you should save it for a new igloo
Seriously though Em, when the time comes, be it 2 months, 2 years, or even 10, saving for that downpayment is the best thing you can do.
60 grand down will allow you to save more than DOUBLE that in the long term.
a $300,000 house with 0 down = 1,896 + taxes, points and any other crap like PMI.
with 60 down, your payment is 1,517
400 a month, for 30 years difference... = $144,000
144- 60 = 84,000 cash in your pocket, by NOT buying the car, but after your mortgage is paid off.
84k + some crazy car worth 60k in the future...
or 60k now, and nothing in your pocket.
I don't know what you make... but I'm pretty sure I make a lot more money than you... probably double.
I take home about 6500 a month after taxes.
I have a 150k condo that I put 10k down on. I've been here a year, and I owe 140,233 according to my latest statement.
After closing costs, and a year of paying my mortgage, and MORE than my payment each month, I still owe more than my orig down payment on the place a year later.
Why? interest. over 800 bucks a month of my payment goes to interest. Factored out, my payment towards principal is a wopping 89 bucks or something like that.
the more you put down up front, the less compound interest you pay on it for the next 30 years of your life.
a year ago, i wasn't making this kind of money, so i didn't have more than 10 to put down.
if i had 60 to put down, i assure you, i wouldn't have bought a condo. i would have bought a dope house instead.
but i was stupid......
i blew 20 grand on civics
5 on 240s
and 10 on an sti that i drove for a year
had i saved that money, and been able to put 45 grand down instead, i'd be in a LOT better shape. i'd have an 80-90k loan out on my place... something i can kill in 8-10 years.
instead, i'll be lucky to pay this place off in 20 years.
and thats if i'm still living here that long from now... and i doubt that will be the case.
I won't try to talk you out of it.... hell, i drive an M3 that I paid 40k for and have a 7k "beater". But, i'm living well within my means.
condo = 1400 (includes HOA)
m3 = 875
bills = 200 (power) + 50 (cable/internet) + 80 (cell) + (130) ins + 120 (gas)
thats just under 3 grand a month in bills... which leaves me roughly 3500 a month to play with, eat, smoke, drink, go out, or pay more towards other things, such as my car or condo, and invest.
You have a finacial advantage many people wish they had.
Don't live "ni**** rich" as the term goes.... wearing bling, driving caddys with 24's, and not a pot to piss in.
for B's "been there done that" experiences.
