#MoneyManagement #SavingGoals #HomeOwnership #RetirementPlanning
Hey there! 🌟 Let’s talk about a common dilemma many people face – should you save more for a down payment on a home or focus on beefing up your retirement savings?
With your current financial situation in mind – 42 years old, $60k/year income, 3 young kiddos, and no debt – striking the right balance between saving for a home and retirement is crucial. Here are some factors to consider and a possible solution:
Considerations:
– $35k savings in hysa for home down payment
– $2k emergency fund in hysa
– Only $17k between Roth IRA and 401(k)
– No financial support with kids from ex
– Living with your mom, but feeling it’s time to move out
Possible Solution:
– Prioritize emergency fund to cover unexpected expenses
– Aim to contribute more to retirement accounts to take advantage of compounding growth
– Allocate a portion of savings for a home down payment
Ultimately, finding the right ratio between saving for a home and retirement boils down to your personal goals and timeline. It’s all about finding that balance that works best for you and your family’s future. What do you think is the best strategy in this situation? Let’s discuss! 💬💡
You’re way behind on retirement, you should prioritize that but also boost your emergency fund (6 months minimum since you are single income with 3 small kids) and plan to rent for a while. Buying a home is a luxury (and expense) that you can’t afford right now.
What’s your monthly budget look like and how much of your $ do you have after bills/expenses? In other words, how much can you save/invest monthly?
Once you have this number, determine what 3.5-5% would be for a down payment on a home. This along with an additional 3% for closing costs should be factored in for you to project how long it would take to buy a home. From here, you can determine what your monthly mortgage/insurance/taxes look like compared to renting (since you mentioned wearing out your welcome at moms).
From here, factor in your age, income, how long you want to work, and determine if it’s worth buying, staying put, renting, and/or dedicating funds towards retirement. Remember, you can’t borrow for retirement. The flip side to this is you’ll still need shelter so it’s not as easy as one or the other. I hope this gives you something to think about for you to explore the best route for you.
Prioritize retirement, but allocate a small percentage for down payment to avoid feeling stuck.