Anyone have advice for saving up cash for down payment as a first time home buyer? I’m struggling to balance aggressively pushing towards maxing out my 401k and deciding how much to save on the side for a home.

Me: 24 y/o and 1.5 years into career. 70k salary

like
Posting as :
works at
You are currently posting as works at

Compound interest for a 401k is great no doubt. After taxes, other withholdings, and expenses it can definitely be hard to save. I'm not sure what advice others can provide here but in any case something will either have to give in your lifestyle or you'll have to try to make more $. Personally at your point in your life I may not try to save for a down payment just yet, but it depends on what kind of realistic goal you're going to have with regards to how expensive your home will be.

likesmart

Yes, that said I would probably skew closer to 3x than 4x as most of the time whatever the list price is you will need to outbid other people and have enough to do so on top of cover closing costs, and inspection. Not to mention you would want to furnish if you don't have anything though at that point I would suggest not taking out loans for furniture or paying in installments which can come with a fee

like

If you dont already, get a roommate. Or leverage WFH to live in a LCOL area.

The first time I had ever lived without a roommate was when I bought my first home. I was able to save quickly for the down payment because I always previously had roommates and would put my monthly savings in a separate savings account

like

401k up to the match, the rest in hysa for down payment

like

I couldn’t afford a 20% down payment on my own when I was single... but when I got married I found out my wife had been saving up already! 🏡💰

like

On a more serious note, I had to sell stocks in order to pitch in for the down payment, and this triggered capital gains tax that I owed the following tax day... just keep capital gains taxes in mind if you have to sell anything from your brokerage acct

like

Figure out when you want to buy and how much you want to out down.

Put in at least enough money to hit the match. Then figure out how much per year you need to save up to have enough for the down payment. Then put any extra money into the 401k.

My recommendation is to save up for the down payment aggressively and quickly so you can get back to putting the money in retirement accounts that will benefit from the extra time to grow.

But don't stress about it. Sounds like you're ahead of 90% of Americans.

like

What does your monthly budget look like? Is there items you can decrease your spending. To be honest, if a home is something you are serious about, it won’t be the end of the world if you don’t max out your retirement account for a year.

Yeah I definitely can decrease my spending on eating out and traveling. Was more just curious how people approach balancing saving cash and investing

As much as you can in the 401k account. When the time comes, take a loan from the 401k, assuming your plan allows for it.

Related Posts

Did anyone interview with Swiggy recently?
I was looking for some insights.

How are the pay and benefits for a CX Senior Manager role?
I come with around 3.5 years of experience and a fixed pay of about 25 lakhs.

I went from 2 Federal Deductions in my paycheck a month ago to 0 Federal Deductions now and I’m not sure why. My take home salary went up... how is this all of the sudden the case?! Will I have to pay more in taxes later as a result of this change?

like

Are there any executives out there who have recently negotiated with their CEO for an updated compensation package? I know I'm being underpaid as a CFO who has also handled all of the HR responsibilities for the past 3 years. Currently at $130K with $30K bonus at the end of the year. I don't take the insurance through the company either. Currently no 401K match program available.

I don’t have Wi-Fi on my name it’s on my husband name .. he works in different form .Can I reimburse my wife bills ??

like

Hi All,
Can anyone tell me about the health insurance policy at Capgemini for parents . Is it possible to cover parents after marriage?
Thanks

like

Hi Fishes,
Can someone help me out here..
Does Infosys gives relocation reimbursement/relocation bonus for Experienced hires if the current location is different from the joining location?

like

I work in healthcare but I know I should be doing better about my health between the diet and the drinking. Anyone else feel convicted bout this?

like

One item borrowers shopping for mortgages get too caught up in is rate. Most borrowers don’t know how to read a loan estimate and get taken advantage all the time. Just because a lender/bank offers you a low rate doesn’t mean it’s best deal. Most cases, especially now since rates have gone up, you are being charged points for some of these lower rates in the 4s. If you don’t know or understand discount points feel free to shoot me a message and I can help you review estimate and see if can beat

like

Does pwc's Parag parekh health insurance cover dental treatments like root canal or others?

like

The only 5 people who have EVER asked me if I am a CFP... BTW I'm not... have been Millennials and gen-xers looking to start DCAing $250 a month into a Roth. Not 1 person of significant wealth. LOL

likefunny

Once I’ve maxed out my 401k and IRA accounts, where else can I do with my savings if I wanna continue investing in stocks? Feel like keeping a stash in a high yield savings acct isn’t the best rn.

like

Any Benefits and perks in chennai Barclays ?
Any sports encouragement for men?

Tips for returning to work after paternity leave? I return in two weeks after what will be five weeks off.

Why are average salaries in UK and EU looks much less compared to US for similar role, even with higher tax rates? Is it factoring in benefits such as free healthcare, education etc? Or is it just a matter of demand/supply?

like

How do you invest your bonus? For context have ~40k in student loans (~4.8% rate), not interested in a house/apt purchase anytime soon, just want to save up for ~major life events~, have a little bit of money for fun and invest most of it. Any tips on percentages etc?

like

Can I open a new roth ira without directing contributing to it, even tho I make over the income threshold? I need to close my current one because of the residency requirement and also rollover my roth 401k

like

Tips for getting back into the swing of things after paternity leave?

like

Anyone know what full-time remote project manager salaries are, for those who work in healthcare? How do you get into something like that? I’m currently in my mid 20’s and manage ambulatory medical clinics, after previously managing nursing homes, with my bachelors in healthcare Administration but am honestly getting burnt out in my current role.

like

Anyone at Deloitte working within healthcare regulatory willing to chat?

Rolled my old 401k over to a rollover IRA under the same brokerage and lost some money. What the hell did I do wrong? It was a direct rollover btw

like

More Posts

How much do pay for utilities on average? Does anyone here pay for water / sewer?

like

If I were to put it on a piece of toast which is healthier? Cream cheese or butter?

like

Nice repetitive bullet here in my McKinsey referral job description. Whats the clear takeaway here???

Post Photo
funnylike

I love advertising but the constant rush triggers my anxiety. I also work in a toxic environment where screaming at one another is the norm. The constant belittling and undermining is hurtful (cont.)

like

How to get a Biotech job in abroad?? Experience is needed?? Am 2017 passed out student is there any sponsorship??

like

When accenture provide performance bonus to employees.? Is it after every year or after every quarter.?

like
like

How much siemens offer to a c++ developer with 4 years of experience?

like

Can someone explain how Tier ratings work at Kolkata AC?

How do I make out by reading snapshot what my Tier is? I got most - at grade, does that mean Tier 3/4? Coach keeps saying snapshot and Tier are different, then what is snapshot and what is Tier rating?

I asked the same question to coach multiple times, but never got any clear answer.

like

What’s the best purchase for your home office you’ve made so far (including pre-COVID)?

likehelpful

What is the average package of Sde3 in delhi ncr?

like

If I get a new job in New York but only move in august, would I be able to avoid state income tax for all of 2021 income given I spent over 6 months in Florida ? Have lived in Florida for all of my career thus far.

like
like

Considering getting a non Apple Watch smartwatch. Have a Samsung phone. Any recommendations?

Started with the firm in April. What do you think is appropriate to ask for a raise at EOY? What's the average non promotion raises?

like

Queridos creativos hispanos, por favor todos los días sin y con cuarentena veo que trabajamos duro y hacemos las cosas bien hechas (a veces hacemos más de lo que nos piden) y a la nuestros compañeros les gusta ynos siguen usando. Está bien que nuestro trabajo sea reconocido pero por favor no sean tímidos en decir que necesitamos un salario decente tan cuál como todos los demás que más bien hacen menos y todavía les pagan. Hay que insistir no solo para el individuo pero para ayudarnos a todos!

like

Any feedback about choice between Windows and Mac for SAP GUI, Eclipse, Hana Studio?

like

the calm before the storm

Post Photo
likefunny

thoughts on Dagne Dover? looking at medium Allyn bag.

like

What is the fastest most efficient way to pass the SIE, 63 and 79? My firm will sponsor any program/study package. Emphasizing efficiency over cost.

like

Additional Posts in FIRE Financial Independence Retire Early

I hit my FIRE number today at 50yo!!!! Had to tell somebody.

likeuplifting

Have 3 401k and 1 ira account. Now have to consolidate all of them in vanguard. Any recommendations on how to move them
Looking for options to take advantage of rollover.

like

Any investment property owners here? How did u land the decision to take the plunge? I know diversification is important, but why didn’t h instead go the ETF/stocks route?

like

Started/maxed out my 2020 IRA on Friday at the market high without knowing and now my whole portfolio is down 2-5% already 😔

likefunny

Am I doomed? I’m 36. Huge partier and spend $ like its going out of season. Make about $215k all in and have little savings. I just have terrible savings habits and just enjoy living for the moment.

like

Anyone use the personal capital app? If so, how do you split investments for married folks? Example joint ownership of home etc

like

Insurance question. Change to husband’s insurance which has higher premiums but no deductible and 100% coverage for certain services. Or stay on my high deductible plan with large deductible but I have the HSA? Other option would be just to move kids to my husbands, they use a decent amount of healthcare between doctors and therapists, and keep myself on high deductible so that I can contribute to HSA (although firm match may be lower).

like

Single and spending 40k a year (rent, expenses). how much do you all spend?

like

For those who rigorously budget to achieve FIRE, can y’all give me some tips that work for you? We’ve tried to do the tracking every item we buy thing but we’ve never been able to honestly track every purchase for a month. It feels like too much work with 2 kids! Any other tips and tricks that work for you? In general we automate savings first and kind of reflect on the bills at end of month and note where to tighten for the following month but I feel like we need more discipline

like

Does anyone have experience using Personal Capital's active (I'm guessing mostly robo) management services?

like

Serious question - is there a reverse FIRE strategy? I like the idea of saving and retiring early, but the one hiccup I see (and sorry if this is grim) is if you die earlier than expected. I’d be worried that I would minimize lifestyle and fun for retirement at 50 but I’d die at 49. How about a way to work 9 months out of the year and retire/travel/relax for 3 months? This way you guaranteed your dreams/etc. are fulfilled

likesmart

I have a lot of student debt from law school. I’ve refinanced a couple of times and received the best fixed rate available, but I’ve seen others refinance with a variable rate which of course is lower. I’ve read some other comments of people refinancing at a super low variable rate....isn’t this risky? Of course I am afraid of going variable and then the interest rates going up a lot. Am I missing something?

like

Any market considerations before refinancing my student loan with current rates? They’re giving me a .75-1% drop.

It’s worth it to refinance at this rate to save paying $1000 of interest albeit credit gets hurt. My only concern is missing out on inevitable lower rates forthcoming.

like

Thoughts on robo-advisor accounts? The ones that take your spare change of every purchase and round it up? Betterment, Acorn. I have to imagine it’ll take quite some time for $$ to accumulate that way?

like

Can someone explain the Roth conversion ladder to me like I am idiot? Which is what I am 😎.

HHI over $350k and can’t do backdoor Roth because I have tIRAs…

like

Any software like Mint that can show daily stacked bar chart of all expenses and deposits over time? Rather than creating it manually from bank statements

like

So... Trying to decide between buying a family car (7-8 seater) now vs later this year / early next year. Any suggestions on whether it makes sense to go for a new or old car and whether it makes sense to wait and buy now?

like

If you had an extra 50K laying around and wanted to take advantage of the recent correction in growth stocks, what you invest in? ETFs or individual stocks welcome. Won’t need the funds for at least 6-12 months

like

When leaving a company, what do you do with your 401k and ESPP accounts?

like

Im 35. Considering to start investing in Real Estate this year. Looking to buy 1 property to start generating cash flow, but most importantly, long term equity. No plans to sell. Condo or Single family residence. Considering booming areas like Austin, Vegas or somewhere with potential to grow. Will need local help, since I don’t live there (realtor + property manager). Already have 20% down, but considering putting less. All closing fees are also covered. Is this a good idea or should just wait?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal