How Fast Can I Become Debt-Free?

[Garcia Bronco]

Okay, so you've got some ideas on getting out of debt.

Buying a house:

I recommend to save up at least 6 months living expenses
You'll need ernest money in some cases to even file a contract offer on a house
Look at FHA loans and consult a local housing athority in your area and see if the can help you

And the big one, 20 percent down on the house. This can vary from lender to lender, but it'll be atleast ten percent.

Also before any of that... you need to figure out what you're looking for: aka condo, single family home, townhouse, so on

[Dante84]

Originally Posted by Garcia Bronco

Okay, so you've got some ideas on getting out of debt.

Buying a house:

I recommend to save up at least 6 months living expenses
You'll need ernest money in some cases to even file a contract offer on a house
Look at FHA loans and consult a local housing athority in your area and see if the can help you

And the big one, 20 percent down on the house. This can vary from lender to lender, but it'll be atleast ten percent.

Also before any of that... you need to figure out what you're looking for: aka condo, single family home, townhouse, so on

Great advice.

I am considering going into sales for a home builder if I can make an opportunity present itself. It is tough work, but in this market, it is easily a 6 figure job, which would essentially triple my income in poor scenario. It may not be the most secure long-term solution, but if I can put serious hay in the barn in the next 5-10 years, it will be well worth it.

[Garcia Bronco]

Originally Posted by Dante84

Great advice.

I am considering going into sales for a home builder if I can make an opportunity present itself. It is tough work, but in this market, it is easily a 6 figure job, which would essentially triple my income in poor scenario. It may not be the most secure long-term solution, but if I can put serious hay in the barn in the next 5-10 years, it will be well worth it.

And not to overwhelm you, but I also recommend start saving for retirement now or within the next few years. If your job matches you on a 401k up to certain percentage, then sign up and pay in to get the percentage. It's free money.

There is a phrase I use and it's called. "Save myself poor"

If you get that gig and you can make that kind of money, live down to the min whenever possible while having a good time. Its an easy life.

[Bearcat]

Originally Posted by Garcia Bronco

And not to overwhelm you, but I also recommend start saving for retirement now or within the next few years. If your job matches you on a 401k up to certain percentage, take it. It's free money.

There is a phrase I use and it's called. "Save myself poor"

If you get that gig and you can make that kind of money, live down to the min whenever possible while having a good time. Its an easy life.

The earlier the better... adding a couple of years in contributions in your 20s can make a huge difference at retirement....... at least that's the one thing I learned in Finance.

[Garcia Bronco]

Originally Posted by Bearcat

The earlier the better... adding a couple of years in contributions in your 20s can make a huge difference at retirement....... at least that's the one thing I learned in Finance.

Absolutely. Something. Anything out of each paycheck. Pay yourself first.

[lewdog]

Originally Posted by Bearcat

The earlier the better... adding a couple of years in contributions in your 20s can make a huge difference at retirement....... at least that's the one thing I learned in Finance.

I don't remember the exact figure but Money magazine stated that if you invested 5k a year into a retirement fund from the ages of 25-35, that your total at age 65 would be almost the same if you didn't start until you were 35 and invested until 65!

It is hard to catch up so start as soon as you can! I take that advice and do 401k through work plus 2-3k into a Roth IRA that I self fund. Hopefully once I get a little more settled, I can max out that Roth each year.

[Iowanian]

I also say this.......

I have a good job with adequate income. I do all kinds of things on the side for extra money. That's the cash I use for the "extras" like guns, hunting stuff/trips etc....and for savings building.

There are piles of legal ways to make extra cash. You just have to be ambitious and creative. Where I'm working this week, if I had more time I'd come back with a chainsaw and cut up storm damage trees after I'm done with the day job. Things like that. Mow yards, ebay, bartend.......

[Iowanian]

Are you handy?

I started out with a "3 house plan". I bought the first one...a turd, fixer upper and spent a couple of years remodeling it and sold it for my equity and a little profit. The 2nd house was bigger and nicer and needed less work....and I sold it holding my equity from the first and a small profit. The 3rd house was supposed to be the one I build....but that didn't work out and I bought another big project house...and put a pile of time and money into and will lose some on it when I sell.....because I'm working on house 4...the last one.

When I worked for a contractor when I was younger, I took on a job building a horse barn for that client at night and weekends. There is opportunity everywhere for someone looking for it.

My Point....start out with a reasonable home, not out of your league prices and work your way up with improvement and equity as you go.

That's my advice on that topic.

[Dante84]

Originally Posted by Iowanian

Are you handy?

I started out with a "3 house plan". I bought the first one...a turd, fixer upper and spent a couple of years remodeling it and sold it for my equity and a little profit. The 2nd house was bigger and nicer and needed less work....and I sold it holding my equity from the first and a small profit. The 3rd house was supposed to be the one I build....but that didn't work out and I bought another big project house...and put a pile of time and money into and will lose some on it when I sell.....because I'm working on house 4...the last one.

My Point....start out with a reasonable home, not out of your league prices and work your way up with improvement and equity as you go.

That's my advice on that topic.

I am not handy. When you are young, you are either the guy holding the screwdriver or the flashlight. I was always a "flashlight holder" growing up. I am painfully self-aware.

I think you have to be pretty savvy to flip homes in Texas, as the property tax is just nasty. Also, in this market, I'd be happy to hold on to the homes and rent them out. I just need to get into a spot where I can buy my first.

[mlyonsd]

Originally Posted by Dante84

I am not handy. When you are young, you are either the guy holding the screwdriver or the flashlight. I was always a "flashlight holder" growing up. I am painfully self-aware.

I think you have to be pretty savvy to flip homes in Texas, as the property tax is just nasty. Also, in this market, I'd be happy to hold on to the homes and rent them out. I just need to get into a spot where I can buy my first.

If you can tie your shoes you can do almost everything to fix up a house.

Iowanian give great advice. My first house was small and built in the 50's. I figured out how to roof and side it myself, then finish the basement. Anything can be done if you research it.

10 years later I was the general contractor on my own house, doing some of the work myself.

ps. I should admit I don't do major plumbing. Changing out toilets, sinks, and faucets is about t.

[NewChief]

Originally Posted by mlyonsd

If you can tie your shoes you can do almost everything to fix up a house.

Iowanian give great advice. My first house was small and built in the 50's. I figured out how to roof and side it myself, then finish the basement. Anything can be done if you research it.

10 years later I was the general contractor on my own house, doing some of the work myself.

ps. I should admit I don't do major plumbing. Changing out toilets, sinks, and faucets is about t.

And good grief is google a godsend. YouTube has made it even better. My washer spin cycle stopped working. Googled it. It was the lid shut sensor. Found a video on how to replace, ordered the part , and fixed it myself for $40.

I'm fairly handy, but I'm considered the pretty boy idiot who can't fix shit in my family (both my brothers can tear apart an engine or any piece of machinery and build houses for a living though).

[Spott]

Originally Posted by Dante84

I am not handy. When you are young, you are either the guy holding the screwdriver or the flashlight. I was always a "flashlight holder" growing up. I am painfully self-aware.

I think you have to be pretty savvy to flip homes in Texas, as the property tax is just nasty. Also, in this market, I'd be happy to hold on to the homes and rent them out. I just need to get into a spot where I can buy my first.

I was the same way when I bought my first house when I was 24. 16 years later I can fix just about anything around the house. Google and Youtube are great for finding out how to fix things around the house youself. I just bought a foreclosure for cash 3 weeks ago and have no house payment now. I've had to fix a few minor things with the home but it's amazing what you can fix with a few hand tools and a 12v Dewalt drill. Just keep saving, don't piss away a lot of money on booze and women and keep your nose clean and you'll start saving money quick. 401K plans are great as well if your employer offers one.

[dj56dt58]

Paying off debt with another debt is just masking the problem. I mean its not a bad idea if u can get 0% but your still in debt your just making it easier to ignore the problem

Use the snowball method others have suggested and stay focused. Set a budget for every penny

There is also good advice in raiders thread about building credit

[Simply Red]

you're a badass Dante - Keep setting goals - great start.

[mlyonsd]

Originally Posted by Simply Red

you're a badass Dante - Keep setting goals - great start.

This.