Author Topic: Where to put your money: Save for a House or Invest?  (Read 2284 times)

slp

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Where to put your money: Save for a House or Invest?
« on: May 17, 2013, 12:17:08 PM »
MMM and readers,

So what do I do now?
Iíve been reading for a while and have been living my version of mustachianism for a while. -Bike to work, fix old things and sell them, cheap housing, car paid for that usually sits etc.
I graduated college in December 2012 with a German degree. Needless to say, there arenít many jobs needing my skills at the moment. I took a job at a tech company leading corporate and client trainings for their software. My wife is still in school and works part-time. When she finishes, we both will have completed Masterís degrees without accruing debt.
My salary is 28k per year. Right now, we save about 50% of that. We have around 30k in liquid assets. In the future, Iíd obviously like to buy a house, but I also have no 401K (company does not have the option) or investments for retirement.
This brings me back to my opening question. So what do I do now? Should I save for a down payment on a house or should I invest some and save most? Any suggestions are appreciated.
« Last Edit: May 17, 2013, 01:34:22 PM by slp »

Sri C.

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Re: Where to put your money: Save for a House or Invest?
« Reply #1 on: May 17, 2013, 01:56:21 PM »
What's your location? Do you carry health insurance?

D-T

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Re: Where to put your money: Save for a House or Invest?
« Reply #2 on: May 17, 2013, 08:09:07 PM »
It's really up to you.  What do you value?

If I were you I'd definitely get a Roth IRA started before even thinking about saving for a home.

My husband and I had to make a similar choice. We decided to give our retirement portfolio more time to accumulate and grow rather than rushing into a home.

slp

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Re: Where to put your money: Save for a House or Invest?
« Reply #3 on: May 21, 2013, 03:10:37 PM »
I live in Provo UT right now, but have no intention of staying there. I'd like to move to Pennsylvania eventually.
I currently have health insurance (HSA/High deductible) through work.  $120/month

CU Tiger

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Re: Where to put your money: Save for a House or Invest?
« Reply #4 on: May 21, 2013, 04:01:12 PM »
You must have had a reason for majoring in German. Could you teach or tutor to bring in extra cash? You could then invest and save for housing.

twinge

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Re: Where to put your money: Save for a House or Invest?
« Reply #5 on: May 23, 2013, 07:13:22 AM »
Quote
I graduated college in December 2012 with a German degree. Needless to say, there arenít many jobs needing my skills at the moment.

This is OT from your original request, but I wanted to address this point because I think it's a latent relevant issue.  I think outside of more technical STEM areas, the skills you bring from a solid undergraduate degree have far less to do with your major and more to do with the growth in your self-regulatory skills/discipline (i.e., making it through college) and analytic, interpretive and communicative skills. Successful majoring in German while fulfilling liberal arts requirements fits the bill for that. The current idea of one-to-one matching majors to job skills is short-sighted: job skills are relatively easy to pick up as needed;solid writing/analytic thinking/strong reading comprehension--not as much.  So watch out for trivializing your degree--it will push you to underestimate your worth.  (FWIW, I was able to do a fully funded with stipend PhD at an Ivy league school  without a master's in a major different than my "frivolous" liberal arts undergraduate degree after going after research opportunities in an area that interested me.)