I plan to buy my own condo in about a year or two from now. I currently have 14k of liquid cash in savings which I plan to use to put 20% down.
I have 1k a month going into my 401K from my paycheck. I make about 45K a year. I am wondering whether I should reduce the amount that I am putting into my 401K in order to save faster for a condo. I was thinking of putting 500 a month into my 401K.
Currently my rent is $895 and utilities range from $35-$100 depending on the season (Midwest). I don’t have any debt (not even a car note) and my credit score is about 750. I’ve been searching to rent another apartment for about a year. I was never contacted back after a tour for an apartment I applied for (privately owned condo) for whatever reason so to avoid this, I just want to own so that I’m not relying on anyone else.
I am very into the FIRE movement and reducing my retirement contributions would make me feel bad since I want to retire early. Is it worth it to reduce my contributions in order to save an additional 6K (maybe a couple thousand more for closing costs) to meet my 20% down payment of 20K?
My maximum condo budget is 120K or less with an HOA under $200 a month and taxes under $1,700 a year.
I plan to never move out of state, I don’t want children, and I’m currently single but I would still be content living in a condo if I get married. I picked a condo because I don’t want to mow a lawn or shovel snow.
December 13, 2020 at 01:44AM
