Hey guys. I have three major goals that I would like to achieve within the next 3 years:
- Year 1: Purchase a home. Brother lives with me for 3 years.
- Year 2: Get a dog.
- Year 3: Get my dream car.
Statistics:
- Salary: $55,000
- Savings: $45,000 (Current)
- Savings: $62,000 (Goal, June 2017)
- Monthly Paychecks: $3,200 ($38,400/year)
- Debts: $0 (Paid off student loans).
- Relationship: Single
Purchase Home Plan:
- Planned purchase month: June 2018
- Home Value: $100,000 - $150,000* (Note 1)
- Downpayment: $50,000
- Mortgage Term: 15 years
- Extra Funds: $12,000 (Appliances, immediate fixes, etc).
- Requirement 1: 1.5-2 car garage.
- Requirement 2: Extremely low crime neighborhood*. (Note 2)
Purchase Car Plan:
- For 10 years I've wanted a Tesla, and with the new Model 3 I believe it's within possibility to afford. The base car is $35,000, with $5,000 for a premium package. I suspect I'll be buying a car within 3 years, and since the Model 3 production has begun this year, I'm hoping I can get a slightly used Model 3 w/premium package for $30,000-$35,000 in 2020 plus reviews will have been well in by then to know if its a good car.
Monthly Plan Year 1-3:
- Year 1-3 Monthly Brother pays $650 for rent + utilities.
- Year 1-3 Monthly Mortgage: $980.
- Year 1-3 Monthly Utilities: $300. (Guesstimated).
- Year 1-3 Monthly expenses (other: gas, food, etc): $500
- Year 1-3 Monthly expenses after subtracting brother funds: $1130 ($13,560/year).
Yearly Plan, Years 1-3:
- Year 1: Save $23,000 for car down payment.
- Year 2: Save $17,000 for paying off car.
- Year 3: Save $23,000 for paying down mortgage. (From $50k principle to $73k principle).
- Year 4-8: Save $15,000 (x5 from 73k principle to $148k princple) for paying off mortgage.
End Game: I'm 29 now. When I buy my house at 30 years old, by the time I'm 38, I'll have paid off my car and my house and can continue saving from there. Sure it may not work out perfectly, but as someone that is arm chair quarterbacking this, I'd really love some feedback from people who've lived in the real world and can tell me I'm on track or am delusional. Thanks all.
Note 1:
- Purchasing a cheaper home that may need repairs vs. buying a more expensive home that needs no immediate repairs is a toss up for me. Financing on construction jobs I suspect is cheaper than mortgage interest so I am fine with not getting a house in perfect condition if it means lower mortgage and faster pay off.
Note 2:
- Using Realtor.com as my guide, finding a home near my job (124th & Capitol, Brookfield, WI) is proving difficult at the $100,000 range, as anything east of there is an incredible high crime neighborhood. There are weekly shootings, etc. I currently live in Cudahy, south of Milwaukee, which has one of the lower crime rates in the state. I will not buy a house in a higher crime neighborhood, even if that means the house costs more. Ideally, however, I'd like to live relatively close to work (Under 15-20 minutes). Anything west of this location is $250,000+ houses, which I cannot afford. Houses north are also expensive averaging $170,000-$200,000+, and south seems to be one of my only options.
Submitted September 05, 2017 at 03:24AM by BLSmith2112 http://ift.tt/2gGVTel
