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Old 05-14-2007, 01:38 AM
 
1 posts, read 1,904 times
Reputation: 10
Unhappy Saving vs. Income vs. Living Style in LA

Hi, I would like some advice in my worries.

I have been a working person for about a year and a half, but I am living very poorly because I want to buy a house some day and live comfortably. So far I have saved about $27,300. My current income is $78,000 (pre-tax). I live in a tiny apartment with roommates and have nothing but computer, desk, cloths, closet. (I eat at work, sleep on floor). I really want to buy a tiny cheap condominium or house, but they are extremely expensive. After a year and a half.. it seems I am getting sick of this saving money, while giving my mom and dad money. Obviously I have not done enough research to invest in things, but stupidly kept putting most of my money into checking account. So my questions are

1) At 78k, in Los Angeles county, how much do I need to save to buy a decent place to live (not apartment)
2) What is a good "extremely small risk" investment?
3) Is it worth living crappy to save in hopes of finally getting a home of my own? I want a home or condominium in Glendale or Burbank, 2~3 bedrooms in case I get married. And I wish my mortgage payment to be less than $2,000 a month. Is this doable? and when?
4) If what I am asking is impossible in Burbank/Glendale area, what must my minimum income be to achieve this? (I have slightly higher offers, but I really like my current work)

I have no payments except $580 for my room, and food/entertainment stuff.

Thanks

Last edited by leo3an; 05-14-2007 at 02:26 AM.. Reason: re-organized questions
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Old 05-14-2007, 06:54 AM
 
Location: Los Angeles
644 posts, read 2,365,919 times
Reputation: 308
You're tired of saving money? Well, you'd feel a lot more trapped if you were making payments of $4000 a month plus upkeep of a home that you can't sell because it's worth $100K less than what you paid for it. Plus you'd be spending time on the freeway commuting because the place you could afford is 30 miles from where you work. But you should be investing money. Compound interest is an amazing thing. Shop around for a good CD to put your money into. I'd say the stock market and the housing market are pretty scary investments right now. If you want to find investments, start doing some research online. Check out www.patrick.net. Keep reading, keep learning. It will make you feel empowered. Lots of people right now will tell you that you are "throwing your money away" by paying rent. They'll brag about how they "Own property" but you have now idea what type of interest-only loans they may how or what their debt portfolio looks like. You think people are free because they own a nice house, fancy car, and expensive shoes? Think again. The bank owns them. Keep saving your money. Consider traveling or a vacation in the future. It's nice to save money, but you want to have some fun too. Consider buying an Airstream trailer and travel around the country in that. Buy a used one to fix up and an old Suburban Diesel that you can run on vegetable oil.
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