Update: 20 yrs old, First House

[howaldryan]

So I posted a thread back in Jan talking about purchasing a house. Well I did it. I closed on my house in the second week on march. Turned 21, the first week of march.

So I have lived in my house for 5 months now and wanted to give a couple updates. For one, and this may be from being 21 and being invincible , but this was easier then what people make it sound like. I have money left over every month that is saved. I have an emergency fund. I have even dealt with a substantial loss of income the last month and a half and didnt have to touch credit cards, or emergency funds. That was tough however it is now back about where it was and the next year or so is looking promising.

I am still in school working on my bachelors. I am not going full time but should be coming up in the beginning of 2012. Probably my only regret about being on my own is not being able to keep a full time school schedule.

Next year the company I work for, that is currently outsourced by a major university, that major university is not renewing the contract. Which means that my position is being eliminated essentially and will be given an opportunity to apply for my same postion within the university. This is nerve racking but the spots available are only open to those that were affected by the contract discontinuation. If, I dont get hired with the university, I get six weeks severance pay. If I do, its most likely a pay increase, free school through graduate school, and 401k match!

Currently the job is good. Flexible, decent benefits, and the next two months will have unlimited overtime. I have been with the company over two years.

I am looking at starting my own business that can be worked on the side of my current job, and going to school. Low overhead, low startup costs and really excited about it.

Now retirement objectives, by the end of the year I will probably have $5000 into retirement specific accounts.

Anyways, that is my young dreamer update and I want to thank all of you for all of the advice that I have read and received on this forum and I will keep you updated.

[howaldryan]

Oh also, my girlfriend and I are still together. Celebrated 3 years on Friday. YAY! We both want to be out of school and into careers before looking at marriage. A couple years away.

Update on the actual house, so far nothing in the neighborhood is sold less then what I paid for mine. I know It really doesnt matter to much, but its nice to know I have equity in it. The first couple months I paid almost double mortgage payments but these last two months due to loss of income, were just regular payments. I should be back on that payment schedule soon enough.

[Bestwifeever]

Thanks for the update (here is the thread from January: http://www.early-retirement.org/foru...ml#post1030198).

Glad to hear everything is working out so far. If the job with the university works out, that tuition benefit is amazing! Good luck with it and don't forget to let us know what happens.

And of course yay on the anniversary, too!

[arebelspy]

Quote:

Originally Posted by howaldryan So I have lived in my house for 5 months now and wanted to give a couple updates. For one, and this may be from being 21 and being invincible , but this was easier then what people make it sound like. I have money left over every month that is saved. I have an emergency fund. I have even dealt with a substantial loss of income the last month and a half and didnt have to touch credit cards, or emergency funds. That was tough however it is now back about where it was and the next year or so is looking promising.

Good for you. That's how it should be if you LBYM.

Now the next step in that is when you graduate and get a higher paying job not to let lifestyle inflation take it all (bigger house, new car, etc etc).

[studbucket]

Awesome, good for you!

[donheff]

How the heck do kids get so mature at 21, HGH? I expect we will be seeing you FIREed before a lot of us old timers croak. Congratulations.

[rescueme]

Quote:

Originally Posted by donheff How the heck do kids get so mature at 21, HGH?

Not to take away from the OP, but a lot of time it depends on circumstances.

Heck, I turned 21 during my government sponsored SEA "vacation" in Nam, followed by getting married later in the year (still 21) when I returned to "the world" (a bit of good/bad - I'll let you figure out which was which ).

Congrats to the OP. It's good to hear of those that strike out on their own rather than run home to their mommy/daddy as is prevalent in a lot of cases today (speaking not only of certain relatives, but just comments in the news).

BTW, you're not "invincible" - but you have confidence, and are taking control of your own life. Good for, and good luck to you...

[travelover]

I'm impressed with the OP and see a bit of myself in him.

In comparison, most of my nieces and nephews are slackers with little ambition and a hand always out to mommy and daddy.

[howaldryan]

Thanks for the encouragement and comments. I saw about junior year in high school that the going out every weekend and spending your entire paycheck was crazy.

Parents divorced freshmen year of high school. Lived with Dad, 100% starting at 18. He traveled monday through friday every week. Was kind of on my own, paying for my cell, insurance, gas. He still paid for everything else, however I was the one that opened all the bills and talked to him over the phone so he could pay them.

He lost his job of over 20 years without any warning or notice. Could not find a job for 6 months. I watched the debt build. The house was slowing starting the foreclosure process after the loan mod was not going through.

I started making it a priority to save, knowing that I might have to be on my own very soon. I made it a game to see how high I could get my credit score.

I spent the last three years with my girlfriend, talking about saving and budgeting for things. I helped her with her taxes the first year, and showed her how much she made that year and I asked her where that money went. From then on, she has made leaps and bounds improvement on finances.

My biggest inspiration for the sacrifices that I make now in regards to spending come from my grandparents. They moved to the US is late 50's, not knowing a word of english in pursuit of the american dream. Now they are 75/81 and in incredible shape, both financially and physically. They travel the world, live within there means and like my grandpa says, "I have had an amazing life". I went swimming with my grandpa a couple weeks ago when I was visiting, needless to say, I was put to shame.

I look forward to what the future brings, and I look to others for inspiration, always try to do what I think is right in regards to looking out for others and helping.

My grandpa shared a poem with me when I saw him, that said "the world make think your a wonderful guy, but your only a bum, if you cant look that man in the glass in eye"

Oh.......

Last night my AC on the house went out.... woke up to a 90 degree house. Today we have excessive heat warnings and it is currently 112 outside. Luckily, the unit is still under warranty and its all covered. I just have a really, really hot house. I love home ownership!

[gauss]

Quote:

Originally Posted by howaldryan Last night my AC on the house went out.... woke up to a 90 degree house. Today we have excessive heat warnings and it is currently 112 outside. Luckily, the unit is still under warranty and its all covered. I just have a really, really hot house. I love home ownership!

My Dad's central air went out recently. HVAC repair guy told him the compressor was shot, and that a new outside unit would be $2,000. I decided to dig into it myself. A week later with a $16 replacement capacitor I was able to fix the problem.

I like to think that doing my own repair work on my automobiles and my furnace / AC contributes to my LBYM lifestyle.

[Berkshire_Bull]

Quote:

Originally Posted by gauss My Dad's central air went out recently. HVAC repair guy told him the compressor was shot, and that a new outside unit would be $2,000. I decided to dig into it myself. A week later with a $16 replacement capacitor I was able to fix the problem. I like to think that doing my own repair work on my automobiles and my furnace / AC contributes to my LBYM lifestyle.

Really nice snag! WINNING

[travelover]

Quote:

Originally Posted by gauss .......... I like to think that doing my own repair work on my automobiles and my furnace / AC contributes to my LBYM lifestyle.

+1 My AC went out and I removed the contactor relay, resoldered a loose contact disc, cleaned up the point surfaces and reinstalled it. Total cost $0.00, total time, 45 minutes.

AC was installed in 1972 and has never seen a service man in the 22 years that I have lived here. I use it about 1 week a year.

[haha]

Quote:

Originally Posted by donheff How the heck do kids get so mature at 21, HGH? I expect we will be seeing you FIREed before a lot of us old timers croak. Congratulations.

Ha, for sure! All I ever thought of until I was 34 and my wife was pregnant was finding more ways to have fun.

I think it was a different era. It seemed that as Americans it was our birthright to party on and still have everything turn out all right.

And guess what? It was!!!

Ha

[Packman]

It's good that your GF is agreeable with your spending/saving habits. The money issue becomes one of the most difficult ones in many relationships. If you have similar mindsets, that helps greatly. I wish my DW would be willing to save a bit more and spend a bit less, but we can't have everything we want.

[howaldryan]

Quote:

Originally Posted by Packman It's good that your GF is agreeable with your spending/saving habits. The money issue becomes one of the most difficult ones in many relationships. If you have similar mindsets, that helps greatly. I wish my DW would be willing to save a bit more and spend a bit less, but we can't have everything we want.

She is cutting more things then I would even expect. She went from getting her nails done every week to not at all. She hasnt had her nails done in months. She did ask if she could go get her nails done in a couple weeks. I did tell her that I think it is ok.

There are very few people that I know that think about saving or retirement. *Rant on* Just last week I had someone tell me that I must enjoy my cushy lifestyle. I live within my means and I am not happy unless money is getting put away. Cushy lifestyle is food stamps, section 8, child support, plus the same income as me. *Rant off*

On a side note.... I am working on my side yard for my house. Going to build my own built in BBQ. Already started getting some steel stud together and will work on the electrical and sprinkler stuff next.

Here are some pics.... Sorry for the sideways one

[travelover]

Wow, you live on a steep hill.

[Weather411]

Quote:

Originally Posted by howaldryan I spent the last three years with my girlfriend, talking about saving and budgeting for things. I helped her with her taxes the first year, and showed her how much she made that year and I asked her where that money went. From then on, she has made leaps and bounds improvement on finances.

Wow looks like we have a very similar story! Our 3 yr is coming up in a few weeks. Bought my first house in Jan this yr at 28yo so to do it at 21yo is impressive. Good for you!

[Aiming_4_55]

Great job OP... keep it going.

If the GF disagrees too much with what you want, you can start over

When DW was a GF, we had Fridays as date night but one day I had to cancel as I was preparing a rental for a new tenant. She volunteered to come help clean the kitchen while I cleaned the bathroom and carpet. I married her 18 months later. We were able to see eye to eye on priorities as least in our book.

That was my situation. I bought my first property at 22 so we have a few things in common. I worked almost full time (32 - 36 hrs/week) thru out the school year, but got my paper first.

[howaldryan]

I have continued to follow the forum closely and decided to look back and give an update.

4 years later, life is very different than expected. About 3 years ago, the relationship I originally posted about ended. I was fortunate enough to meet my wife about 2 years ago and we will be celebrating 1 year married in November.

Career path has stayed the same but now I'm up to about 65k from about 33k only 4 years ago. Graduated with my bachelors and started on my MBA, paid for by the company.

Household Income: 123k

No debt besides 148k on primary residence (worth 282k). Hoping to have this paid for by 30.

I'm 25 and wife is 29.

My 401k- 20k (contributing 15%)
Wife 401k- 32k (contributing 15%)

Emergency fund- 15k liquid

First child on the way, due in January. 529 plan to follow and emergency fund bump to 20k.

Anyways, I love the motivation this forum gives me. Look forward to giving an update every once in awhile.


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[travelover]

Congratulations. Life happens in spite of our best plans.