$100K Salary, $50K Savings, No Debt, and Renting
ฝัง
- เผยแพร่เมื่อ 13 ต.ค. 2019
- A subscriber question I decided to turn into a full video. I think this will help a lot of people which may be in the same situation. Many high paying individuals living on the east of west coast starting in their career will be in similar situation. You have a high paying job and have some savings but the housing market is just insane. What do you do from this point on?
► Mint Mobile, as low as $15/month: mintmobile.com/bush
► More resources at my Patreon: / beatthebush
► My honest reviews on Amazon: www.amazon.com/shop/BeatTheBush
► Mint Mobile, as low as $15/month: mintmobile.com/bush
► Moomoo, up to 17 FREE stocks: j.moomoo.com/008UFx
► Webull, up to 12 FREE fractional shares: bit.ly/2XwlcQ4
► Get $30 when you spend $30: www.rakuten.com/r/FRANCI7350?...
► FREE Audible Audio Book: bit.ly/2Z4RrN7
► Build Credit w/ NO Credit by Self-Lending: self-lender.3qcw.net/YYZBP
► BeatTheBush Honey Badger T-shirt: bit.ly/2FBAeLA
Other BeatTheBush Channels:
/ beatthebushdiy
/ beatthebushfoods - แนวปฏิบัติและการใช้ชีวิต
![600W Output from a Tiny Power Station [Oupes Exodus 600]](http://i.ytimg.com/vi/vQNiN_vwh7U/mqdefault.jpg)
![ทททททททท #27 [หลุยส์ เค โตมายังไง ณ สระบุรี]](http://i.ytimg.com/vi/CaKoYw_Xmtg/mqdefault.jpg)
The annoying part is once u start saving at that rate friends and fam that don’t understand start calling u cheap😾
I have a video on how to ignore the haters calling you cheap. The thing is, you can save plenty without being apparently cheap to others.
I make it a goal to be referred to as cheap! I take it as a compliment because I am accomplishing my goals.
They will get over it and you will reap the rewards!!😁
proud to be #crazycheapasian
Let 'em! You'll be having the last laugh! I speak from experience! (squeak)
Definitely like the idea of a series like this. Throw some charts and visuals in the video for the visual learners like me. Keep up the good work!
Thank you!
It feels good to hear you pretty much described everything I am doing right now. Looks like we have similar ways of thinking. Thank you for the detailed response
You're welcome!
hey thats you...
These scenario example are really interesting!
Perhaps do some maybe low budget? At different regions?
Love your content man.
This video was super valuable, especially since the numbers are similar to my personal situation!
Looking to buy my own home by the end of this year :)
EXCELLENT !!! " Best financial video ever" , l myself is into property bussiness.
WELL DONE 👍 keep up the good work 😀
Love this video, lots of valuable info!
We need more of this content!!!
=D I will continue with this since it seems to be helping a lot. I actually have one or two similar videos with different flavors to this coming next week.
I agree that you have to splurge and see your income once in a while. I treat myself to things very occasionally, that way I don't burn out and really hate my life.
Or else you start to wonder why you are working so hard. Reasonable splurges.
this is helpful! I hope you will have a series of this!
Thanks, one request for lower income already.
you give honest advice btb. you deserve your successes
Thank you!
Thank you, great information.
=D
Thank you Btb! You forgot to mention maximum 401k lol, and the tax and etc etc I think is more than 25%.
I start doubting my choice of living in high-rise unit at city center. I love the location, view & convenience.
But it always make me think of the opportunity cost of getting a house further out in suburban area.
Apartment has no upside or some even depreciates in value, whilst costing $5k pa in HOA.
I moved an hour away from a high cost of living area and it turned out to be a great decision for me
I do find it interesting how the example is 100k income 0 debt and already 50k saved and he suggested move in with parents or live in a van haha. I mean, 99% of people never make 100k/year in their life. Taking in that much money, absolutely save for property, but I'd definitely live a little, go on a couple vacations, that'll cost what, 3-10k. Nothing compared to your income. Personally I think that travel, hobbies, and life needs to be a priority over the best financial decisions. Albeit don't blow it, but 10k of your savings to fund all your hobbies and go anywhere in the world for a month, I say you only live once.
Exactly who I am in this scenario, except not in the coasts, and I just bought a Lexus, aiming for 100k saving in next Summer!
Good to have the down payment ready. It may come the next few years ... or not.
Yay great suggestion. Exactly the same situation I'm in. Make just under 100k, saving exactly 50k, no debt...don't quite have enough for a down until a couple years. 25k of the 50k savings is going into my Roth401k and RothIRA so the other 25k goes towards the down. My rent per year is lower than the property tax and HOA of a 600k house(burn costs of a house) around here so I don't feel too bad renting for a while until I have enough for a down.
How about a place with no HOA? If your rent is less than even just the property tax and HOA, that is a huge incentive to not even buy, lol!
@@BeatTheBush Bush, you're the man. I love your channel and hope to meet you one day. Wanted to start the reply with that. My coworkers house is around 600k, he pays 13k a year on property tax (more than what i pay/yr in rent alone). I know you can write some of that off so I include HOA into my logic. If no HOA, than insurance should justify my rent costs over buying. Not buying is certainly an idea im considering. Path 1 is to buy a house and house hack. Path 2 is to reach FIRE, move out of CA and buy a house in full. I'll reach FIRE in 15 years (very conservative projection, no raises or stock market return). I'll be 45 by then with enough to buy a house outright in a no income tax state. Any suggests to improve my plan would be appreciated Francis!
@@BeatTheBush You should have said that in the video instead of making it seem like you thought the person must buy a house to reach their financial independence.
Great video! Even if you do not fall into the 100,000 a year salary you can still still do this--take whatever salary you are making divide it in half and save that (and more if you can), of course, with no debt and find a cheap place to live and you can actually make it--it might take a bit longer but it is completely doable.
How about $30k salary divide by half is $15k? I'd say try to live on $15-20k and save everything else over! Lol.
It's always GREAT to hear your perspective on things...thanks for the inspiration. Are you planning any trips to Canada? If not, what's your next trip plans?
No trips planned there. And seeing how winter is coming, it wont be soon. I will be announcing a Subscriber gathering in Thailand soon.
@@BeatTheBush if you ever come to Ottawa Canada, I will come!
Great video. Good info! Hunkering down now to light that F.I.R.E.
Bring lunch.
Don’t buy coffee
Stop eating out a lot
Stop spending a ton of money
Truly... that's what I still do to keep that burn rate low.
Don't have children you cannot afford. If you marry, don't waste money on a big, exprnsive wedding. There are many cheaper alternatives to that such as a wedding brunch. These are things people spend money on early on. If you lose your job and you do not have the blessing, like this man, to have a good college education, look for Trade Schools that give some type of low cost six or eight week class that may be available during certain times a year. My Junior college gives a $500.00 nine week EEG/EKG, also medical secretary classes. You can also inquire about an apprenticeship. It is not something people usually do, but it is ALWAYS good to keep marketable. Unlike people here who want to retire early, I say be ready to work, keep your brain sharp by constantly learning with classes sometimes provided by libraries and City Work stations. Sometimes free or low cost computer classes are offered. I say enjoy your job and you will not be in such a hurry to leave, but rather you will enjoy it's benefits.
Great video, pretty much my situation and I live in SJ as well. But even if I save 200k for a 20% down payment, at a 125K income that only qualifies me for a $800k mortgage (see Zillow's affordability calculator), which just is a nice 2BR condo or townhome, maybe with a balcony or patio. A real house with a yard is currently only accessible to dual income households.
Daniel F $125k qualifies you for $800k?!? I make more than that and I would never take on a property that pricy! I live in Texas and my home is worth only $326k, which is above average here.
@@TheUltimateLady CA housing prices are insanely high. Even renting is outrageously expensive. I wish there was a state mandated price cap put on housing prices.
Agent_WestCoast A yeah, I’ve heard and read on how expensive California is, especially in Silicon Valley and San Francisco. My concern was how one qualifies for $800k with only a $125k salary. I have a 3.25% interest rate on my $325k home (which I absolutely love), make more than $125k, live in Texas and can’t possibly make a larger mortgage payment without sacrificing saving or other significant financial components. Maybe it’s because we have 2 children, though... 🤷🏾♀️
"you need to know how to source components" that is pretty impressive. you could probably make an interesting product as a side project.
If I find a product I am passionate about building that is.
I've been with my company for 3 years and finally make $18 an hour. I never did use my bachelor's degree T_T Hopefully someday...this coming year!
Surprisingly, I have a (small) home because for years, I didn't make much money but consistently got temp jobs, allowing me to save money while living with my family. I would have loved to get an apartment but I lacked the job stability. I put 20% down when I bought my house. I chose a house instead of a condo because HOA fees are high. I briefly looked at mobile homes and decided I wasn't beat to pay $8700 a year just to basically rent the land and for amenities I didn't want. Granted, this was for a nicer mobile home park, but mobile homes by definition aren't exactly fancy.
Please make more videos like this
Will do!
I do believe in skipping in some places so that you can pay more for other things you really like. Curious did you go the cheapest seat on Alaska or did you go one Higher I think it's called the main. If so did you like the main better and how so.
I'll when I was in Vegas there was some place I wanted to go there was quite a bit off the strip. I did take public transit. And I was good with that. I do like a nice hotel room now. I want to be reminded that I'm not at home.
I would be interested in the Hasidic tour a video if you do that, however you can just even do highlights so it's not as long and it's much work.
Love you Francis!
I took the cheapest seats on Alaska. Rode on cheapest going there but got put in premium seats on the way back. It was like 5" more leg room.
I'll get to the Hasidic tour eventually. Seems like there is pretty good interest.
Francis, I really liked seeing how much you appreciated getting that card. With regards to your advice to the renter you seemed to have really had an emphasis on that person getting to where they could buy a house, yet they never said that was their goal. They sought Financial Independence. Of course home ownership can be part of that but you never really made any good case as to why. As you are likely aware, staying a renter can also be part of a practical strategy to reaching FI as soon as possible. There are pros and cons of renting vs buying. Perhaps you can help your subscribers navigate those options so they can make the best choices for their particular situations.
Having bought a house is one of the top wealth builders I had. But now... it's not as clear but neither was when I first bought.
@@BeatTheBush Francis, having my house paid off is very beneficial to me too. Its hard to say for sure but perhaps we'd both be better off now if the money we have tied up in our homes had been invested instead and investment gains were used to pay the rent?? It's sort of like your earlier video about the idea of having, say, Exxon dividends covering your gas costs. How much would a person need to invest in REITs to have the dividends pay perpetual rent? Less than the value of our homes?
*this would be interesting to see videos like this* 💪
This one ok?
@@BeatTheBush it's great!
You were on millennial money.
@@colorfulcodes yes I was🙂
I did something like that 45 years ago. I worked overseas and lived as cheaply as possible for 2 years. Paid no US income tax. Came home with $20,000. Lived in a room in the basement of an elderly couples house for the next 10 years. Saved and invested my money and was able to buy my first house and pay for it when mortgage interest rates were 11% with money left over. Continued to save and invest. Now at 69 yrs. I have a very healthy financial situation. One thing though if you buy a "manufactured home" ONLY put it on land you own. That land won't depreciate should appreciate and I have read horror stories about "manufactured homes" in trailer parks. They charge fees and have rental conditions just like condos and "manufactured homes" on others property are almost impossible to sell. "Trailer" homes are generally of poor quality and have a bad reputation which is why they depreciate. A few other things that B the B didn't cover is the maintenance of ownership, property taxes, and additional homeowners insurance vs renters insurance. Not to mention closing and realtor costs when buying and selling and the opportunity costs of the down payment or any home improvement you sink into the property. Buying usually only pays if you plan on spending at least the next 7 years in a home. There are lots of good reasons to own a home, especially if you have or want a family but many times financial investment isn't the best one especially if you are just starting out. I believe many times when renting is the best, when you are starting out, when you need to be mobile, and when you are retired and elderly and "downsizing"or "rightsizing". This is why I would like my next home to be a luxury apartment.
Thanks for sharing your story. =D
Very typical of many professionals in NYC! The problem is that the rents are quite high...
Means you need to earn 200k to get ahead in that area.
You do!
THANK AGAIN for an interesting video! where is the one on your "Armageddon" strategy?
Oooh I really want to submit I love your videos!!! ❤️❤️❤️ HOA feed are so scary they can increase any time and if there are major issues like an obnoxious person sues the HOA they can demand money from you all at any point if they don’t have enough in savings. It’s also really challenging to attend meetings if you have a full time job in LA and commute on LA freeways a couple hours a day. So then you are spending $500 - $100 a month for people to do whatever they want with the HOA money. I also really want a dog and a garden. So I think a condo / townhouse just won’t work for me. I need to start rewatching all your videos so that I can live on less. I started redoing my work wardrobe with a stylist and spending too much. Then I went to Costco the other day and found clothing pieces < $20 I liked just as much!!! $19 olive tencel paints vs $225 olive pants made by Rag & Bone! I really want a new car. But after having a Toyota I don’t know that I want to deal with maintenance. The issue with my clothing shopping is that I keep getting fatter every year from sitting all day & am near a fancy club at the office but can’t afford it.
Empty calories might contribute to the weight? Do you completely not drink soda?
HOA are crazy. A few years ago I was mad that I missed out a condo that had a low HOA of $150 a month. Now I see properties from that condo community and the HOA rose to $700 a month. Glad I dodged that bullet.
Love the little stuffed animals in background 😀
=D
100K pre-tax is like 60-65ish after 401k, tax, insurance and commuter benefit in NYC. It's considered "low income" in NYC/Bay Area since everything here is by far the most expensive in the country. But I totally agree that living with parents is a pretty big deal. It's an automatic extra 25k+ saving a year.
I agree. A 1 bdrm will cost you 40k/year in after tax money already.
@@BeatTheBush Yeah, one of my co-workers is paying $2.6k/mo just for renting 1 bdrm. It's ridiculous.
Buy a bunch a clothes find a thrift store with a good selection of clothes ($3 a shirt, $10 coats), buy pants that have expanding waist belts (aliexpress/dhgate) as they're harder to find.
I cared about the labels at first as I was going to thrift stores...then you really see the silliness in this and just buy whatever looksgoodfeelsgood, and cut out the tags anyways.
Yes, its cheaper, more fun and even better for the planet
This works if your single. Difficult to do with a spouse and if you have kids. Too many variables with a family. So if your young, not married and can take this advise?? Your set👍
Find partners, buy an apartment bldg. Apartments sell as a multiple of gross annual income so a building with low rents and needing work sells for less.. 4 partners with $40K-$50K each can buy a $800K+ apartment building. A 4 unit bldg gives each partner a unit worth $200K+ each (more when fixed up). Fix it up to increase rental value or move in. As you grow your income sell the bldg or your unit to the other partners or buy them out till you own the whole bldg.
Consider choosing partners, partner agreements, how to find the right bldg, etc...
That's one way to do it.
It's pretty common around here to live with your parents until you can afford your own place, people call it (translated) the mom hotel.
HA! Depends if you parents want you out ASAP or they want to set you up for the most success as you can.
@@BeatTheBush Yes, but the bad tone of the name comes because some people don't leave the mom hotel even after many many years and it starts to become embarassing. It's not used for poor people who have no other choice, it's more of a lazyness/convenience thing so maybe my comment was not that relevant to your video.
@beatTheBush How long did you have to save before buying your place? How many percent did you put down on your house?
100k a year ... that s a lot can you help i live in canada on disability how can i survive help
I had to google what a “remanufactured home” was.
It’s manufactured home. And it means mobile home.
a premanufactured home isn't necessarily a mobile home. a manufactured home is any home where major parts are preassembled in a factory.
the parts are then driven out to location.
a premanufactured home is a house version of an ikea bookshelf. it is a construction term.
basicly if it looks really boxy, it is probably premanufactured. and those houses will be significantly cheaper than customer ones.
there is another type, idr the name, but they were inspired by row houses in britain. again, instead of hiring your own architect and engineer, you buy a planed house which will likely look identical to another house a few blocks away. it is a price midpoint.
@@morthim Many of those homes are nice and affordable. If that is what you can afford, than be thankful for that.
Or trailer
@@Z123aba Mobile homes have axles and wheels (look under the crawl space)...manufactured homes are built from components delivered to the site and installed onto a permanent foundation...there is a BIG difference.
Good advice, but a bit more refinement would be good. The $50k in savings is likely not all accessible -Id assume about half of those are in retirement accounts. In which case, would it be a wise idea to cut back on tax-advantaged accounts to save for the down payment of a home, or continue to max out tax-advantaged accounts and slow down the cash savings? Also for the cash savings, how much should be allocated to DCA for taxed investment accounts, and how much should just go straight into a high-yield savings account?
You may consider borrowing from your 401k and pay yourself interest back to yourself. Doesn't work well if you switch jobs a lot though.
The problem with living in the Bay Area is that you have to pay the cost of living there for the rest of eternity. It’s safer to rent in a shoebox for a few years and run with $300k out to the Midwest like Kansas City. You’ll live off that for the rest of your life no problem. Then any small business profit is just gravy on top.
It's possible if your life is location independent. Or take your whole family and friends with you.
The only problem with that is having to live in the Midwest
Dave White there’s a lot of decent people in the Midwest that will drop everything and help you when you need it. I know because I live here. Whereas in CA, especially the Bay Area ... its a free for all and your neighbor will brown nose and report you to the HOA if your grass is too tall or your lights are on. Same with work and office politics. It’s whoever has the newest Tesla this week... I’ve been there and many friends say the same.
@@markm0000 Facts
Sometimes you should pay for PMI so that you can get in there ..early. That property sold for 188k in 2011, THAT"S when you should have gotten in!
how long should i wait on a promotion?
I think it would be more helpful to paint the long term picture, you mostly focused on the next year not the next 10 years to reach retirement.
If you're in the bay, consider everything east of the train tracks in Richmond, it's an open secret to for living/owning cheap here. Bart is less than 15 min walk from any direction. 40 min Bart ride to SF. Houses are still possible. 400k range for 2+ here. New condos are also being built right next to Bart station, open next year -- grocery stores, Target is down the street, McDonalds across the street, and lots of bomb-ass Spanish food everywhere.
How much for a one-way BART ride from Richmond to SF these days?
Sounds like a formula for terrible health and high spending. But you don't have to use those and still live there. May also want to look at crime rate from the city.
Richmond is notorious for crime! However, Hayward is okay. Very Blue color vibe, close to the San Mateo bridge, and near Oakland & Fremont.
The phase I'm in now, I basically just pay for food, rent and some services here and there. I find that I am content with what I have and each item serves me well. I do have some items that I want to sell and declutter. I have been sharpening a number of skills within my field daily (except Sundays-that's sabbath). I found that I started thinking up many ideas. I, hence invest my time and money into growing these ideas which brings in passive income. I adopted a lifestyle of doing now and persevering. I find some odd type of contentment in living this way.
I am 19 yrs old and am looking at buying a 150-160k condo with 3 bedrooms about 950sqr feet I would like to purchase one in the next 8 months or so rn I have 5k to put down about 720 credit score.. I figure I can rent out the 2 other rooms to off set and pay the majority of the mortgage. Plus my girlfriend wants to move in so I would be paying 1/2 for my room is be looking at about 80-200 for my rent and then utilities of course. But I would also be gaining equity in this condo.. is it a good idea to go forward with my plan or wait a little longer?
I think your savings is a bit low. The main risk here is if you can keep your job long term. Once you get a mortgage, you are required to have a consistent paycheck or else you wont be able to pay it. Hence defaulting which is a huge deal. You may even want to save enough buffer to pay the mortgage even without a job for a few months even a year ideally to safe guard against this.
@@BeatTheBush that is a good idea,I cant for see me getting laid off any time soon but you ate right I should have a buffer just In case thank you for the advice
I have a 2,400 square foot, two-story home in Texas - $190,000. My mortgage is just over $1,300 a month.
Whoa! Nice! So cheap! Omg...
your monthly mortgage is so high though...is it a 15 year mortgage?
bunnie1294 .... it’s a 30 year loan, 4.3%
@@TWDxKILL3R But how? Even if you owed the full $190,000 on the home with 0% down, at 4.3% for a 30 year loan, your monthly payment should only be $940.
@@bunnie1294 , property taxes, and insurance are usually bundled into a payment. They are required because the bank wants to make sure they have collateral. Property tax is high in Texas.
I think, realistically, this person only has $30K in savings because he shouldn’t sink the entire $50K into the downpayment of a home. He still needs at least $20K for an emergency fund. I know you mentioned HOAs but, I don’t think you mentioned property taxes. For someone coming from an apartment dweller life, property taxes and mortgage can make it feel like you have 2 mortgages, depending upon where you live. The mortgage has to be fixed and should be 15 years also. So, yep, $100K earnings and $50K saved - rice & beans, beans & rice.
This is why I know I’ll never own a home. I have an emergency fund and make a bit less, although I work as a creative and don’t have a degree. Although my car has seen better days, I just paid it off a few months ago. I was told last year that it had a leaky head gasket but, it still keeps getting me to work so, I have no incentive to replace it. After the recession and even in the current climate, I often find it perplexing when a coworker suggests I buy a new car. My first thoughts are, “You think this is stability? What if they sell or close this place? What if they decide you or your group are simply no longer needed? What if there are cutbacks? We all feel it’s unlikely we’ll have a holiday party this year. Does that tell you anything?”
I’m likely also in the process of being disinherited as, my mother likely has NPD (Narcissistic Personality Disorder) and has decided to let my younger sister inherit a property early and I am likely too old, in my mid-fifties, to recover from this. Despite the fact that I’m the one with the most skill and the daughter who was the most present, obviously, my family can expect nothing from me either as, they’ve torched that bridge. But, I am definitely alone now.
I suspect that there are a lot of people in my shoes in terms of saving. I’m not great, yet better than I was when I was younger, out of sheer terror. I barely survived the recession, I no longer have a family and, although I’ve had a really good job for 2-1/2 years now, more so than how I felt during the recession and more so than how my parents felt, with the exception of recently buying a few things at some off price stores, including a Vitamix that I’m thinking of returning, in exchange for that new Instant Pot Ace Plus blender, which is 1/3 of the cost of the Vitamix, I will N.E.V.E.R trust working for a company again, in life!!! I’m also getting too old in the market to recover, should any shenanigans start. When I was younger, I was dumb enough to think tomorrow was promised. I know better now. This has become a world of acquisitions, mergers, reorganizations and, “Whoops! I guess you just lost your house!” I’m also not interested in having to crawl back to an abusive family. But, I think there are a lot of people saving and the retailers know it and want that money, but people are very unsure and I’m not talking about the Dave Ramsey callers who earn $12/hour and owe $1 million. I am, indeed, waiting for DR to explode one day and just tell someone to go kill themselves.
The only thing good about my family situation, is that I’m no longer tied to applying for jobs where I live, merely because my family lives here. Should my job disappear, I can cast a much wider net. Still, home ownership will not occur in my lifetime. I’ll be lucky if continued decent health does.
Very wise advise to the people
Too bad he can't transfer his career and relocate to Houston, Texas. He wouldn't have to wait that year at all. Great advice though for California residence!
Not sure what profession he is in. But the thing about relocating is that you can only go one way. The longer you are out, the harder to get back in if you want to later.
To live in an expensive state is so depressing, I would think.
What's annoyong is setbacks, medical bills are the worst. Can you do a video about people that can save, but have to spend it because of some unforeseen medical condition.
Many times unforseen like an accident. But you can take measures to minimize accidents and put yourself in the healthy track. Example is hearing all the horror stories of the trampoline places people getting brain injury from landing the wrong way etc, I just don't go.
i would recommend relocating. living costs in california are ridiculous.
Thin White Duke relocation isn’t always ideal if ur degree(s) are in fields that require cities. Living cheaply is the best option.
It is? It's pretty cheap to me. See my yearly expenses video.
@@BeatTheBush it's because your housing is taken care of. It's expensive if your paying 5000 a month for rent
If a person makes 100k in CA or NY and they move to another state, then their income will drop significantly and it might not make sense to move. Working my same job, I would make about half what I make now in CA if I moved to Texas for instance. Sure I can buy a nicer house for cheaper but honestly it's not that much cheaper for a good neighborhood.
@@bunnie1294 what job?
Are you still planning on going to Thailand? I’d love to see you try and budget out a month of living/traveling over there.
Shortyshrew same here I am going out on a big trip next year
I don't usually budget. I spend frugally but still buy the things that matters to me the most. After, I find that it didn't cost me much.
@@BeatTheBush You can do a video on "Why I don't budget" :D that would be pretty good for views since it's against conventional teachings on personal finance.
*Since Beat the Bush is said to be near 55. Does it mean it will take 35 years of working hard and frugal to get retired :(. Whats a more reasonable amount of years being frugal to where you can retire? Assuming average salary of 40-50k per year with family of 4 and wife doesnt work? Mortgage 1000, food 800, car 400 ins 300 hoa etc. 500, 3,000-3500 cost per month. How do you make the best out of this situation*
If you make very little... the amount of time to reach financial independence grows exponentially. When you make double... you don't save double, you save like 5-6x as much.
BeatTheBush wait!! You’re almost 55???? How?!?
Could you offer your input on my situation? 100k salary, 20k savings so far, no debt. Monthly rent $1450 (sigh), all other monthly living expenses roughly $300/month including food. I just started my job out of school a few months ago so I don't know how soon is too soon to buy an apartment. All I know is that once this year is over it is good riddance to high rent payment and living with a dirty person. I'll move into a relative's house for a year if necessary but I would strongly prefer my own 1 bedroom apt to own. I live in a high COL town. 1b/1b are commonly $400k (sigh). I am expecting a large bonus early next year, should i put it all to a down payment? Antsy for full financial freedom but I don't want to jump the gun.
That's an interesting situation, i have something to say about that.
@@BeatTheBush Thanks for your comment. Are you planning to make a video on that or you could just pm me with your input. Thanks! Also if you are going to make a vid, just to ensure accuracy - savings are roughly $30 k (forgot to add in my current 401k amount) and salary is about 105k with my stock award
This is literally the exact same position I'm in! +/- $5k
Hold on tight! Save more for now.
Current housing market, but of which market/city?
East or west coast.
Hi Francis:
I can use the VA home loan. Do you have any videos talking about that?
I talk about it within other videos very briefly. The only dedicated one relating to that is the FHA home loan video.
Thanks buddy!
i think the psychologically healthy parts of not being anti social at work and going to eat with co-workers and even the fancy but second hand car splurge make this very realisitic
I would consider moving to another state where houses are cheaper and rent is cheaper (if you consider renting). There’s a channel I watch here on TH-cam called “The Homeless firefighter” where he is living in his Toyota Tundra in order to save up money for his house in California. Just wanted to share if any of ya’ll are interested in viewing his content.
Also, it makes it difficult when you already have a family, but never impossible.
Can you please mention if it is the right time to buy a house, when the real state really will go down to buy houses? Not sure how your $150000.00 come from when the comment about HOA? I really like to hear you saying "you need to splurge"
It's if you put that HOA fee and invest that same amount in a stock market index. It will grow to that much in 30 years. Right now I would say if I were in the market to buy and had the down payment, I will remain cautious.
Dying to know your opinion on uber layoffs.
When ever I hear about that, I think of it as business as usual. Businesses need to cull their worst employees to keep their pool top notch. That's capitalism.
How can i lower my property tax it was 6k this year
Here are some tips: th-cam.com/video/5Q8QJDyikn8/w-d-xo.html
Reminds me the Graham Stephan Show ! 😂
Are you starting The Francis Show?
Is this where I make recommendations based on questions?
@@BeatTheBush Yesss :) People call in and you make recommendations, like the Dave Ramsey show
The 'Let me beat your bush' show.
Don't insult Beat the Bush. Graham Stephen is full of click bait and is a total sell out to youtube ad's and revenue.
Pibbles 'n Bits And Dave Ramsey is worse 🤢
Living poor and being poor are two totally different things . It is all about the mindset, and I would say that a financial minimalist falls under living poor. Living poor can lead to LARGE gains. Stay wealthy my friends!
After all... it's all in your mind. One can feel miserable of another one completely content eating the same cheap meal at the same place.
@@BeatTheBush Well said! Its all about perspective and how you can use this to help you or hurt you. That is why I think mental strength and good philosophies are essential for a fulfilled life =)
We are really lucky where we live that housing is cheap!!
Lucky you would be if it is! It really puts a lot of people's lives on hold because of the high costs.
Not to distract from your main message, but there's a cute skunk in your line up now?! When did this happen haha
Cute skunk!?! The honey badger thinks it's okay being called cute I guess.
@@BeatTheBush omg btb I'm so sorry!! I was debating whether it was a skunk or a hedgehog and I can't believe I didn't consider honey badger which is all over your tshirts >.< forgive me! But still, a cute addition to the family 😊😊😊
If you not planning to stay in a same place, you shouldn't tie your self down to a mortgage debt
True.
You need post. Beatthebush Instagram your link
Oh... did I forgot? LOL!
You don’t have to put 20% down on a home.
Agree with everything except buying food at work is almost always a RIP off. It's practically a scam. I'll pay you to work for me and then pay me a percentage back. Since you're tired and hungry at work and it's the only option I can charge you more.
Ha hah ... just bring food? I never hear you are not allowed to.
Would probably beat more bush if you got rid of the stuffed toys! 😄
Living in a van is not really a living option, better in a motorhome. Still, not much of a life after work, just existence.
You're the first person I've seen count on their fingers starting from the pinkey.. 😂
I didn't even realized I did that. Cool!
It's much easier that way!
My Asian husband does this. It might be cultural. (speculative.)
When you say 30k in expenses, do you include rent?
Yes. That's how much I would need to rent. $12k rent or so... $18k other expenses. Which is pretty luxurious if you know how to spend it.
@@BeatTheBush Oh man, I must be spending too much then. I don't buy or own nice things, but I do spend a lot on experiences (travel and going out with friends)
Funny thing is... most time people don't even know where it went!
You have to have at least one roommate to keep the 12k renting
So, bottomline is you need to have the down payment for a house. I always fear thinking of buying a house of 300K - 400k, what if i need to leave US since i am on non-immigrant visa..My household income is 130K and still staying on a rent. Not sure when should be the best time to buy a house, or shall i go for a cheap condo
Putting down 50 to 90k for the average person is ridiculous , if you live in a high cost area I'd consider investing in other market. If you have all your money invested in one deal that could possibly go wrong there goes your life savings
That's the cost to buy a reasonably sized property. So you cant be average to buy in the coast of California it seems.
I live in Europe and man the tax rate here is insane.. You guys have it lucky in america with the tax
It's like 40% effective right?
@@BeatTheBush yep, almost 49% if you earn over 50k and have a student loan it's crazy but then we do have good healthcare etc
You have medical insurance free.
8 week vacations
This is ridiculous. Most of us don’t make 100k and have no debt. This isn’t the common situation for someone with a degree just graduating.
Point taken. I will make a follow up with recommendations for lower income. This question of course is from a subscriber but a few people have similar situations.
Vandwelling is the answer, Rent/mortgage is way to high never spend more than 30% of income on housing that has always been sound advice. Stack cash hope for a big market drop/crash buy s&p index etf hold until recovery switch to high yielding s&p based etf and REIT index etf retire or at least semi retire in cheaper area of the country. Prenup if ever get married. Don't forget you are not contributing to social security and medicare work a part time job to contribute. The earlier you start the better the results.
The thing is, its easy to say you can time the market but not many people can based on my observations in the past two down turns. Less than 10% from what it seems. But some have a knack for it.
@@BeatTheBush the trick is to not even try to pick tops or bottom " buy when everyone is selling and sell when everyone is buying" you don't need to do it all at ounce. And yes you are correct I don't believe the next recession will be long and deep it seems like 6-10% decline and than we shoor right back up within two months, money has to go somewhere and with interest rates in the toilet equities is where it will go for now.
Play cashflow game
I would sell the porsche and get a toyota.
The result will be a lower social grade car without having more money in the bank.
@@BeatTheBush keeping up with the joneses
@@BeatTheBush agree. so called "buying to save" and in this case "exchange" don't always end up more in bank.
Rent is not all that bad. I save a ton of money by renting.
But that money isn't preserved and not appreciating.
@@BeatTheBush If you buy at the right time, which I think you touched on in your video. I pay about $550 a month and have nothing to worry about with regards to my place. I invest the savings into my business' which yield higher returns in the near and long term than betting housing. I think 3-4 years ago this would've been a no brainer to buy, but I feel we are at a peak in my area. Different situations determine the best solution for the individual. Digging your channel! Keep it up!
4th option, If you are pretty certain that you are staying in this job for the next 4-5 years, go ahead and look for a property, and put your down payment and get the mortgage. If your savings is not enough, perhaps borrow some from parents or family.
According to Jay Leno even a homeless person can make $100k I think he said in L.A. it doesn't make sense that it would be in all of California. He is a comedian so I don't know if he was just joking or not.
I have never heard you say anything about a person building a tiny home to live in until they can buy or build their own home. I know not everyone has the tools or skills to do that but maybe they have friends who do, I know that is sort of mooching but maybe you can return the favor by doing something to help them.
Homeless person takes in $280/day? I think the deal with tiny homes is the zoning laws because at least in my area, you cant just buy some land and build something. Maybe you can stick the tiny home on someone's yard that doesn't have HOA.
@@BeatTheBush What is HOA? I forgot about California being the way they are on zoning, maybe a lot of others are the same way.
They could build it on a trailer and take it wherever they are allowed to. I think there are people living in tiny homes in California, maybe not in San Francisco .
@@BeatTheBush I should see if I can contact him and see if that is true for the average person, that's way more money than I have ever made,for the most part everything around here is minimum wage or a little above but not more than about $10 an hour.
if i had $100000/year income, i would be financially independent in 2 years. spend $15000/year, save $85000/year. in 2 years i would have $170000 in savings. invest with 10% annual gain, and there. $17000/year income. maybe continue for 2 more years and double it for market fluctuations
Taxes slow down your plan
@@shogant yeah, 3 years and 6 years instead of 2 and 4 then
Subtract 25k taxes! So you can retire in about... 5-6 years realistically on the 4% rule.
Move! Housing is too expensive there. No one with a job should buy a million dollar home unless you are the CEO. If you can borrow a million dollars you should not put that in single family home. Basically you can buy an apartment building with that amount of money and quit your job and make almost the same amount of money. I keep telling people who are struggling in CA to move. I don’t understand why people keep living in a place where you can’t get ahead. What are you working for if you keep giving all your money away.
WHY is one PEA upside down ???
Oh no
Help me, help me!
First step I need to make 100k lol
Rusty Shackleford get a job is sales.
It sure would be easy to live this way making $100 grand a year. Maybe you could give some tips for the rest of us, who make half that?
Unfortunately we have to work harder and avoid debt.
in one of his videos he talks about engineers making $100k a year after about 5 years... LOL I've been in the profession for almost 18 years and I'm only making 2/3's of that. The president of the company I work for only has a salary of $107k a year. this is the rural midwest though and not California
@@drunclecookie216 you are right but the housing fees and living costs are much cheaper where you are, so its not that different
For people making less... the reality is it's even more difficult to save fast. If you are spending $30k to live already, making 50k may mean you only save 8k or a year.
Engineer salary vary greatly across the US by location. So Companies generally adjust the pay according to local market demands. And demand in the Silicon Valley is enormous.
@@untitledname5183 oh I know... I did the math.... I would be saving 1/3 of what I do now after cost of living with 2/3's of the salary compared to some place like New York or California
BTB how do you feel about having children?
I think it's fine.
BeatTheBush I mean financially, lol.
OR make more money!!! Like him!!
Make more but keep expenses low.
Live in a VAN, retire a MILLIONAIRE in 10 years
Right!
Living in RV/Van "Rent Free" = A lot of Money in Your Pocket!!! $$
People are so naiive and are afraid of unorthodox way of living I drive rigs I live in the truck all I can say if people would think outside of the box they will realize what they want is really right in front of them
Buying a condo is crazy, as you’ll be paying HOA dues for the rest of your life. 👎🏼
Yup... it's a huge money sink for networth preservation. You want to cut that all out.
BeatTheBush
FYI: If you look at Zillow, then enter a certain zip code in the Bay Area, pick a random listing and scroll down to their “zip code values chart” - 2018 was the peak for real estate values.
I’m a retired Real Estate Developer in SF, my colleagues that are still active in the market, all agree that we’ve past the inflection point as far as peak values in the SF Bay Area. Most if not all regions are already seeing a decline in prices (even the Peninsula).
You can also TH-cam search: Randy Patrick. He posts real time Real Estate statistics on his channel.
Best of luck Francis, you’re helping more people than you think with your sound advice. Don’t stop, you’re doing God’s work. 🙏🏼
I don’t make 100k year- 7.25 hour
Staying away from the internet is a key to spending less...there is way too much targeted advertising online that looks at your browse history. Before you know it the internet starts recommending you to buy things you never knew you needed or wanted. It's like mind control. STAY AWAY FROM THE INTERNET LOL
Or maybe just away from advertisements. OR watch more of my videos... people report after they watch my vids, they stop spending as much, LOL!
@@BeatTheBush Gotta make an exception for your videos lol.
Are you banned in China?
How can I check if I am?
TH-cam in general is banned
why would he be banned in China?
@@bunnie1294 he supports Hong Kong. . Search your name in a chinese browser
@@F_And which video does he talk about this?
nice to be rich
100k salary..no debt..50k savings...step .1. Move to Texas...step 2. Buy a mansion
100k salary cannot buy a 450k home. Lol
Saving a little you can. Or if you want to pay PMI.
@@BeatTheBush PMI means you cant afford it. Need a 300k downpayment to finance the rest at a low interest rate....
Josh why does PMI mean you can’t afford it??
@@TheUltimateLady because your asking the bank to give you a loan you dont qualify for. It's a insurance against default. Thats why.