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  1. 01-01-2011, 03:21 PM #1
    Cnotley
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    Default Working towards early retirement...

    I came across this forum while googling for money mangement forums, and was both impressed and inspired by the posts that I read.

    I don't really have any debt, I just don't have any money. I earn a fairly decent income and am single, so I have recently started thinking about saving money. My father always preached to me: "A wealthy person is someone who has a lot of money, not someone who spends a lot of money". He was referring to my unique ability to spend irresponsibly - always within my means - just never below my means. So, to my point. I am interested in saving money, starting this month, and working towards someday having the option to retire, but not neccessarily retiring (i.e work because you choose to, not because you have to). So, I am caught between whether it is better to set aside money each month for savings, or, to set aside money each month with the goal of buying a house in cash within a year. Which is more fiscally responsible? Thanks in advance for your thoughts.
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  2. 01-01-2011, 03:35 PM #2
    ladytoysdream
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    Hi, and welcome

    Well I am no expert, but I really like your idea of setting money
    aside and paying cash for a house.

    And you say you have no debt......very nice
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  3. 01-03-2011, 08:13 AM #3
    Greebo
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    You *need* a certain amount of purely liquid assets in the event of rain.

    It is said that statistically, every household encounters "rain" (a negative financial event in the range of up to $5,000) every 7 years or so.

    It is, therefore, an EXCELLENT idea to set aside money FIRST for a "rainy day". I suggest saving enough to cover a MINIMUM of 3 months of NECESSARY expenses.

    AFTER the rainy day fund is established, a SECOND, SEPARATE fund for a house downpayment is a good idea.

    But do not buy a house w/o a rainy day fund. Houses have the effect of causing rain when first purchased.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
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  4. 01-06-2011, 09:02 PM #4
    ncarr
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    emergency fund then the house. I love your dad's advice: "A wealthy person is someone who has a lot of money, not someone who spends a lot of money" He sounds like a great guy
    I love being a History Teacher!
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  5. 01-11-2011, 06:24 PM #5
    larabelle
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    Good job on not having any debt.
    I agree with the others...save for an emergency fund and then pursue saving to pay cash for a house.
    Baby Step #1 Done!
    Baby Step #2 Beginnning debt balance 01/01/08 $78K /Paid in full on 08/06/10
    I'm debt freeeee............ GOD IS SO GOOD!!!
    Baby Step#3 Goal: One year emergency fund began saving Jan 2011 accumulated Aug 2011 YIPPEE!!! God is sooo good to me!!!
    Baby Step #4 Yep currently doing this.
    Baby Step #5 No kids so no need.
    Baby Step #6 Renter.. Working on putting 100% down on a house!!! Currently have 25% saved.
    Baby Step #7 Someday.......
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