Like the title says. Also throwaway account because I really don't want my whole reddit front page to turn into money advices. Also, put the planning flair because I really don't know what flair to put this into.
I'm 25F, I still live at my parents but I've saved basically nothing because of some… Questionable choices in my early adulthood. I really wanna move out. That's like my goal number one.
BUT
I also wanna be able to save up for retirement and a house in the future. The thing is, I know basically nothing about money.
I live in a city with completely unaffordable housing. I graduated/work in a field that pays very little (average is like 28 CAD an hour, but at least there are a lot of jobs available). Going back to school is also unfortunately not an option.
How can I plan to buy a home/my retirement with so much wasted time in my early adulthood? Am I trying too late? What are y'all's advice?
I want to plan for my future, but a lot of people are saying I'm a lost cause.
byu/Reasonable-Dream4405 inpersonalfinance
Posted by Reasonable-Dream4405
8 Comments
25 is still very young. You have to choose between moving out or saving money. Unless you have a huge problem with your parents, the latter is the better option. Start contributing to your TFSA (I assume you are Canadian since you mentioned CAD).
its a MASSIVE red flag that youve saved nothing while living rent free. you need to save whatever rent would be EVERY MONTH, at the absolute minimum.
look at wiki and flow chart on this page.
People that are much more knowledgeable than me will respond with more info.. If you want to stay in the area with your current income but move out, you’ll need to find a roommate or move away from the city. (Moving away from the city may not be possible if you don’t have transportation).
Median age 1st time homebuyer in US is about 40.
Where there is a will there is a way. I’m helping my daughter plan on getting a fixer upper eventually, which I’m likely going to get stuck fixing-upping.
Learning about personal finances and investing for retirement is easy; pick up a few basic books on the subject. The Internet is full of information but it is fragmented as fuck, and you don’t know enough to know what’s good and what’s garbage info. Once you learn the basics, you’ll be able to sort through the information out there.
As far as wealth and retirement, it is not what you make, but what you keep; learn to be frugal, learn to avoid debt, learn to save, and you will do great.
14 years ago I went back to school at 25 and graduated at 27 before I moved out. I also knew absolutely nothing about money except live on less than you make. So it’s not too late.
It’s going to be tough for most to purchase a house on a single income unless you have a very good income or receive financial assistance from family.
You are not a lost cause. You have a 40 plus year working career ahead of you.
It will take some prioritization and some work on your part. The important thing is— make progress.
Your first goal is to build a bit of an emergency fund and think about paths towards career growth. That might mean school. That might mean apprenticeship. That might mean building connections.
Let’s start easy:
– make a budget as if you were moving out (include rent, utilities, food, whatever). That tells you the bare minimum you need to earn per month.
– start saving until you have at least 3 times that amount in the bank.
– plan on getting your driver’s license – is that expensive where you are? Noone can function without driving these days unless you live in megacities like New York. You don’t need to buy a car (yet), but if you ever do you’ll at least be able to.
– ideally you can earn more than the bare minimum so that once you have your emergency fund you can put money in a retirement account.
– sorry that you want to move out but that’s a WANT, not a NEED, and you’ll have to learn to make the difference if you ever want to be able to save money.
You’re only a lost cause if you choose to be one.