20-something + Retirement = What?

[ercchry]

Originally posted by flipstah



I could do that but then it'll be a pain in the butt and a burden if I ever have to find tenants or fix issues with them or the house.

nothing in life is free i'll take the extra stress for a couple hundred thousand

[flipstah]

Originally posted by Tik-Tok


Are you kidding? He's Filipino, he's expected to live at home until he buys a house and gets married, and then his parents move in with him

Fuck, it's like you know me so well.

No, my parents are planning to have their own pad and live their own. I'll just give them a "go-away" allowance lol.

Originally posted by max_boost
Like most kids flipstah is all over the map. Live, learn and grow. Stop trying to plan every single step of your life. Going with the flow doesn't hurt. That doesn't mean you just sit back and smoke weed all day lol It means don't get paralysis from over analysis.

Going with the flow can be a good thing but if you don't take action, then you'll be going all over the place for a long time. I like to be organized.

[Feruk]

Putting away $300/month isn't much when living at home. Either you're aggressively paying off your debt, or mismanaging your finances really badly. I'm gonna guess the first, but something to think about if that's not the case.

Travel while you're young. Why the hate for hostels? They are by far the BEST way for young people to travel. I'm turning 28 this year and I'm staying in hostels again this summer. Don't diss it till you try it.

As for the idea of renting and paying the place off in 10 years, that's not realistic. For 2 bedroom is say $300K price for something decent. To pay that off in 10 years (excl interest and closing costs, property tax, ect), you'd need $2,500/month. No way someone's gonna pay for $1200/month to live in a 2 bedroom place. On a separate note, I'd never consider buying a house with less than 20% down. If you can't put 20% down, you can't afford the house IMO.

It's hard to say what you can and cannot afford without having any sense of what type of budget we're talking about. Big difference between making $2000/month after tax and $4000/month.

You're only young once; don't waste your youth in return for some crappy apartment. You'll be able to afford that later. Worry about having fun and enjoying your youth, because that will never come again.

[flipstah]

Originally posted by Feruk
Putting away $300/month isn't much when living at home. Either you're aggressively paying off your debt, or mismanaging your finances really badly. I'm gonna guess the first, but something to think about if that's not the case.

Travel while you're young. Why the hate for hostels? They are by far the BEST way for young people to travel. I'm turning 28 this year and I'm staying in hostels again this summer. Don't diss it till you try it.

As for the idea of renting and paying the place off in 10 years, that's not realistic. For 2 bedroom is say $300K price for something decent. To pay that off in 10 years (excl interest and closing costs, property tax, ect), you'd need $2,500/month. No way someone's gonna pay for $1200/month to live in a 2 bedroom place. On a separate note, I'd never consider buying a house with less than 20% down. If you can't put 20% down, you can't afford the house IMO.

It's hard to say what you can and cannot afford without having any sense of what type of budget we're talking about. Big difference between making $2000/month after tax and $4000/month.

You're only young once; don't waste your youth in return for some crappy apartment. You'll be able to afford that later. Worry about having fun and enjoying your youth, because that will never come again.

I am aggressively paying off my debt while still having a cushion for emergencies. I'm not putting it all into savings because just in case I need it, I won't get penalized for it. I can technically save $1k/month.

I guess it's time to live life and see the world while I'm still young.

Beyond never disappoints lol.

[Type_S1]

Originally posted by Feruk
As for the idea of renting and paying the place off in 10 years, that's not realistic. For 2 bedroom is say $300K price for something decent. To pay that off in 10 years (excl interest and closing costs, property tax, ect), you'd need $2,500/month. No way someone's gonna pay for $1200/month to live in a 2 bedroom place. On a separate note, I'd never consider buying a house with less than 20% down. If you can't put 20% down, you can't afford the house IMO.

It's hard to say what you can and cannot afford without having any sense of what type of budget we're talking about. Big difference between making $2000/month after tax and $4000/month.

LOL excluding all those things take 5 years off how long it will take you to pay down, you can't exlude them.

I don't understand your statement about not having 20% down means you can't afford the home?

Average starter home say 350k...20%=70k down. Saving 70k would take someone a very long time unless they are making sick cash. Let's take someone making 80k a year with no debt just starting their career. They would be easily able to pay a mortgage but take probably 3 years (maybe more) to save and get 20% down.

I don't know about you but I sure wouldn't want to live in mommys basement for that long.

To the OP...I am in the same spot you are. I want to travel but I also want to own a home. You can do both but it sucks when you want to leave for a year and see the world but are stuck with 3 or 4 weeks vacation haha.

Grind it out for a few years...make a boatload of cash (if possible) and dissapear for awhile...there are always jobs waiting if you are a smart person.

[flipstah]

Originally posted by Type_S1


LOL excluding all those things take 5 years off how long it will take you to pay down, you can't exlude them.

I don't understand your statement about not having 20% down means you can't afford the home?

Average starter home say 350k...20%=70k down. Saving 70k would take someone a very long time unless they are making sick cash. Let's take someone making 80k a year with no debt just starting their career. They would be easily able to pay a mortgage but take probably 3 years (maybe more) to save and get 20% down.

I don't know about you but I sure wouldn't want to live in mommys basement for that long.

To the OP...I am in the same spot you are. I want to travel but I also want to own a home. You can do both but it sucks when you want to leave for a year and see the world but are stuck with 3 or 4 weeks vacation haha.

Grind it out for a few years...make a boatload of cash (if possible) and dissapear for awhile...there are always jobs waiting if you are a smart person.

For me, I feel that a year vacation is way too long. That's just me.

As for the downpayment, 20% would be awesome but 10% is more feasible.

DECISIONS, DECISIONS.

[Zewind]

flipstash,


You are really in the best financially position. I have older clients that go paycheck to paycheck. Take your time and write down where you want to me in 5, 10, 15 years, then work towards that.

[max_boost]

You guys seriously take 1 year vacations?

I really don't see anything wrong with working, buying a place you can afford and then take your 4 week vacation.

How does vacation time in the corporate world work? Does everyone get 4 weeks? Do you have to take it in one shot or can you take two, two week vacations?

I don't know about you guys man but that seems simple and realistic. Work, pay your bills, find a place to live and taking two vacations a year. That's balance and living right there.

[max_boost]

So flipstah what's your job anyway? I'm curious. We'll workout a plan for you based on your current and future earnings. Let the Beyond financial advisers take care of your major life decisions haha

[lasimmon]

^ most places 3 weeks to start taken how ever you want. Pending how bad you are needed.

[ercchry]

Originally posted by lasimmon
^ most places 3 weeks to start taken how ever you want. Pending how bad you are needed.

2 weeks is law...

[georgemagana]

Same spot as the OP. I decided to do car + travel at the same time and I should be able to finish paying the car just after 1 year of buying it. As soon as I finish paying the car, Ill be saving for a house and still traveling. Got to have fun just like everyone said! Reason I decided to do car before house was just having fun. I knew it was the wrong economic decision but Im only gonna be young once!

[flipstah]

Originally posted by Zewind
flipstash,


You are really in the best financially position. I have older clients that go paycheck to paycheck. Take your time and write down where you want to me in 5, 10, 15 years, then work towards that.

I guess working out a future map can roughly guide me the right way. That's what I have now with my debt reduction map via Excel and so far, everything is going Flipstah!

Originally posted by max_boost


I don't know about you guys man but that seems simple and realistic. Work, pay your bills, find a place to live and taking two vacations a year. That's balance and living right there.

So long as I can pay the bills, it's a good day haha.

Originally posted by max_boost
So flipstah what's your job anyway? I'm curious. We'll workout a plan for you based on your current and future earnings. Let the Beyond financial advisers take care of your major life decisions haha

If you're THAT curious, you can dig around the Careers section lol.

Originally posted by lasimmon
^ most places 3 weeks to start taken how ever you want. Pending how bad you are needed.

Originally posted by ercchry


2 weeks is law...

Mine are 3 weeks min. and I can use it in one shot.

Originally posted by georgemagana
Same spot as the OP. I decided to do car + travel at the same time and I should be able to finish paying the car just after 1 year of buying it. As soon as I finish paying the car, Ill be saving for a house and still traveling. Got to have fun just like everyone said! Reason I decided to do car before house was just having fun. I knew it was the wrong economic decision but Im only gonna be young once!

I have no car payments as that's fully paid. Just silly debt right now. I'll be done by July and then save up for a trip to the Philippines this Christmas.

I think I'll travel while I can still walk around without a cane.

[sputnik]

Originally posted by flipstah

I can technically save $1k/month.

Really? That's it?

When I first moved to Calgary I was 22 and making $65,000/year (before tax).

I was renting an apartment just off 17th Ave ($850/month) and was still able to save $1500-1800/month for the down payment for my first house.

[flipstah]

Originally posted by sputnik


Really? That's it?

When I first moved to Calgary I was 22 and making $65,000/year (before tax).

I was renting an apartment just off 17th Ave ($850/month) and was still able to save $1500-1800/month for the down payment for my first house.

That's because I'm paying off debt right now. Past July, I can save more than that.

[max_boost]

Originally posted by flipstah


That's because I'm paying off debt right now. Past July, I can save more than that.

Until you start going on vacation, buy a new car, decide you want to eff off for 3-4 months at a time etc.

There's really two solutions to money problems, make more or spend less lol

[flipstah]

Originally posted by max_boost
Until you start going on vacation, buy a new car, decide you want to eff off for 3-4 months at a time etc.

There's really two solutions to money problems, make more or spend less lol

Amen. My spending days are over and now it's time to penny-pinch.

Lesson learned!

[kaput]

.

[Twin_Cam_Turbo]

I say don't try to do it all at once. I am 21, graduated from AST at SAIT 1 year ago, I really really just wanted a nice fast car when I graduated, but I restrained myself and didn't even really mod my old car. Made it to the end of last year, got promoted, sold my old car and put a decent chunk of payment on a almost new BMW. Put a deposit down on my first place, and by the time that's built I should have $30000 of the $175000 total price saved up. I haven't taken any vacation, and the last time I went on one was years ago. Its kind of like a pick 2 out of three scenario to me, nice car and a first place but no travel or trips. I make $65000 a year approx before taxes and I manage my money well, I owe nothing other than my car and soon to be mortgage.

[flipstah]

Well, with vacation first in mind, it's time to put ~$1k/month starting this month and then progressively get bigger as my debt shrinks.

Now if in the future, I foresee myself making more income around 30-40s then decrease as I retire, which account should I utilize more now; TFSA or RRSP?

I can do both after the summer (if everything goes right: $500/month per account + $1500-2k on savings for vacation/downpayment/whatever) but one has to be higher than the other

.. Right?