Hello!
I am currently 24 years old employed as a Sys Admin. For the past year I have been telecommuting full time, and will be for the foreseeable future. I have been following the MMM blog since 2012.
My bi-monthly pay stub:
Gross pay = $3006.10
401K contribution = $180.37
401K employer 5% match = $150.30
Fed Tax = $511.28
Medicare = $43.06
MN State tax = $173.80
Social Security Tax = $184.11
Filing status is 0.
Net pay is roughly $3000 to $3200 per month. I get a bonus paid out on the second check of each month that varies.
My pay is currently $24.50 per hour. There is always opportunity for overtime that I take advantage of. I also take extra on call shifts from employees that don’t want to do them. An on call shift can add anywhere from $100 to $500 per week to my paycheck, but it varies with the amount of calls I receive during that week. I get to clock into work whenever I am working on an after hours call, and all that time is counted as overtime.
My salary is likely to increase significantly over the next 5 years at this employer.
I have thought of potentially starting a side business to generate extra income, but with my work schedule extra part time work would be difficult.
Monthly Net Income total = $3100, approximately.
2017 Year to Date Gross Salary: $31,824 (January through June)
Projected Gross Salary for 2017: $64,000
Monthly Expenses:
Dental = $30
Medical = $41
Car insurance = $90
Car fuel = $12 ( A tank of fuel lasts me 2 to 3 months on average)
Cell phones = $15 on average using Ting
Groceries = $50
Dining out = $30 (Maybe once or twice a month, drinks with friends)
Amazon Prime = 99$ for 2017, but I recently cancelled my subscription so it will not renew next year.
Personal hygiene = $20
Total approximate expenses = $288
Those figures assume that I don’t have unexpected spending. I might buy an occasional concert ticket, or have a Dr. bill.
Assets:
Savings Account = $103,649
2010 Scion XB = purchased outright
401K = $20,357
Debts:
None
Since I telecommute full time my car mostly sits in the driveway. I have driven less than 400 miles during the first half of 2017. My car insurance should go down a little bit when I turn 25. I have thought about getting a beacon from my insurance company that will track my driving. It could potentially save me up to 40% on my insurance, but I do not have a cell phone that will run their required app. “I still use a BlackBerry, go ahead and laugh”
I have a Wells Fargo credit card that I pay in full each month.
My expenses are generally very low. I lived with roommates up until 1 year ago. For the past year I have been living with my parents.
My Questions for You:
The reason I have so much cash sitting in a savings account is because my long term goal when I started was to purchase a house. The suburb of Minneapolis near my work where I want to buy is experiencing a housing bubble. A 200K house in 2015 is now worth 260K to 300K. They are selling the same day they go on the market. On top of all that volume of houses for sale is at a 14 year low. Home prices in general are up and I am getting priced out of neighborhoods all over the Minneapolis suburbs.
Since I telecommute should I look into buying a cheaper house further out from the city? (Approximately 20 miles from work?) I think I will be able to telecommute as long as I don’t accept some type of management position. The unknown of this one worries me.
Should I continue saving money living with my parent’s and buy a house with cash somewhere next year? I could live in that house saving up a down payment on a second house. This would allow me to wait out the housing market. I could potentially use the first property as a rental property to generate income.
I really want to move out of my parent’s house this year. Should I rent somewhere and wait out the housing market? Average rent is $1100 to $1300 a month. I could still save quite a bit of money living frugally.
Also, I have over 103K sitting in a savings account. Should I start investing my current income? How much? Is there any reason to save more money? “IE buy a house with cash” If I should start investing in this current market where should this money go?
I need some kind of plan. I kind of feel like this real estate bubble has kicked the can out from under me and I am losing sight of what my long term goals are. I am in a pretty unique situation and I don’t want to screw anything up.
Please let me know if you have any questions!
Thanks in advance for any advice that you are able to provide.