I want to save to buy a house on cash

[achantforwinter]

Hey everyone. I make minimum wage (8.00) and work full time. I live with my parents and they will let me live with them rent free for 6 years in return for keeping their house clean/doing errands (my mom is disabled and my dad works too much to really help out). My dad makes 150k a year and I am given a bed to sleep in and food to eat. I have no expenses as I do not have a cell phone or a car and I take the bus/ride my bike everywhere (by choice). How, in 6 years, can I save enough money to purchase a house in cash? I've committed myself to a debt free/credit free lifestyle and I have no desire to ever take out a mortage. Thanks.

[ktmarvels]

It would be difficult. However, how much do you already have saved? How much are you able to save per month? While it's great you don't have many of the typical expenses (rent, phone, car) I find it hard to believe that you don't actually spend any money.

Since your time frame for using the money is so short you probably want to avoid the stock market. If you the market were to go down, you wouldn't have time to recoup your losses. So that means you will most likely earn about 1% in a high interest saving account.

Also, what are housing prices in the area you live? A rough by the cuff estimate earning an after tax of $7 per hour, working full time with NO expenses, earns you about 85,000 after 6 years. Some places that would get you a house, others it would be a hearty down payment.

I would recommend looking at side jobs which could earn you extra money. I would also look to see if there are other full time jobs you could get which would earn you more money. You are very fortunate to have parents who are willing to support you financially while you provide support for them. However, there may come a time where that arrangement cannot go on, or you don't want it to go on and you will find rent to be very expensive.

[Frugal]

I don't know if it is possible to save enough to buy a house paying in full on minimum wage, even over six years. A down payment can easily be in the 30,000s, and that means most people have a mortgage on top of that. You would probably need over 100-150 k for most houses, depending upon your area of the country. Average house price where we are probably about $200,000-$220,000.

I think in some parts of the country, like the South, you might get houses closer to 100 k if they are older, in foreclosure, or simply not doing well in a down real estate market.

You might be able to buy a condo or apt. I am not sure about a house.

You should sit down with a financial professional and plan out what you want to do. Might be worth the investment of a few dollars to do so, than to save for six years, not knowing if you will ultimately have enough for a house.

[bjl584]

Increase your income. Do you go to school? Do you have a degree or marketable skills? Do you have the ability to obtain either one?

[krantcents]

Presuming you could buy a house in 6 years, a minimum wage job is insufficient to pay for all the other expenses of a home (even a cheap one). Get the training/education so you have more choices.

[Redraidernurse]

I would get an education to increase your income. You do not want to be earning minimum wage for the rest of your life.

[choo choo charlie]

WOW!!! I really admire your mindset. A debt free lifestyle is the way to go! They say a journey of a thousand miles begins with one step. So I hope you have already initiated your savings plan. Don't delay and don't skimp on savings. Remember, every dollar you save brings you closer to your goal. You run errands and do house cleaning so you're already in business for yourself. You need to expand. Get the word out about the services you provide. Talk to friends and neighbors. Put ads on bulletin boards. Make sure people can contact you (at some point you'll have to get a phone --when the time comes get a cheap one). Right now just concentrate on getting one customer. Just one. By the time you have three you'll be riding the wave! Set an objective to multiply your income times four. As you have more success you'll get more excited. But don't lose sight of your goal --and SAVE! SAVE! SAVE!

[sternchen]

saving is true wealth

spending is liability

i want to buy a new house too

but still saving

good luck to both of us