Question of the Day: What's the best way to save money for a down payment on a house?

[barkley]

Not necessarily. I could result in a premium increase. I called my auto insurance company when my wife went back to work part time expecting a premium increase. Nope, it dropped my premiums because the rate of claims paid on cars used to commute to work is lower than on cars used 100% for leisure driving. And he said they are now raising rates on those who work from home for the same reason.

odd. ours drastically dropped when we retired. when our oldest (still under our coverage b/c of weird state laws on permanent legal address) decreased when the job went remote.

 

[tvguy]

odd. ours drastically dropped when we retired. when our oldest (still under our coverage b/c of weird state laws on permanent legal address) decreased when the job went remote.

I thought it was odd too. But the agent said the insurance company assumes when someone is working, the car is parked for 8 hours a day and not on the road at risk of a collision.
I can't keep up with how insurance companies think going back to when I first got my license in 1973. One semester I FINALLY had good grades, and my insurance company had eliminated the Good Student Discount because they found Good Students drive more miles and have more crashes.

 

[lanejudy]

Look, the gist of this seems to be a lot of people loathe the idea of taking care of parents or being cared for I suppose.

Sorry, I didn't mean it that way. It's just an odd "suggestion" of ways to save money for a down payment on a house. The multi-generational household definitely works, but it requires more planning and conversation because it ultimately involves others. When I think of "how to save money for X" it's usually what budget items can be adjusted; things primarily within my control.

 

[_19disnA]

The house ownership issue aside -- caring for aging adults is a very challenging task. It's not as simple as just living in the same home, helping with housework, meals, etc. It becomes all-encompassing and may requiire the adult child to give up a job, which not only impacts current income but also future career potential and eventually retirement savings.

I agree this is a fairly complex decision and money is only a small part of that. What might work for some families may not be the best choice for someone else. Most people have no training in how to be a nurse, social worker, physical therapist, etc. If they fall, will you know what to do or are you strong enough to pick them up? If an elderly parent can no longer manage on their own, it becomes a 24/7 job to care for them. If they have mobility issues, then likely the home would need to be configured with a bedroom/bath on the main floor to avoid issues with falling when trying to climb stairs. If you have children, who manages your parent while you take them to school or sporting events? Likely if they can't manage on their own, you will never be able to go on vacation. Never mind the emotional implications of having to put your family's life on hold while you care for someone with declining health.

 

[hertamaniac]

What helped me was:

1) Treat each paycheck like it's your last. This forced me to eliminate all debt including mortgage.
2) Drive a vehicle that has no payment (even if downgrading).
3) Put some monies into a market-based ETF (you won't hit grand slams, but those singles do add up); use the dividends under a reinvestment program.

 

[cvjw]

Look, the gist of this seems to be a lot of people loathe the idea of taking care of parents or being cared for I suppose.

We are helping to take care of DH’s 90+ year old parents right now. They moved out of their very large home a few years back and now live in senior living condos. All 3 of their middle aged kids have their own homes. Most of the grand children do also. They much preferred living in a senior condo where all of their meals are handled and there are no stairs. You can care for parents without moving into the house with them.

 

[LuvOrlando]

We are helping to take care of DH’s 90+ year old parents right now. They moved out of their very large home a few years back and now live in senior living condos. All 3 of their middle aged kids have their own homes. Most of the grand children do also. They much preferred living in a senior condo where all of their meals are handled and there are no stairs. You can care for parents without moving into the house with them.

Of course that is true, but the title of the thread was about getting a house, moving them into your own doesn't help get your own home

 

[soccerdad72]

Of course that is true, but the title of the thread was about getting a house

No, the title of the thread was about saving for a down payment on buying a house, not alternative methods of how else to acquire one.

 

[cvjw]

Of course that is true, but the title of the thread was about getting a house, moving them into your own doesn't help get your own home

The title of the thread is about saving money for a down payment for a house. Which I answered earlier because both of my 20 something year old son’s just purchased houses.

The OP wasn’t asking about how to move into someone else’s home for free by bartering for elder care.