Quote:
Originally Posted by Bring_Back_Shantz
I think you're exactly the kind of person username was talking about.
You only make $1500/month, you have a mortgage, and you can't find $150/month to put away as savings?
Traditional wisdom is that you shouldn't spend more than 1/3 of your income on housing, so assuming that $1500 is after tax, and assuming your mortgage (never mind property taxes, etc) is more than $500/month, then yeah, traditional thought on the matter seems to indicate you're exactly in the category of people who are living beyond their means.
Yes there are a lot of things that go into how much you can save, but there's a reason the term "house poor" exists.
If you're in a position where you're unable to save for the future (no just paying for a house isn't saving for the future) then you've got a few options:
1) try to find a job that pays better (probalby the hardest)
2) cut down on discretionary spending
3) reduce living costs (may be rent vs mortgage)
4) be prepared to work forever
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A few things:
1) I make more than $1500/month now and that was just an example. A lot of people don't realize how little research scientists make in academia, at least initially.
2) The mortgage/insurance/taxes etc. I pay are much cheaper than if I were to rent because I bought before the market boomed. As an aside, I'm actually paying for both my mortgage and rent right now because I'm doing contract work in Edmonton. The rent I'm paying is much more than the upkeep costs of my house in Calgary. Also, my house in Calgary isn't exactly the Taj Mahal. It's simple small starter home in a modest neighbourhood.
3) I do find it insulting that I'm grouped in with the people username was talking about because I do the things I do out of necessity not because I want to. It's not like I'm not investing. I'm simply doing the best I can under the circumstances I'm in right now.
4) I will be seeking employment elsewhere after my contract finishes up. Sue me if I took a pay cut to try to do some good for cancer research.
5) Discretionary spending. . . haha. I have none. My fun time money essentially buys groceries and my climbing gym membership.
I'm not going to explain myself anymore but, suffice to say, I'm quite different from the people discussed in the initial article.