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1. Improve Your Credit Score: Check. I have seen it improve 40+ points since last October. I hope to see this continuously increase within the next 5-6 months.
2. Open a Specific Savings Account: Check. I even labeled it 'New House' so there's no confusion lol
3. Cut your expenses: Check. Went from paying $1150/month in rent to $665/month by living with 5 roommates in Harlem. I also cut out cable and pack my lunch every day for work (unless I get $1 pizza). My roommates and I just have Netflix/Hulu/Internet and split 6 ways it ends up being about $14/person. ConEd split 6 ways is about $40/person.
4. Declutter: ?
5. Burn the Midnight Oil: Check. Working 7 days per week- 60+ hours per week.
The declutter part is where I feel I could really benefit from right now and need your advice! I have a ton of clothes I do not plan on taking back with me to VA when I move. Has anyone seen a lot of funds come from selling their items?
Do you sell each item 1 by 1 (which sounds like a nightmare!) or do you sell a bunch of your clothes in a set and give it one price? Any websites besides eBay, Amazon, and Craigslist you recommend? I saw someone in my neighborhood take all of their clothes outside and start selling it. She had dishes from IKEA, you name it. I thought this may work, but if no one buys anything I have to lug it all back up to my apartment ugh lol. Ideally, I would like to make a couple hundred dollars from my items. I just feel like I need to strategize the best way to make this happen.
Thanks for any/all tips and advice! Also, if there is a thread already out there (couldn't find it!) feel free to pass it along so there is no duplicating.
Re: decluttering - I definitely think it's beneficial for any move, but don't think it's necessary going to help significantly saving for a with a down payment. (Unless you want to argue that the philosophy of living a simpler lifestyle with less material goods will make you a more frugal person...but that's getting kind of deep!)
The last 2 times I moved, I sold all of my furniture on CL. In Manhattan, this is very easy. You'll get a lot less than what you paid for it, if you bought new, but it's still a little extra cash and less stuff to have to deal with.
As far as clothing/small items go, I go straight to eBay for those. I don't have the time to devote to an actual physical flea market, and there's the drawback that you mentioned of having to lug whatever didn't sell back home at the end of the day. When I'm in eBay mode, I run a few auctions at a time. As soon as an item sells, I add the next one on the list. It's definitely not a way to MAKE money, but rather downsize and get a little back.
I don't think the point is that decluttering will help out a lot, just that if you know you're going to get rid of stuff anyway why not do it ahead of time and add what little bit you get to the kitty.
Last edited by duster1979; 08-07-2014 at 09:35 AM..
Re: decluttering - I definitely think it's beneficial for any move, but don't think it's necessary going to help significantly saving for a with a down payment. (Unless you want to argue that the philosophy of living a simpler lifestyle with less material goods will make you a more frugal person...but that's getting kind of deep!)
Or....
having less stuff will allow you to get a smaller - and probably less expensive - house, which means a smaller down payment.
1. Improve Your Credit Score: Check. I have seen it improve 40+ points since last October. I hope to see this continuously increase within the next 5-6 months.
2. Open a Specific Savings Account: Check. I even labeled it 'New House' so there's no confusion lol
3. Cut your expenses: Check. Went from paying $1150/month in rent to $665/month by living with 5 roommates in Harlem. I also cut out cable and pack my lunch every day for work (unless I get $1 pizza). My roommates and I just have Netflix/Hulu/Internet and split 6 ways it ends up being about $14/person. ConEd split 6 ways is about $40/person.
4. Declutter: ?
5. Burn the Midnight Oil: Check. Working 7 days per week- 60+ hours per week.
The declutter part is where I feel I could really benefit from right now and need your advice! I have a ton of clothes I do not plan on taking back with me to VA when I move. Has anyone seen a lot of funds come from selling their items?
Do you sell each item 1 by 1 (which sounds like a nightmare!) or do you sell a bunch of your clothes in a set and give it one price? Any websites besides eBay, Amazon, and Craigslist you recommend? I saw someone in my neighborhood take all of their clothes outside and start selling it. She had dishes from IKEA, you name it. I thought this may work, but if no one buys anything I have to lug it all back up to my apartment ugh lol. Ideally, I would like to make a couple hundred dollars from my items. I just feel like I need to strategize the best way to make this happen.
Thanks for any/all tips and advice! Also, if there is a thread already out there (couldn't find it!) feel free to pass it along so there is no duplicating.
I'm going to disagree on "burn the midnight oil". If you need to work that much overtime, either you have a good savings rate already but need to be willing to wait longer to buy a house, or you are having so much difficulty saving without doing that that you will also have difficulty affording the house without the overtime. If that's the case, don't buy the house, as it would basically amount to a 15- or 30-year slavery sentence imposed on yourself.
Beyond 'Spend less and save more', the article is pretty fluffy and doesn't offer much in the way of advice to first time home buyers ... or anyone else. (?? Raise your credit score, declutter ??)
Probably the most sensible approach is to open a specific savings account and then AUTOMATICALLY deposit a set amount into that account. A good way to do that (assuming most are already living on the edge of their income), is to move all wage increases and bonuses to that account. That way, one can save, without significantly changing their spending habits.
Thanks- LizfromtheBronx. Yeah, I was just looking to make acouple hundred. I want to start fresh anyway in the new house so I’m not takinganything with me except my bedroom furniture set and TV lol Since I have to usemy credit cards anyway to show utilization, and my ability to pay back I spendthe money on all home goods (leave them at my parent’s place in VA). A littleeach month goes a long way so I don’t have to scramble around last minute. I’mthinking Craigslist is the way to go- from your post. I think I will startthere. Either we can meet in Harlem where I live or in Midtown where I work(whichever is most convenient)
Quote:
Originally Posted by duster1979
I don't thin kthe point is that decluttering willhelp out a lot, jus tthat if you know you're going to get rid of stuff anywaywhy not do it ahead of time and add what little bit you get to thekitty.
True. That is what I am hoping for. I just want to free up some space in myroom, (less to move!) and make a little pocket cash that I wouldn’t have hadotherwise had I just gone straight to a charity and donated.
Quote:
Originally Posted by Pitt Chick
Or....having less stuff will allow you to get asmaller - and probably less expensive - house, which means a smaller downpayment.
Oh I do not have any furniture or anything large that takes up space. I will be starting fresh and will need to buy furniture when I get there. I also need to take that into account when I talk about my overall savings account (not just down payment). All Icurrently have is my furniture set and a ton of clothes to get rid of.
Quote:
Originally Posted by ncole1
I'm going to disagree on "burn the midnightoil". If you need to work that much overtime, either you have a goodsavings rate already but need to be willing to wait longer to buy a house, oryou are having so much difficulty saving without doing that that you will alsohave difficulty affording the house without the overtime. If that's the case,don't buy the house, as it would basically amount to a 15- or 30-year slaverysentence imposed on yourself.
Absolutely agree about burning the midnight oil. I should have beenmore clear in my post. I work multiple jobs (not just over time at 1 job).
Mon-Fri: 9a-6p (career, main job)
Sat-Sun: 9a-6p (street fair sales person)
Sat- 8p-2a (was working coat check – when the weather was colder, probably won’t be back upuntil this fall!)
I’m 41.6% to my savings goal and have my end goal deadline as February 28,2015 and really just need to push this final stretch. Every dollar counts atthis point so was just trying to see what I was missing. I think I will try Craigslist- 1 item at a time. If I bundle it, it may limit my opportunity.
I'm going to disagree on "burn the midnight oil". If you need to work that much overtime, either you have a good savings rate already but need to be willing to wait longer to buy a house, or you are having so much difficulty saving without doing that that you will also have difficulty affording the house without the overtime. If that's the case, don't buy the house, as it would basically amount to a 15- or 30-year slavery sentence imposed on yourself.
This isn't what's being suggested. The article is focused on saving for a downpayment and suggests taking on extra work temporarily to help save for that, not committing to working your life away in order to buy a home that you can't afford. Working weekends or evenings for a few months now in order to put more money down in exchange for a lower payment for 15 to 30 years seems pretty reasonable to me.
Beyond 'Spend less and save more', the article is pretty fluffy and doesn't offer much in the way of advice to first time home buyers ... or anyone else. (?? Raise your credit score, declutter ??)
Probably the most sensible approach is to open a specific savings account and then AUTOMATICALLY deposit a set amount into that account. A good way to do that (assuming most are already living on the edge of their income), is to move all wage increases and bonuses to that account. That way, one can save, without significantly changing their spending habits.
Thanks jghorton!
I actually think the article is pretty bare bones and basic. For me personally, I do not automatically deposit a set amount, because I feel like that limits me to just that amount. I have a spreadsheet that shows me how much to save per month as it will fluctuate. To your point bolded above, some months (1st month of every quarter), I am eligible for a bonus so I try will add that bonus received in the savings account. I also just received a 7.3% raise at work so that additional monthly amount (just $200 after taxes lol) is saved as well. Same for my income tax return each February. I don't even plan on using that money for vacations like I used to!
The pay for my side gigs each weekend fluctuates as well (flat rate + commission) so I like to just micro manage/budget my own finances based on how much earned and how much I can put away. 100% of the part time income goes to house savings account and then approx. 30% of my take home pay goes to house savings as well. Just wasn't sure about the declutter portion of the article. I guess just do that in spare time to get rid of pieces but maybe don't even look into that as a solid way to make a couple hundred.
This isn't what's being suggested. The article is focused on saving for a downpayment and suggests taking on extra work temporarily to help save for that, not committing to working your life away in order to buy a home that you can't afford. Working weekends or evenings for a few months now in order to put more money down in exchange for a lower payment for 15 to 30 years seems pretty reasonable to me.
Right! I couldn't imagine myself working 7 days/week for more than a year and a half! This whole no shopping, or social life is starting to kill me LOL
I just know that if I suffer through this year and a half (only 1 year left to go now!) it will be worth it. I always use the Zillow Mortgage calculator for fun to see how much an increase in down payment really affects the mortgage payment. It's crazy that just a couple thousand dollars more could result in $50-$75ish less per month!
My goal is to keep the mortgage payment under $800/month and bring in a live in tenant and charge them maybe $750/month in rent! So I can get back to having my social life (and retail therapy sessions).
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This whole no shopping, or social life is starting to kill me LOL
