670 , sounds like you have a lovely home and a life that you love.

[@breezybre2670]

@@UndertheMedian The home is....older...lol ..but we are making it as lovely as possible. :) Thanks to ypur videos the last 3 days have seen some major savings as we work to pay for one of those repairs!

[@gabyfields3235]

The two if you have an income of only $40k p.a.? What kind of jobs do you have? Even one of you alone should make way more! You seem fairly educated....oh well, that’s ‘Merca, the “greatest” (Third World) country on earth.🤪🤪

[@UndertheMedian]

You have to remember that we've owned our home for 10 years now. Our income averaged just under $40K a year during the years it took us to save up to pay cash for our home. We do make more than that now, but it is still under the US median income . Larry worked for a multi-media company and then went to work for our city. I stayed home, educated our children at home for 20 years, and have taken on a few freelance projects over the years.

[@breezybre2670]

@@UndertheMedian Good for you Hope!!! Staying at home is an important calling and homeschooling is so great as well.

[@kevinp6808]

Omg who says peddling drugs. Give me a break