I need advice on how to use my money for a cheap place to live

[GaiaGoddess]

How did you end up with a mindset that it's either buy a home or be homeless? It isn't that extreme. Drop that mindset because it simply isn't true.

Well you tell me, what are the options? If someone can't afford a house, they might be able to afford rent, but what is lower than renting? Yeah you could live with someone and hope they let you stay as long as you want to stay but that isn't the life I want to live. I'm also not going to get married just to have someone to help me afford to have a place.

You said in another post that it took you 1 year to save up $12,000. Well then, save up for another year or two and there is your 20% down. I'd rent till then.

The reason I want to own something NOW is because i've been living with my mom for the last 4 years and it's making me almost suicidal. When I was forced to move back here was one of the worst days of my life and my mental/emotionally stability has decreased since then. That's why I took a job 800 miles from home, to get away from here the only way I could. and if I were to rent right now, I wouldn't be able to save anything. My bills & expenses would be the same as if I bought a trailer. I can save about $1200 a month, I just figured out, but if I was renting right now, I'd only be able to save $120 a month. By the time i'd have enough for a down payment on a house (about 14 years), i'm gonna be 56!! I can't live with my mom until i'm 56.

Why can't you find better employment? How hard have you tried to find a better career or receive some sort of degree or training? What options have you explored? It looks like you may qualify for financial aid. Maybe a scholarship. I wouldn't settle for low paying jobs. Make a plan to improve your income situation and execute it.

Read my original post again, where I explained in detail the 2 reasons why I have never been able to find something better. What I have NOW is actually a great job but they hire anyone (2 of my last 3 bosses were alcoholics & drank on the job), they also hire people who can't even speak English. So I don't feel special for being able to get this job, anyone can get a job in North Dakota right now.

[GaiaGoddess]

Well, I'll just add that no, I don't know of any way to afford a house on a part-time minimum wage job. I really only know a minimum amount about programs such as Habitat for Humanity but I do know those recipients are financially screened and the have to prove ability to pay. $700 a month in income just is not going to go very far. I have a nephew that purchased an old dilapidated Farm House on some sort of County Rehab mortgage program for $6000. He literally moved in with a sleeping bag and camp stove and then spent probably $120,000 in cash over the next 3 to 4 years rehabbing it. So it was low upfront costs for him but a ton of cash outlay and sweat equity to make it truly livable.

I've thought about that but I also realize my income will drop in the future, not get bigger or stay the same, so I dont want to get in over my head with a place that is unlivable without repairs. I'm not a handyman, and I don't know any men who would be able to help me out.

You say you are 41 years old, what are your retirement plans and how are you going to pay for them?

I have social security coming from my factory job that I had for 18 years, I'm not sure what the amount i'll get a month is, but I can't change it. I have $5000 in a 401k right now that is from that job too, but can't touch it until I retire. I'm enrolled in 401k now, again, at my current job, but i've only been there 2 years and I only have a few hundred in there now. Regardless of what my retirement "plans" are, either way, I will need money, for a house or for rent.

Okay, let's try to get a little creative here and think outside of the typical. Do you know a small plot of land that you could buy and then you could put one of those Tiny Houses or even the Trailer you have considered on it? Maybe power it on solar and live mostly off the grid?

I thought of that, but the only plots of land I can find cheap enough (under 10G) don't have a water supply. I've researched off grid living and it isn't something you can just get done cheaply in a month or two. It's an expensive process that takes years. Those Tiny Houses are cool but pretty expensive, even more than most mobile homes. I'm trying to go for something I can afford NOW.

I've seen article where people have purchased that sort of package for $40 to $50k total land and little house - especially if they were able to construct the house themselves. If you were able to save the way you have been doing for another couple of years, you could perhaps do the purchase outright.

Can you send me a link to the package you are referring to? I've never seen a Tiny House plus land total to be that cheap. But again, I might not have this job for a few more years, so that's out of my control. And even if I knew I could have that in 2 years, I cannot last that long living here, it's really destroying me, I need to get out of here ASAP.

[GaiaGoddess]

I wonder if buying a house with income making minimum wage is a good idea?

As long as my payments were low enough to where everything added up was less than my income, sure! The house I had before was do-able for me because I had a co-owner so my share was only $600 a month and I was bringing home $1400 a month.

[GaiaGoddess]

I think you have some opinions which are really limiting your options in life. Going to college does not need to cost anywhere near 100k. There are many programs available in a community college leading to an AA or certification which would allow you to make much more than minimum wage. Additionally, they offer the intangible benefit of enjoying your work, if you choose something which appeals to you.

The cheapest school I have ever seen was still about $40,000 a year. But I dont enjoy conventional careers, that's what I said in my first post. I can't see going into debt for something I have to force myself to do. Not only do I have no desire but I have an aversion to the major fields of study out there. Not that my jobs have been dream jobs, but at least i'm getting paid to do them, not paying someone else to teach me how to do them.

You are 41. It is only going to become more difficult to hold on to those low-skilled jobs as you age and your body simply cannot do what it once did.

Yeah that's another one of the horrible thoughts that runs through my mind every day. I've already seen lots of negative changes in just the 2 years i've been working my current job. Although that could be from stress from still having to come back here every other month.

Do you deserve to have financial security and a home of your own? I think you do. What do you think?

Well of course, everyone does, really!

[GaiaGoddess]

So basically here's the way I see your situation.

Option 1:
With no education or specialized skill set you are going to be limited by your own admission to jobs that pay minimum wage.

Option 2:
With education (college or trade school for say plumbing, electrical, carpenttry, etc) you take the risk of incurring debt (or as others suggested you could get grants which is free money for those with lower income) but also the potential to doubling or trippling your yearly income.

I'd never qualify for any grants right now, I make way too much. Not to mention I have no time for college right now, and quitting this job to go to college would be the stupidest thing I could do. And you really think an out of shape middle aged woman who can't lift 30 pounds could do plumbing, electrical or carpentry? lol

I worked minimum wage or slighly above paying jobs. I got tired of it. I went back to a state school nights & weekends, worked 50 hours a week, and doubled my income after 2 years of graduating. It took me 5.5 years to do and I paid as I went along along with scholarship graduated debt free. I'm now making almost 3 times what I was making prior to my degree. It is possible just takes a lot of effort.

I might feel differently about school if I was in my 20's, and/or was already living somewhere. But being my age, living with my mom, I need a quick option, not something younger people have time for.

Why put 84 hours into a job you don't like and don't see a future in?

I never said I didn't like my job, I actually LOVE what i'm doing, I just wish it didn't involve so many hours, but we only make $10 an hour so we need the overtime to make a lot of money. And although there isn't a permanent future with this job, it's a quick way to earn a lot of money, plain and simple. Most people that work there only plan on working there until they pay for college or a house. Nobody is there for life. But mostly I took this job for a place to live because we get a free room there and free food.

Why not put 40-50 hours towards work and the other 35 hours towards school? Food for thought.

Because my priority is a place to live, first and foremost. If I was lucky enough to find a good paying full time job anyway, I wouldn't spend the money on school, i'd have enough for a place to live!

[bjl584]

I think that you need to start thinking and approaching life completely differently if anything is ever going to get better for you. Several people have offered advice and suggestions, but every time you respond with endless excuses and rationalizations as to why things are the way that they are, why nothing will ever change, and why no idea that anyone has offered could ever possibly work. If you are content with your current life situation, then fine. Carry on. But, I would have to think that if you came to this forum, then you must be wanting to change something about your situation. But, you seem to have this mindset that nothing will ever change and no idea, plan, or course of action will ever change anything or make anything better. Until you come out of your comfort zone, then nothing ever will change for you. You have to be willing to do something different or you will just have to be content with the way that your life is now. Like I said, you must at least be thinking in the back of your mind that you need to do something different or you wouldn't have came to this forum. Unless you are trolling. Either way, you should seriously consider listening to the people on here. Best of luck to you.

[Joan.of.the.Arch]

It doesn't seem like a good idea to buy near where you work if there's a good chance the work will evaporate in a couple years.

I understand that around the energy-extracting areas of ND there is an upward price pressure on housing, both rentals and individually owned--not to mention just a plain shortage. So you'd be in competition with a lot of people. No wonder the workplace has provided some housing.

Wherever you work or live, have you looked into "lease to own?" That is an option that could ease you into ownership while giving you the freedom to pick up and leave as needed to follow a job, or whatever. I caution you that a lot of lease-to-own situations fall through because the aspiring owner really doesn't have the income to keep up with the responsibilities. You, however, have shown that you can save in tight money circumstances. Your money discipline might mean that you are one who could benefit from lease-to-own.

Sometimes lease-to-own is offered by people who have been unable to outright sell their house, whether because of condition, undesireable area, falling local population, poor local incomes, whatever. Owners offering such a contract may be willing to negotiate terms.

I'm doubting that there are any such situations where you work now. But perhaps you could find one if in the future you move to a larger city, one with a bigger pool of and variety in housing.

[Petunia 100]

Read my original post again, where I explained in detail the 2 reasons why I have never been able to find something better. What I have NOW is actually a great job but they hire anyone (2 of my last 3 bosses were alcoholics & drank on the job), they also hire people who can't even speak English. So I don't feel special for being able to get this job, anyone can get a job in North Dakota right now.

What qualifications would you need to be the boss? You enjoy the work you do now, so becoming the boss would be one way to earn more. The more you earn, the sooner you can reach your goals.

Are you familiar with such sites as Early Retirement Extreme and Mr. Money Mustache? I think you might find some useful ideas on the forums. Those sites are full of people focusing on living inexpensively in order to retire early.

http://earlyretirementextreme.com/

http://www.mrmoneymustache.com/

[Joan.of.the.Arch]

Just another thought.

How about ownership of a "rear house" or carriage house on a city lot? In my city there are some lots that include two houses. Usually the one in the back is smaller and was built for family back during the Great Depression or earlier. But often the first house is small as well. This means that modernly, there are people have two inexpensive houses that "should," by some standards, sell for nearly as much as a single big house. Yet those with enough money will buy the single big house, and people who want out from under the double house situation are stuck unable to find a buyer. (This was the case here, even at the height of the real esate bubble.) I imagine if proper arrangements could be made with the city, then then at least one house could be given its own address, with or without accompanying ground. That would make it an inexpensive house to buy because the situation is so unsual.

[ktmarvels]

Where are you looking to buy? It sounds like housing is taken care of at your job, where you are most of the time, but then you have to travel a great distance to go 'home' where your mother lives, but you really are only there a few days out of the month.

[Eagle]

As long as my payments were low enough to where everything added up was less than my income, sure! The house I had before was do-able for me because I had a co-owner so my share was only $600 a month and I was bringing home $1400 a month.

$600 a month isn't bad. That was still 42.3% of your income though. So what happened to this house?

[Eagle]

Yeah I don't have a car payment anymore but all those other things added up would come to about $1500 a month.

Gaia, from what you listed I only see $1290 in expenses. And that is on the high end with $500 for hotels.

Gas $300
Car insurance $70
Car Maintenance $20
Cell Phone $100
ProActiv $50
Groceries $100
hotels $500
Car Payment $0
Entertainment $50
Toiletries $100
Total 1290

You said you make $10 an hour. Assuming you get paid time and a half (or $15 an hour) for the 44 hours of overtime… Your checks should be weekly about $1060. Take $250 (23.6%) out for taxes and your making $810 a week. In 6 weeks at $810 a week you’d be making $4,860.00.

You work 6 weeks straight at a time. How long between going back and forth to work? A week or two?

You saved 12k over the last year or 1k per month. Where is the rest of your money going?

Have you considered using www.mint.com to track your expenses?

[Eagle]

I'd never qualify for any grants right now, I make way too much. Not to mention I have no time for college right now, and quitting this job to go to college would be the stupidest thing I could do. And you really think an out of shape middle aged woman who can't lift 30 pounds could do plumbing, electrical or carpentry? lol


I might feel differently about school if I was in my 20's, and/or was already living somewhere. But being my age, living with my mom, I need a quick option, not something younger people have time for.


I never said I didn't like my job, I actually LOVE what i'm doing, I just wish it didn't involve so many hours, but we only make $10 an hour so we need the overtime to make a lot of money. And although there isn't a permanent future with this job, it's a quick way to earn a lot of money, plain and simple. Most people that work there only plan on working there until they pay for college or a house. Nobody is there for life. But mostly I took this job for a place to live because we get a free room there and free food.


Because my priority is a place to live, first and foremost. If I was lucky enough to find a good paying full time job anyway, I wouldn't spend the money on school, i'd have enough for a place to live!

@GaiaGoddess

An observation: Making a decision when you are desperate (to get away from Mom) is not a good idea. That’s what it seems like with this idea of moving out and buying your own place. I agree with other posters renting is a better option for you right now. Get a couple roommates and you can probably get a place for $300-500 a month. It would be a win/win situation as you’d be gone 6 weeks at a time anyway right? Or why not live up in North Dakota?

Right, you make too much right now to get grants to go to school. Perhaps I wasn’t clear on what I believe going back to school would mean. Seeing as you work over 80 hours a week you aren’t scared of hard work. You’d need to continue living at home (or get a place with a bunch of roommates to where your rent is minimum), change jobs (to something local and part-time most likely), and take courses (preferably through a community college if you are pursuing a college degree).

At 41 you are not considered old. If you were to get further education or certification it might take you 2-6 years say. 2-3 years for a certification or 4-6 years for an education. Either way you’d still be in your mid to late 40’s. The average life expectancy for women in the U.S. is 81 years.

There is no such thing as getting rich quick. Wealth is built over time, takes planning, and takes a lot of effort.

So the way I look at it you have a few options:

1) Keep doing what you’re doing. Ride the wave of this job for a few more years then get another $8-10 an hour job near where you live. (This looks like what you are expecting right?)

2) Keep doing what you’re doing. Ride the wave of this job for a few more years then possibly get a better job where you currently live. (Possible but unlikely)

3) Keep doing what you’re doing. Ride the wave of this job for a few more years then possibly get a different or better job where you. (Have you thought of this?)

4) Change jobs to something more local to where you live (near your Mom) and pursue some kind of education or certification to improve your situation. (This has the potential of landing you a better job and a real career wouldn't you agree?)

[dawnwes]

http://und.edu/finance-operations/student-account-services/tuition-rates.cfm

As a ND resident, tuition PER YEAR is only $4,000. And if you don't want to do a 4 year degree you could go for a 2 year degree or certificate program. It is mostly online too.

My real question has nothing to do with income, but what it is you might actually enjoy doing. Right now you are dead ending.....very little in terms of savings, retirement, future, etc....

Where do you want to be in 10 years? 5 years? Heck, even the next 2 years? Do you want to keep earning $10/hour at a job you hate? If so, then keep doing what you are doing. If not, find a way out of it and into something else.

Dawn

The cheapest school I have ever seen was still about $40,000 a year. But I dont enjoy conventional careers, that's what I said in my first post. I can't see going into debt for something I have to force myself to do. Not only do I have no desire but I have an aversion to the major fields of study out there. Not that my jobs have been dream jobs, but at least i'm getting paid to do them, not paying someone else to teach me how to do them.



Yeah that's another one of the horrible thoughts that runs through my mind every day. I've already seen lots of negative changes in just the 2 years i've been working my current job. Although that could be from stress from still having to come back here every other month.



Well of course, everyone does, really!

[Petunia 100]

The cheapest school I have ever seen was still about $40,000 a year. But I dont enjoy conventional careers, that's what I said in my first post. I can't see going into debt for something I have to force myself to do. Not only do I have no desire but I have an aversion to the major fields of study out there. Not that my jobs have been dream jobs, but at least i'm getting paid to do them, not paying someone else to teach me how to do them.

That is the cheapest you have seen? Where are you looking? According to this link, the cost per unit at community colleges in North Dakota, for both tuition and fees, is $182.92. A two year degree requires approximately 60 credits. That is a total cost of $10,975.20 for two years. Books are extra, of course. Certifications typically require less than 60 credits, though of course it depends on what program you choose.

http://www.aboutedu.org/page8.php