With The Current House Prices, How Are You Guys Giving Any Saving Advice?

[LivingAlmostLarge]

This is the problem. You promised them something, but now the economic conditions gave changed and they can't afford it. The truth, however, is that nobody is "entitled" to anything. You buy whatever you can afford, however small. Or you don't buy. The world does not owe you a 4000 sq ft home or a big car. If the home prices go up, you buy less. And that applies whether you are a doctor, pharmacist or a dishwasher. Common sense.

This is a hard reality check for anyone not just pharmacists. No one promised anything.

[Singuy]

Actually singuy, check out taxes paid in Massachusetts. I'm pretty sure the northeast is very high tax states. But again it works with our advantage. Tax efficiency is extremely important depending on where you live. I've always calculated our tax burden upon decide to buy a house.

Second like I pointed out we were accruing our student loan debts not paying on them. The extra $800 a month would have influenced our decision to purchase a house for $550k but you are having people try to buy $750k 2800 sq ft home on $120k and student loans.

Third are these only singles? Our combined income was $120k. Makes a difference. Singles don't live as cheap ay couples but couples with lower income have to work harder for the same amount of money. 2x work for same salary seems like a good deal to me.

By the way for me? If not have a car if I were on rotation. I know many consultants who live like that without cars. They live right next to the hospital or office for 6-9 months and then rent a car for 1x to move. Why is it necessary to own a car during rotations? Why is it necessary to own a car during a period you know is temporary AND single (if they are in a couple then where is the second income)? To rent more than a room next to their rotatiorotation

My bestie is a pharmacist and she did the rotations on different islands in Hawaii....she never took a car and instead just rented a room temporarily during her rotation to minimize expenses. Then she flew and rented a car to move....it was very cheap living during her rotations. She still single and was then too...she also said she doesn't understand why pharmacist coming out need 2800 SQ ft homes?

I know they are high tax states however that didn't apply to your story hence why I am calling your story too individualized and not as relatable.

[Singuy]

This is the problem. You promised them something, but now the economic conditions gave changed and they can't afford it. The truth, however, is that nobody is "entitled" to anything. You buy whatever you can afford, however small. Or you don't buy. The world does not owe you a 4000 sq ft home or a big car. If the home prices go up, you buy less. And that applies whether you are a doctor, pharmacist or a dishwasher. Common sense.

I am just trying to find ways to motivate people because the path you teach is NOT NORMAL. The normal route is just live how you want to live and eventually declare bk as you would be over your head or best case live paycheck to paycheck. Not much sacrifice is needed as bk is pretty easy to file and you can be as dead beat as you want with little consequences. Honestly you can just fully utilize the system and live a FU life taking full advantage while walking away scott free.

For full devil mode

Step 1. Go on income based payment
Step 2. Go qualify for a mortgage
Step 3. Buy house
Step 4. Go convert your federal student loans into personal student loans like Sofi
Step 5. Default on your personal student loans and it's discharged after statue of limitations
Step 6. Rack up CC debt while you are at it
Step 7. File for Bk

The point is there are so many ways to play the system while burdening everyone else that you need enough incentives for people to do the right thing.

If this was China, you will end up on the street for doing any of the things above. Here you end up with a crappy credit score...oh well.

[disneysteve]

I am just trying to find ways to motivate people because the path you teach is NOT NORMAL.

Isn't that the goal - to teach them to not follow the "normal" route? Teach them to live below their means, save for the future, and be able to afford and enjoy a comfortable retirement at an age when they're still young enough to appreciate it? They don't need you to learn how to rack up credit card debt and be a slave to a job until they're 85.

[Singuy]

Isn't that the goal - to teach them to not follow the "normal" route? Teach them to live below their means, save for the future, and be able to afford and enjoy a comfortable retirement at an age when they're still young enough to appreciate it? They don't need you to learn how to rack up credit card debt and be a slave to a job until they're 85.

The goal is trying to salvage their F up by racking up 180k worth of student loans in a dead end career with zero prospects of making more money besides working overtime.

Just asked around what my hospital is offering, 51 dollars a hour for new grad. This number hasn't changed for almost a decade. Our technicians went from 11 to 20 in the past 15 years, our pharmacist went from 49 to 51. Student loans however went from 50k-70k to 180k-210k.

[disneysteve]

The goal is trying to salvage their F up by racking up 180k worth of student loans in a dead end career with zero prospects of making more money besides working overtime.

180K in loans for a job paying 120K (plus overtime) really isn't as awful as you make it sound. If they live below their means and put in some extra hours for those first few years, they should be able to knock that out in a reasonable period of time and go on to live a nice life. But they've got to accept that they won't be able to come out of school and buy a Mcmansion and a BMW.

[Singuy]

180K in loans for a job paying 120K (plus overtime) really isn't as awful as you make it sound. If they live below their means and put in some extra hours for those first few years, they should be able to knock that out in a reasonable period of time and go on to live a nice life. But they've got to accept that they won't be able to come out of school and buy a Mcmansion and a BMW.

It used to be okay before housing doubled along with interest rates. All goods and services are up at least 30% due to inflation. The 120k purchasing power dropped by 50% in the past 2 years.

[ua_guy]

I hear Florida has some of the worst inflation in the nation, while many other states have settled out and inflation is around 3-3.5%. Florida is like 9%. Home prices and trying to even get insurance in some places are impossible. Yet, wages remain the same. Super poor leadership in that state right now.

[Fishindude77]

Still beating this dead horse?

I would never recommend that any 18-20ish year old kid borrow $180k for anything including a first class education. It was dumb when interest and inflation were low and it's dumb now.
There are many other ways to get a good education without getting so deep in debt, and many have already been discussed.

[Singuy]

Still beating this dead horse?

I would never recommend that any 18-20ish year old kid borrow $180k for anything including a first class education. It was dumb when interest and inflation were low and it's dumb now.
There are many other ways to get a good education without getting so deep in debt, and many have already been discussed.

Hey preach to the choir. That's why I need to write my book about becoming a millionaire by working at MCD.

[Singuy]

I hear Florida has some of the worst inflation in the nation, while many other states have settled out and inflation is around 3-3.5%. Florida is like 9%. Home prices and trying to even get insurance in some places are impossible. Yet, wages remain the same. Super poor leadership in that state right now.

So are you saying our leaders screwed up by making FL too good of a place for people to move into during Covid which caused severe inflation?

I would say people had the highest influx of people out of state due to

1. State at home work
2. Low house prices
3. Market hitting records which pushed forward retirees
4. No state income taxes
5. Lax covid laws
6. Interest rate spiking which caused buying frenzy by front running it

[ua_guy]

So are you saying our leaders screwed up by making FL too good of a place for people to move into during Covid which caused severe inflation?

I would say people had the highest influx of people out of state due to

1. State at home work
2. Low house prices
3. Market hitting records which pushed forward retirees
4. No state income taxes
5. Lax covid laws
6. Interest rate spiking which caused buying frenzy by front running it

I'd say everything but #5 had nothing to do with Florida's current leadership, and I'm not so sure that was a positive thing anyhow. But Florida does appear to have low inventory and high pricing in desirable areas, same as the rest of the sun belt and already-HCOL areas across the nation. And near 10% inflation. Sadly, Florida is one of the states which will really suffer from ongoing climate trends, driving costs even higher, including for people who already own a home there.

[Singuy]

I'd say everything but #5 had nothing to do with Florida's current leadership, and I'm not so sure that was a positive thing anyhow. But Florida does appear to have low inventory and high pricing in desirable areas, same as the rest of the sun belt and already-HCOL areas across the nation. And near 10% inflation. Sadly, Florida is one of the states which will really suffer from ongoing climate trends, driving costs even higher, including for people who already own a home there.

Correct, that's why I am not blaming the leaders here for record inflation. There's a massive amount of West Coast and New England folks that flooded our state, causing inflation to skyrocket. The bad news is new grads or folks starting life here are looking at a hellscape of expenses. The good news is that anyone in FL prior the boom with any asset now sees a pretty substantial gain in equity.

[disneysteve]

The bad news is new grads or folks starting life here are looking at a hellscape of expenses.

Sounds like part of your advice should be to counsel them on exploring more affordable areas to live. You need to go where the jobs are but you also need to go where you can afford to live.

[Singuy]

Sounds like part of your advice should be to counsel them on exploring more affordable areas to live. You need to go where the jobs are but you also need to go where you can afford to live.

Yes this thread helped since I'm not sure if expenses ballooned up in other places as well. Seems like that's not the case as much.