Hi Money Minder,
Hey Money Minder,
So, here’s the deal – I’m bringing in around $5-6k every two weeks, which adds up to about $10-12k a month. I’ve been putting in some overtime and working from home, which helped me pay off my wedding without taking out any loans. Right now, I’m aiming to save around $9-10k a month and stash it in a savings account until I hit $200k. Then, I plan to use that as a 50% down payment on a $400k house.
My current financial situation looks like this: $600 a month for rent and utilities, and around $1,200 to $2,200 a month for other expenses like groceries, therapy, subscriptions, doctor’s appointments, repairs, and student loans. We’re pretty frugal – cooking at home, making our own cheese, bread, and cereal, and shopping for clothes only a couple of times a year. We’ve got two cars (a 2016 Hyundai Accent and a 2008 Toyota Corolla) that are paid off, with insurance costing us about $800 a year. Health insurance sets us back $280 a month.
I’ve got $17k in student loans, and the wife is sitting on about $110k. We’re chipping away at them, paying around $1k a month.
Apart from that, we’re debt-free. The interest on our student loans isn’t super high, but there’s a lot of it to pay off.
Since I started this savings journey in January 2024, we’ve been putting away $10k a month. By the end of March, we had $30k saved, and we’re hoping to hit $40k by the end of April. I’d love to hear your thoughts on my plan for buying a home. I feel pretty good about my income and strategy, but I’m open to any advice or suggestions you might have. Am I on the right track here?
Thanks a bunch for your time and possible advice!
Cheers,
Savvy Saver
Response from THE MONEY MINDER: Thank you for reaching out to us. How can we assist you today?
"Hello There,"
Hello,
Congratulations on your impressive financial discipline and progress towards your goal of saving for a down payment on a home! It’s clear that you have a solid plan in place and are diligently working towards achieving it.
Given your current income and expenses, it seems like you are on the right track with saving up for your desired down payment. Saving 9-10k a month and aiming to hit 200k in savings for a 50% down payment on a 400k home is a practical and achievable goal. It’s great that you have a clear plan and timeline in mind.
In terms of your student loan debt, it’s understandable that it can feel like a significant burden. Considering the interest rates and monthly payments you are making, it might be worth evaluating whether it makes more financial sense to prioritize paying off the student loans more aggressively before focusing on saving for the down payment. By reducing your outstanding debt, you can potentially save on interest payments in the long run.
Overall, your approach to saving for a home is sound, and it’s always beneficial to seek feedback and advice to ensure you are making the most informed decisions. Keep up the good work with your savings plan, and continue to monitor your progress towards your financial goals.
Best of luck with your savings journey, and feel free to reach out if you have any further questions or need assistance with your finances.
Farewell from THE MONEY MINDER.
