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I hear a lot about not hiring out of state (or non-local, maybe?). We have never worried about it, but also, as you mention, we do not pay for relocation.
I guess it is pretty simple to get a P.O. Box and change a phone to local (although cell phone area codes are becoming quite fragmented anyway), but I can't say that it definitely will help, but it sounds like from others on here that it might.
You seem pretty out of touch. I make $30k. Somehow I bought a $125k house in a nice neighborhood putting 20% down. I live alone so I don't share bills. I have money in savings and contribute monthly. I pay my cc's off every couple of months. I have two cars. I go out to concerts and restaurants.
Admittedly it would be more difficult raising a family with me making 30k but if I had a kid theoretically I would also have the second income of my wife.
If I was making $50k I would feel like a king.
Question..how long did it take you to save the 25K DP when you were making 30K a year or less? Was that given to you? Most people that live on their own have trouble saving ANY money if they are making 30K or less. Saving 2K a year, and paying off all the bills, sounds about right for a paycheck of 30K or less a year...that still means 12 years of savings without tapping into a penny...
Lets make it simple and say your folks gave you the DP..that being said, you still are paying about 800-900 a month with Austin RE taxes added on as a monthly escrow....those two cars have insurance, which is at least 100 bucks a month for both....utilities on a small house are still about 200 with gas/water/electric, averaged out over a very hot Austin summer(AC), if not more....Thats already 1100 a month...you need gas per the cars..I presume you drive one at a time, so that would be about 200 month for gas, presuming you drive an average amount..150 if you scrimp on gas(about 40 a week)...thats already 1300/month....you say you eat out and go to concerts...even if you eat by yourself, and dont date, you are paying about 10 bucks even for a cheap restauarant meal(short of fast food)....6 cheap restaurant meals a month are 60 bucks...if you don't brown bag lunch, another 90-100 month at bottom for lunches at work, and about 60 month if you brown bag it for the food...so, just eating out is about 160 a month....that brings us to 1460 a month in expenses...next, do you buy your clothes from goodwill or new? If new, even if you buy the basic underwear, socks, shoes, sweatshirts, t-shirts, pants, and such, at least 50 bucks on average for clothes, and that is being frugal, as a pair of pants and a shirt w underwear can easily set you back that much at Kohls....thats another 50 a month, which brings us to 1500 bucks in basic expenses..You are bringing in, after taxes, about 1800-1900 a month, presuming you are bringing home 22K a year after taxes...basic home maintainance should cost another 100 a month very bare minimum...thats 1600....so you bring in 1800 or so, and have monthly expenses of 1600? That presuming you do not date(all this predicated on no dating, which would easily eat up that 200-300 left..scrimp...have no major repairs that crop up, or major medical expenses...which means you are putting away, at best, about 1,800 a year, with no expenses whatsoever that crop up unexpectedly which would wipe that out, no vacations that would wipe that out, and no dating, which would wipe it out as well....
Lastly, what if you lost your job with no margin for error here? Did you tap out of all your savings when you put the 25K down? How much did you have in there? Not many single people making 30K or less have 10K in the back, let alone 25K...If you put more than 25 in the bank over the years, per still having a 10-15K cushion right now(meant you saved about 35-40K) over the years, you would be at the very top, prob .1 percent, of folks making 30K or less that saved 40K living on their own...only way to swing that is first, living at home for about 5 years or more and saving every penny, and, second, to maintain at least 10-15K for job loss in the bank...if you were either given the DP, or saved it from living at home for years, I can understand swinging that mortgage...Now that you have it, only question is how much money you are putting away for emergencies like medical/job loss, so you don't lose the house per being 2-3 months behind...Thats the only prob with a home purchase making so little(30K)..you have so little room to manuever when emergencies happen..
a moot point if you have folks albe and willing, but few people have folks able OR willing to help out now..They are struggling themselves to pay the bills....
Best of luck if you ARE paying a mortgage with such a low salary and frugally apportioning expenses(though with two cars for one person, suire doesn't sound like it)....and never heard of a 50K income as "living like a king".....especially paying a mortgage note, even a small one, down...just shows you how small the salaries/expectations are in Austin...sad..
I hear a lot about not hiring out of state (or non-local, maybe?). We have never worried about it, but also, as you mention, we do not pay for relocation.
I guess it is pretty simple to get a P.O. Box and change a phone to local (although cell phone area codes are becoming quite fragmented anyway), but I can't say that it definitely will help, but it sounds like from others on here that it might.
ya best is to just get a mailbox from the ups store and you can buy a prepaid tracfone w/ 20 mins from Target for $10 with any area code. I don't plan on changing my CA cell phone number ever. its bad enough I will have to physically forfeit my CA drivers license when I get my TX license.
All depends on if you are single or not..one, Austin is NOT cheap, and Transportation is a huge expense anywhere, especially in a city whose population lives out of their car....I would question easily affordable entertainment...many clubs and concerts charge 20 dollars and often much more(obviously there are always free events, but not the most desirable ones - try seeing how far you get for free at SXSW or ACL, not to mention any name artist....even many small clubs like continental charge 10 bucks a head or more....
My point is that it is not a GOOD salary, at least one worth boasting about or transferring to Austin for....a good salary in a large city would be one you can support your family solely on...50K will not pay the mortgage and family needs per kids...not without drastic scrimping and a very small home, if one could even qualify for one with such an income...50K would get you about in qualification for a condo mortgage, or a very small house of about 125K max...not many nice areas with homes under 125K....in a major metro, if you have a mortgage, you need a combined of at least 80-100K just to be in the game, per family expenses...if you want to live in a really nice area, you are talking 150K combined just for starters...so, not saying 50K is bad, just that it just gets you in the affordability game if you double the same with family...50K is what 30K was in the early 90's, and secretaries were making that at the time, and I was with a run of the mill political job driving a muni truck.....30K now means you are living on your own, and just paying off a rental of about 700K absolute max, and not saving a penny for emergencies...I think you also forget to mention saving money here...along with paying off credit card bills...so many, prob most of us, live to some extent on credit..now that that AND much of home equity is tapped out, it is much harder now as well...even compared to just a few years ago....
Point again, is that 50K is OKAY for a single person in a major metro, but certainly nothing at all to boast about or live large on, and some on here were mentioning that 50K was "good"....you really have to define good..and if you are raising a family with kids solely on that, not good at all...families MUST have a double income to survive now....and if hubby's paycheck was gone, or yours, I can voucesafe you will either burn through savings and/or struggle...
100k is what used to be 50K, and 15-20 years ago, when 50K was worth 100K, many more people were making that equiv than are making 100K now.....which leads to the fact that 100K is a "good" salary now....again, what would have been the equiv of 15 K in the late 60's - early 70s'...which simply says not only how little middle class salaries have moved up, but how much we are living on credit, with education, medical, AND housing expenses moving up FAR faster than inflation..
To sum, for a single person who does not mind living with a roommate and skimping hugely/not saving a penny, 20-30K is doable in Austin...for someone who wants his/her own place, in a reasonably decent area not a ghetto or marginal ghetto, and save a little bit, just a little bit, and go out a little bit(presuming this is a guy not planning on spending much dating as well, as women in that situation will at least have someone paying for dates), and rent something up to 650K AND save just a little bit, 30-40K is
doable in Austin....for someone that want to have an active social life, a male that needs to spend a fair share of money dating, or anyone that wants a nicer place to rent, AND save a little bit a year, perhaps 3-5K, than 40-55K is doable in Austin....for a single person, 50K and up should qualify you for a smaller mortgage, and get you in a condo/TH, or a small house...To really live it up, so to speak, and save a large share of cash, after taxes mind you, 75-80K will make that happen in Austin, at base, or more than that...
To sum, for a family living in Austin, a combined of 100K is absolutely base just to purchase a small home in a decent area, and be relatively thrifty with expenses..little money will be saved in this scenario......for those looking for a larger home, AND raising a family with kids in Austin, or a really decent area. 150K would be the bottom base for that to happen....200K combined is doing well in Austin..you might laugh here, but realize that that is simply what a double income of 100K was pulling in in the mid 90's.....note I am talking a GOOD double income, the type considered good over the years..the type that upwardly mobile families need to be in the game....
Lastly, Austin is somewhat egalitarian for a large metro, unlike Houston and Dallas, and there is not as much striving pressure here...people largely do not move here for the same reasons they would move to Dallas and Houston, and that is a good thing on many levels, and on many levels not such a good thing....Austin simply lacks the same social pressures to do well/keep up with Joneses that Houstin/Dallas and other major metros have...many here are simply not LOOKING to go very far, and are centered in a different way than those that move to the "striving" metros.....more egalitarian ethos here....which is a major attractor of residents in the first place......simply nice to live in a metro where you dont feel compelled to "measure up" at every step to your neighbor..not that we are lacking in such neighborhoods, but there are not very many of them, and people largely do not come here that are driven to make a large splash/sum of money.....they go to Houston/Dallas and the rest of the top flight US metros for that..
Thanks for the info, this was one of the more informative posts
I was paying $1400 for a 1bed/1bath in a newer apt complex in Southern California, if i can get close to my old CA salary in TX, I plan on living in or around downtown austin
Question..how long did it take you to save the 25K DP when you were making 30K a year or less? Was that given to you? Most people that live on their own have trouble saving ANY money if they are making 30K or less. Saving 2K a year, and paying off all the bills, sounds about right for a paycheck of 30K or less a year...that still means 12 years of savings without tapping into a penny...
Believe it or not it can be done. I'm proof of this. When I first moved to Cali I got a job making 28k a year. It took me about 2 years to save about $12,000. I started with what was left in my bank account when I moved there: $300. In the first 5 years of living in Cali I shared apartments and houses with other roommates. At one point me and 7 other people rented a falling-down house in a not so great neighborhood. The rent wound up coming down to $400 per person. Utilities cost us hardly anything because you don't need AC nor heating for that matter where we live. We bought bulk groceries at Costco and ate a LOT of noodles, rice, etc.
I kept a little ledger at work. Every week I wrote down what my weekly expenses were, how much I spent that week/month/year and what my average saving rate was per month and how I was comparing to last month. It was very helpful. I still have that ledger in my book shelf and I take a look at it from time to time. $10 was a big deal back then.
Today I make a lot more then that but I live about as frugal as back then. Only difference is that we only have one housemate versus 6 and I on occasion do buy a nice dinner or maybe a new PC every 4-5 years. My focus for the past 7 years has been to save cash for a house. I could care less about the old cars we own or whether I have the latest phone or gadget.
But the bottom line is that even if you make a lot less, you can save money, and sometimes an admirable amount. It all depends on how much you are willing to sacrifice and accept in order to make it happen.
Question..how long did it take you to save the 25K DP when you were making 30K a year or less? Was that given to you? Most people that live on their own have trouble saving ANY money if they are making 30K or less. Saving 2K a year, and paying off all the bills, sounds about right for a paycheck of 30K or less a year...that still means 12 years of savings without tapping into a penny...
Lets make it simple and say your folks gave you the DP..that being said, you still are paying about 800-900 a month with Austin RE taxes added on as a monthly escrow....those two cars have insurance, which is at least 100 bucks a month for both....utilities on a small house are still about 200 with gas/water/electric, averaged out over a very hot Austin summer(AC), if not more....Thats already 1100 a month...you need gas per the cars..I presume you drive one at a time, so that would be about 200 month for gas, presuming you drive an average amount..150 if you scrimp on gas(about 40 a week)...thats already 1300/month....you say you eat out and go to concerts...even if you eat by yourself, and dont date, you are paying about 10 bucks even for a cheap restauarant meal(short of fast food)....6 cheap restaurant meals a month are 60 bucks...if you don't brown bag lunch, another 90-100 month at bottom for lunches at work, and about 60 month if you brown bag it for the food...so, just eating out is about 160 a month....that brings us to 1460 a month in expenses...next, do you buy your clothes from goodwill or new? If new, even if you buy the basic underwear, socks, shoes, sweatshirts, t-shirts, pants, and such, at least 50 bucks on average for clothes, and that is being frugal, as a pair of pants and a shirt w underwear can easily set you back that much at Kohls....thats another 50 a month, which brings us to 1500 bucks in basic expenses..You are bringing in, after taxes, about 1800-1900 a month, presuming you are bringing home 22K a year after taxes...basic home maintainance should cost another 100 a month very bare minimum...thats 1600....so you bring in 1800 or so, and have monthly expenses of 1600? That presuming you do not date(all this predicated on no dating, which would easily eat up that 200-300 left..scrimp...have no major repairs that crop up, or major medical expenses...which means you are putting away, at best, about 1,800 a year, with no expenses whatsoever that crop up unexpectedly which would wipe that out, no vacations that would wipe that out, and no dating, which would wipe it out as well....
Lastly, what if you lost your job with no margin for error here? Did you tap out of all your savings when you put the 25K down? How much did you have in there? Not many single people making 30K or less have 10K in the back, let alone 25K...If you put more than 25 in the bank over the years, per still having a 10-15K cushion right now(meant you saved about 35-40K) over the years, you would be at the very top, prob .1 percent, of folks making 30K or less that saved 40K living on their own...only way to swing that is first, living at home for about 5 years or more and saving every penny, and, second, to maintain at least 10-15K for job loss in the bank...if you were either given the DP, or saved it from living at home for years, I can understand swinging that mortgage...Now that you have it, only question is how much money you are putting away for emergencies like medical/job loss, so you don't lose the house per being 2-3 months behind...Thats the only prob with a home purchase making so little(30K)..you have so little room to manuever when emergencies happen..
a moot point if you have folks albe and willing, but few people have folks able OR willing to help out now..They are struggling themselves to pay the bills....
Best of luck if you ARE paying a mortgage with such a low salary and frugally apportioning expenses(though with two cars for one person, suire doesn't sound like it)....and never heard of a 50K income as "living like a king".....especially paying a mortgage note, even a small one, down...just shows you how small the salaries/expectations are in Austin...sad..
I would be lying if I said none of the down payment money was given to me. However, it was not given to me for a down payment. Since I was born I was given gift money for birthdays, Christmas, etc. Amounts that most people would spend but I saved. That was not the entire down payment. Much of it was saved by me from working. Yes, I did live at home until I was 25 (I am 26 now). I did that so I could afford to pay tuition. I am almost done my BA and am yet to take out a loan.
Wow, after looking at your numbers I'll bet I could go through your budget and make you feel like you got a raise.
Before I bought this house I was renting a slightly larger house. My utilities were never 200 a month, even in August. My average utilities in the summer were about $135.
$50.00 a month on clothes??? Who buys clothes every month. I haven't bought any in over a year when I purchased two pairs of jeans and a shirt. Before that it had probably been six months.
Car insurance is $450/6 months for a 2002 Corvette Z06 and a BMW 328iS.
$60 a month for bringing my lunch to work? Not quite. I spend about $200 a month on food total a month including eating out. This is eating about five times per day and no fast food.
I have a girlfriend. She does not expect me to spend whatever is left of my paycheck on her. If she was that type of girl I would consider her undateable.
After the DP I still have over 10K left for emergencies.
I would be lying if I said none of the down payment money was given to me. However, it was not given to me for a down payment. Since I was born I was given gift money for birthdays, Christmas, etc. Amounts that most people would spend but I saved. That was not the entire down payment. Much of it was saved by me from working. Yes, I did live at home until I was 25 (I am 26 now). I did that so I could afford to pay tuition. I am almost done my BA and am yet to take out a loan.
Wow, after looking at your numbers I'll bet I could go through your budget and make you feel like you got a raise.
Before I bought this house I was renting a slightly larger house. My utilities were never 200 a month, even in August. My average utilities in the summer were about $135.
$50.00 a month on clothes??? Who buys clothes every month. I haven't bought any in over a year when I purchased two pairs of jeans and a shirt. Before that it had probably been six months.
Car insurance is $450/6 months for a 2002 Corvette Z06 and a BMW 328iS.
$60 a month for bringing my lunch to work? Not quite. I spend about $200 a month on food total a month including eating out. This is eating about five times per day and no fast food.
I have a girlfriend. She does not expect me to spend whatever is left of my paycheck on her. If she was that type of girl I would consider her undateable.
After the DP I still have over 10K left for emergencies.
LOL! Wait, you have a Corvette and a Beemer, and you make 30K? Per that insurance, is that full coverage on the vet? I take that it is not, and that you store it most of the year....thats what I pay for an older Lexus(13 years), and just one car...I dont buy many clothes myself, but I consider myself rare...I can see a guy handly buing much but a few jeans and t shirts a year, but most buy at least 2 pairs of shoes a year...an average person would prob buy about 6 -7 shirts a year, 2 pairs of shoes, and 3-4 pairs of pants, not to mention hats, jackets, and such for the colder seasons...thats a large part of it..you spend essentially nothing on clothes and wear the same stuff every day, or close to it....if you are not buying clothes for work, and do not wear suits and ties, I can see spending essentially nothing on clothes but 3-4 t-shirts, the same jeans(providing you stay the same weight/size), and maybe 1-2 light jackets/sweaters...I find it hard to believe that utilities, including gas/electric/water, for a home averaged out for the entire year and Austin's 4 months of brutal heat(AC) can cost 135 average..I've had water bills close to that high, along with gas bills of at least 70 bucks...If you never turn the AC on, are rarely in the house, hardly use hot water/cook(gas), and take one very short shower, along with rarely washing clothes, maybe you could pinch that back to 135 in a VERY small house..thats less than any apartment I've ever lived in total..still sounds way off..forgot to mention cell ohone bills? Talk often on yours? Even pay as you go plans are about 25 bucks a month if you talk rarely on them, and 52 with taxes with just 900/1000 minutes a month...The 200 a month sounds about right if you eat little, and spend about 20 bucks a week filling your fridge(itself adding up to 80/month)..just a case of beer increases that by 13-15 bucks..When I was single, a typical grocery run, back about 3 years ago, cost me about 45 bucks, and the cart was not overflowing, believe me....I take it you are not buying much steak or other items that would def get it to that range,,just a can of coffee is 10 bucks now, and many people go through one of those easily a week(40 bucks a month). ...Per dating, you can get away with spending little if you are already in an established relationship, and are careful with what you spend on the same.
If you broke up, and needed to spend money, would be different...not sure what the women you would date expect, but surely a movie date, with you playing the freight, at the least, or concerts...those would be about 40-80 bucks each date....sticking with the same gal would be wise if one wanted to avoid spending on courting any new relationships....a little strange for someone to date at their home, so obviously you would have to spend money for a spell till they felt comfortable just to stop by and watch movies....
All things considered, if you really are honest per getting that mortgage, good for you....that 10K is bare minimum to keep for emergencies with a mortgage, and you have mentioned on another post how tight the Austin job market is....If you lost your job, with your frugal lifestyle, and without help from the parents, you should be able to pay the note for about 5-6 months without either losing the house or getting it paid off by the folks...Just keep that 10K intact, as that is a bare minimum lifeline, and no one can get help from folks indefinitely to pay off a mortgage, besides very well off folks, and even they sometimes cut people off from funds....If you had to sell it, you ptob have enough money in the bank and a small bit of equity in the house to pay the commission per a real estate agent as well....It all comes to that 10K, and keeping it intact and adding to the same...I have to commend you for not using credit, as sounds like you are not making any payments on cards..if so, than that 10K isn't going to last long with a job loss...
Good luck to you...you sound like you have had help, and have folks to rely on if you need more, but you are definitely living way within your means, are frugal, have a girlfriend who is happy not being wined and dined(sounds like a nice gal), and creating equiity/wealth...that is totally awesome for your age, and I lift my hat to you!
Good for you, bro!
Sinking, you mentioned on the other board that the job market is tight in Austin....is that wise to strap on a mortgage making 30K in a tight job market? That's the choice you've made, and now you are essentially stuck with that decision....good luck with that..
My mortgage (PITI) is the same as my rent was so I didn't increase my expenses. If I lose my job I could rent out one of my spare bedrooms to a roommate. Actually, I plan to do that while I still have a job.
The tight job market argument could be said for anyone making any kind of money. WHY WOULD ANYONE BUY IN THIS MARKET?!? Aren't you a RE agent? That can't be good for business. If I lose my job or a limb I am F-ed whether I am renting or owning so am I to just rent on fear?
If I lost my job I have several months worth of pay in savings, I should easily be able to find a job working someplace like Wal Mart, I can rent out a room, I can sell things. There are options past just having luck with that.
Believe it or not it can be done. I'm proof of this. When I first moved to Cali I got a job making 28k a year. It took me about 2 years to save about $12,000. I started with what was left in my bank account when I moved there: $300. In the first 5 years of living in Cali I shared apartments and houses with other roommates. At one point me and 7 other people rented a falling-down house in a not so great neighborhood. The rent wound up coming down to $400 per person. Utilities cost us hardly anything because you don't need AC nor heating for that matter where we live. We bought bulk groceries at Costco and ate a LOT of noodles, rice, etc.
I kept a little ledger at work. Every week I wrote down what my weekly expenses were, how much I spent that week/month/year and what my average saving rate was per month and how I was comparing to last month. It was very helpful. I still have that ledger in my book shelf and I take a look at it from time to time. $10 was a big deal back then.
Today I make a lot more then that but I live about as frugal as back then. Only difference is that we only have one housemate versus 6 and I on occasion do buy a nice dinner or maybe a new PC every 4-5 years. My focus for the past 7 years has been to save cash for a house. I could care less about the old cars we own or whether I have the latest phone or gadget.
But the bottom line is that even if you make a lot less, you can save money, and sometimes an admirable amount. It all depends on how much you are willing to sacrifice and accept in order to make it happen.
It's 100% about being frugal, not to mention sober and non-drug orientated...I do have to bring this up, as many persue these things, but an average drinking(and boy, are there places to drink in Austin!) person, especially in Austin, will spend 50-100 bucks a month on beer if they are going out(hanging out)...very very quickly adds up....just 3 beers in one night is 7-10 bucks most places, not to mention cover to see the bandsm if they charge...if one does not drink going out, or very very little, and buys little for themselves, they can save 100 month easily...in Austin, many smoke up as well, both legal and the wacky stuff..either will cost about 120-140 a month(actually, the legal kind would cost more in most cases)....if that can be eliminated, thats ANOTHER 130 ish savings....so, a smoker and drinker is paying about 240 a month minimun for his/her habits.....someone that lives straight is putting 240 in his/her bank account a month from the get go....going out to movies is about 17 a pop for a single person that buys popcorn and soda, and 35-40 for a couple...with kids, about 50 if 2 and husb and wife with food.
...concerts, which strangely enough many move to Austin for, so not sure why one would not partake of them often if that is why they are living there in the first place, add up hugely...sure, many are free, but most charge, and all the name acts charge, most very much...Even Stubbs will set you back 60-70 bucks a couple for any name act, and thats just one week-end night.....
So, if one does not drink, or close to not drink, at bars or clubs, and does not smoke the legal OR illegal stuff(BTW, it IS legal in a few states, and California just 100% de-criminalized up to an ounce of pot), AND stays at the home per movie entertainment, looks solely or largely for free concerts, staying away from the name acts that charge, does not go on many trips or major vacations, drives not terribly much, and saves what little they can, they can certainly make do with a smaller income, even pay down a small mortgage....
Of course, raising a family is an entirely different ballgame...they just said on the radio out here that, each child you have will cost about 700K to raise from birth to 18...so now you can see where the husbands who have families paychecks go(along with the wives in most cases as well)...so, if you want to save money and live within means, having as few or no kids as possible would obviously make sense...having kids does NOT go with the concept of saving money/frugality whatsoever...LOL!
Of course, raising a family is an entirely different ballgame...they just said on the radio out here that, each child you have will cost about 700K to raise from birth to 18...so now you can see where the husbands who have families paychecks go(along with the wives in most cases as well)...so, if you want to save money and live within means, having as few or no kids as possible would obviously make sense...having kids does NOT go with the concept of saving money/frugality whatsoever...LOL!
Who said this? That's absolute hogwash. That's like saying you have to have an additional $39,000 per year per each child. Unless you are sending your kid to a "country day school" with 25K of tuition per year, you dress them exclusively in designer clothes, and you are sending them to Europe ever year for a vacation, I don't see how anyone could come up with a number like that.
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