Frugal Village Forums banner
1 - 5 of 5 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter · #1 ·
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.
 

·
Moderator
Joined
·
2,688 Posts
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 :)
 

·
Registered
Joined
·
8,566 Posts
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.
 

·
Registered
Joined
·
545 Posts
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 :)
 

·
Registered
Joined
·
2,283 Posts
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.:coffee3:
 
1 - 5 of 5 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top