I feel like I’m too poor

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  • #63383
    outrenthome
    Member

    Hi,

    I live in Dallas. i have all these friends on Facebook, when I asked them how much they pay for their mortgage they reply “paid off” or someone replied $2,740.

    That’s a lot of money. I gross about $108,000 and saved about $30,000 so far. I did my budgeting and if I want to save money for future big expenses I can’t have a payment greater than $1,500. That translates into a loan that can’t be greater than $220,000 including escrow and by taking advantage of all 5 interest buy down points. I’ve been looking at houses for less than $250,000 and they are all in quite bad neighborhoods.

    I just turned 38 and I feel like I’ll never be able to afford to live in a place in a safe neighborhood. My paperwork is being processed by the underwriter but I feel I will have to wait another 2 years before I can save another $50,000 for a better house. Meanwhile the house prices keep growing. I’m a little demoralized. Someone please say something to make me feel better eheh… 🙁

    Or if someone in Texas can show me the way to an affordable house.

    #63385
    Nelsont
    Member

    Are you sure your friends have the same lofty savings goals as you?

    The national median is a 250k house on a 60k salary.

    #63386
    living20057
    Member

    Don’t give up. First stop comparing yourself to others. Who knows what is really going on in their life. You may have to look in different areas outside of what you have found more further out.

    #63387

    I’m not sure if you want to get into the details, but if you’re grossing that much, and you only “can afford” $1,500, you’re either spending or saving super aggressively. You should be able to afford double that just using a standard affordability model, which I know doesn’t apply to everyone, but should come close in your case.

    #63389
    outrenthome
    Member

    I have no debt, but that’s because I live in a cheap apartment in definitely not the best part of town and my rent is $799 for a 750 sqft 1 bedroom 1 bath.

    This allows me to save. I don’t make the same every month so I budget based on the months when my income is usually at the lowest. When I make more I save up to what I can after I pay the monthly bills. I allocate $350 per week for gas, grocery and entertainment.

    I don’t want to have any other loan but the mortgage, so I need to save upfront so I can buy a car I can afford with cash whenever my current car will break down. Cars run in the $20k and more these days, even used ones, unless you want something that won’t last long.

    I would like to be close enough to where I go to meet my friends at the bars in Dallas so I can use a Lyft or Uber and don’t have to drive in case I drank too much. This means I can’t live out in the county land, unless I want to be an hermit and be alone…

    I think I’ve been hit by the “wait crazy” that seems to be typical of this program. I have a NACA-approved outside realtor but we haven’t started looking at houses yet because I haven’t become NACA qualified yet. All I’ve done so far was going on Zillow and searching for houses on the app and drive by the houses I found. I hope the realtor will have something good to show me when I get qualified.

    Otherwise we’ll see. My biggest dream is to have my own garden with a big greenhouse and finally dedicate my free time to gardening. I can’t really do that in an apartment complex and it’s killing me inside. They say the house protect the dreamer. I think I just have to learn to be more patient. I wanted 5 months already, I can wait another 5, or whatever it takes, I guess.

    • This reply was modified 2 years, 4 months ago by outrenthome.
    #63392
    Nelsont
    Member

    350/week for gas groceries and entertainment seems like a lot. 50 for gas and 100 for groceries leaves 200 for entertainment? Every week?

    #63402

    Sounds like you know yourself and what you want… Your gas, food, and entertainment budget seems really high, but again, you know yourself and I don’t know your commute. I have a short commute compared to many, but live in one of the most expensive districts in the country, and I spend about half that. Setting your budget based on lowest month’s income is a great idea, though. I work in sales, and Id o the same thing. Our business is very seasonal, so I have to be sure my lifestyle matches the lean times as well.

    #63411
    Peapod0609
    Member

    You definitely should not compare yourself to others but it seems you are doing everything right!

    I will agree with @Nelsont though as it seems $200/week for entertainment is a rather high amount. That is $800/month, couldn’t some of that be put into a better house?

    #63413
    outrenthome
    Member

    What I actually do, when I receive my bi-weekly paycheck, I first pay 1/2 of the monthly bills and then I move anything leftover down to $700 to my savings account. I keep that $700 cash available for anything that is not house expenses. It is used for grocery, gas, entertainment, but also for other sudden expenses. For example, I wanted to make a Christmas gift to the person I am dating and bought two tickets to go see the Cher concert, but each ticket was more than $250. So after making that purchase, I was left with $200 to spend in the upcoming 2 weeks. That’s $100 for grocery and gas per week and we have not gone out for those two weekend, with the exception of going to the concert. This is just an example though. It seems like every two weeks something happens. The other paycheck, I had to pay for my continuing professional education and it was $300. Another time I had to buy new tires and it was more than $500. There’s always something. Another time I booked our camping trips for the whole 2020 and the campsite reservations was a total of $250, for three weekends in 2020. Now all we have to do is just drive there, set up our tent and go hike with my fiance, as it is paid off. But I know I will need to have cash for the gas needed to drive from Texas to Colorado.

    Any residual cash that is left over at the end of the two weeks gets automatically moved to the savings account and then I start again from scratch with $700 for the next weeks as soon as I receive the new paycheck.
    I guess what I mean is that I don’t want to be house poor. I still want to enjoy life and do things for pleasure, otherwise what life is it when you are always stuck in your house and can’t do anything but sit on the couch very day because you can’t afford to go anywhere? My fiance’ has a job, but it does’t pay that much and also trying to pay off the student loan, so I end up paying the tab for both of us most of the times. We don’t live together yet and don’t plan of having any kids, but we have been dating for 2 years and we are really happy and getting along all the time.

    • This reply was modified 2 years, 4 months ago by outrenthome.
    • This reply was modified 2 years, 4 months ago by outrenthome.
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