I'm 21, in college, live at home but i've been saving up a lot and i don't buy as much clothes/shoes etc anymore but all my other friends seem to buy all these things (tiffany bracelet, LV, dior). It's tempting but should i spend my money on those or is it true that the more i save up now, the faster i can put a downpayment on a house?
2006-08-07 21:40:06 · 22 answers · asked by cOcO 2 in Business & Finance ➔ Personal Finance
Save your money.
The housing market will be shifting here shortly. What you want to do is. Wait for the market to saturate with homes, dropping home prices. Interest rates will go higher. This is the time to buy.
Buy when rates are high, and prices are low.
Then refinance when prices go up and rates go down.
Real Estate is a good investment. Much better than bracelets.
2006-08-07 21:45:06 · answer #1 · answered by Jon H 5 · 1⤊ 1⤋
Tough question, and ultimately nobody can answer that except for yourself. However, maybe some useful insights will come out of this. Spending: spend only as much as you need to. The happiness in buying things is only temporary, but the happiness found in using them is much more permanent. So use what you have. The happiness found in giving is unparalleled. The overused phrase "the best things in life are not free, but priceless," is really quite true. For me, fulfilling obligations that I have taken on (financial and otherwise) is also quite rewarding. As is challenging myself, and rising above those challenges... Saving: a common guideline is to save %10 of everything your earn/ make. This makes sense to me, but maybe it should be higher. You never know when you're going to need it... and if you never do, then that's great too. It is better to have a little more than you need, than a little less. If you can avoid it, don't go into debt for things that will only serve to make you temporarily happy. Find enjoyment of life in the people you call friends, in the activities you do (including work!), in the foods that you eat, in watching your bank account grow, in rising to challenges, fulfilling responsibilities, helping others, and anything else you do. Remember, money is ultimately worthless and means nothing. Time is the most precious resource that you have, and you can't save it... you can only spend it whether you want to or not. So spend it doing something that you enjoy...
2016-03-27 03:24:28 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Of course you should save your money for a house.
I recognize the temptation to buy consumer items, but those things lose so much value as they go out of fashion, or wear out or get lost.
Get as much cash as you can. One day you will either pay rent or build equity. If you can save up a significant down payment, you will more easily obtain a loan, and at lower interest rates.
The more downpayment you have, the lower your notes will be.
2006-08-07 21:46:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
That depends on what your goals are.
If your goal is to put a downpayment for a house and eventually be able to earn rental revenue, then you may want to hold onto the purchases of the branded goods first. It may be a better approach to have the money you earn from your investments such as stocks or rental income pay for your purchases or luxuries. In that way you are not using money from active employment for things that may depreciate in value.
2006-08-07 21:45:44 · answer #4 · answered by penny_zf 3 · 0⤊ 0⤋
Well you are only 21 you are certainly not going to settle down very soon are you?. But on the other hand time can fly I think that you should maybe try and do both save for a house and to buy what you want maybe just not as much and as expensive as you're used to.
2006-08-07 21:44:55 · answer #5 · answered by carmztaljaard 2 · 0⤊ 0⤋
save your money, you will be happier for it later. just give yourself a bit of fun now and then so you don't feel deprived, otherwise you could blow it all at once. and when you do buy a house, pay a few hundred extra on it a month if you can, it will pay it down fast. that extra money goes towards the principle of the loan which means less interest for you to pay in the long run.
you are already thinking smart about it. keep up the good work.
2006-08-07 21:43:48 · answer #6 · answered by singitoutloudandclear 5 · 0⤊ 0⤋
Nature has not promised you that one week from today you will still have the same good health! Invest your money, at lest some in a 401K account.
Also, make other investments. Use some of your earnings to but what you want!
When you cannot work, where will you get the money to maintain the life style that you have now, until you die?
No one is going to GIVE you one red cent!
2006-08-07 21:59:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You are doing the right thing and have the right concerns. Don't let anyone tell you different. There is more to life than spending money. I highly recommend you get the book, the Automatic Millioniare. it has a very simple system to save and still be able to enjoy other things.
2006-08-07 21:44:45 · answer #8 · answered by jumpingrightin 6 · 0⤊ 0⤋
My boyfriend has been saving since he was like 20. now if he wanted to yea he could put a downpaymet on a house. its well worth saving then spending it on something so small like clothes or shoes
2006-08-07 21:44:50 · answer #9 · answered by Kittie_Nash 5 · 0⤊ 0⤋
Like you mentioned, your friends are spending. In a couple of years when you have bought your first house,Where will they be? Wishing they had been as smart as you and planned better for their futures.
I have a 26 year old brother-in-law living we me right now. Why ?because his mother kicked him out and he had no money for his own place.
Congratulations on having your head on straight. Not very many your age would be thinking like you.
2006-08-07 21:54:06 · answer #10 · answered by okiewenee 3 · 0⤊ 0⤋