How to work towards buying a 2MM apt in NY/NJ ( close to Manhattan) area ?

Dec 1, 2019 67 Comments

I’m in my late 30s, single, no kids. I barely have any savings, have been irresponsible for a really long time. Help out parents now and then but nothing that’s beyond my means had I been responsible otherwise.

Have around 70k in 401k, 25k in crypto, 20k in stocks and 10k in CD.
Almost 0 liquid cash. Live pay check to pay check 😕 have a shopping addiction.

Have a debt of $30 from family medical emergencies and $10k credit card debt that I keep revolving from one 0% APR credit card to another with one time 3-4% bal transfer fee every 1-2 years.

Monthly Budget :-

Rent - $3k
Utilities - $500
Food - $750-900 ( mostly eat out, hate cooking )
Shopping - $1k-$2k ( mostly impulsive )

Current Base ( = TC ) - $160k
New Base in 2020 - $190k. TC ~ $250k

PS - I know I’ve screwed up big time with my finances

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 TOP 67 Comments

  • Flagged by the community.

    • Flagged by the community.

    • @hpBf22 - dude you need to calm the fuck down. OP clearly knows their problem and are asking for advise not abuse ... so stop acting like you have figured out everything in life ... you may not have a shopping addiction but you clearly have other problems so work on them before acting holier than thou !
      Dec 1, 2019
  • Facebook / Eng
    Gkurhhd

    Go to company page Facebook Eng

    PRE
    Microsoft
     Gkurhhd
    Why do you need 2mm house in tri state? Lots of reasonable places with <1mm houses.
    Dec 1, 2019 6

    • Flagged by the community.

    • Facebook / Eng
      Gkurhhd

      Go to company page Facebook Eng

      PRE
      Microsoft
       Gkurhhd
      This is first time somebody refers to buying in Manhattan as buying in tristate. Yes technically it’s tristate but there is nothing in common between buying in ct and Manhattan.
      Dec 1, 2019
  • Microsoft / Eng
    lemrock123

    Go to company page Microsoft Eng

     lemrock123
    Agreed with Cisco. I was in a similar place 2 years ago. I had a gorgeous apartment with magnificent views. By all appearances I had an awesome life but my credit was in the shitter, piling debt, no savings, living paycheck to paycheck. I made a decision to sacrifice the apartment moved in with friends. My rent went to help with their wedding so it was a win win there. Although I hated having room mates it forced me to double down at work, and gym. We agreed on 9-12 months max. In that time, I increased my 401k contributions by 15k, paid down all my credit and opened a savings - in 1 year Saved 12,000. I moved out within 11 months and let me tell you - IT WAS WORTH THE SACRIFICE. Not to mention I sleep better knowing I don’t have any bills I can’t cover, and zero debt. I highly suggest you take a look at where you can sacrifice. Write a goal and achieve it this year. You never know what you can do, just take the plunge.
    Dec 1, 2019 2
    • OP
      Thanks for sharing
      Dec 1, 2019
    • Goldman Sachs / IT
      thumbsup3

      Go to company page Goldman Sachs IT

       thumbsup3
      Nothing is impossible, as long as you can plan and work towards it.

      You mentioned Mint. How about other standard savings account where you have a set $ go from your paycheck as auto deposit every couple of weeks (or even every week)? That way you will be forced to use only what you have in your checking. Once you see how it is for 1 month, you can take it from there.

      It is always the first few steps that are hard. You're here, putting yourself out there, so that's an excellent start. But please make sure you stick to some sort of fixed recurring savings that will force you not to buy stuff that you don't need.
      Dec 1, 2019
  • Amazon
    Alexa.

    Go to company page Amazon

    Alexa.
    yeah you need to fix the root cause here before you set any targets man. Why do you need to pay 3K rent? are you living in manhattan? What kind of utilities you have for 500, probably winter heaters? Shopping gotta go or reduce drastically. First thing you need to budget your spendings for 3 months and follow it strictly. Once you settle down on a budget you stick then you need to set a realistic goal for the end of 2020. Mint website can help you with budgeting. Send some part of income every paycheck to a savings account, treat it as a spending in budget. And target to increase it every month if possible.

    Wealth accumulation requires getting high pay and less expenses. You are already half there with 250K for single person. Now you need to cut the expenses to save up to buy that house/apartment. Or/and get a higher pay job.
    Dec 1, 2019 2
    • OP
      I’ve been using mint for years now but haven’t been able to realize it into savings .... I just look at the trends and realize sh*t I’ve spent too much on rent, clothes and shoes and the cycle continues ...

      Keep increasing my expenses with increased TC 🙄😒
      Dec 1, 2019
    • Uber
      kPCK48

      Go to company page Uber

      kPCK48
      That's because you just look at it after the fact. You need to set a budget before the month begins and stick to it.
      Dec 1, 2019
  • Aim lower and hope for appreciation. A $2m house isn’t gonna happen for you. It’s fine, it’s not the end of the world.
    Dec 1, 2019 1