Answered by Klah Vien
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May. 14, 2025 18:11
Okay, literally, you don't want to spend too much on loans and mortgages, because defaulting is terrible for your credit and also miserable in unspeakable ways.
So say you have a dream $1,000,000 USD house you want to buy in California near the beach...
Well let's look at that gigantic number in savings per year. Let's pick a feasible number... say 5 years. That's like $200,000 USD/year, which divide by 12 months is $17,000 USD/month or $8300 USD/biweekly pay check. That assumes you make over $100/hour in wages... which is outrageous... so what do we do from here?
Well there's a few options... One is you can lengthen the savings time by doubling it... so 10 years savings: that's going to halve the amount you need to save but that will still require that you make over $50/hour in wages... that's ridiculous right? Who has that kind of money to save \up? You need to eat too!
So my advice is two:
A. Get a partner you can live with (proven, trustworthy, compatible, understanding, not crazy, and living style does not cramp your style) and split the bill that halves the cost per person and brings the million dollar house into fruition in ten years. (So instead of making more that $50/hour and eating nothing and starving you can make more that $26/hour and get by, by living a little tight for 10 years).
B. Go cheaper. So instead of setting the standards so high as a $1,000,000 house go for some prorated percentage of it... if you go for a house half that cost you need to save up half as much and if you go for a house that is 3/4 that cost you need to save up 3/4 as much (e.g. instead of $52/hour off your paystub you go $39/hr per paystub, and if its 1/2 its $26/hr per paystub).
Now you must be thinking, wait, what if I combine both. Well, that opens the possibilities and makes it even more feasible, so say, you find some one you like and can live with for potentially all your days, and say you go for a $750,000 house together: $19.53/hr per person for 10 yrs! Buy!
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