Please read this. Save 20K in 4 years.

[Liquid]

I know many on here get annoyed with some of the shyt I post, but I have been watching these 2 forums in "No BS" the whole election cycle and it appears that many of you are worried about what is possible. We all joke on here about 6 certs, 6 whips, 6 dimes and zero children, but it's time to get real. This is a simple, no nonsense and no risk method to get to you in a stable position if you are still doing the check to check grind. Investing is also smart, but getting to a certain comfort level is what most should try to strive for in the immediate future and look at investment opportunities years down the line. Patience is key, most of us on here are in our late teens to early 30's...plenty of time to live out our 30's-80's to live comfortably.

I can understand all the concerns, but I must remind you guys that it took YEARS of Bush for things to turn the way they did. If things are to get worse it will be a downward slop over the course of a few years. I strongly advise that you guys individually save at the very least 20K. If you are with a partner...40K-50K would be ideal. Eliminate all debts outside of student loans as quickly as possible, take advantage of lump sum payoffs as you can sometimes see large 50% cuts in some cases.

So why 20K? Simple, 20K is enough to put a minimum down payment on a 500K house. The average home price in 49 out of 50 states is under this number.
http://www.statisticbrain.com/home-sales-average-price

Convinced your partner to do the same? Your savings after 4 years have put you in a position in where you can possibly put a down payment on a million dollar home if your income is strong enough to support the mortgage/expenses.

Also, 20K ($14 per day for 4 years) isn't that hard to reach over a few years and should not take drastic lifestyle changes to achieve it. If you can save more or already have more saved? Congrats, this thread is not for you, but would love your feedback. I know a few people on here make pretty good money and all the insight will be beneficial. 20K is the floor, but the reality is that many of you can easily save much more without making much changes to your lifestyle.

Step 1 - Itemize and analyze all your expenses and make cuts wherever possible.

This can be simple things such as changing phone carriers or possibly hopping on a family plan with your partner. Don't make unrealistic cuts that are going to make you miserable, but just look at all the alternatives. Many of the providers out there have prepaid services in which data is a little slower, but you will likely be able to get by. Change to more energy efficient bulbs etc. EVERYTHING counts, don't just dismiss something because it only saves you $5 per month or whatever the seemingly insignificant number is...it will all add up. Cook more and still set at least 1 date night out per week...all simple shyt.

If you are in the market for a new car get the most fuel efficient car you can possibly grab and even consider a hybrid/electric in the price range you had in mind. This will help dramatically if you are considering uber/lyft as a part time gig.

Whatever you have left over each month? Try to throw at least half of that into an external account you don't have immediate access to. Don't put it into a CD or anything that will hit you with a penalty if you have an emergency and need access to the funds.

Step 2 - Consider a second job, but chances are you won't have to do anything crazy.

Again, a lot of this is to try to reach the goal without making dramatic lifestyle changes.

Have a car? Why are you not signed up with Uber/Lyft if the service is available in your city? Remember that $14 per day number I brought up earlier? You can make that with Uber/Lyft EASY and you don't even have to commit to a schedule. It can be broken down simply by doing a ride before and after work. Average ride in my city is apparently $7 or so. That will satisfy your $14 target. Open an external account and have your uber/lyft earnings sit in an account you are not looking at.

Don't have a car? Whatever your passion is, chances are there is a way to monetize that online without having to commit to a hard schedule. You just have to do research on what is out there.

Don't waste your tax refund. Have credit card or other debts that need to be handled? This is the time to take advantage of that lump sum that is about to be direct deposited to your account. Negotiate with the debt collectors after taking their call. Act a bit cautious during the phone call and see what they can do for you in terms of a lump sum discount. Don't call them, they will call you to get that money. You calling them puts them in no hurry to give you a deal...you are putting them in an advantageous position by calling them. If you find a settlement that gives you a large discount on what you owe? Get them to send it to you in writing and then pay afterwards. It's incredible how many people don't take advantage of this and get suckered into paying monthly and paying a "fee" on top of the collection. Follow the simple obvious choices, eliminate the highest interest charging cards/debts and go from there. Check resources like credit-karma to track all your work.

Step 3 - None of those can be done? Consider moving

Listen, this is the last step and by far the most drastic thing you can do. Love your big city, but simply can't afford it? Why fight it? You are struggling just to make ends meet and living in a hamster wheel not going anywhere. It will be a temporary move if you truly love where you currently live. This will be a 4 year financial plan to move back to the city that you truly want to live in. This step obvious requires the most calculation and of course a plan for relocation not only for you, but your partner and possibly kids as well. Do your homework if this is the plan you think is going to enable you to get ahead. Close to your family? Try to stay within a few hours driving distance so that several trips per year are feasible by car or greyhound/amtrack. Don't do anything that is going to make you miserable.

Also to close...shortcuts are always enticing, but always proceed with caution. Like flipping items you find on craigslist/ebay? That has been a long-time hobby of mine, but have curbed it quite a bit lately. I am in a position now in where I don't have to do that anymore and life a much more relaxed lifestyle as a result of it. I have taken the approach that a $10-$12 steady job is better than aiming for the quick $100 flip all the time.

List, analyze, save and then look at where you are at the end of each December. You have 2 weeks before the start of the year and a little under 2 months before people start getting their tax refunds deposited. You can do this.

 

[Cynic]

I know many on here get annoyed with some of the shyt I post, but I have been watching these 2 forums in "No BS" the whole election cycle and it appears that many of you are worried about what is possible. We all joke on here about 6 certs, 6 whips, 6 dimes and zero children, but it's time to get real. This is a simple, no nonsense and no risk method to get to you in a stable position if you are still doing the check to check grind. Investing is also smart, but getting to a certain comfort level is what most should try to strive for in the immediate future and look at investment opportunities years down the line. Patience is key, most of us on here are in our late teens to early 30's...plenty of time to live out our 30's-80's to live comfortably.

Not having children could be financially sound to some.... what's not "real" about that ?

No risk = little reward. We live in the Western world, life is comfortable already no ?

Investing is also smart ? .... let's read on and see where you intend to place this 20k in 4 years, shall we ?

I can understand all the concerns, but I must remind you guys that it took YEARS of Bush for things to turn the way they did. If things are to get worse it will be a downward slop over the course of a few years. I strongly advise that you guys individually save at the very least 20K. If you are with a partner...40K-50K would be ideal. Eliminate all debts outside of student loans as quickly as possible, take advantage of lump sum payoffs as you can sometimes see large 50% cuts in some cases.

How does the Bush administration tie into this ? Trump and a republican senate are pro business
Things will get worse for a lot of unskilled workers whose jobs will get replaced by technology ..that's inevitable
OK save 20-40 k...got it ...what grand income ascension vehicle/asset are we to spend this 20k on ?

So why 20K? Simple, 20K is enough to put a minimum down payment on a 500K house. The average home price in 49 out of 50 states is under this number.
http://www.statisticbrain.com/home-sales-average-price

Interest rates are artificially low and your recommendation is to rent a house from the bank ?

Doesn't that contradict this "eliminate all debts" philosophy ?

Convinced your partner to do the same? Your savings after 4 years have put you in a position in where you can possibly put a down payment on a million dollar home if your income is strong enough to support the mortgage/expenses.

It gets better, I see

Also, 20K ($14 per day for 4 years) isn't that hard to reach over a few years and should not take drastic lifestyle changes to achieve it. If you can save more or already have more saved? Congrats, this thread is not for you, but would love your feedback. I know a few people on here make pretty good money and all the insight will be beneficial. 20K is the floor, but the reality is that many of you can easily save much more without making much changes to your lifestyle.

Step 1 - Itemize and analyze all your expenses and make cuts wherever possible.


Step 2 - Consider a second job, but chances are you won't have to do anything crazy.


Step 3 - None of those can be done? Consider moving


List, analyze, save and then look at where you are at the end of each December. You have 2 weeks before the start of the year and a little under 2 months before people start getting their tax refunds deposited. You can do this.

So spend 4 years saving 20K ... just to end up owing 500k- 1 mill on a non-income producing asset ?

I'm with you on monitoring expenditure but that's where it ends ... I'm not of this scarcity mindset
and don't believe money is this finite resource...and one should strive to live the life they want
by creating more income not by saving currency that will be worth less due to inflation......

but hey maybe this will of value to others who just want a "secure" life

 

[ⒶⓁⒾⒶⓈ]

Very positive post..i just want to point out that most financiers are generally asking for 10% down these days tho..so 20k would limit you to a 200k home.

 

[N.J.stan]

Barclays bank offers a 1.0% interest rate on their online savings account, the highest I've found recently. No ATMs/branches in the US, but if you're parking money and want zero risk, but some reward, it's a good option. I transferred half my checking account over.

Really need to get a handle on my spending. I don't really track it at all/have any sort of budget

 

[ADevilYouKhow]

Smart Year-End Tax Moves for 2016 (Part Two) | Investopedia

Worth a look/refresher

 

[Liquid]

Not having children could be financially sound to some.... what's not "real" about that ?

No risk = little reward. We live in the Western world, life is comfortable already no ?

Investing is also smart ? .... let's read on and see where you intend to place this 20k in 4 years, shall we ?



How does the Bush administration tie into this ? Trump and a republican senate are pro business
Things will get worse for a lot of unskilled workers whose jobs will get replaced by technology ..that's inevitable
OK save 20-40 k...got it ...what grand income ascension vehicle/asset are we to spend this 20k on ?



Interest rates are artificially low and your recommendation is to rent a house from the bank ?

Doesn't that contradict this "eliminate all debts" philosophy ?



It gets better, I see



So spend 4 years saving 20K ... just to end up owing 500k- 1 mill on a non-income producing asset ?

I'm with you on monitoring expenditure but that's where it ends ... I'm not of this scarcity mindset
and don't believe money is this finite resource...and one should strive to live the life they want
by creating more income not by saving currency that will be worth less due to inflation......

but hey maybe this will of value to others who just want a "secure" life

The Bush example is just to highlight that even a series of events took years to trickle throughout the country. I tied Trump into this because he is the president elect and many are fearful that they will be hit economically. Saving is safe and considering that most in this country are living paycheck to paycheck you have to start with a nestegg instead of potentially blowing the few hundreds/thousands you have left over this month in hopes that a hot stock takes off.

Also:
1 - A house/condo is a dream many are after. Living "the life" how many want in the absolute moment is the reason many are in the positions they are in. A 20K goal is something that is easily achievable to most and then explore options as you see fit.

2 - Most are not going to be in a position to save up 250K+ to buy out a house at face value in the foreseeable future. Oh and homes do have value not only have you secured a placed to live with relatively predictable expenses for 20+ years. You also have an asset that usually appreciates well most of the time as long as you have picked a stable place to live instead of hopes of an uptick in interest in the destination you have picked out.

 

[无名的]

Just FYI... you're not getting approved for a $500,000 house if you're the type of person who takes 4 years to save $20,000 and if you're putting that little down, your only option is FHA. You're going to pay through the nose in PMI and interest.

I started FHA and my house was about $600,000 with 3.5% down. My payments were almost 4k per month.

Not only that, you're talking about million dollar houses - I was only pre-approved for a $900,000 home on something near 200k salary per year with around (at the time) 100k in liquid assets.

The banks are much more strict now. I took out a 21 month interest free credit card to make a large purchase and pay a few hundred a month over time. This brought credit down below 740 to 738 and the hoops we had to go through to refinance to get back up above 740 were ridiculous... the difference in those 2 credit score points was no cost refinance versus 3k cost.

 

[Cynic]

The Bush example is just to highlight that even a series of events took years to trickle throughout the country. I tied Trump into this because he is the president elect and many are fearful that they will be hit economically. Saving is safe and considering that most in this country are living paycheck to paycheck you have to start with a nestegg instead of potentially blowing the few hundreds/thousands you have left over this month in hopes that a hot stock takes off.

Many were fearful Obama was a muslim socialist who'd turn this country into Soviet Russia.... did it come true ?

Exactly saving is "safe" but steering those who do live paycheck to paycheck into 6 figure debt isn't going to fix the problem

Hope is exactly what these traders/analysts/investment funds do every single day ......

Also:
1 - A house/condo is a dream many are after. Living "the life" how many want in the absolute moment is the reason many are in the positions they are in. A 20K goal is something that is easily achievable to most and then explore options as you see fit.

You can live the life if you increase your earnings...and have surplus cash to put away if "saving" is your thing
I'd rather strive to earn more and do what it takes to get what I want ... but I get it some people want to be "safe"

2 - Most are not going to be in a position to save up 250K+ to buy out a house at face value in the foreseeable future. Oh and homes do have value not only have you secured a placed to live with relatively predictable expenses for 20+ years. You also have an asset that usually appreciates well most of the time as long as you have picked a stable place to live instead of hopes of an uptick in interest in the destination you have picked out.

They have value to the bank as long as you are paying off your loan ..or value when sold on as a package of securities
to an investor seeking good ROI. The bank has an asset... NOT you. It's a liability that doesn't produce any income...[/QUOTE]

 

[winb83]

Around here $160K can get you a decent house or condo. I've got 6 months of expenses saved up and I am working on saving up for a down payment for a house now. I have about $3K saved up separate from my emergency fund but I ended up using $2K from that emergency fund to overhaul my paid off car so now I have about $1K to put back. I plan to save about $13-$15K this year. Last year I saved about $10K.

My fixed monthly expenses are about $744 a month including rent and all my bills. Using YNAB I'm tracking my expenses. I'm not on a strict budget per-say but I am tracking everything I spend my money on. I've done the math and If I can keep my flexible monthly cost close to about $700 a month I will easily make that goal.

I don't plan on putting 20% down if I don't have to. I hear you can put down 3.5% on a conventional with good credit. My score it an 814. It's probably gonna drop because I just paid off a loan and I applied for 2 credit cards but I plan to have it back up to that by next year. Seeing as how my debt to income ratio is 0 because I have no debt I don't see how I don't get approved having 6+ years at my job. I don't care about paying PMI in the short term because it beats renting which I've been doing for years. Once I get that mortgage I plan to aggressively pay it off. I'm gonna ride my car until it falls apart.

My goal is within 10 or so years to have that house paid off. From that point since I plan to buy all my cars cash I can keep almost all my paychecks to invest and save as I see fit. Even with an average income with no payments a person can stack up massive amounts of cash quickly. Investing just $1600 a month for 20 years at 7% growth would make you a borderline millionaire in 20 years. If you keep a 401K you'd be a millionaire including a house.

If you have no payments $1600 monthly isn't a lot to save and invest.

 

[XxBboyxX]

Gotta get your credit score up to fair at bare minimum otherwise u wont get approved for shyt regardless if u have 20k

 

[dark_magic]

I know many on here get annoyed with some of the shyt I post, but I have been watching these 2 forums in "No BS" the whole election cycle and it appears that many of you are worried about what is possible. We all joke on here about 6 certs, 6 whips, 6 dimes and zero children, but it's time to get real. This is a simple, no nonsense and no risk method to get to you in a stable position if you are still doing the check to check grind. Investing is also smart, but getting to a certain comfort level is what most should try to strive for in the immediate future and look at investment opportunities years down the line. Patience is key, most of us on here are in our late teens to early 30's...plenty of time to live out our 30's-80's to live comfortably.

I can understand all the concerns, but I must remind you guys that it took YEARS of Bush for things to turn the way they did. If things are to get worse it will be a downward slop over the course of a few years. I strongly advise that you guys individually save at the very least 20K. If you are with a partner...40K-50K would be ideal. Eliminate all debts outside of student loans as quickly as possible, take advantage of lump sum payoffs as you can sometimes see large 50% cuts in some cases.

So why 20K? Simple, 20K is enough to put a minimum down payment on a 500K house. The average home price in 49 out of 50 states is under this number.
http://www.statisticbrain.com/home-sales-average-price

Convinced your partner to do the same? Your savings after 4 years have put you in a position in where you can possibly put a down payment on a million dollar home if your income is strong enough to support the mortgage/expenses.

Also, 20K ($14 per day for 4 years) isn't that hard to reach over a few years and should not take drastic lifestyle changes to achieve it. If you can save more or already have more saved? Congrats, this thread is not for you, but would love your feedback. I know a few people on here make pretty good money and all the insight will be beneficial. 20K is the floor, but the reality is that many of you can easily save much more without making much changes to your lifestyle.

Step 1 - Itemize and analyze all your expenses and make cuts wherever possible.


Step 2 - Consider a second job, but chances are you won't have to do anything crazy.


Step 3 - None of those can be done? Consider moving


List, analyze, save and then look at where you are at the end of each December. You have 2 weeks before the start of the year and a little under 2 months before people start getting their tax refunds deposited. You can do this.

I would:

1) Save money up for a cash runway (dry powder funds).

2) Place money into a tax advantaged account such as an IRA or 401(k).

3) Eliminate debts to $0.

4) Restructure taxes to net additional savings.

5) Restructure income and capital for early retirement.

 

[mannyrs13]

I think once I pay my car off I'll be able to save more. This comes out to less than $200 a check. Ima try and do $300.

 

[Liquid]

I don't post on the coli as much anymore, but please strongly consider putting back as much as you can. To those saying "You can't do x or y with z" are wrong. My sister was able to close on a house with not much more than 20K saved up. In the up north east. If you can save up even more in a shorter amount of time? Even better.

These Marches are just the beginning IMO. We are in for a really uncertain period of time here with what looks like the majority is upset with our current president. It will take a year or two for things to really start turning for better or worst.

Talk with you guys soon.