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"Jim" is not yet 30, earns a modest $40,000/year and his wife of four and a half years earns $22,000.
After they got married they lived in a small studio apartment they rented for $400/month. They never went into debt for anything paying either cash or using a debit card. They went to one car and closely watched their money saving nearly every dime they could.
They use pay as you go Trac Phones, and watch television using rabbit ears. Three or four channels. No internet.
They are finally in the process of buying their first home a good condition nice three bedroom/2 bath home with an in-ground swimming pool on a large lot in a nice neighborhood. The amazing kicker is they are paying cash which my sister in law told me was $130,000. They're combined take home pay was $50,000 and it appears they managed to save $30,000 every year.
Now they want to start a family. I guess it can be done as long as you have a goal and keep your eye on it.
I got to admit it makes me just a little but jealous wondering what life might have been like if I never had to make a mortgage payment.
I need to find out if he got the first time home buyers tax credit that's now expired. Knowing him he did. The house is really nice. Even with property taxes and an increase in utilities their cost of living still has to be cheaper than it was renting the studio apartment.
I hope this catches on and while not possible in some areas of the country there are many areas where it is very possible. Newly married couple without debt and both working if they really put their minds to it how much can they save even with modest incomes?
This is great to see! So many young people today are so wasteful, paying for things that they do not need, like expensive cable with 1000's of channels and fancy high speed internet. Saving on small things here and there can really pay off! Your nephew and his wife are wise beyond their years.
I'm just wondering where they live that they can get an apartment for $400/month...wow!
Many towns and cities in the Midwest, actually. A few weeks back, I saw an apartment in a good neighborhood in Cincinnati for $425 and that included heat.
My friends could not understand why I turned down an assignment in Orange Co, CA to take a similar position in Cleveland. The mortgage payment on a nice place in the Cleveland suburbs was about HALF of what a decent 2BR apartment would cost me in Irvine.
Back 25 years ago, I watched on news in Los Angeles where a black woman who moved to down town Los Angeles in the early 30's from Alabama, died a millionare. She was a maid for the Beverly Hills elite. She rented a apartment on Wilshire Bl and she said to people, one day I will own this apartment building. She saved every penny and eventually bought the apartment building but still remained a resident there. Eventually, she bought several other apartment buildings in the area but still lived frugulity. When she died in her 80's everyone was shocked to learn that she died a millionare. Her philosphy was a penny saved is a penny earned. Although, I am not a millionare and have lost $100K throughout the years, I have been able to save.
There are plenty of couples living on $20K---including most retirees. You can save everything you earn above that, and then spend it to make your life meaningful.
Great job saving the money. Not so savy paying cash though....interest rates are so low.
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