Simple and Amazing Budgeting For Bug Out Location Purchases

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bug out location
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March 11, 2016

If you don’t make smart choices when purchasing a Bug Out Location (BOL), you could eventually lose it because you couldn’t afford it in the first place.

Do you want to know what you can afford?  I have a simple technique that can tell you something that is affordable according to what your income is.

Don’t Listen to the Lenders!

don't listen to lenders

Typically, Lenders tell you that a mortgage payment with Principle, Interest, Taxes and Insurance (PITI) added together should be 28% of your monthly income.  Don’t do this.  This is an overextension of the typical person today.  This doesn’t even cover the total price.

Your First Purchase Shouldn’t Break the Bank

Your first home price should not exceed your yearly income and the Monthly PITI should be no more than 20% of your taxable income.


If you make $50,000 a year, then you shouldn’t purchase a home that exceeds this cost (I give a 5% deviation here).  If you have a decent credit score, your mortgage will end up being $400 – $500 a month which will be somewhere around 10% of your monthly income.

Always provide a down-payment of 20%.

Always provide a down-payment of 20%, when you can.  This will bring the monthly cost down to 2-300 dollars.  It is totally worth it.

If you have horrible credit and no down payment, then you may achieve 20% of your monthly income, but you should consider if this is wise.

Don’t Endure Financial Strain after Your Bug Out Land Purchase

financial strain

I am assuming that you already have rent or a mortgage payment that is eating up some of your income.

Your secondary location should be no more than half of your yearly income, and should cost less than 10% of your Monthly income.  So your BOL should cost you (assuming you still earn $50,000 per year) less than $25,000 total and less than $500 per month.  With decent credit, this would actually be around 2-3 hundred dollars per month.

Cheap Land with a Large Down Payment will make your Bug Out Location affordable.

large down payment

You will have to achieve this one of the following ways.

Choose Cheap Land – This option doesn’t mean that you don’t get what you want.  You can get creative on how you will achieve this with repossessions or land that needs some TLC or work.

Provide a Large Down Payment – This will reduce the price of the property.  It will also reduce the risk to the lender, who will reduce your interest and monthly payments required.

Sound Choices are the Best Way to Protect Yourself

If you want to protect yourself, you have to take the time to analyse everything.  Don’t get emotional.

Don’t get impatient.  You need to give yourself time to save up and to find good deals.  If you are actively looking and stay patient, you can find those great deals that everyone else seems to get.


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Ken is addicted to fitness and mountain biking. He is such a thrill seeker, people are starting to be concerned!He enjoys MTBing, Hiking, Climbing, Geocaching, Orienteering, Weight Lifting, and Wilderness Survival.

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