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Start backwards with right now - take your salary, pull out your 25%, pay your expenses and see what's left that you can comfortably put towards a house payment.
As far as saving 50% of your income down the road - that has more to do with your employment than it does with buying a house now (in a round about way). That's provided your 45th birthday isn't next year!
Its like when my son graduated from college and wanted to bum around a year or so before grad school. I told him that he had two choices: either marry a very very rich woman, or get a job that is so good that no grad school would fail to take him after doing that for a year.
He couldn't find a rich woman to marry, so he got one of those jobs.
You want to save big money after buying a house? Get a job that is really really well paying, or marry a very rich woman.
It can be done. I do it. You just have to be realistic about your final goal. Take out your 25% then look at your income, decide how much you want to spend on house payments, then go hunting. Realize that a realtor will pressure you to spend up to your approved amount, but stick to your guns and buy well below that (equal to the payments you want to make). You may get less house or a less fancy house (which can be remedied), but you will still have your savings.
Are people able to save after they purchase their home? OR is all of the money going to thee home?
I need to still be able to save 25% of my annual and by the time I am 45y/o, I want to be saving 50%.
I would suggest to anyone buying a house to budget enough to have a seperate savings account specifically for home repairs. I don't care how brand new the house is. You'll feel a lot better about not having to borrow from retirement or your regular savings taking a hit to fix that expensive surprise.
Its like when my son graduated from college and wanted to bum around a year or so before grad school. I told him that he had two choices: either marry a very very rich woman, or get a job that is so good that no grad school would fail to take him after doing that for a year.
He couldn't find a rich woman to marry, so he got one of those jobs.
You want to save big money after buying a house? Get a job that is really really well paying, or marry a very rich woman.
Point!
House is secondary... how to generate that income (to be able to save 25% / 50%) comes first.
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