I don't know how I could possibly save $100/week. I save that per month. I pay rent, heat, electricity, gym membership, cable (not parting with it, I'd go nuts without a TV, and it's just basic cable), old credit card bills (don't use them anymore, don't have to, but it's from grad school and times when I was so struggling I had to buy food with them), and student loan payments. that's it. I almost never buy food even, and I don't drive a car.
Unless you have a super-low interest rate, its best to pay off your credit cards before you worry about saving-up a lot of dough.
i totally feel for anyone in their 20s or so these days trying to afford housing. it's ridiculous. the worst part about saving for a down payment is working your ass off for a few years to save all that dough and in one pen stroke it's all gone. it's such a swift kick in the groin. oh and it doesn't get too much better once you get the house because you'll be replacing something every year. it's never ending i tell ya'
And this will make getting a mortgage more difficult.
I know. but I didn't have a choice. I raked that up in like a year-I lost my job, took one that had a $20K pay cut but couldn't get out my lease, lived like that for over a year and then went to grad school. it makes me fee guilty because the stereotype of people who have cc is that they're out buying things they can't afford.
but I don't need to own a house anyway. I don't see what's so bad about renting.
it ain't easy. i was fairly lucky, i had a decent sized nest egg from my parents that was my college fund....and it was up to me to manage when i turned 18. i was very, very wise with my $$$, and the leftovers i saved, saved, saved...kept invested, kept growing. i never made a lot of $$$ but my husband had a decent salary and we both were completely debt-free. it still took us 5 years of marriage before we were mentally and fiscally ready to purchase a home. we still live in the same house, just have made numerous improvements to our modest home. no of course we both have bigger incomes and that helps. costs have sky-rocketed on everything, so we still don't live an extravagant lifestyle, but certainly splurge, maybe too much on occasion.
seems you've got a LOT of really good adivce thus far. i will echo the sentiment on looking at ALL spending, even smaller purchases....and your financial weaknesses, what you are most apt to blow $$$ on that truly isn't needed. also, if you do have a lot of debt, may truly want to pay that down beofre taking on a mortgage to boot. owning a home costs a lot of $$$, and especially the first couple of years i found we spent, spent, spent on making improvements, so the 'doing without' in other areas of life doesn't end with the initial purchase, at least from my own experience. if you truly look at ALL your expenses your bound to find areas you could do away with, or skrimp on, to help fund your savings. it sucks, but the vast majority of us are not independently wealthy, and thus do have to forgo some right now pleasures for future gains.
good luck!
btw - not to discourage you or j.lo....but education while most definitely a very good job and pays decently.....be careful with what debts you take on for it. it IS a very competitive field nowadays, especially for full-time positions, getting into good schools, etc. it is a great career and rewarding, just think carefully how much you truly want to teach, and how much you will sacrafice for it. usually have to go to not-too-desirable schools for a few years in the public system, take a lot less $$$ in the private...and yes, the skills and education could take you further in other fields. i am sure you know a lot of this, just speaking from experience. however, i would not change my education, or my career path. i loved everything i've done.
I know. but I didn't have a choice. I raked that up in like a year-I lost my job, took one that had a $20K pay cut but couldn't get out my lease, lived like that for over a year and then went to grad school. it makes me fee guilty because the stereotype of people who have cc is that they're out buying things they can't afford.
but I don't need to own a house anyway. I don't see what's so bad about renting.
Renting is fine for some, but owning is a much sounder way of spending your money obviously, building equity.
There are plenty of folks who have cc debt out of necessity, but you should make a concerted effort to pay them down as much as you can...that interest is just a killer.
Renting is fine for some, but owning is a much sounder way of spending your money obviously, building equity.
There are plenty of folks who have cc debt out of necessity, but you should make a concerted effort to pay them down as much as you can...that interest is just a killer.
I pay $400 a month on it, that's all I can do at the moment.
ok, equity this and equity that--may I ask WHY I need equity?? No one ever includes that part now that I think of it. It's not all that "obvious" to me to tell you the truth.
ok, equity this and equity that--may I ask WHY I need equity?? No one ever includes that part now that I think of it.
A very simplified explanation:
Lets say your rent is $1000 a month. At the end of the year you've spent $12,000 and have nothing to show for it.
So you do this for 10 years, you've spent $120,000, they cancel your lease and you now have what for your 120K?
So lets say you buy a small condo for about 150K, and have a motgage of $1,000 a month...at the end of those 10 years you have spent the same 120k, but sell your condo for the same 150k (its almost assuredly gonna sell for more, but just simplifying), your mortgage has been paid down to 100K in principal...after you sell, you pocket 50K...and the longer you stay, the more principal you pay, the more you get back when you sell.
Thank you all truly, for your input so far. Obviously there is no easy fix, but its good to know there is hope right?
I'm not in the position that I HAVE to own asap. Its just something I need to be thinking about and working towards. My husband is a Residential Architect, and I can't TELL you the itch he has to own a place and make it wonderful inside. We are both realistic people though and we know that we can't make money out of thin air. We've been working on the debt situation and it feels to good to have a plan and such. In less then 4 years, we will be credit card debt totally free.. 4 years seems like a lot, but if I think about college being 4 years, that was the fastest time of my life. We did just open an ING orange savings account, and we are putting bonuses and raises into it, when we get them as to not tempt ourselves to buy something we may not truly need. Its just going to be a long process, which at times is disheartening.
I must say though, its great that my husband and I are on the same page money wise and goals. It makes for a great marriage. We may not be able to buy quite yet, but at least we can make goals and work together. Having a happy marriage is more important to me than owning a home. Can't rent a happy home life.
thank you again for all your advice and stories.. you guys are so kind.
Lets say your rent is $1000 a month. At the end of the year you've spent $12,000 and have nothing to show for it.
So you do this for 10 years, you've spent $120,000, they cancel your lease and you now have what for your 120K?
So lets say you buy a small condo for about 150K, and have a motgage of $1,000 a month...at the end of those 10 years you have spent the same 120k, but sell your condo for the same 150k (its almost assuredly gonna sell for more, but just simplifying), your mortgage has been paid down to 100K in principal...after you sell, you pocket 50K...and the longer you stay, the more principal you pay, the more you get back when you sell.
...yeah...but why do I NEED that money in the future? just so I can buy another house?
also I wouldn't say I have "nothing to show" for renting. I'm saving a lot of money by doing so. what little savings I have are still intact (and liquid), and I haven't thrown away thousands on closing costs and property taxes and getting toilets repaired.
(plus there's a time value of money too, but I won't get into that)
...yeah...but why do I NEED that money in the future? just so I can buy another house?
also I wouldn't say I have "nothing to show" for renting. I'm saving a lot of money by doing so. what little savings I have are still intact (and liquid), and I haven't thrown away thousands on closing costs and property taxes and getting toilets repaired.
(plus there's a time value of money too, but I won't get into that)
Well, if you remain single, then that money would probably only benefit you for say retirement...if you have a family, then there's things like colege and inheritance.
No matter how you want to spin it, in the long run, renting is not a better financial move to owning.
I must say though, its great that my husband and I are on the same page money wise and goals. It makes for a great marriage. We may not be able to buy quite yet, but at least we can make goals and work together. Having a happy marriage is more important to me than owning a home. Can't rent a happy home life.
That is the most important thing said in this whole thread. I could think of nothing more miserable than if my wife and I were not on the same page financially. Marriage is a partnership...you both have to work together to make it work. If you are working against one another, no one will come out ahead.
Yes, it can be dishearting at times to save money so slowly, but one day you will wake up and have enough to do what you need if you continue to chip away at that goal.
Not necessarily.. unless you plan on keeping the building for a long time or fixing it up, experts say you are better off renting and investing your down payment instead..
Well, if you remain single, then that money would probably only benefit you for say retirement...if you have a family, then there's things like colege and inheritance.
No matter how you want to spin it, in the long run, renting is not a better financial move to owning.
...BUT only if I sold the house.
If you buy a house and then live in it forever...then it's not a good financial move.
Like say, I for some reason had a kid...if, like you say, I'd want to use the equity on my house to pay for her college, I'd have to sell the house...and then I'd have to buy a new one to live in...so...how am I paying for college?
or more reasonably...I retire, so I sell my house to get the equity out...and then I'm back to renting!
Not necessarily.. unless you plan on keeping the building for 30 years or fixing it up, experts say you are better off renting and investing your extra money..
It's NOT always a better financial move to buy a house. period. people just tell themselves this to make themselves feel better about buying a $500,000 item and signing their lives away in mortgage!
I've read a few msn, cnn articles.. There is money in buying, but only if you keep the building for a long time or fix it up. This is why the housing market is collapsing now, because people think or payed waay more than their places are really worth. Inflation is what, 2, 3%? Expect the same rate added to the value of your place each year.. house prices don't just exponentially keep rising. After taxes, maintenance, bank interest, you only earn about the same on owning as you would investing your money into the stock market.
This thread isn't an argument on who is worse off, a renter or owner.
We rent, we'd like to own, and I was asking for people to share their experience if they came up with a down payment.
Please don't argue and get the thread shut down. No one said anyone had to buy or rent. Its a personal choice. What works for one person could be completely wrong for the next.
This thread isn't an argument on who is worse off, a renter or owner.
We rent, we'd like to own, and I was asking for people to share their experience if they came up with a down payment.
Please don't argue and get the thread shut down. No one said anyone had to buy or rent. Its a personal choice. What works for one person could be completely wrong for the next.
If you buy...buy a house with a/c.
This is the greatest band in the world -- Ben Harper
And truthfully, if you can't save up $17,500, you probably don't need to be buying a house that costs $350k. How do you expect to make the monthly payments?
I've read a few msn, cnn articles.. There is money in buying, but only if you keep the building for a long time or fix it up. This is why the housing market is collapsing now, because people think or payed waay more than their places are really worth. Inflation is what, 2, 3%? Expect the same rate added to the value of your place each year.. house prices don't just exponentially keep rising. After taxes, maintenance, bank interest, you only earn about the same on owning as you would investing your money into the stock market.
which is still a helluva lot more than you earn renting....b/c the money put into rent goes into the landlord's pockets, not into your own stock portfolio.
over and over and over....it's studied and discussed, owning is a far better financial investment than renting. obviously, there are very good reasons to rent. but looking at it from a purely financial standpoint any financial advisor would say the same.
This thread isn't an argument on who is worse off, a renter or owner.
We rent, we'd like to own, and I was asking for people to share their experience if they came up with a down payment.
Please don't argue and get the thread shut down. No one said anyone had to buy or rent. Its a personal choice. What works for one person could be completely wrong for the next.
It's NOT always a better financial move to buy a house. period. people just tell themselves this to make themselves feel better about buying a $500,000 item and signing their lives away in mortgage!
Of course buying a house can be a bad decision, but that's not because actually buying one is, but more than likely which house or how quickly you try to sell it.
If you over-reach and get yourself strung out financially, then you probably were better off renting a cheap apartment and investing in your savings. But if you are smart about it and buy a house within your means, in the long run it will be a good investment.
My whole life
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
This thread isn't an argument on who is worse off, a renter or owner.
We rent, we'd like to own, and I was asking for people to share their experience if they came up with a down payment.
Please don't argue and get the thread shut down. No one said anyone had to buy or rent. Its a personal choice. What works for one person could be completely wrong for the next.
Sorry,.. I'm not argueing.. just stating what I recently read..
I lived with my parents extra years to save up money.. I could put 10% down on a place now, but I feel more comfortable renting.
I also currently budget $200 a month into my savings. It depends what you spend your money on.. I make barely 30k a year and pay about $850 a month in rent and utilities... I have friends making 80k a year who are broke.. go figure.
i live in Toronto where ave. house costs around 500K. teh ave. 1bedroom condo cost 270k. i make around 48 k a year. i am a social worker. i have been working for teh past 17 years,i am 31 now. what i did is save 200 a month since i was 21. that gave me 24k. i just bought my first condo in toronto for 260k. it is hard. what i sould suggest to you is take out a private loan (if you can) for the downpayment and when you buy your house rent out a part of it to pay the laod back. i don't know if you are interested in having another person living with you but it would help.
People demand freedom of speech to make up for the freedom of thought which they avoid."
- Soren Aabye Kierkegaard (1813-1855)
If you haven't got anything nice to say about anybody, come sit next to me."
- Alice Roosevelt Longworth (1884-1980)
I don't know how I could possibly save $100/week. I save that per month. I pay rent, heat, electricity, gym membership, cable (not parting with it, I'd go nuts without a TV, and it's just basic cable), old credit card bills (don't use them anymore, don't have to, but it's from grad school and times when I was so struggling I had to buy food with them), and student loan payments. that's it. I almost never buy food even, and I don't drive a car.
It doesn't have to be $100/week - it can be more or less. Any amount of money over time will grow - just save what you can. We were fortunate to be living in a very affordable apartment, so that helped a lot...and at the time I didn't have my addiction to shoes...so that helped even more!
Comments
Unless you have a super-low interest rate, its best to pay off your credit cards before you worry about saving-up a lot of dough.
oh i have $13,000 in cc debt, I'll never pay it off. I can't even get it down $1000.
I know. but I didn't have a choice. I raked that up in like a year-I lost my job, took one that had a $20K pay cut but couldn't get out my lease, lived like that for over a year and then went to grad school. it makes me fee guilty because the stereotype of people who have cc is that they're out buying things they can't afford.
but I don't need to own a house anyway. I don't see what's so bad about renting.
seems you've got a LOT of really good adivce thus far. i will echo the sentiment on looking at ALL spending, even smaller purchases....and your financial weaknesses, what you are most apt to blow $$$ on that truly isn't needed. also, if you do have a lot of debt, may truly want to pay that down beofre taking on a mortgage to boot. owning a home costs a lot of $$$, and especially the first couple of years i found we spent, spent, spent on making improvements, so the 'doing without' in other areas of life doesn't end with the initial purchase, at least from my own experience. if you truly look at ALL your expenses your bound to find areas you could do away with, or skrimp on, to help fund your savings. it sucks, but the vast majority of us are not independently wealthy, and thus do have to forgo some right now pleasures for future gains.
good luck!
btw - not to discourage you or j.lo....but education while most definitely a very good job and pays decently.....be careful with what debts you take on for it. it IS a very competitive field nowadays, especially for full-time positions, getting into good schools, etc. it is a great career and rewarding, just think carefully how much you truly want to teach, and how much you will sacrafice for it. usually have to go to not-too-desirable schools for a few years in the public system, take a lot less $$$ in the private...and yes, the skills and education could take you further in other fields. i am sure you know a lot of this, just speaking from experience.
Let's just breathe...
I am myself like you somehow
There are plenty of folks who have cc debt out of necessity, but you should make a concerted effort to pay them down as much as you can...that interest is just a killer.
I pay $400 a month on it, that's all I can do at the moment.
ok, equity this and equity that--may I ask WHY I need equity?? No one ever includes that part now that I think of it. It's not all that "obvious" to me to tell you the truth.
Lets say your rent is $1000 a month. At the end of the year you've spent $12,000 and have nothing to show for it.
So you do this for 10 years, you've spent $120,000, they cancel your lease and you now have what for your 120K?
So lets say you buy a small condo for about 150K, and have a motgage of $1,000 a month...at the end of those 10 years you have spent the same 120k, but sell your condo for the same 150k (its almost assuredly gonna sell for more, but just simplifying), your mortgage has been paid down to 100K in principal...after you sell, you pocket 50K...and the longer you stay, the more principal you pay, the more you get back when you sell.
1. They make lots of money
2. Their parents/grandparents/whoever gave them the money for the down payment.
3. They save and save for years and years and sacrifice getting lots of fun outta life during that time.
I'm not in the position that I HAVE to own asap. Its just something I need to be thinking about and working towards. My husband is a Residential Architect, and I can't TELL you the itch he has to own a place and make it wonderful inside. We are both realistic people though and we know that we can't make money out of thin air. We've been working on the debt situation and it feels to good to have a plan and such. In less then 4 years, we will be credit card debt totally free.. 4 years seems like a lot, but if I think about college being 4 years, that was the fastest time of my life. We did just open an ING orange savings account, and we are putting bonuses and raises into it, when we get them as to not tempt ourselves to buy something we may not truly need. Its just going to be a long process, which at times is disheartening.
I must say though, its great that my husband and I are on the same page money wise and goals. It makes for a great marriage. We may not be able to buy quite yet, but at least we can make goals and work together. Having a happy marriage is more important to me than owning a home. Can't rent a happy home life.
thank you again for all your advice and stories.. you guys are so kind.
...yeah...but why do I NEED that money in the future? just so I can buy another house?
also I wouldn't say I have "nothing to show" for renting. I'm saving a lot of money by doing so. what little savings I have are still intact (and liquid), and I haven't thrown away thousands on closing costs and property taxes and getting toilets repaired.
(plus there's a time value of money too, but I won't get into that)
No matter how you want to spin it, in the long run, renting is not a better financial move to owning.
That is the most important thing said in this whole thread. I could think of nothing more miserable than if my wife and I were not on the same page financially. Marriage is a partnership...you both have to work together to make it work. If you are working against one another, no one will come out ahead.
Yes, it can be dishearting at times to save money so slowly, but one day you will wake up and have enough to do what you need if you continue to chip away at that goal.
...BUT only if I sold the house.
If you buy a house and then live in it forever...then it's not a good financial move.
Like say, I for some reason had a kid...if, like you say, I'd want to use the equity on my house to pay for her college, I'd have to sell the house...and then I'd have to buy a new one to live in...so...how am I paying for college?
or more reasonably...I retire, so I sell my house to get the equity out...and then I'm back to renting!
and just what experts say this?
well The Economist has had articles on this.
It's NOT always a better financial move to buy a house. period. people just tell themselves this to make themselves feel better about buying a $500,000 item and signing their lives away in mortgage!
We rent, we'd like to own, and I was asking for people to share their experience if they came up with a down payment.
Please don't argue and get the thread shut down. No one said anyone had to buy or rent. Its a personal choice. What works for one person could be completely wrong for the next.
If you buy...buy a house with a/c.
And truthfully, if you can't save up $17,500, you probably don't need to be buying a house that costs $350k. How do you expect to make the monthly payments?
which is still a helluva lot more than you earn renting....b/c the money put into rent goes into the landlord's pockets, not into your own stock portfolio.
over and over and over....it's studied and discussed, owning is a far better financial investment than renting. obviously, there are very good reasons to rent. but looking at it from a purely financial standpoint any financial advisor would say the same.
and....
absolutely.
personal choice is the KEY.
Let's just breathe...
I am myself like you somehow
Of course buying a house can be a bad decision, but that's not because actually buying one is, but more than likely which house or how quickly you try to sell it.
If you over-reach and get yourself strung out financially, then you probably were better off renting a cheap apartment and investing in your savings. But if you are smart about it and buy a house within your means, in the long run it will be a good investment.
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
I lived with my parents extra years to save up money.. I could put 10% down on a place now, but I feel more comfortable renting.
I also currently budget $200 a month into my savings. It depends what you spend your money on.. I make barely 30k a year and pay about $850 a month in rent and utilities... I have friends making 80k a year who are broke.. go figure.
No kidding.. its 100 today.. I've got moving on the mind.. hardcore!
Once I get out of this town
9/29/04;6/27/08;6/30/08;8/23/09;08/24/09;5/17/10
- Soren Aabye Kierkegaard (1813-1855)
If you haven't got anything nice to say about anybody, come sit next to me."
- Alice Roosevelt Longworth (1884-1980)