4 answers
laura
Student
Bozeman, Montana
1
Question
Asked
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What is the best way to earn and save for my future?
My boyfriend and I are planning to get married at 18 and 19, we want to buy a house and work saving up money. we plan to start have kids at 20. this all will cost a lot, what is the best way to earn, save and afford this?
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4 answers
Michelle M.
Entertainment Industry
1879
Answers
Updated
Michelle’s Answer
Hello, Laura !
The question you've presented is one that cannot be answered in a generalized manner because you have not stated what you and your fiancé's
skilled work is, what your earning potential or income is and what type of house you plan to buy. This being said, I would like to provide some advice with some things for you to consider. You also didn't state if you've established credit already.
Your marriage and family plans sound wonderful and ideal. Once you have two children, you will see that babies, children, teens and beyond are a huge expense - daily. Not only that, but the expense is unpredictable. You need to know this if your future plans include purchasing a house. Real Estate in Bozeman, for an attractive, comfortable, spacious house in a good neighborhood range from anywhere between $500,000.00 to over a million dollars. So you will have to figure out your income, your expenses with renting first and the support of two children. Than you can see where you can cut back on things, but children alone will be a huge expense as you probably already know. My parents bought a home before they had children. They had to move because an airport was expanding on their land so they rented until they were in their 40's and my mother went to work in a career. They were able to purchase a home than. Many people I know don't purchase a home until they're in their 30's. It's not unusual to do so.
Your earning potential, with or without going to college at ages 18 or 19 will play a key factor in how much you can save and how long it will take you to build credit, purchase the home and pay all the attorney and additional fees it requires and than afford real estate taxes. So, your marriage and family goals seems doable but that will be dictating the savings factor. You just have to take it a step at a time and see what happens. Home ownership will be a wonderful long term goal.
Earning, saving and home ownership is something that you are going to know how to do as you take each step forward with your individual circumstances. Make small goals - mini goals that lead up to the end result. It may take a longer time than you expect, but if it is your dream to own your own home, you will get there in your own way.
I hope this was of some help and something to consider for an easy go with your plans !
The question you've presented is one that cannot be answered in a generalized manner because you have not stated what you and your fiancé's
skilled work is, what your earning potential or income is and what type of house you plan to buy. This being said, I would like to provide some advice with some things for you to consider. You also didn't state if you've established credit already.
Your marriage and family plans sound wonderful and ideal. Once you have two children, you will see that babies, children, teens and beyond are a huge expense - daily. Not only that, but the expense is unpredictable. You need to know this if your future plans include purchasing a house. Real Estate in Bozeman, for an attractive, comfortable, spacious house in a good neighborhood range from anywhere between $500,000.00 to over a million dollars. So you will have to figure out your income, your expenses with renting first and the support of two children. Than you can see where you can cut back on things, but children alone will be a huge expense as you probably already know. My parents bought a home before they had children. They had to move because an airport was expanding on their land so they rented until they were in their 40's and my mother went to work in a career. They were able to purchase a home than. Many people I know don't purchase a home until they're in their 30's. It's not unusual to do so.
Your earning potential, with or without going to college at ages 18 or 19 will play a key factor in how much you can save and how long it will take you to build credit, purchase the home and pay all the attorney and additional fees it requires and than afford real estate taxes. So, your marriage and family goals seems doable but that will be dictating the savings factor. You just have to take it a step at a time and see what happens. Home ownership will be a wonderful long term goal.
Earning, saving and home ownership is something that you are going to know how to do as you take each step forward with your individual circumstances. Make small goals - mini goals that lead up to the end result. It may take a longer time than you expect, but if it is your dream to own your own home, you will get there in your own way.
I hope this was of some help and something to consider for an easy go with your plans !
Kyle Thornton
Portfolio Manager
6
Answers
Phoenix, Arizona
Updated
Kyle’s Answer
I applaud your initiative to seize control of your financial destiny, as I was once in a similar position at the beginning of my journey.
Remember, small, consistent changes over time can significantly impact your ability to achieve your goals. Start today by identifying 2-3 expenses that you no longer need or use frequently, such as TV or music subscriptions. If you still use these services, consider switching to a cheaper plan that includes commercials. This can help reduce your expenditure on these subscriptions.
The money you save from these adjustments can be deposited into a basic savings account. This will kick-start your emergency fund and contribute to your future savings.
Don't stop there; continue to scrutinize your spending habits and make necessary adjustments. Prioritize your expenses and manage your spending wisely. You'll be amazed at how these small changes, coupled with time, can propel you towards your financial goals.
Research how to make a budget.
Review how you spend your time and paychecks to find savings.
Save money by canceling spending on things you don't use or need, and watch it add up.
Remember, small, consistent changes over time can significantly impact your ability to achieve your goals. Start today by identifying 2-3 expenses that you no longer need or use frequently, such as TV or music subscriptions. If you still use these services, consider switching to a cheaper plan that includes commercials. This can help reduce your expenditure on these subscriptions.
The money you save from these adjustments can be deposited into a basic savings account. This will kick-start your emergency fund and contribute to your future savings.
Don't stop there; continue to scrutinize your spending habits and make necessary adjustments. Prioritize your expenses and manage your spending wisely. You'll be amazed at how these small changes, coupled with time, can propel you towards your financial goals.
Kyle recommends the following next steps:
Kimberly Krebs
Corporate Security Manager
80
Answers
Bethlehem, Pennsylvania
Updated
Kimberly’s Answer
Hi there! The simplest solution is that you both need to secure full-time employment and minimize spending to the greatest extent possible, allowing you to save money over a few years. If you can squeeze in extra hours, consider taking on a side job like driving for Uber/Lyft, babysitting, or cleaning houses. The initial years will be challenging, with most of your time dedicated to work. To cut down on child-related costs, you could ask friends for their children's outgrown items and opt for reusable/cloth diapers. Best of luck!
Kim Igleheart
Career Counselor | Police Officer
1738
Answers
San Antonio, Texas
Updated
Kim’s Answer
Laura,
Some things to consider. . .
1. Both you and your boyfriend need to have an established career you can rely on, should the need arise to either (a) be the sole income for the family due to illness, incapacity, job loss of the other partner, or, divorce.
2. When my son and his girlfriend planned to leave home and start their own home, I gave them a budget worksheet. They had it all figured out. She would cut his hair (no, she had no experience doing that!), their cars were never going to break down, and they would never need new clothes or shoes. Unrealistic?
I encourage you to get couples counseling. Many marriage problems revolve around money. Not having enough, who controls it, who makes more, how much each contributes to the household budget vs. having "pocket money," etc. Please have a solid financial footing before starting a family. It doesn't mean you need to be wealthy, but, have a budget that works, and have an "emergency fund." That is, have enough savings to cover 3-6 months of living expenses, so, when something comes up, you can borrow from yourself rather than using credit cards.
When it comes to buying a house, that will be financed, usually for 30 years. Realize that the payments can increase each year due to property taxes and homeowners insurance (included with the payment) increasing. Plan to stay in the house for a while. Right now, housing prices are high. If prices come down, and your home becomes worth less than what you paid for it, and, less than what you owe on it, you become "upside down" on the loan. That is, if you owe $450,000 on the loan, but can only sell it for $400,000, you need to come up with the $50,000 to be able to get out of the loan.
Also, you may consider moving. Bozeman is expensive! If that is an option, you will want to explore wages in other cities, as well as the cost of living. Every decision has hidden prices. If you move, how often will you return home to visit? Plane fare?
As to achieving your financial goals, there is a strategy called FIRE "Financial Independence, Retire Early" that may have some methods you can use. https://www.investopedia.com/terms/f/financial-independence-retire-early-fire.asp Essentially, it's going to require a lot of self-discipline, by both you and your boyfriend.
Lastly, have you and your boyfriend considered joining the military? I think they try to assign spouses together, but not always. They are family friendly, have excellent medical care, top-notch training, and, if you are overseas, the DOD school system is really good. If you do that, you would of course delay buying a house. If that is something you are interested in, please discuss with military recruiters.
It's great that you are seeking advice - I wish you the best!
Some things to consider. . .
1. Both you and your boyfriend need to have an established career you can rely on, should the need arise to either (a) be the sole income for the family due to illness, incapacity, job loss of the other partner, or, divorce.
2. When my son and his girlfriend planned to leave home and start their own home, I gave them a budget worksheet. They had it all figured out. She would cut his hair (no, she had no experience doing that!), their cars were never going to break down, and they would never need new clothes or shoes. Unrealistic?
I encourage you to get couples counseling. Many marriage problems revolve around money. Not having enough, who controls it, who makes more, how much each contributes to the household budget vs. having "pocket money," etc. Please have a solid financial footing before starting a family. It doesn't mean you need to be wealthy, but, have a budget that works, and have an "emergency fund." That is, have enough savings to cover 3-6 months of living expenses, so, when something comes up, you can borrow from yourself rather than using credit cards.
When it comes to buying a house, that will be financed, usually for 30 years. Realize that the payments can increase each year due to property taxes and homeowners insurance (included with the payment) increasing. Plan to stay in the house for a while. Right now, housing prices are high. If prices come down, and your home becomes worth less than what you paid for it, and, less than what you owe on it, you become "upside down" on the loan. That is, if you owe $450,000 on the loan, but can only sell it for $400,000, you need to come up with the $50,000 to be able to get out of the loan.
Also, you may consider moving. Bozeman is expensive! If that is an option, you will want to explore wages in other cities, as well as the cost of living. Every decision has hidden prices. If you move, how often will you return home to visit? Plane fare?
As to achieving your financial goals, there is a strategy called FIRE "Financial Independence, Retire Early" that may have some methods you can use. https://www.investopedia.com/terms/f/financial-independence-retire-early-fire.asp Essentially, it's going to require a lot of self-discipline, by both you and your boyfriend.
Lastly, have you and your boyfriend considered joining the military? I think they try to assign spouses together, but not always. They are family friendly, have excellent medical care, top-notch training, and, if you are overseas, the DOD school system is really good. If you do that, you would of course delay buying a house. If that is something you are interested in, please discuss with military recruiters.
It's great that you are seeking advice - I wish you the best!