Ppl in high cost states - How do you save money?

[z1ggy]

Same with my GF. Luckily they are nearing retirement and plan on moving away anyway 😉 I do love it here and would find leaving it behind pretty difficult, so I'm still on the fence about buying a place to live in for a while, rent out for a while, and come back to later.

One other thing -- can you guys just live in a one bed apartment for a while? How much would that reduce your rent?

We looked at a few 1 beds. It reduces it a little bit. But we have a lease here until March of 2018.

 

[Cappuccino]

wow anuther 100k elitist

 

[Viper GTS]

Stop thinking in terms of annual raises, they aren't going to fix the problem. Changing positions (to some degree) and companies (the majority) is where your rapid increases come from. Don't be a job hopper every 18 months but careful moves when appropriate can yield huge gains.

This year I'll make triple what my base salary was at the beginning of 2010 thanks to three job changes and one cross country move.

Viper GTS

 

[monkeydelmagico]

The g/f and I are actually considering building a home out of (lightly used?) storage containers. I know it might end up a zoning nightmare, but homes around here are truly some of the most expensive I've ever seen, save for on the coastline.

FWIW I live in Basking ridge/Bedminster. Ritzy as all hell for being inland.

Good luck with the shipping container house, lol.

Fwiw sterling, gillette, watchung are all cheaper. 30 minutes out in hacketstown or mt olive would cut your cost of living nearly in half. You have to decide if a commute is worth it. I hate commuting and now live within walking distance of work. But I like dumpy houses. Life is good.

 

[BurnItDwn]

I work in the Northern Burbs of Chicago. housing Close to work is generally around 750K and up, though there are sometimes homes in the 500K Range.
I drive about an hour, houses here are around 200K to live in a nice neighborhood.
Before I lived here, I lived in a townhouse in a shitty area a bit farther from work, which costed 115K.

 

[purbeast0]

This is the first year at my company and I honestly have no clue how well they will treat me as far as raises go. I'm in the "inside" because I work in sales, so I know our costs (roughly) and yearly revenue. I'd be kind of pissed to only get a 2.5% raise, but I'm going conservative here. I get a bonus each year, but it's not really much to write home about. This year it's $3,600.

I honestly just feel like most people who are around my age and make around my family's money and buy near me, just... straight up don't have savings.

I'm personally not to concerned about having a huge stash of cash saved up like a lot of people are. As long as I continue 401k and retirement stuff, that is all that really matters to me. As I mentioned I have a decent rainy day fund out there just in case, but a lot of extra money we have now is spent on vacations and enjoying life. I'm not concerned about job stability right now or anything either and I'm 100% confident that if I were to lose my job for some unknown reason that I could get a new one very easily. So I just don't really see the need to have a shitload of money sitting in the bank other than the nestegg that is in there right now.

 

[ponyo]

Most people can't save or don't save and up to their eyeballs in debt. They're barely getting by. Those that can save easily are the 1%ers.

 

[z1ggy]

Good luck with the shipping container house, lol.

Fwiw sterling, gillette, watchung are all cheaper. 30 minutes out in hacketstown or mt olive would cut your cost of living nearly in half. You have to decide if a commute is worth it. I hate commuting and now live within walking distance of work. But I like dumpy houses. Life is good.

Hey, they are way cheaper than traditional houses... You just have to find somebody who's experienced in it, and applicable land.

I work near the Newark area, and I used to live up near Stanhope/Byram, which was a 60-90 min commute. It sucked ass and I really don't want to do it again. I'm at 45 mins right now and it's tolerable, but I can't go back to how it was previously.

There's always a sacrifice to me made. Live more in the country... pay less, but your 15-20 mins from the nearest...anything.

 

[z1ggy]

Stop thinking in terms of annual raises, they aren't going to fix the problem. Changing positions (to some degree) and companies (the majority) is where your rapid increases come from. Don't be a job hopper every 18 months but careful moves when appropriate can yield huge gains.

This year I'll make triple what my base salary was at the beginning of 2010 thanks to three job changes and one cross country move.

Viper GTS

That's impressive, what do you do? Since 2010, my salary has gone up just 50%. But that's only 1 job switch.

 

[purbeast0]

That's impressive, what do you do? Since 2010, my salary has gone up just 50%. But that's only 1 job switch.

I left my first job out of school in January 2010 making $64k. I now make over double that having changed positions twice. Software Engineer here.

 

[z1ggy]

There's a small part of me that wants to stay here the long haul simply because my boss, who's the president used to have my job about 20 yrs ago. My job (sales engineer) is by far the best position to have here to line up to run the company. I'm involved in every single aspect of the business and probably have the most input on the business other than the engineers who design our products.

However, he easily has another 10yrs in him, plus the VP is only about 50, so once that spot opens up, he's obviously next in line. But... I believe he makes around 300-400k.. so.. meh.

 

[Capt Caveman]

There's a small part of me that wants to stay here the long haul simply because my boss, who's the president used to have my job about 20 yrs ago. My job (sales engineer) is by far the best position to have here to line up to run the company. I'm involved in every single aspect of the business and probably have the most input on the business other than the engineers who design our products.

However, he easily has another 10yrs in him, plus the VP is only about 50, so once that spot opens up, he's obviously next in line. But... I believe he makes around 300-400k.. so.. meh.

Wait, you've been at this company for less than a year and you think b/c the President used to do what you do, that lines you up to run the company? I think you're a little naive.

 

[z1ggy]

Wait, you've been at this company for less than a year and you think b/c the President used to do what you do, that lines you up to run the company? I think you're a little naive.

I wouldn't say, line me up. More like, I'm gaining the best possible experience I can, because I can walk in the shoes that he used to, while nobody else is. Nothing is a guarantee of course, and I realize that.

Furthermore, it's such a ways off it's really pointless to think about it. I'm looking for more of the 5 year plan, as opposed to the 20.

 

[Chapbass]

Relative to the coasts Chicago is quite a bargain. For the money he's paying in rent you could own a large condo in any number of decent, yet not hot, neighborhoods here.

Unless I missed it, we don't know what the OP is referring to as far as good and bad. While I don't know the NJ area, just looking around real quick on some rental places, I saw several 3bed 2 bath condos for what you'd find similar places in Chicago in solid areas (Logan Sq, Wicker for example). Sure, theres a lot of neighborhoods in Chicago that can be had for a lot cheaper, but without knowing what is acceptable for an area and what isn't, its hard to make that statement IMO. I get that as a whole you're right, but I think my original statement still holds up.

 

[z1ggy]

Unless I missed it, we don't know what the OP is referring to as far as good and bad. While I don't know the NJ area, just looking around real quick on some rental places, I saw several 3bed 2 bath condos for what you'd find similar places in Chicago in solid areas (Logan Sq, Wicker for example). Sure, theres a lot of neighborhoods in Chicago that can be had for a lot cheaper, but without knowing what is acceptable for an area and what isn't, its hard to make that statement IMO. I get that as a whole you're right, but I think my original statement still holds up.

Good/bad prices? OR quality? You really pay for what you get around here, I searched very hard for over 2 months, and I Think I landed one of the best deals I possibly could have.

As I said I'm paying $1850 for a small 800sqft condo. Maybe it's like 850sqft.. but either way, tiny. The next cheapest place I saw in the area that fit my criteria (2 beds, 1.5+ bath, allowed a dog) was $1600 and was a compleeeeeeeeteeeeeee dump. It smelled, the floors weren't level, there wasn't even a spot for a fridge. Windows were all single pane and there was mold all over the basement walls and floor (water damage had occurred likely). It was worth $250 a month to live in that.

Everything else that I saw which fit those 3 criteria were all over the $1850. Most were between 1900-2200.

But it seems like for now, I need to come up with the fastest way to pay off my car. I have ~$9k left on the loan. I'll be spending a little bit coming up to get engaged, but I think my g/f will understand that she isn't getting a 1 carat rock or a nice wedding. Hopefully most of my tax return can go toward paying the car down then.

 

[Gardener]

Are we now in a generation of life long renters who can't get ahead until their mid 40s?

I think it is far tougher for people in your generation than for those born in the 1950's - 1970's. However as the baby boomers downsize, positions and properties should open up. And, likely, there is a real estate bubble right now.

So keep banking cash, and put off having kids.

By comparison, at a modest income in my late 20's I could purchase an average home for 2x my annual income in Grand Rapids, and 3x my annual income in Seattle.

 

[rh71]

How can people get so ahead in these types of high cost states that they can actually afford to pay a car in cash, or afford the 2 year low interest car loans?

High-cost states mean parents knowingly have to fork out more help along the way. And they mostly do because they can afford to (look where they are). For the young adult, this could mean no student debt and every dollar you earned from your first full-time job is savings up until the point you buy your first starter home.

You're asking the question because it's true - it's near impossible to do a big house while young and still have debt from school. People who grew up here pay it forward by helping their kids out in the future.

 

[Platypus]

Chicago isn't cheap but it's not expensive compared to some places.

My answer is that I make a lot of money and I have a husband, so we have dual income.

 

[DaveSimmons]

It's easy with my simple 3-step plan!

Step 1: get paid a very good salary
Step 2: stay out of debt
Step 3: don't buy things you won't use, even for your hobbies.

I ignored the $199 laptop deals and Xbox1 / PS4 discounts since I still have a stack of games to play for my 360 and PS3. I've spent more on Child's Play this xmas than on myself.

 

[monkeydelmagico]

There's always a sacrifice to me made. Live more in the country... pay less, but your 15-20 mins from the nearest...anything.

I guess that's the point huh? Honestly I'm surprised you were able to find somewhere in bedminster for that cheap. I thought they zoned out the low income housing. If you like it enjoy it. Cut costs somewhere else.

 

[z1ggy]

lol. you spent $17k on a car for no reason. What I expected, I guess, was something more reasonable (not that I'm the most reasonable person compared to "the norm")

Granted, I tend to live where I don't need to depend on my car on a daily basis...but I'm also not going to be spending more than $5k on a mobile prison that's only function is to transport me from place A to place B. Just saying. But it sounds like you are saving a decent enough/month despite those unnecessary expenses. My primary suggestion would be to transfer those monthly savings into paying off those loans ASAP, because they are destroying your money and your soul.

High-cost states mean parents knowingly have to fork out more help along the way. And they mostly do because they can afford to (look where they are). For the young adult, this could mean no student debt and every dollar you earned from your first full-time job is savings up until the point you buy your first starter home.

You're asking the question because it's true - it's near impossible to do a big house while young and still have debt from school. People who grew up here pay it forward by helping their kids out in the future.

Yep 100%. My g/f's parents helped her out so much it's almost not fair. While they don't just fork money over to her, they do give her some very nice "gifts", such as paying a lot of her student loan debt interest upfront, so the money she is paying, is mainly principal. The parents expect to be paid back, however it's likely not going to happen right now. Maybe in 10 years or something.

They also have her 2 younger brothers at home, both adults, living rent and mainly cost free. The brother makes about $50k a year, but literally has no costs. No bills of any kind other than maybe some car insurance and gas costs for his (paid for) car. Granted, car is a total POS.

 

[z1ggy]

I guess that's the point huh? Honestly I'm surprised you were able to find somewhere in bedminster for that cheap. I thought they zoned out the low income housing. If you like it enjoy it. Cut costs somewhere else.

Me 2. It's funny that my place is I guess technically "low income" housing, even though it's not a dump at all. Most of the people in the housing neighborhoods near me live in $1M+ houses, drive bimmers and porsches, etc. No clue what they do for work, but it must be pretty solid, or they are all just living it up, balls deep in debt.

 

[Exterous]

uhhhh because I'm 28? and I bought the car 2 years ago? And I didn't have $17k to pay my car in cash? lol the heck do you expect. I can't just magically pull money from the air to pay it down right now, hence the whole point of this thread.

How can people get so ahead in these types of high cost states that they can actually afford to pay a car in cash, or afford the 2 year low interest car loans?

Did you need a $17k car? In NJ or Chicago you should be able to get a certified Corolla or Civic with 35k miles on it for $12.5k OTD or less that would probably last you another 150k+ miles. Keep it for 10 years bank all the car payments you're not making after its paid off

 

[ponyo]

Did you need a $17k car? In NJ you should be able to get a certified Corolla with 35k miles on it for $12.5k OTD or less that would probably last you another 150k+ miles. Keep it for 10 years bank all the car payments you're not making after its paid off

Damn. You just saved him $4.5k. He's going to be rich!

 

[madoka]

Every job I had, I proved my worth and made myself vital to their operations. After a while, I started thinking about my ideal job (which would include the ability to take a 3 hour nap every afternoon and setting my own hours). Since such a job did not exist, I created it for myself. Now I can choose when I work, where I work, with whom I work, if I work, and make enough to fund my various hobbies. It pays to think outside the box.