The Importance Of Saving

cfrizz

You are a very lucky man HA, to have rent that low!

Msabot1, all of that has been taken care of.

Tony, this is a big 14 floor building with probably over 100 units in it. The money being asked for is to cover the cost of not only your individual unit, but also all of the common areas, and main electrical panels as well.

This problem was probably mentioned in the inspection that I had done. I probably could have paid for my own electrical box, but I still would have been on the hook for the common areas now. So it can be handled now and I just have to pay once.

Brett, finding affordable housing in this or any of the Boston area is just about impossible. I'm glad I got this when I did. As for it being old, yes its 53 years old, but they don't make them like this well anymore. Sure it needs some updating, which is normal for any property.

We now have 1 bedroom units available selling for $200,000+ which I can NO WAY afford! Nor could I afford the over $1000.00+ that can be asked for in rent!

I'm happy if some of you can afford to live in a major city and pay big bucks for a new house or rent. I however, never could or ever will be able to do that.

I spent months looking for something suitable that was in good condition and that all I had to do was move in and be able to afford back in 2008. I struck pay dirt with this unit, after looking at a lot of hellholes that were smaller but cost more money.

mikeyb128

He needs to stop yelling in his posts.

Nightfall

I pay $613 for a shoebox which includes electricity, gas, trash, water, Comcast Internet, and pet rent.

motorhead43026

^^my taxes are 500.00 month.

Nightfall

motorhead43026 wrote: »

^^my taxes are 500.00 month.

You could have another entire place to live in Colorado, what are you doing with your life?

motorhead43026

^^must survive 3 more years in the corporate meat grinder.

teekay0007

Nightfall wrote: »

I pay $613 for a shoebox which includes electricity, gas, trash, water, Comcast Internet, and pet rent.

y


Wow, just wow!.....Had I known that you could rent pets, rather than owning them, I'd definitely have gone that route.

And I would have broken the lease a long time ago!

honestaquarian

it goes up in May every year. Still less than 800

Jstas

I'd be interested to know what city you live in where you have to take a subway train to get to a hardware store but manage to have an apartment that runs you $800 a month and we can assume isn't a closet of a unit if you have enough room for a pair of SDAs.

Nightfall

He might choose to use public transportation because of cost savings, not necessity.

Jstas

What I'm saying is that an apartment for $800 a month in a city that would have a subway system is pretty impressive.

The cities I can think of off hand would be:

NYC
Philly
Boston
Chicago
San Francisco
Los Angeles
Washington D.C.
Baltimore
Miami
Atlanta

And Cleveland.

I think half of those don't actually have a subway as much as it's a metro rail system.

All of those except Cleveland have a premium on real estate because they are desirable cities to live in due to climate or economic conditions but that also means that rental rates are high.

For $800 a month in rent to be in a city with a subway network large enough that one can rely on it as primary transportation, that's a deal and I was just wondering where. I'm not questioning validity or trustworthiness. Just interested is all.

Nightfall

I'm following you. I think he lives in D.C. or near it.

rooftop59

He's in DC I believe.

tonyb

Ha....you won't find that low a rent in Chicago, least not in a decent neighborhood. Sure, you can go along the L-Tracks, live by the Gallagher's hood, but you'd need a bullet proof vest to go out at night.

Consider yourself lucky for 800 a month. Honestly though, rent is money out the window. See if you can buy something a little further out. Maybe even a foreclosure or fixer upper, make yourself a nice audio room. Invite Cathy over too, she's good at demolition.

ken brydson

Can't rent a parking spot for $800 a month in Seattle...

motorhead43026

I love Seattle, my dad lives in Olympia. I hope to make it there again this year..

honestaquarian

Cathy
Not trying to hijack your thread,but please allow me to respond to the queries.
I live in Washington,D.C. (*our Nations Crapitol*)
A LOT of people right here in DC also say that you can't get a place for what I'm paying.

Again I'm not paying $800 a month, I'm paying LESS than that (*I've also been living here since 1996 and this apartment is about 800 square feet from what I'm told*)

Yes I live one block from a Metro station. I have heard MANY, MANY, MANY times over the years that I am throwing money away by paying someone Else's mortgage. I keep saying over and over and over and over and over <click> and over <click> and over <click> and over <click> and over...........................phew! That not everyone can afford to own a house.
The problem is most people are sheep and have to follow the crowd and do what everyone else does.
You know?
The American Dream of home ownership!
The one which says that everyone should be straight, married, have kids, have a college degree, have a job making six figures and own a home (*and I ain't none of those*)
In markets like Washington,D.C. where we weren't as affected by the housing bubble burst, in order to own a home the way that is done properly (*and NOT with one of those sub-prime mortgages-which is why a LOT of people ended up either under water or homeless when the bubble burst*) You REALLY need to either be married or make six figures or both. Otherwise you WILL ether lose your house or wind up with a junk heap, money pit in dire need of major repairs that you cannot afford, because you want to be able to pay your one,two or three thousand dollar a month mortgage.

Again if you are not making enough money to be able to save up the kinds of dollars that Cathy needs for these repairs.Or that my friend needed to have a new HVAC installed when his died. You really have no business buying a house.
Cathy is absolutely correct about how important it is to be able to have some kinds of savings when you own property.

Since I cannot afford to own a house, I put my money into my Polks!
Tax return and money made from sales of my old SDA's and cassettes is going towards my upgrades!
Now back to the audio

PSOVLSK

honestaquarian wrote: »

You know?
The American Dream of home ownership!
The one which says that everyone should be straight, married, have kids, have a college degree, have a job making six figures and own a home (*and I ain't none of those*)

I got 5 out 6. Guess I'm almost living the American Dream.

Jstas

PSOVLSK wrote: »

honestaquarian wrote: »

You know?
The American Dream of home ownership!
The one which says that everyone should be straight, married, have kids, have a college degree, have a job making six figures and own a home (*and I ain't none of those*)

I got 5 out 6. Guess I'm almost living the American Dream.

Welll...I'm glad you're coming out and all but don't you think you should tell your family you're **** before you tell us?

Or is this, like, one of them "safe spaces" I hear so much about for you?

mhardy6647

"Not that there's anything wrong with that!"

Paradoxex

honestaquarian wrote: »

Cathy
Not trying to hijack your thread,but please allow me to respond to the queries.
I live in Washington,D.C. (*our Nations Crapitol*)
A LOT of people right here in DC also say that you can't get a place for what I'm paying.

Again I'm not paying $800 a month, I'm paying LESS than that (*I've also been living here since 1996 and this apartment is about 800 square feet from what I'm told*)

Yes I live one block from a Metro station. I have heard MANY, MANY, MANY times over the years that I am throwing money away by paying someone Else's mortgage. I keep saying over and over and over and over and over <click> and over <click> and over <click> and over <click> and over...........................phew! That not everyone can afford to own a house.
The problem is most people are sheep and have to follow the crowd and do what everyone else does.
You know?
The American Dream of home ownership!
The one which says that everyone should be straight, married, have kids, have a college degree, have a job making six figures and own a home (*and I ain't none of those*)
In markets like Washington,D.C. where we weren't as affected by the housing bubble burst, in order to own a home the way that is done properly (*and NOT with one of those sub-prime mortgages-which is why a LOT of people ended up either under water or homeless when the bubble burst*) You REALLY need to either be married or make six figures or both. Otherwise you WILL ether lose your house or wind up with a junk heap, money pit in dire need of major repairs that you cannot afford, because you want to be able to pay your one,two or three thousand dollar a month mortgage.

Again if you are not making enough money to be able to save up the kinds of dollars that Cathy needs for these repairs.Or that my friend needed to have a new HVAC installed when his died. You really have no business buying a house.
Cathy is absolutely correct about how important it is to be able to have some kinds of savings when you own property.

Since I cannot afford to own a house, I put my money into my Polks!
Tax return and money made from sales of my old SDA's and cassettes is going towards my upgrades!
Now back to the audio

You don't have the answer, but what metro stop?
Congrats on beating the housing market game thus far,

oldrocker

Sorry you got hit with this, hope none of the residents just walk away as that will drive up the individual cost.

Russ is spot on with the scope of work thing.

Rights & Realty is a thing that most people don't interact with on a daily basis which can knock folks for a loop. Oops kind of hijacked a bit.

Hope all works out for you.

tonyb

Cathy,

I know you want to get that 8k chunk done with, but I'm not so sure taking it out of the MM account is the right thing to do in this case.

Seems to me, sitting in the cheap seats, that if you refinanced the mortgage and took it out of the equity in your condo, that equity will be replaced faster by simple time, than the MM account would. Plus it would be tax deductible. Taking out coin from the MM account, you might have to pay taxes on that, depending the type of account.

I could be wrong since I don't know the details to it all, just wanted to give you something to think about is all. Hope it all works out no matter what you do.

tonyb

honestaquarian wrote: »

Cathy
Not trying to hijack your thread,but please allow me to respond to the queries.
I live in Washington,D.C. (*our Nations Crapitol*)
A LOT of people right here in DC also say that you can't get a place for what I'm paying.

Again I'm not paying $800 a month, I'm paying LESS than that (*I've also been living here since 1996 and this apartment is about 800 square feet from what I'm told*)

Yes I live one block from a Metro station. I have heard MANY, MANY, MANY times over the years that I am throwing money away by paying someone Else's mortgage. I keep saying over and over and over and over and over <click> and over <click> and over <click> and over <click> and over...........................phew! That not everyone can afford to own a house.
The problem is most people are sheep and have to follow the crowd and do what everyone else does.
You know?
The American Dream of home ownership!
The one which says that everyone should be straight, married, have kids, have a college degree, have a job making six figures and own a home (*and I ain't none of those*)
In markets like Washington,D.C. where we weren't as affected by the housing bubble burst, in order to own a home the way that is done properly (*and NOT with one of those sub-prime mortgages-which is why a LOT of people ended up either under water or homeless when the bubble burst*) You REALLY need to either be married or make six figures or both. Otherwise you WILL ether lose your house or wind up with a junk heap, money pit in dire need of major repairs that you cannot afford, because you want to be able to pay your one,two or three thousand dollar a month mortgage.

Again if you are not making enough money to be able to save up the kinds of dollars that Cathy needs for these repairs.Or that my friend needed to have a new HVAC installed when his died. You really have no business buying a house.
Cathy is absolutely correct about how important it is to be able to have some kinds of savings when you own property.

Since I cannot afford to own a house, I put my money into my Polks!
Tax return and money made from sales of my old SDA's and cassettes is going towards my upgrades!
Now back to the audio

Dude, chill out man, we were just making suggestions is all. lol Live your life how you see fit, that's the American dream.

jflail2

Great savings advice. When you own a home........stuff happens. I bought a very well-kept house in 2013 here in VA. The house was built in 1985 and the lady who owned it prior to me took great pride in her house. New hardwood floors, new roof, new hot water heater, new plumbing, etc. Between July of 2013 and now I've had to repair the washer (DIY), replace a section of my fence (~$2k), replace the HVAC unit (~$8k) and just last night I noticed my garbage disposal is leaking so that needs to be replaced today.

Bottom line, if you buy a home, do indeed be prepared to spend a couple grand each year on maintenance/repair type stuff.

I don't regret buying a home as I've already seen the value go up a good $40k or so, but I do kind of miss the worry free lifestyle of renting. Pay rent, move on with life. Fridge breaks? Call the landlord and have a new one in place the same day. Want to move? End that lease and move on. Life was much cheaper and more simplistic when renting, but when it's time to move from VA, I'll have a fat chunk of equity to cash in on.

tonyb

It's about building wealth, not lifestyle. You made 40k already doing nothing, and you spent 10-12k to get it. Not to mention the gains on your taxes. Look at an IRS chart, compute your salary with no deductions and see how much more you'd pay at the end of the year. You may be shocked....

mhardy6647

Mrs. H read a thing somewhere (newspaper?) a couple of days ago -- the article suggested setting aside 1% of the value of one's home per year for maintenance.

Seems about right, actually.

muncybob

I agree about the original topic here about finding a way to put aside $$ so you don't have to borrow it. Having worked many years in the financial services sector I realized very early saving money and getting out of doubt were going to be "my dream". So I have a speadsheet(one of many!) and in it I have itemized all the non monthly recurring expenses...everything from taxes, insurances to Xmas $$, pet vet bills, vacations, etc. I divide out everything by my number of paydays(26/yr for me) and that amount is transferred directly to a savings account each payday. This is the FIRST thing that is done e/o Friday...no exceptions!

The built in savings comes from building a surplus in this savings account by ignoring that $$ and paying for the vet bill(or Xmas shopping, etc.) out of our checking account as much as possible. Over time it can create a nice amount. We are about ready to do a major kitchen make over. I've been saving $$ the last 3 years(another savings account) and based on all the estimates we are about $5k short....guess where that $5k will be coming from...it won't be a bank/c.u. loan.

tonyb

Saving money is something most are not accustomed to. Remember the old savings account ? Which now pays jack on interest.

Thing is, you don't build wealth trying to save money under the mattress. The money has to work for you, or put it towards something that grows in value. Using the tax laws to your advantage helps too.

Wasn't long ago I saw a story that 75% of people would have a hard time dealing with a 1000 buck emergency. That....is sad.

jflail2

tonyb wrote: »

It's about building wealth, not lifestyle. You made 40k already doing nothing, and you spent 10-12k to get it. Not to mention the gains on your taxes. Look at an IRS chart, compute your salary with no deductions and see how much more you'd pay at the end of the year. You may be shocked....

Oh, agreed completely. There's also a million little benefits that actually do impact your lifestyle in a positive way. Right after I bought my house (detached, single-family home), I hooked up the main rig, turned it up to 11, and then did a "perimeter walk" to see if my neighbors would be annoyed by my tunes/movies. The sound was gone by the time I got to the edge of my property (not big, but big enough) so I can crank it up as loud as I want at 2AM and not hear a complaint one.

I was also able to adopt a dog after buying, as I have a fenced in back yard and room to keep her. She's improved my overall quality of life dramatically, and I wouldn't have been able to adopt her in an apartment.

Finally, I can do whatever the F I want to my house. An all purple room? Not my jam, but if I wanted one I could do it. So not only am I "making money" in the end, I can live a more "me-focused" lifestyle and not worry about offending neighbors or roommates with noise or whatever.