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Other unexpected peripheral expenses comes with buying a home that will quickly drain your wallet and bank account.
Or the expenses you incur upon moving in for all the things you need to make the home habitable. We've always budgeted a chunk of change whenever we've purchased a property for what we refer to as "move-in expenses".
Oh, and forgo that car payment and buy an older, reliable used car. I haven't had a car payment in 20 years and I don't miss it at all.
That would be very easy to do. Buy a fast food lunch at work, dinner at a restaurant or pick up take-out on the way home, a cocktail or two, a cup of fancy coffee in the morning and you would be spending more than $30 a day.
Money spends quick and it is tricky to keep track of where it disappears to if you aren't paying careful attention. It's easy for your wallet to mysteriously empty and you are standing there with nothing to show for it and not sure where the money went.
But I think it's less common to do all of those things every day. Not just the money, but the time cost of all those errands would add up.
Not to mention the health cost. The "fancy" coffees I assume you mean the high calorie large latte, cappucino, or the various iced coffee milkshakes. Those are what add up to $6, (black coffee is 2-3). Takeout & restaurants are not very healthy either.
I can attest when you do that more than 2x a week, you will see it show up in your weight.
Not counting coastal cities and high cost of living cities, how do most people not afford homes? I used a mortgage calculator, and if a couple has a income of 80k (40k a person), 600 in monthly debt, and a down payment if 10k, they could afford a home of 300k! Even 200k will get you something decent. That’s a pretty nice home in most of America, and making 40k a year isn’t hard. What am I missing?
This sounds like my daughter's or my wife's reasoning. Two very book smart women who are very clueless about real world finances. Some one making 80k a year would probably be hard pressed to pay 60k plus for 30 percent down payment, usually needed on a 300k loan to forgo PMI. Other unexpected peripheral expenses comes with buying a home that will quickly drain your wallet and bank account. Those mortgage calculators are liken to the 299.00 monthly new car notes advertised by dealers.
I mean who’s really the one clueless about real world finances. The person who can’t afford a home because of too many expenses and irresponsible spending or the person who can afford a home due to responsible spending and finances, and wonders why others can’t? If your daughter and wife can’t understand it, then chances are they are responsible financially. Unless neither of them work and support themselves.
It's going to depend. I worked with teachers who ordered in or went out for lunch every day.
I'm sure some people do. However, as I said, Starbucks knows how much their median customer spends and frequents their stores. The median Starbucks customer spends $30 a month over 5 visits a month.
Because people don't want to live where nice homes are $300,000. They prefer to stick to highly desirable areas and whine because they can't afford to buy a house.
I know people who choose to live in an apartment or condo in the high end of town rather than a larger home in a more affordable area.
Usually, they are single or married people with no children.
I couldn’t understand why someone earning 43,200 a year wouldn’t buy a house for 35k instead of paying 14,400 a year in rent. Maybe it’s hardship as some of you say, but not always. Rents may be late in January and July according to my manager. I asked why and it’s because tenants don’t put rent as a priority but spend a lot at Xmas and 4th of July and pay late fees. That to me is not all the excuses many mentioned, it just mindset.
Many people have zero discipline. They'll be the one's eating wet cat food out of a can when they "retire." (Whoops, should have saved some of that retirement $$$$.)
Starbucks knows what their customers spend - the average is about $ 30-35 per month, about $300-400 per year. Most customers visit about 1x a week. There are not very many people buying Starbucks EVERY DAY and spending like $2000 a year. And with what housing costs now, $350 a year is not what's making or breaking your homeowning prospects.
I say this as a proud SBUX shareholder, that the company is well run and they know their customers well.
About 15 years ago I had a coworker who tallied up her lattes she bought daily before work at Starbucks. Yikes, she said: $1200+. And, she was an Econ major attending school while working part time. Mommy and Daddy were paying for college but as Salutatorian, she had a few scholarships. Mommy and Daddy also paid a substantial down payment on her first home plus an aunt bought her furniture. We should all be so lucky.
About 15 years ago I had a coworker who tallied up her lattes she bought daily before work at Starbucks. Yikes, she said: $1200+. And, she was an Econ major attending school while working part time. Mommy and Daddy were paying for college but as Salutatorian, she had a few scholarships. Mommy and Daddy also paid a substantial down payment on her first home plus an aunt bought her furniture. We should all be so lucky.
I thank her for my stock growth.
Yeah those people pad Starbucks's margins and they wouldn't be a successful company if there wasn't illogical demand for their coffee flavored milkshakes. However, that kind of super-customer is not average.
I'm actually kind of surprised at their continued success. Starbucks was a 90s phenomenon once connected to malls and shopping centers and not dissimilar to chain restaurants that have now died out. Yet it has managed to stay relevant and profitable to the present day, and their customers love them.
I thought they were going to be F***ed from the pandemic, but from the look of things they'll be stronger than ever. I was talking to the manager at my local one, he said starbucks stores around the country were among the first to reopen and hire back their workers in their areas, so they're not suffering as much from the worker shortage, and sales were better than expected even during the pandemic.
Last edited by redguard57; 07-12-2021 at 12:12 AM..
So you are saying someone can buy a $100,000 house with zero down for $522/month (at 100% financing)? That includes the mortgage, taxes, insurance and mortgage insurance (required at more than 80% LTV finanancing)? I don't know what mortgage calculator you are using, but it's not based in reality. I am getting at least $700/month to include all those items.
Our house was $102,000 and our first mortgage number (we refinanced last year) was $1592 with the taxes and insurances.
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