Affordability
None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.
If you only read a few
Move to a lower cost-of-living area if you live in a high-cost region but do not earn a high income.
Staying may keep you in the bottom tier of earners; moving allows your money to go further.
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Consider buying an e-bike if you cannot afford a car payment or put enough down.
It avoids high car payments (e.g., $500+).
one person who lived it
Borrow less than the maximum amount the bank approves you for.
Banks often approve amounts much higher than what is sustainable; borrowing near the max can lead to severe financial struggle.
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- Do not rely on bank loan approvals to determine what you can afford.1
Bring a friend who knows vehicles and negotiation tactics to help inspect the car and handle the deal.
This helps you avoid buying a money pit.
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Live within your means to secure retirement, regardless of income level.
One person retired at 59 by saving and investing while living within their means, whereas high-earning relatives who spent all they made did not.
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Do not accept dealer offers to lower the car price in exchange for signing their loan.
You will likely make up the reduced price through higher loan costs and other fees.
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Buy the minimum home that meets your life requirements rather than the maximum you can afford.
Early retirement and traveling are better than having extra space you don't need.
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Buy a cheaper starter home, such as a condo, to build equity for a future down payment on a larger property.
This approach allows you to step up later using the equity built from the first purchase.
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Travel several hours outside your city to buy a used car.
Prices in other areas can be thousands lower.
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Buy used quality items from secondary markets like eBay to avoid debt.
Sellers who no longer need items often sell them cheaply, allowing you to acquire high-value goods at a fraction of the cost.
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Ask family members for a cash gift to cover your home down payment.
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If you own an older home in a humid climate, periodically run your HVAC system and plumbing to prevent mold, stagnant water, and pest damage.
Running systems prevents stagnant water and keeps rubber parts from drying out; it also helps against bugs.
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Plug a cheap Bluetooth OBDII code reader into your car to check error codes yourself before visiting a mechanic.
You can reference the code and potentially perform an easy fix on your own.
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Perform DIY repairs for simple tasks like painting, but hire professionals for complex or dangerous systems like electrical, HVAC, or roofing.
DIY saves money, but mistakes in critical systems can be dangerous or costly.
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Assume that peers appearing wealthy are likely funded by debt or hidden family support.
People are often quiet about receiving money from family, and visible luxuries are frequently supported by debt rather than income.
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Keep expectations realistic about middle-class status; earning over poverty guidelines does not mean you are middle class if you cannot comfortably pay bills and save.
- One view holds that anyone who doesn't qualify for food stamps is middle class.
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Avoid stating sensitive information online.
Companies may use such disclosures to terminate employment for confidentiality reasons.
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Include property taxes and homeowner's insurance when calculating affordability.
Equity gains may barely beat inflation.
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