I am 24, graduated from college in 2007, work 2 jobs for 70 hours a week and my goal is to buy my own house at the end of this year. First, here is a little background:
By the end of this year, I will have $35,000 in my savings account; also $12,000 in student loans.
I bought a new car ($27,000) in June of 2007 and it was paid off by May of 2009. I had $47,000 in student loans when I graduated in May of 2007 and by December I will owe $12,000 (1.88% interest).
I currently live at home and pretty much bank most of my money (pretending like its a mortgage).
At job 1 (I work 40 hours a week) I clear $900 every 2 weeks (guaranteed) -- ($1800 a month)
I usually get overtime here and there (maybe an extra $50-$100 a pay (its mandatory overtime Nov-Feb and I usually get an extra $200 a pay) But I figured thats not guaranteed so anything extra I can save or put towards principle.
Also -- we get a quarterly bonus ranging from $600-900 (after taxes).
At job 2 (I work 30 hours a week) I clear $550 every 2 weeks (guaranteed) -- ($1100 a month)
I also do overtime maybe 1 or 2 x a month giving me an extra $100-$200 (but not always guaranteed).
I charged most of my expenses on my credit card and then pay it off each pay.
This includes:
my gym membership ($20 a month)
my cell phone ($70 a month)
my gas ($75 a month)
my car insurance ($135)
food, doctor copays (not often); food shopping; any gifts, really ALL of my expenses.
This amounts to about $350 a paycheck -- every pay I just automatically pay $350 towards my credit card -- usually it leaves a credit for a while and then I just by clothes or something for myself.
My student loans are still in deferrment because I have purposely been taking 2 online classes to avoid paying interest. The calculated repayment amount is like $111 a month towards my student loans if I was in repayment, but I want to budget at least $200 to try to have them paid off early.
For utilities (I currently handle my moms budgeting so I am basing these #s off a 4 bedroom house with 3 adults).
Gas -- (we have gas stove and heat) $80 a month (on budget bc winter high and summer super low)
Electric -- $75 (also on a budget -- but never changes).
Water -- $110
Cable/Internet -- $120 (dont really use, but will get it can afford it -- dont care to lose it though bc never home)
So basically, my monthly expenses:
$700 towards credit card
$385 towards utilities (round to $400)
$200 towards student loans
So far, my monthly expenses about $1300.
Now that I have my expenses out of the way, here is my plan.
I'm thinking that since I will have $35,000; I want to use $20,000 for a down payment; $5000 I want to use towards closing costs (escrow down payment, etc); $5000 for my start up costs like appliances; bathroom items (which I've already priced); and the other $5000 I want to keep in savings for a rainy day.
In addition, I have $1000 cash and counting that I am saving at home for whatever. I figured I would use this for stocking up on everyday items (food, condiments, small household items).
I have been looking around at homes in my area and I can get a nice 3 bedroom; 2 bathroom for anywhere around $80,000-$130,000 depending if I choose more city or more suburban.
I have excellent credit; but if needed my mom wouldn't mind being a cosigner for me.
I am looking for around $500 for a monthly payment which I could easily do for a 5 or 6% interest.
Insurance a year for my moms house is $550 a year, so lets say $50 a month roughly.
Taxes in the city are about $2000 a year and suburbs about $3000.
I am leaning more towards the suburbs because thats where I currently live and its close to both jobs and my family. If I move towards the city, I would save on the taxes, but would spend mroe on things like gas and parking. So lets say $300 a month for taxes.
So I'm looking at an additional $350 a month which I would almost guarantee that I'm going to escrow into my payment -- so around $850 a month.
So my totals would be:
$850 for my mortgage payment and taxes and insurance
$700 towards credit card (which are almost all monthly expenses)
$400 towards utilities (overestimating)
$200 towards student loans
I'm getting a total of $2150 a moth for planned expenses.
I clear at least $1800 (job 1) and $1100 (job 2) -- $2900 a month.
Planned expenses $2150 -- leaving a surplus of $750 a month.
I would like to save at least $250 a month, so that would leave $500 a month towards unplanned expenses or repairs and I would also pay extra towards principle (after I get ahead on at least 2 or 3 payments)
In addition, I figured with my quarterly bonus, I could easily get 2-3 payments ahead as well.
Oh yea, and I am currently working on a promotion at my current full time job -- if I would get this I would make the same amount I am making now at the 2 jobs -- this wouldn't happen until the end of this year though so I
By the end of this year, I will have $35,000 in my savings account; also $12,000 in student loans.
I bought a new car ($27,000) in June of 2007 and it was paid off by May of 2009. I had $47,000 in student loans when I graduated in May of 2007 and by December I will owe $12,000 (1.88% interest).
I currently live at home and pretty much bank most of my money (pretending like its a mortgage).
At job 1 (I work 40 hours a week) I clear $900 every 2 weeks (guaranteed) -- ($1800 a month)
I usually get overtime here and there (maybe an extra $50-$100 a pay (its mandatory overtime Nov-Feb and I usually get an extra $200 a pay) But I figured thats not guaranteed so anything extra I can save or put towards principle.
Also -- we get a quarterly bonus ranging from $600-900 (after taxes).
At job 2 (I work 30 hours a week) I clear $550 every 2 weeks (guaranteed) -- ($1100 a month)
I also do overtime maybe 1 or 2 x a month giving me an extra $100-$200 (but not always guaranteed).
I charged most of my expenses on my credit card and then pay it off each pay.
This includes:
my gym membership ($20 a month)
my cell phone ($70 a month)
my gas ($75 a month)
my car insurance ($135)
food, doctor copays (not often); food shopping; any gifts, really ALL of my expenses.
This amounts to about $350 a paycheck -- every pay I just automatically pay $350 towards my credit card -- usually it leaves a credit for a while and then I just by clothes or something for myself.
My student loans are still in deferrment because I have purposely been taking 2 online classes to avoid paying interest. The calculated repayment amount is like $111 a month towards my student loans if I was in repayment, but I want to budget at least $200 to try to have them paid off early.
For utilities (I currently handle my moms budgeting so I am basing these #s off a 4 bedroom house with 3 adults).
Gas -- (we have gas stove and heat) $80 a month (on budget bc winter high and summer super low)
Electric -- $75 (also on a budget -- but never changes).
Water -- $110
Cable/Internet -- $120 (dont really use, but will get it can afford it -- dont care to lose it though bc never home)
So basically, my monthly expenses:
$700 towards credit card
$385 towards utilities (round to $400)
$200 towards student loans
So far, my monthly expenses about $1300.
Now that I have my expenses out of the way, here is my plan.
I'm thinking that since I will have $35,000; I want to use $20,000 for a down payment; $5000 I want to use towards closing costs (escrow down payment, etc); $5000 for my start up costs like appliances; bathroom items (which I've already priced); and the other $5000 I want to keep in savings for a rainy day.
In addition, I have $1000 cash and counting that I am saving at home for whatever. I figured I would use this for stocking up on everyday items (food, condiments, small household items).
I have been looking around at homes in my area and I can get a nice 3 bedroom; 2 bathroom for anywhere around $80,000-$130,000 depending if I choose more city or more suburban.
I have excellent credit; but if needed my mom wouldn't mind being a cosigner for me.
I am looking for around $500 for a monthly payment which I could easily do for a 5 or 6% interest.
Insurance a year for my moms house is $550 a year, so lets say $50 a month roughly.
Taxes in the city are about $2000 a year and suburbs about $3000.
I am leaning more towards the suburbs because thats where I currently live and its close to both jobs and my family. If I move towards the city, I would save on the taxes, but would spend mroe on things like gas and parking. So lets say $300 a month for taxes.
So I'm looking at an additional $350 a month which I would almost guarantee that I'm going to escrow into my payment -- so around $850 a month.
So my totals would be:
$850 for my mortgage payment and taxes and insurance
$700 towards credit card (which are almost all monthly expenses)
$400 towards utilities (overestimating)
$200 towards student loans
I'm getting a total of $2150 a moth for planned expenses.
I clear at least $1800 (job 1) and $1100 (job 2) -- $2900 a month.
Planned expenses $2150 -- leaving a surplus of $750 a month.
I would like to save at least $250 a month, so that would leave $500 a month towards unplanned expenses or repairs and I would also pay extra towards principle (after I get ahead on at least 2 or 3 payments)
In addition, I figured with my quarterly bonus, I could easily get 2-3 payments ahead as well.
Oh yea, and I am currently working on a promotion at my current full time job -- if I would get this I would make the same amount I am making now at the 2 jobs -- this wouldn't happen until the end of this year though so I