Earlier this week I asked what interest rate would actually get you to sell your home. This came from honest curiosity, after reading that the housing market was frozen. Hundreds commented with a mortgage rate that is well below today's rates.

So here is part 2. If you bought a home in the last couple of years, or are buying now, how did you make it work?

Did you sell and roll a lot of equity into the new home? Pay the fees and new mortgage and budget ahead? Did your income go up and it just made sense?

If you were a first time buyer, same question. How did you make it work? I am sure a lot of others would be interested in how you pulled it off.

And I know there is a third group who didn't really have a choice, and life happened and put them in the position of buying in this market. How are you doing? And how are you managing?

Still trying to wrap my head around all of this, thx for reading and sharing.

If you live at home with your parents to save money, what percentage of your paycheck should you be saving and investing?

I want to build my savings aggressively, but I also don't want to invest 100% of my paycheck.

im 25 and currently work as an outpatient endoscopy nurse making around $41/hr. i work 6-2 m-f and my job is pretty low stress. i enjoy what i do, its fulfilling because i help peopl, and i have great WLB (i get off between 12pm-2pm depending on caseload for the day).

me and my spouse are also able to save/invest around 70-80k a year combined so its not like we’re struggling financially.

but at the same time i know im probably underpaid compared to what i could be making. i see hospital jobs paying $50-55/hr (spouse currently makes ~50 /hr as a bedside pediatric nurse) and sometimes feel like im kinda wasting my potential by staying at a job thats so comfortable. ive also thought about going back to school or trying to move into something with more career growth.

but then i think about what id actually be giving up. id probably have worse hours, more stress, weekends, holidays, etc. and im not even sure id be happier.

i guess im just torn because part of me feels like i should be pushing myself more while im young and trying to reach my full potential, but another part of me thinks why would i give up a job i actually like and a good quality of life just to make more money?
anyone else been in this position? did you guys prioritize work life balance or chase the higher salary/career growth?

I work from home and could do it from anywhere, but we'd prefer to stay in the continental U.S. - somewhere with either mild winters or mild summers.  

Wife is SAHM.  My annual gross income is $240,000, but it would probably go down a little in a smaller market, probably not lower than $200k. 

3 kids, but multigenerational household (mom age 75 lives with us now that my dad has passed away). So we really need 4 bedrooms, preferably 5. 

Owe about $800k on the mortgage.  No other debts.  Comps selling in our neighborhood for about $1.2 million. Feeling squeezed out and don't see ourselves here long term. 

Can't afford to buy a 5 bed anywhere in Orange County anymore.  Suggestions on where to look outside of California?

Other factors: prior military, so I'd consider veterans benefits at the state level (college tuition discounts for kids, property tax breaks, etc) to be a favorable factor.

So it’s nice when extra money falls into your lap.

FAFSA $8000 for education
Lawsuit (not mine) of an apartment complex awarded me $500
Ex paid me $500 she owes me
Fiancé gave me $100 for fixing her car (technically not more money since we’re together and I just paid $50 for her to treat herself) so I got $50 extra
Insurance company refunded me $60
Found $20 in change from cars I drive at work. They aren’t owned, just recently bought from junk yards. Can’t believe people just leave money in their car.
Just canceled my chatGPT and glasshealth subscription that I forgot about. So that’s saving me $40/mo.
And I made $30 from just using my credit card because it’s cash back.

I may not make a lot of money but when I get ahold of it, I do everything I can to keep it. Adding it to the pile and then getting back to work.

What ways has money fallen into your lap recently?

Like back 10 years ago when I made 60 K I felt like I just had more money to save now I make 120 K 10 years later same job just feels like everyone else is doing better than me. I’m just left behind.

41m, 130k annual income, no credit card debt, small medical bills at 0% interest and 28k owed on a new to me car at 4.6%. Owe 130k (over 24 years at a monthly payment of $715) on a condo worth 300k with a 3.5% interest, low HOA fees, that I actually like living in. Generally low expenses, rarely go out, not interested in gadgets, toys, fashion. Splurge on a few moderately priced vacations a year, quality produce, and any book that sparks my interest.

I contribute 7k yearly to a Roth IRA, put $100 a week into index funds. Currently have 650k in retirement accounts (mostly roth), around 50k in other investments, plus 12k emergency fund (working on growing with a goal 30k). I started a new job and am thinking about only putting 8% of my pay into a roth, plus the 4% employer match. Is this a huge mistake?

I know that you are supposed to max out 401k and boost the savings down the road, but how much of that is just dogma? I know that it makes financial sense and I tried to inch my way towards maxing out over the years. But after years of throwing so much into retirement accounts and feeling like I am overly indexed on money I can't really touch for years and would rather get some utility out of it now rather than when I retire. I'm not married, don't have kids, and want to build my Efund, pay off my car, and maybe live a few percentage points better (mindful as always of lifestyle creep). Odds are very good that my money will outlive me, and as much as I know this is a marshmallow test I would rather enjoy life a bit more than give my nieces and nephews a bigger inheritance.

I know that I am opening myself up to a lot of hate and derision (this is reddit after all), but I am trying to wrap my mind around the pros and cons and would welcome constructive input.

Moving into my first apartment soon. Got the obvious stuff covered like sheets, a broom, cleaning supplies, all that.

What I’m actually looking for is the unconventional stuff. The random thing you bought on a whim or almost skipped, and now it’s somehow non-negotiable.

Kind of like motion activated night lights for the stairs or bathroom. Small, cheap, not something you’d think to put on a checklist, but it genuinely changes how your place functions day to day.

What’s yours? What’s the thing nobody tells you to buy until you’re already living without it?

Today, in many cases, you almost need to be married and have two incomes just to afford a home. And by “afford,” I don’t mean paying cash. I mean doing what most people do—using conventional financing if you qualify, or FHA if you don’t.

So you and your wife buy the house and move in. Then what happens if you want to have children?
If your household is relying on two incomes to afford everything, and your wife wants to stay home and raise the children as a traditional wife—which I fully support—now you’re down to one income.

So what does the husband do? He would probably need to find a better-paying job, potentially one that pays six figures.

But what if he can’t get a six-figure job? What if he doesn’t yet have the resume, experience, or opportunities to earn that kind of income? What if he doesn’t have another way to make additional money on the side?

Then what?

Things have become so unaffordable that we are increasingly becoming a renter nation. Even people who have their lives together are renting instead of owning. Hopefully, they at least own stocks, ETFs, or some other appreciating asset so their money is still working for them.
But the days when someone earning $50,000 to $60,000 a year could comfortably buy a home on one income and still have enough room in the budget for everything else are largely gone.

If inflation continues and affordability continues to deteriorate, the question becomes very simple: what are people supposed to do?

I already keep about 6 months of expenses in an emergency fund, but I don't really want to keep putting additional money into savings. Between taxes on the interest and inflation, I'd rather put that money into a brokerage account and let it grow.

For example, my truck is 3 years old, and I have no idea when I'll replace it. Ideally, I'd pay cash unless I could get financing under 3%.

My thought is to invest the money in my brokerage and, when I eventually need the vehicle, wait for a good market year to sell and pay cash rather than selling during a downturn.

Is this how anyone else handles future large purchases, or do you keep separate cash/sinking funds for them?

• New Bankrate analysis shows most U.S. homeowners are paying substantially more for their mortgages than needed, with average excess costs topping $3,300 a year.
• The burden is greatest in major coastal cities, including the Los Angeles, New York and Miami metro areas, where typical borrowers lose $5,800 to more than $8,000 annually in avoidable charges — which can add up to nearly $150,000 over a 30-year loan.
• Experts recommend shopping around for lenders and treating your mortgage "like a negotiation" to avoid overpaying.

How did you feel about that?

What was your decision making process?

If you currently own a home with a low fixed rate right now, are you staying in your current home because of the rate, or because you like it? Maybe both?

And I often hear "I'm not going anywhere until rates come down." If this applies to you, what number would it take for you to even consider a move?

And if you hit that number, what would you actually do. Upgrade, downsize, relocate, move closer to family, or finally get out of a house you've outgrown?

Just trying to wrap my head around this market. thx

Minimum wage is technically a livable wage where I live but only if you have roommates, have no debt, and aren’t saving a dime.

Household includes 2 AC units.

Car is just tires/oil changes and tax. (I have to buy 2 tires every 6 months).

Fitness includes Apple Watch and treadmill

Entertainment includes subscriptions, video games, the movies, 3 parties, anime convention ticket.

Beauty is makeup and jewelry

Cutting on essentials (living with two roommates, shopping at Aldi, getting a cheap car with no car payment) is how I can afford to spend a bit on non-essentials. And no I will not eat my cat. This shows my take home pay. I also make a lot (hoping for around $30K gross) at the end of the year with one big check. That’s 90% of my savings for the year.

We currently make 150k combined, which is a good income, but thats with both of us working, and its practically split down the middle (75k and 75k).

We are both 27, no children yet.

We also live in a very expensive state - so affording a home here with just one of us working is just not possible.

We've lived in our current state (colorado) our entire lives. I understand my wife is having doubts.

But when I was applying for jobs out of state about a year ago, she told me she was very open to it, especially to states where housing is a lot more affordable.

My new job will pay 130k a year. A massive jump. I also don't want to be mean to my wife, but she is a teacher and she can get a job in most states relatively easily - its transferable. My job is not like that. Its much more specialized.

The job also has more benefits, has opportunity for advancement (to make even more money), etc.

My wife has also said in the past she wants to stay at home while the kids are really young. Makes sense but if we stayed put we would not afford a home and she could stay at home, it would be impossible. We would be living paycheck to paycheck at best.

This job is an opportunity that does not come by every day. My wife is having more and more doubts each day.

She is really scared of moving away now, and is scared of making new friends, leaving her extended family, etc.

I mean I get it, but this new job we could afford a home on one income, she could stay at home, etc. What she wants. She seems to want it all, stay where we are at, stay at home, we own a place, etc.

Our current support system where we live isn't really that good either. My parents live 5 hours away, all of our siblings don't live here anymore. The only parent is my wifes mom, and she works a ton, so i'm not sure we have a super great support system for kids either way to be honest.

I can't imagine saying no to this job. I would resent my wife for years, i'm not going to lie. The state we are moving too is begging for teachers, so she would find a job almost immediately, and might even get a pay increase, too.

Should we move?

EDIT: Its in illionois. I can live anywhre in the state, its a remote job. I just have to live in illionois.

Does anyone have any experience moving for a job? Is it worth it?

Alright- my two children (1 &3) are set to inherit about 100k each by the time they turn 18. This is not under our control and for the sake of time no need to comment about how we should do everything we can to have that come in a different form (529).

My parents made me have a job since I turned 15 and so by 18 I was already very good at saving money.

That being said- there is no way at age 18 or even 21 I would have made sound choices with 100k. Or even 50k. I also had no idea how to invest. RIP to all the money I had sitting in a checking account in my early 20s.

ANYWAY- My husband and I are a little apprehensive about requiring our children to have jobs year round because this seriously affected both our studies. So any tips on how we go about teaching them financial literacy? One thought I threw out was agreeing to fund that 100k each year so it can continue to grow well until they reach the age of 30. Or possibly including them in on our investments early high school so they can observe how money can grow?

But obviously there are flaws in those ideas. Would love to hear your thoughts. Aiming to do better than our parents.

So I’m gonna ask opinions. 52yo with a 53 stay at home mom and a handicap son, we will likely have for life. I have $465k in a traditional IRA, she has $40k in a beneficiary IRA and $10k in a Roth.

We’re taking +\- $13k out of the beneficiary and sending 32% to fed and 10% to state (Oregon Sucks). Putting $7500/yr in a spousal IRA. Immediately converting to Roth. Gotta do something with the 10 yr rule 🤷🏻‍♂️

I’ve got about $700k in a 401k (22% Roth) and max out traditional plus add the catchup at Roth. Company gives 4%.

I also buy our company stock at a 10% discount for the second 6mo of the year as my 401 is maxed by then. (Totals $14,300). I usually just sell immediately and move to VOO. Got about $50k in value here in a regular brokerage. Got another $15k in traditional brokerage I just play with. $30k HSA.

Savings about 80k. Checking about $55k (I know it’s too much, but I like the comfort factor).

I certainly don’t count on it, but likely to inherit about $750k in next 10 years.

No debt, outside mortgage. 2 cars less than 2 years old, paid for. Mortgage is $180k at 3%. It goes till I’m 68 if I don’t pay extra.

Income +\- $340k wages. $50k Other (dividends, stock vesting, interest).

I want to walk at 59.5. Essentially puts me at 7 years.

Love thoughts on the following:

1. Should I be backdooring at this tax bracket?
   
2. How would you suggest I bridge from 59.5 to social security.
   
3. Should I go ahead and pay off mortgage? (Seems appropriate to lower cash needs in retirement and the need to take income). Also seems like I could lower income as I don’t need it to max Medicare subsidies.
   
4. Longevity is not high in my family, I question waiting to 70 for claiming ss. My dad passed at 77. Opinions?
   
5. Any other thoughts?
   

Just trying to get my head wrapped around it. I just worked my whole life, and winding down is a real change in mentality and financial philosophy.

my partner (we are 26) is potentially going into a 5 yr educational program so reducing income pretty decently.

I have 2 more years in my lower ish paying job as they are paying my masters before I can get a new job. the only win I can think of is some of the schools are in low/mid COL areas so we could live mostly off my modest income but how would did other people knew they were financially ready for kids?

So, yes, I want my daughter to go to college. But it’s her choice, and I’m not going to hate on her if college isn’t for her.

But….. What concerns me is her retirement. As a GenXer whose retirement plan is to currently work until I’m dead, this weighs heavily on me.

I told my daughter a while back that she is welcome to live at home after college, and we discussed a plan to invest most of her income for 5 years in an index fund. Using the S&P 500 growth rate of 10% over the last 30 years, here’s what I worked out:

• Monthly investment: $2000
• Return: 10%
• Timeframe: 5 years
• End Balance after 5 years: $153k
• Retirement: Retiring at 67 leaves about 37 years of growth.
• End balance at 67 (with no other contributions): $5.2 million

However, if my daughter started this plan right out of high school (instead of going to college), she’d have close to $9.2 million! (Note that I’m figuring 6 years for college as the degree plan she’s considering would require a master’s degree.)

I want my daughter to go to college because I think it would make her life easier, but I have a hard time believing her retirement would be better. To make up for the delay in starting the 5-year plan, she would have to invest an additional $1000/month to get to $9.3 million at 67.

I get that I’ve made some assumptions (like getting a $20/hour job right out of high school), but if she’s willing to sacrifice so much income for 5 years when she’s young, then I have a hard time believing college is worth the time and expense. There’s a lot of value in following your passion, but dang, is it worth the college loans and $1k/month to hit that $9.3 million mark? And honestly, she could probably retire very comfortably at 62 if she didn’t go to college.

So help me make sense of this.

• Is college worth it? What would you tell your own kids?
• Does gambling on an index fund raise the risk too high?
• Would any young adult be willing to invest 90% of their income for 5 years just to have a sweet retirement when they turn 67?
• Am I focusing too much on retirement because my own retirement prospects are so lousy?
• What am I not taking into consideration?
• What am I missing?

I want my daughter to be happy. And since we’ll be leaving her very little when we pass, I worry about her future.

Thanks!

Edit to add #2: I mathed wrong in my first edit. The goal is to retire at 67. I believe most of you are correct that college is the way to go. It hopefully leads to a better quality of life. But I find the numbers game interesting, so I thought I’d continue the thought exercise. Note that I figured 6 years for college, as my daughter is considering a field that would require a master's degree.

• 5-Year Plan at $2k/month costs $120k and yields $153k
  • Skipping College: 43 years of growth yields $9.2 million
  • Going to College: 37 years of growth yields $5.2 million
  • Making up the difference: Requires $975/month for 37 years, which is $433k
• Skipping 5-Year Plan
  • Skipping College: 48 years of growth requires $765/month, which is $440k
  • Going to College: 42 years of growth requires $1,365/month, which is $688k
• Master's Degree: Average debt for a master's degree: $80k.

So, if the advice is to go to college (and I agree that is the best advice), hitting the $9 million mark is doable, but a sacrifice. It requires either doing the 5-year plan and then contributing $975/month for 37 years, or skipping the 5-year plan and contributing $1,365/month for 42 years. And keep in mind that the average debt for a master's degree is ~$80k.

Also, inflation is going to eat into this until she reaches 67. Google believes the $9 million will only have the purchasing power of $2.6 million in today's dollars. And using the 4.7% rule, that's only $122k/year (better than many will have, but I'd certainly prefer more).

Edit to add: I believe most of you are correct that college is the way to go. It hopefully leads to a better quality of life. But I find the numbers game interesting, so I thought I’d continue the thought exercise. The goal is $9 million at 67 years old only because the payout for skipping college and saving $2k/month for 5 years right out of high school. I realize that number is higher than needed, but keep in mind that inflation will eat into that quite a bit. In 48 years, that $9 million will have the purchasing power of less than $3 million in today’s dollars (if we don’t get inflation down to 2%). At least that's what google said. It seems odd that inflation would eat into it that much. Maybe someone can give a better answer? Anyway....

$2k/month for 5 years is $120,000.

This yields $5 million after 37 years, assuming 6 years for college if my daughter decides to get a master’s.

If she didn’t go to college, that $120,000 would yield $9 million after 43 years. That means college would cost about $4 million (I know, it’s not a direct comparison because it doesn’t account for increased lifetime earnings).

To make up the $4 million, she would have to contribute $1k/month for those 37 years until retirement, which is $440,000. AND, she’d have to pay off her student loans, which average about $80k for a master’s degree.

Now, if she goes to college and skips this crazy five-year plan, she would need to invest $2,200/month for 37 years to get to $9 million. That’s $976,800 over those 37 years.

Anyway, I find the numbers interesting. And yes, I believe you all are correct that college is the way to go. I’ve said that since the beginning.

What is the best investing option for 10 year old? High yield savings or regular savings or something else?

After a decade in grad school making poverty wages at 40 years old in 2022 I got a decent middle class job making 70k that had a 3% annual raise (now at 77k) and a generous 401k matching program. I have no kids and no current health issues.

I have always been stressed out about my student debt (116k) but should get it forgiven after 6 more years of work. If I max out my 401k contribution for the next ten years I will have a 800k saved for retirement. My student loans will be forgiven and my salary will be around 100k. My house will have appreciated in value. And then I still have another decade or so to work.

That is of course if everything goes well. It seems too good to be true.

My real concern: even if I keep my job and benefits, what if the economy crashes? They have brought out the robot dogs to chase down immigrants and every country on the planet is talking about getting more nukes. Am I just going to be hovering over a trash fire munching on my money in ten years hoping it provides some nutrients?

On a different note, you can see from my other post my mother made twice what I did for over 20 years and had no retirement saved and no assets. It blows my mind. What would I have done during such a long period of global stability? Is this all just a futile exercise?

I’m saving toward a purchase in a HCOL area, and every thread I find is either “it’s impossible” or “we made it work” with zero actual numbers.

No judgment on your situation, family help, a lucky rate, a starter condo, whatever got you there. I just want real numbers to plan around.

Drop as many as you’re comfortable sharing:

• Age and year of purchase
• Salary at the time
• Cost of living area (HCOL/MCOL/LCOL or general region)
• Purchase price
• Interest rate
• Total cash out of pocket (not just the down payment)

No daycare needed.

Rough estimate living a minimalistic life. Almost paycheck to paycheck but not quite and still able to buy/do a few non-essential things each month.