Hi there. Ive been reading the different discussions on this site for a while now, and the users seem very knowlegable. My question is this: This is my last year of college and Im the kinda anal person that likes to have a plan. What would be your suggestions of action towards eventually being able to own a home in Irvine, when just starting out in life like myself. I know this seems like a vague question, I am just really looking for any useful information anyone might have. I know that I am in no place to buy a home now or for the next couple years, while I save for a downpayment....but are there any certain goals I should aim for? And what are your opinions on the affordable housing market?
Just starting my life, what housing goals should I be reaching for?
- Thread starter mmm_IHB
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IrvineRenter_IHB
New member
The best thing you could do is to start out your first job from day one with a savings plan. You will adjust your lifestyle to whatever takehome pay you allow yourself to spend, so don't allow yourself to get adjusted to a big spending lifestyle. Max our your 401K, and save 10% of your income. Pay yourself as if it was a bill. Risk the temptation to spend this money on stuff. IMO, your goals should be to save according to your plan. The account will accumulate on its own assuming you don't spend it.
movingaround_IHB
New member
not really sure that housing should be a goal per se - it should be something that fits with what is happening in your life at the time. I think maybe with all the appreciation over the past years we have begun to see getting into a house as a goal for financial well being - but financial well being is not necessarily tied to a house. Focus on your career - whatever that may be - and once you start working - start saving!
blackacre-seeker_IHB
New member
<p>make sure your repay your student loans ASAP, if the rate is higher than a safe investment (e.g., if your rate is 3%, then don't rush it, invest in a CD with 5.5% and you still have something left). On the other hand, if your rate is over 5%, make it one of your priorities, unless you have a higher interest rate debt (so just review your debts and start repaying the one with the highest interest rate). Repaying your student loans (or at least staying on schedule with your payments) will help boost your credit score. </p>
<p>Consider grad school to enhance your earning capacity (unless you have some brilliant business ideas). </p>
<p>Don't get a fancy car, a car is NOT an investment, it is an asset that starts depreciating the moment you drive away from a dealership. </p>
<p>Consider living with your parents for a while, it'll save you tons of money for a future downpayment. </p>
<p>oh, and there was a thread on Money Saving Tips on this blog, go back and read it, you'll find a lot of ways to save your money. </p>
<p>Consider grad school to enhance your earning capacity (unless you have some brilliant business ideas). </p>
<p>Don't get a fancy car, a car is NOT an investment, it is an asset that starts depreciating the moment you drive away from a dealership. </p>
<p>Consider living with your parents for a while, it'll save you tons of money for a future downpayment. </p>
<p>oh, and there was a thread on Money Saving Tips on this blog, go back and read it, you'll find a lot of ways to save your money. </p>
blackacre-seeker_IHB
New member
my favorite is about showering with a friend 
)
)FairEconomist_IHB
New member
I don't think housing is an important goal in life. Important goals are about family, career, financial security, friends, and community involvement. Housing should be a means to that end. Homeownership can play a part in friends and community if you want a certain kind of life - either a close long-term neighborhood or conspicuous consumption. But for most people it's pretty minor. In certain markets homeownership can help with financial security but we are definitely NOT in such a market, and it's difficult to plan when we will be. So my advice is to plan for those other things and then sit down and figure out where and how you'll want to live to accomplish them.
Trooper_IHB
New member
If your employer offers a match to your 401K, take it. It's free money and compounded over the years it will be a nice, tidy sum.
Rocker_IHB
New member
<p>after you finish college:
1 - make 1 or 2 of your big dreams a reality: start your own business, travel around the world, work for a non-profit organization, etc.
2 - if you decide that the corporate world is what you want, land a perfect job
3 - get serious about looking for your significant other (don't get married before 25!, or better, the 30s are the new 20s!)
4 - buy a house<strong> </strong>(note in which position is getting into real estate)
5 - have kids
during all this time: learn money management and investments, perfect your skills, what's the point of working hard and not taking care of your own money, since you are young you can take more risks but learn how to hedge your investments.</p>
1 - make 1 or 2 of your big dreams a reality: start your own business, travel around the world, work for a non-profit organization, etc.
2 - if you decide that the corporate world is what you want, land a perfect job
3 - get serious about looking for your significant other (don't get married before 25!, or better, the 30s are the new 20s!)
4 - buy a house<strong> </strong>(note in which position is getting into real estate)
5 - have kids
during all this time: learn money management and investments, perfect your skills, what's the point of working hard and not taking care of your own money, since you are young you can take more risks but learn how to hedge your investments.</p>
Priced_Out_IT_Guy_IHB
New member
Being 26 I can offer a few words of advice since I have just about finished learning the ropes of money management. To be able to save up for a house, you need to be able to manage your money and learn how to save as an independent adult.
I think everyone is different, but for me, the real way I learned was to blow all of my money on stuff I didn't really need at first. After graduating high school, I landed a modest IT salary and blew all of my money on computers, eating out, modifying late model mustangs, and the resulting parking and speeding tickets. It was a hell of a fun time and I don't regret it. Personally I think it?s worth it to spend one's newly found income on vacationing, significant others, or personal own hobbies. Then as you get more responsibilities you can tighten the wallet.
I was living on my own, paying my own rent, utilities, cell phone, Internet, etc. Although I technically wasted a lot of money--for example, I probably dropped 25k into my mustangs and only got 13K back--I had fun and learned a lot.
In retrospect as my salary has skyrocketed in the last year, I *really* didn't lose that much money. I can make that 12K up in no time. Using the money management skills that I learned along the way in my current situation, I'm able to save much much more, and I am reaching my own down payment goal faster.
It?s nearly impossible to teach someone how to save money for something as large as a house, especially when they're getting started in the work place and have to pay all of their own bills. You kind of have to figure it out on your own, and you need to learn self restraint on your own. Delayed self gratification is very difficult, especially in such a materialistic society as Orange County. If you can't keep from swiping plastic for everything from clothes to food to stuff you buy online, then you haven't learned self restraint, and you won't be able to save.
One thing that all of my friends learned the hard way when in their early 20s, and some have yet to learn, is to pay off their credit cards every month. If you can just restrain yourself from charging everything and paying in cash or debit instead, you'll be way ahead of 95% of people your age. Take out a big percentage of your paycheck in cash so that you can see the money you're spending. The visual of cash coming out of your wallet will overpower the desire to have whatever is on sale at the District or the Spectrum.
Finally, don't worry too much about your school loans. I had 6K in loans from UCI the first year I went there and I totally freaked out over them. 6 grand seemed like a lot to me at the time, but once you get working and start to get a higher salary, it won't be so intimidating. Plus, some big employers will help pay off your school loans. Otherwise, make use of any gov. subsidized interest rates as long as possible and look into loan consolidation programs. My buddy graduated from UCSB with 20K of debt from 3-4 different State and Federal loans and he only pays $100 per month with a very low interest rate. It?s no big deal to him now that he's a licensed CPA and it allows him to save for a house in the mean time so he and his wife can buy a home sooner. Once he moves up to a management position he can probably pay off the principle in a few months.
If you are a geek type like me, I recommend taking an accounting or finance class at the local JC for 80 bucks and buying a few basic finance books at local Borders. Heck you don't even have to buy them, just get a $3 latte and plop down in one of their in-store cafes.
I think everyone is different, but for me, the real way I learned was to blow all of my money on stuff I didn't really need at first. After graduating high school, I landed a modest IT salary and blew all of my money on computers, eating out, modifying late model mustangs, and the resulting parking and speeding tickets. It was a hell of a fun time and I don't regret it. Personally I think it?s worth it to spend one's newly found income on vacationing, significant others, or personal own hobbies. Then as you get more responsibilities you can tighten the wallet.
I was living on my own, paying my own rent, utilities, cell phone, Internet, etc. Although I technically wasted a lot of money--for example, I probably dropped 25k into my mustangs and only got 13K back--I had fun and learned a lot.
In retrospect as my salary has skyrocketed in the last year, I *really* didn't lose that much money. I can make that 12K up in no time. Using the money management skills that I learned along the way in my current situation, I'm able to save much much more, and I am reaching my own down payment goal faster.
It?s nearly impossible to teach someone how to save money for something as large as a house, especially when they're getting started in the work place and have to pay all of their own bills. You kind of have to figure it out on your own, and you need to learn self restraint on your own. Delayed self gratification is very difficult, especially in such a materialistic society as Orange County. If you can't keep from swiping plastic for everything from clothes to food to stuff you buy online, then you haven't learned self restraint, and you won't be able to save.
One thing that all of my friends learned the hard way when in their early 20s, and some have yet to learn, is to pay off their credit cards every month. If you can just restrain yourself from charging everything and paying in cash or debit instead, you'll be way ahead of 95% of people your age. Take out a big percentage of your paycheck in cash so that you can see the money you're spending. The visual of cash coming out of your wallet will overpower the desire to have whatever is on sale at the District or the Spectrum.
Finally, don't worry too much about your school loans. I had 6K in loans from UCI the first year I went there and I totally freaked out over them. 6 grand seemed like a lot to me at the time, but once you get working and start to get a higher salary, it won't be so intimidating. Plus, some big employers will help pay off your school loans. Otherwise, make use of any gov. subsidized interest rates as long as possible and look into loan consolidation programs. My buddy graduated from UCSB with 20K of debt from 3-4 different State and Federal loans and he only pays $100 per month with a very low interest rate. It?s no big deal to him now that he's a licensed CPA and it allows him to save for a house in the mean time so he and his wife can buy a home sooner. Once he moves up to a management position he can probably pay off the principle in a few months.
If you are a geek type like me, I recommend taking an accounting or finance class at the local JC for 80 bucks and buying a few basic finance books at local Borders. Heck you don't even have to buy them, just get a $3 latte and plop down in one of their in-store cafes.
Priced_Out_IT_Guy_IHB
New member
Bonus tip:
If you really want to start saving for a house right away, open an ING direct account (a high yield savings account, the ones at the local WaMu or BofA only pay you pennies) and dump your monthly savings into there. That way your savings is isolated and you won't be tempted to touch it!
If you really want to start saving for a house right away, open an ING direct account (a high yield savings account, the ones at the local WaMu or BofA only pay you pennies) and dump your monthly savings into there. That way your savings is isolated and you won't be tempted to touch it!
momopi_IHB
New member
While you're still young, single, and unattached, go out and see the world. Check Dave's ESL Cafe for job postings. Spend 1-2 years overseas, then come back and work on your career, save $, buy house, etc.
If you go to East Asia, you'd probably come back broke. If you go to the Middle East, you'd come back with some savings (less places to blow $). You could also try developing countries/areas like Eastern Europe/Russia, South Asia, etc. Go see the "developing world" while it's still developing, before the rice paddies are replaced by concrete buildings and local culture replaced with western consumerism.
http://www.eslcafe.com/joblist/
If you go to East Asia, you'd probably come back broke. If you go to the Middle East, you'd come back with some savings (less places to blow $). You could also try developing countries/areas like Eastern Europe/Russia, South Asia, etc. Go see the "developing world" while it's still developing, before the rice paddies are replaced by concrete buildings and local culture replaced with western consumerism.
http://www.eslcafe.com/joblist/
Thanks everyone for the advice! I was kinda scared to ask and look stupid, but I really appreciate you all taking your time to give me your opinion. I think maybe you are right, that buying a house shouldn't be my immediate goal...lol...but then again im a pretty anal planner for being 22. I think my biggest struggle has been moving to irvine and seeing the wealth. Its very intimidating to be surrounded by such successful people, and Im completely scared that Ill never be there. None the less thanks for the advice!
irvinesinglemom_IHB
New member
mmm - don't forget that a lot of the "wealth" you see is a facade.
no_vaseline_IHB
New member
I disagree with almost all the advice given here, although maybe slightly.
You should (in a macro sense) figure out what you want to acomplish in life, set your life goals accordingly, and then doggedly and relentlessly persue them.
You may want to persue a PHD in Philosophy. Or do charity work. Or be an investment banker. Or wish to take a year off. Or start a resturant. What you decide doesn't matter so much as deciding on a goal and working toward that goal. It's perfectly OK to change your mind along the way and readjust.
When I was a senior in college, I had an accounting professor who also taught adult education courses (life skills) at a local JC. I can't remember his name, but one afternoon he gave me the most important piece of general advice I've ever heard in my time on this rock. It was:
"You've got to have a plan. If you don't have a plan, that means anywhere you wind up is OK. And we all know that 'anywhere' just isn't OK. It might be, but do you want to take that chance?"
You've got the planning thing down. IMO, my advice is pick a life goal and head that direction.
Good luck.
You should (in a macro sense) figure out what you want to acomplish in life, set your life goals accordingly, and then doggedly and relentlessly persue them.
You may want to persue a PHD in Philosophy. Or do charity work. Or be an investment banker. Or wish to take a year off. Or start a resturant. What you decide doesn't matter so much as deciding on a goal and working toward that goal. It's perfectly OK to change your mind along the way and readjust.
When I was a senior in college, I had an accounting professor who also taught adult education courses (life skills) at a local JC. I can't remember his name, but one afternoon he gave me the most important piece of general advice I've ever heard in my time on this rock. It was:
"You've got to have a plan. If you don't have a plan, that means anywhere you wind up is OK. And we all know that 'anywhere' just isn't OK. It might be, but do you want to take that chance?"
You've got the planning thing down. IMO, my advice is pick a life goal and head that direction.
Good luck.
irvinesinglemom- do you really believe that...I mean I really don't know....but where I was raised it was rare to see such extravagent things on a daily basis, out here Im completely blown away, and sometimes I just feel like I want to run up to everyone and say "how did you do it?"
blackacre-seeker_IHB
New member
<p>mmm-wealth is a relative concept. To people who live in Santa Ana, people in Irvine might seem "wealthy." To people who live in Irvine, people living in Corona del Mar might seem "wealthy." And so on, you get the picture. </p>
<p>many people in OC have nice trust funds, property they inherited from their parents, and just well-paid professional jobs. Some profited from the stock market until it crashed, some from the RE bubble. Many are enterprenuers who have their own business and who found their niche. If you don't have a trust fund or inheritance, becoming a professional is the best option in my book. </p>
<p>many people in OC have nice trust funds, property they inherited from their parents, and just well-paid professional jobs. Some profited from the stock market until it crashed, some from the RE bubble. Many are enterprenuers who have their own business and who found their niche. If you don't have a trust fund or inheritance, becoming a professional is the best option in my book. </p>
momopi_IHB
New member
It's a big world out there. If you haven't established yourself in South OC, you still have the option to pick and choose where you want to be. There are many places in the world where a professional career's salary can easily afford a nice home. You just have to choose where you want to be.