I often wonder how owning a home can reduce poverty. But after close observations and the testimony of different homeowners I can confidently tell you that it is not only one of the ways but a major way of ending the circle of poverty for you. It is also a solid form of inheritance to be left behind.
Property rights reduce poverty by empowering the disadvantaged with various assets. Land is a critical asset, it provides a means of livelihood. In many cases, a property can be used as a collateral for other investment. A home is an income generating investment and the landless are excluded from these opportunities which is why they are often among the poorest.
If you still live in a rented apartment, all you are doing is enriching your landlord. You may not realize this early enough until your income becomes dried up by the economic meltdown, health issues, old age, and other unforeseen circumstances thereby making it difficult for you to pay your house rent.
I have once read a story of a security man in an organization who built a house on a less developed part of the town on his little salary while a top official was given accommodation, big salary, and an official car but he couldn’t build his own house because he thought it was unnecessary. One day he had a falling out with his boss and was sacked and thrown out of the organization. The security guard was sacked too but guess what? He already had his own house and was still living in it. While the top official was in need of an accommodation, he was offered an accommodation at the security man’s house.
From the story, we can see that your income shouldn’t be a barrier to owning your own property. So how do you own a property, no matter how small your income is? By following these 3 steps…
- Pay all debts and live within your means
From the story, we can deduce that the security man did not live beyond his means. He did not live an extravagant life and was able to save from the little he got. It is therefore important to live within your means in life in other to be able to achieve great things. Also, be reminded that debt kills all savings culture. So, try as much as possible to stay away from debts.
- Cultivate a saving habit
It is only after settling all debts that you can truly start saving. Otherwise, you will be saving money to pay off other debts. It is important to cultivate a saving culture no matter how little. Like it is popularly said “Save for rainy days”, the security man saved from his salary and the opportunity to make a right investment popped up.
- Don’t despise the days of little beginnings
Truly, the security man was earning a lot lower than the top official but he did not look down on himself. He invested out of the little he was earning and it saved him later in the future.
The moral of this story is, it is not too late to start saving and investing. Check up our post on Easy Ways To Save money if you would like to know more.