My property value almost immediately grew to a much higher level, and I called my mortgage company repeatedly about getting the PMI removed, but they said that the PMI has to be there for at least 24 months. 🙄
I’m hoping to buy before I turn 30 (almost 2 years from now). It’s just me and my 60k income - I’ll get a 10% increase in August - so finding any home that meets the requirements is going to be a struggle but for now I’m just saving every penny possible
I’m under contract for a short sale. Between me and my wife we bring in 160k, home under contract is for 450k, yearly mortgage including property taxes and homeowners insurance would be a $36,192. I’m putting down 5% and after closing costs will have 20k left. I live in NJ where homes are expensive and property taxes are above 2%(in my case 2.7%)annually. I fit the 28/36 rule perfectly, kudos to those who are at 25%< but I don’t see how this can be done in a high COL state.
This is timely for me. I was about to do a video on how many different "money rules" rules there are. But, I was dreading researching them all. So you consolidated some of them here for me. Thanks. I feel like there are enough rules you can just find one that fits your life, instead of the other way around.
I had to break the rules when I purchased my house, but I got it at 2.75% and the property value has almost doubled, so I’m happy with my decision anyway!
The Dave Ramsey plan for saving takes far too long. I did the math on how long it would take to save for college without loans using Dave's plan and it would take me until 50yrs old to save enough cash to pay for college without loans (in 2020 money) and that's just unacceptable.
Used our 2020 adjusted gross income. Then just spouse's income. Then just mine. The 30% saved hurdle is a big one. We could achieve it in 2yrs on the lowest of those numbers. All I can say is America needs more affordable housing. Thinking we'll need land and factory built modular home in order to get 1800sq/ft for 180k.
It certainly isn't the easiest one to follow completely. That's why Sam Dogen mentions that even checking off one or two of the boxes can make a big difference. Thanks for sharing :)
Silly rule. The rules ignore the 56/72 rule. the 60% solution, and the 50% method. Basicaly, these rules state that the house you want, is always 72% of your income, interest payments always higher than 60% and 50% of your take home pay
Sure, the most commonly used rule of thumb is the 4% rule (basically take your annual expenses in the first year of retirement and multiply it by 25 to get a rough estimate of how much money you will want to put away to be considered financially independent). There are some who believe a more conservative 3% is better to use (in which case multiply expenses by about 33), and as with all rules of thumb they are best used as a starting point to get an estimate. Other things such as how you anticipate your expenses will change over time (the 4% rule assumes you'll adjust your withdrawals to keep pace with inflation, but not everybody does this), your asset allocation (i.e. over the long haul an all-stock portfolio typically provides higher returns than something more conservative), and whether or not you utilize any FI withdrawal strategies to improve your chances of not running out of money (cash buffers, financial guardrails, etc.) can change what your minimum safe withdrawal rate would actually be. Lastly, this figure can be altered by your own comfort levels regarding the future. Some feel that we will never see the kinds of returns that we have in the past again and so would likely lower what historical data would suggest their safe withdrawal rate could be in order to protect themselves from the lower future returns they anticipate experiencing. Others are comfortable with picking up work part time to fund their lifestyle if they should hit a market snag early in retirement and are therefore comfortable bumping their SWR up a little bit from what the historical data suggests would be the minimum. As far as calculators go there are several available online that each handle the topic slightly differently. There's the cFIRESim calculator which determines your SWR (among a few other metrics) based on your asset allocation, other income sources (if any), and a few other withdrawal assumptions. There's also the networthify calculator which shows you how long it takes to reach FI based on your savings rate and a few other assumptions. Then there's the minafi blog post which is a sort of article/calculator hybrid introducing people to the idea of financial independence and walking them through the process while they input their figures (though you may need to create an account with them for that last part. I was able to use the calculator portion with my phone a few weeks ago without an account, but checking now on my computer and not all the figures seem to work... so keep that in mind). Hope this helps to answer your question :)
Yes, it can certainly be a bit restrictive in some of the more expensive markets. That's probably why Sam mentioned he was okay with going as much as 5x in such situations :)
I guess so. Seems like there's more of them appearing now. Whoever's doing it must be creating multiple accounts to get around me blocking the old ones.
