I want to gear down now, work less, live on less. My dear departed Mom used to say "A penny saved is a penny earned ". That came from Poor Richard's Almanac she told me, Ben Franklin's collection of wisdom.
Many nurses are caught on the hamster wheel, working a lot and living high on the hog. They buy expensive cars, houses, boats, RVS on credit, go on pricy trips, and work like dogs to pay for it, one illness or accident away from financial distress.
You read on this site how many of us are burnt out. In real life I see that as well, and know more about my coworker's lives. I see a lot of expensive and wasteful habits out there.
This thread is for those interested in a simpler, less consumerist lifestyle. How can we enjoy life more, with more free time but less money? Spending less time at the nursing grindstone might relieve stress too!
I see alot of comments about home ownership and such. I don't know why, but I have been feeling like home-ownership may not be for me. I don't think I like the idea of being responsible for repairs/maintenance or being tied down to one place for a long period of time. I realize that this may just be my naivete and inexperience talking and that this may change once I decide to start a family, but is there anyone on this thread who has managed to NOT become a home-owner? How have you fared?
Home ownership is linked to a higher net worth because of the home equity as you pay the mortgage down, but I don't think it is meant for everyone. For me I love my home and the freedom it allows for hobbies, gardening and even to have a pet. Also I really buckled down financially reading all I could about personal finance and the home buying process, working overtime, and saving money and paying down credit card debt. I learned so much thanks to the wonderful home counselor my employer provided that went over my credit score, encouraged me to refi and consolidate my student loans, refi my car loan as rates had come down. She gave me a plan, a budget, a goal, set me up with a bank for a good mortgage and helped me thru the whole process including discovering that my lifelong family insurer was lying to me about replacement cost coverage for my new house and charging me more for substandard coverage. She was truly a godsend. If I had not checked out the home ownership counseling service I would probably still be renting!
I love my house, but it is not easy. Maintenance and repairs can be expensive, thankfully, my dad is very handy and helps me with many things. If I had to pay out of pocket I'd really be broke! So I see the pro's and cons and I tell people not to buy a house unless they are ready to settle down in an area for a long time because it is expensive to buy and sell a home and if you need to sell in a hurry you may not be able to without taking a loss as we have all found out with the most recent national home foreclosure crisis that swept the nation.
Many people have argued it was because of subprime loans and irresponsible people who never should have been granted mortgages, but from personal experience of fellow coworkers I think a lot of it falls on the greedy bankers and brokers that are willing to take advantage and overcharge people if given a chance to line their own pockets. After all I've read and seen first hand I would be tempted to get an attorney if I ever bought another house before signing a mortgage! Many brokers will pitch adjustable rate mortgages and promise you can always refi later when your credit's better, but that is not true! It makes no sense to get an adjustable rate mortgage when rates are low, better to lock in low rates now. My coworkers found themselves in subprime mortgages that only went up, it was very difficult to get out of to a fair fixed rate and one poor CNA lost her house when her mortgage shot up to 20% this when rates were 4-5%. The poor lady lost all her savings trying to pay this outrageous mortgage and then was foreclosed on and evicted in the end.
My advice is only buy a home if and when you are ready and take the time to become educated on the process. There are many good books out there Elyse Glink has some good ones. There is free online education about home ownership thru the non profit Nehemiah. Check if your employer offers any employee assistance programs and help with down payments. Some cities and states offer low interest loans with little down to low to moderate income workers, it is something worth checking into! Take the time to learn about personal finance before you buy a house or condo. If you choose to rent, don't forget to save money especially in a 401K/403B and Roth IRA.
We have 3 credit cards, but rotate them, only using one at a time. One of the cards has a really good points program, so when we're using that one, I'll put everything on the card, pull the money out of checking (so nothing gets put on the card unless there's money for it in checking) and pay it all off before the month is out.
Also, nothing fun gets bought until the bills are paid (gas, electric, phone, rent and cable-my one "splurge").
We paid off the car several months ago, but still put the payment into a "car fund" every month. The car's in great shape, but it's 4 years old and hubby is sure it will fall apart tomorrow (he's the type who would get a new car every couple of years. Since I'm the one working and paying the bills, I finally put my foot down and he doesn't get to do that anymore).
We eat out more often than I would like, but I get a lot of restaurant gift cards with those credit card points.
I generally do a HUGE grocery run every few months, and fill my big freezer and pantry to the gills. Then, the only things we need regularly are bread, milk (which you can freeze, by the way), cheese, fresh fruit and veggies, and occasional treats.
We aren't wealthy by any means, but we're comfortable.
Re: home ownership, this is a major life decision. If you aren't ready to stay in one place, if your income fluctuates, or if you already have debt, home ownership may not be wise.
I traveled and bought my first home at the age of 40. Some days I wonder if buying was worth it. Once I have paid the taxes and interest the equity is approximately 600 per month.
Is that worth it? Probably. I have no debt, I bought in an area where property values are increasing, and my budget is not stretched.
However, if you cannot afford to actually live your life AND save AND pay the mortgage, if you do not have a reasonable down payment, I would caution against home ownership. If you are going to be house poor, then buying is not worth it.
Also, consider that in addition to the down payment, you will require lawyer's fees, closing costs, taxes, and moving costs. In total, I spent 48,000 when I bought my house. All costs were calculated well in advance of the actual purchase.
Also, many buy more house than they can afford. Shop wisely, otherwise you will be indebted to the bank for 30 years. Is that worth home ownership? Know the cost of carrying all of your debts.
I'd say it's worth it to buy even if you don't plan on staying forever if you can buy for considerably less than average rent prices. This is very market dependent, as some places mortgages are a lot more than rent. I save at LEAST $100 a month to have twice the square feet and a garage compared to the average apartment prices around me. It's a no brainer to buy in a market like that.
Even if I take a loss on my townhouse, I'd still come out with more money as long as the loss was less than what I'd have paid for rent in the meantime.
If I had to sell my house two years from when I bought it - two years' rent at $800/month would come to $19,200. If I had to sell my house for $15,000 less than I paid for it, I would still be $4,200 in the positive. So, losing money selling your house is still less money lost than renting quite a bit of the time. A $15,000 loss on my townhouse would be just about impossible. The cheapest I've seen any of these go for is about $10,000 less than I paid for mine, and that was a foreclosure that had some appliances ripped out and a couple of chunks taken out of the walls.
Specializes in Critical Care, Med-Surg, Psych, Geri, LTC, Tele,.
I believe in home ownership. While my reasons may not be applicable to every geographical region, in mine, there are important reasons to buy.
#1) you can beat inflation. Rents go up annually. Your mortgage payment should stay the same for 30 yrs. for example, the mortgage on my parents home was $500-700 in the 80s/early 90s. By the time I wanted to rent in the area in the late 1990s, rents were $900-1500. I instead chose to buy in that area. My mortgage was $1000.
Right now, if I was in a position to buy again, which I wish I was, the price to buy a condo where I now rent is $300/mo less than I pay rent. This fee does not include hoa dues, though. But I'd still be paying a little less and be eligible for tax deductions of interest.
#2) reason to buy a home: so you can one day retire with no house payment. That is my goal!
I will add this caveat: I do not believe in being "house poor" BTDT when I was married. I am, however, an advocate of buying an affordable home. By affordable, I mean one with a payment that isn't more than you comfortable can pay for rent.
Regarding skipping cable, I too do not have cable. I haven't had cable for several years now and myself and my son stay quite entertained with the other resources available: hulu/Netflix/ Amazon prime, free streaming movies, etc. I do pay for an Internet connection, but since I'm a student, I don't consider that optional.
When I want to follow up on a new story of interest, I google it and read / watch a few different sources interpretation of the issue. I've always hated the local news. I think it sensationalizes and spins things.
2 other ways I stay frugal: I don't live in a great area. It's safe. I like my neighbors, but many people from my local area are shocked when I tell them the specific neighborhood I live in. This is because it used to be very dangerous. But I've lived here over 2 years And am quite satisfied for the most part. My rent is very affordable.
I also drive a 12 year old car. Many friends told me to buy a new vehicle when I graduated from LVN school.
I chose to instead keep my bills low so that I could return to school in the near future.
Where I live, the rents are the same as my mortgage and fees. I'm not really saving by owning, but I am building equity instead of putting the funds in a landlord's pocket. In that respect, I'm saving.
Specializes in Critical Care, Med-Surg, Psych, Geri, LTC, Tele,.
Where I live, the rents are the same as my mortgage and fees. I'm not really saving by owning, but I am building equity instead of putting the funds in a landlord's pocket. In that respect, I'm saving.
Yes, equity is another benefit of homeownership!
Some posters mentioned the maintenance costs of homeownership, but I put a lot of "sweat equity" into my homes. 😀 some repairs were required, but overall, I still think it's better to own, at least in my region.
For all of you doing the calculations related to home ownership vs renting. Don't forget to include the following costs:
1. Property tax (home owners pay it ... renters have it included in the rent)
2. Property insurance (home owners pay a lot more than renters)
3. Costs of maintenance, repairs, and replacement of things like kitchen appliances, carpeting, plumbing and heating systems
4. Things like lawn maintenance, snow removal, tree removal, driveway repairs, etc.
5. The interest you paid on your mortgage (the actual cost of the home, not just the price. Yes, you get a little tax deduction for it, but the tax deduction is no where near the amount of interest you actually pay)
I have paid off my mortgage, but I still pay a lot of money to maintain it -- and will need to spend a lot to spruce it up when I finally sell it in another 5 or 6 years.
Whether or not home ownership pays off financially or not depends on a lot of factors -- so each person has to do their own calculations while also considering the emotional factors. But if you are going to actually "run some numbers," be sure to run them all. Too many people get in over their heads and/or make bad decisions by confusing the "purchase price of a house" with the "costs of home ownership."
brandy1017, ASN, RN
2,910 Posts
Home ownership is linked to a higher net worth because of the home equity as you pay the mortgage down, but I don't think it is meant for everyone. For me I love my home and the freedom it allows for hobbies, gardening and even to have a pet. Also I really buckled down financially reading all I could about personal finance and the home buying process, working overtime, and saving money and paying down credit card debt. I learned so much thanks to the wonderful home counselor my employer provided that went over my credit score, encouraged me to refi and consolidate my student loans, refi my car loan as rates had come down. She gave me a plan, a budget, a goal, set me up with a bank for a good mortgage and helped me thru the whole process including discovering that my lifelong family insurer was lying to me about replacement cost coverage for my new house and charging me more for substandard coverage. She was truly a godsend. If I had not checked out the home ownership counseling service I would probably still be renting!
I love my house, but it is not easy. Maintenance and repairs can be expensive, thankfully, my dad is very handy and helps me with many things. If I had to pay out of pocket I'd really be broke! So I see the pro's and cons and I tell people not to buy a house unless they are ready to settle down in an area for a long time because it is expensive to buy and sell a home and if you need to sell in a hurry you may not be able to without taking a loss as we have all found out with the most recent national home foreclosure crisis that swept the nation.
Many people have argued it was because of subprime loans and irresponsible people who never should have been granted mortgages, but from personal experience of fellow coworkers I think a lot of it falls on the greedy bankers and brokers that are willing to take advantage and overcharge people if given a chance to line their own pockets. After all I've read and seen first hand I would be tempted to get an attorney if I ever bought another house before signing a mortgage! Many brokers will pitch adjustable rate mortgages and promise you can always refi later when your credit's better, but that is not true! It makes no sense to get an adjustable rate mortgage when rates are low, better to lock in low rates now. My coworkers found themselves in subprime mortgages that only went up, it was very difficult to get out of to a fair fixed rate and one poor CNA lost her house when her mortgage shot up to 20% this when rates were 4-5%. The poor lady lost all her savings trying to pay this outrageous mortgage and then was foreclosed on and evicted in the end.
My advice is only buy a home if and when you are ready and take the time to become educated on the process. There are many good books out there Elyse Glink has some good ones. There is free online education about home ownership thru the non profit Nehemiah. Check if your employer offers any employee assistance programs and help with down payments. Some cities and states offer low interest loans with little down to low to moderate income workers, it is something worth checking into! Take the time to learn about personal finance before you buy a house or condo. If you choose to rent, don't forget to save money especially in a 401K/403B and Roth IRA.