I'm beginning to realize that I can't afford to live here anymore (San Jose: apartment, rent)

[ddowns46]

I was born and raised in San Jose, graduated from Cal Poly SLO with a Manufacturing Engineering degree, and have worked for a major defense contractor in Sunnyvale for the last two years. I live in San Jose.

I make $63k/yr and have $70,000 in student loan debt. I pay $750/mo on my student loans alone. I live in a small, very low quality house on a busy street with 3 other guys. I drive a $1200 '91 Ford Ranger i have to work on constantly to keep running. My share of the rent including utilities is approximately $800/mo. All my other living expenses are probably similar to most other folks living in this area.

My biggest dream is to own my own house. I'm saving money (~20k in 401k, another $10k in savings), but at the rate I am going, I wont be able to afford a down payment for at least another 5-10 years. Even then, I wouldn't be able to afford a mortgage either. Housing prices are only continuing to go up and thought of renting a small apartment for more than $1000 is very depressing to me.

My dad bought is first house in San Jose when he was 20 years old working as a machinist. What am I doing wrong?

[marcopolo666]

If you realize that you can't afford to live here anymore, then you should leave. I don't understand your question otherwise.

[bobby_guz_man]

Nothing's wrong. The world has passed us by, that's all Seriously, that annual salary should allow you to live pretty decently if you didn't have the student loan

But like marcopolo said, if it isn't working out for you, it's time to move out of the area. Maybe not too far, Morgan Hill? Antioch? Tracy?

[mistercommuter]

Either you're:
1. making too little money because you don't know your value to employers

Or:
2. worth as little as you're paid for whatever reason- you're new in your field, the poorness of the economy, or, as another thread it titled, salaries "suck" in the Silicon Valley

Take your pick, though it may not matter what or why.

More to the point, you may want to take a couple of things into account, one being that people from the rest of the United States, with the exception of the Northeastern states, refer to CA's housing prices as "ridiculous!" and "outrageous!," a second thing being that many if not most of those who own their homes today bought them decades ago, before the prices skyrocketed.

Taking these things into account, you might have to do what many other native San Joseans and Californians have done which is to leave CA in search of the American Dream.

[ccm123]

Morgan Hill is just expensive as the northern end of Santa Clara county. Look out of state, if you don't mind looking elsewhere.

[ddowns46]

Originally Posted by bobby_guz_man

Nothing's wrong. The world has passed us by, that's all Seriously, that annual salary should allow you to live pretty decently if you didn't have the student loan

But like marcopolo said, if it isn't working out for you, it's time to move out of the area. Maybe not too far, Morgan Hill? Antioch? Tracy?

Yeah, I guess that is the really the answer. I could move far away and commute 2 to 3 hours a day. Or I could get a higher paying job, and have to work 70+ hours a week. Either way, spare time to enjoy life would decrease.

It's also tough to make the decision to move out of state. I've lived here my whole life, and all of my family and friends are here as well. I'll start looking into it though...maybe Texas.

The SL debt is a bummer, but I definitely didn't have to go to college. I made the decision to go because I believe that it will increase my earning power among other reasons. It could be worse- my sister graduated from UC Berkeley with a liberal arts degree and she cant find a job and has as much debt as me. Shes been in deferment for 3 years. My twin brother graduated from UCLA with $100k in debt.

Hind sight being 20/20, i would have gone to SJSU and lived at home. But I was 18, so.

[slo1318]

You need a financial plan , you should not be saving while you are that far in debt.
Pile cash on your debt including the savings. Then attack saving like you've attacked the debt.
Times are different in California now then when your dad was young, if don't want to move you are going to need a very regimented plan. Try Dave Ramsey...
Go Mustangs!

[ddowns46]

Originally Posted by slo1318

You need a financial plan , you should not be saving while you are that far in debt.
Pile cash on your debt including the savings. Then attack saving like you've attacked the debt.
Times are different in California now then when your dad was young, if don't want to move you are going to need a very regimented plan. Try Dave Ramsey...
Go Mustangs!

Actually a co-worker just loaned me his Dave Ramsey CDs. I need to listen to it!

[tonykent]

Originally Posted by slo1318

You need a financial plan , you should not be saving while you are that far in debt.
Pile cash on your debt including the savings. Then attack saving like you've attacked the debt.
Times are different in California now then when your dad was young, if don't want to move you are going to need a very regimented plan. Try Dave Ramsey...
Go Mustangs!

Arguably, I think he should be saving while he has student loan debt. Student loan interest rate is not as terrible as credit card debt. With some money in the saving account, ppl can get prepared for a hard time. Liquidity is important. He should be saving until he has at least money to support his life for 6 months in case he stops receiving his income.

[tonykent]

Originally Posted by ddowns46

Yeah, I guess that is the really the answer. I could move far away and commute 2 to 3 hours a day. Or I could get a higher paying job, and have to work 70+ hours a week. Either way, spare time to enjoy life would decrease.

It's also tough to make the decision to move out of state. I've lived here my whole life, and all of my family and friends are here as well. I'll start looking into it though...maybe Texas.

The SL debt is a bummer, but I definitely didn't have to go to college. I made the decision to go because I believe that it will increase my earning power among other reasons. It could be worse- my sister graduated from UC Berkeley with a liberal arts degree and she cant find a job and has as much debt as me. Shes been in deferment for 3 years. My twin brother graduated from UCLA with $100k in debt.

Hind sight being 20/20, i would have gone to SJSU and lived at home. But I was 18, so.

"Spare time to enjoy life would decrease." Many middle class people with high income are also very busy, work so hard and don't have spare time to enjoy life.