I'm pretty new to MMM, but have been hooked on reading as much as possible to learn how to better save+budget for future. I'm 24 yrs old, single, living in a fairly low cost of living area. I would really love to buy a house as soon as possible, because most rentals cost the same, if not more than a mortgage here. However, up until about a month ago, I've always had really low paying jobs (in an industry that I love!) and haven't been able to save much. I just got a new job that almost doubled my income (and it's still pretty small!) and I just wanted some opinions on whether it was a realistic goal to have enough saved for a down payment in about 15 months (which would mean renewing a lease in May of this year, for another 12 months). My max budget for a house would likely be $150,000, and honestly I could get something for $110,000 and be really happy. There are tons of small, cute, houses in really good shape here in that price range. Anyway, sorry for rambling, I will get to the specifics!
Income: $36,000/yr + 17-18% yearly bonus (which I will get next year), and a small December bonus (~$1200)
- I contribute 8% to 401k which is matched by my employer, and also have $14.00 deducted every paycheck to use the company gym, and $14.00 total deducted every paycheck for Dental and Vision coverage.
This leaves me with a little over $1900.00 a month take home. I live with my boyfriend, and luckily get to split a lot of expenses with him, which helps a lot.
Current expense per month:
Rent: $400
Utilities: $60-$75 (this is high, we live on the 2nd floor of a house that is split into two apartments. We split utilities with the tenants downstairs, and they are extremely wasteful, and leave lights on all day, do about 20 loads of laundry a week, etc...not a lot we can do about it unfortunately)
Comcast: $20
Trash: $10
Car Insurance: $95 (about to lower this to $75, have always had super high coverage, but I think I could trim some here)
Gas: $40-50 (higher in winter. I bike to work about 4 days a week almost year round. A couple months in the winter it can be harder, and I drive a little more)
Groceries: $250-300 (this includes household items)
Medical Expense: $320
Renters Insurance: $18
Misc expenses: ~$50-60 ? Usually this is for bike maintenance. I have 4 bikes, and race competitively, and things break. Thankfully I know a lot of mechanics and can usually pay with beer :)
Total= ~$1300.00
Assets (Not much!)
Car- $6000.00: 2003 Honda Element...paid for
Savings account- $1000.00
Bikes- these don't count, do they? :)
I have no liabilities. No loans/debt. I have good credit, but my history is young. I am hoping to build up my credit to an even better level in the next year to prepare to purchase a home. I am also waiting on an insurance settlement for a car accident that I should get a decent amount from, which I plan on putting away into a savings account for a down payment. I am interested to know also, what is the best kind of account to save money in short term for a goal purchase?
So, is my goal realistic? I know I will probably not be able to get quite to the 20% down payment mark by next May. But I want to get as close to that as possible, and then see what kind of houses are available in my price range.
Are there any other areas that I can cut out in my budget to put me on a better path of savings?
Thanks for all opinions and help!