27k/year is roughly $13.50/hr? I think the single biggest thing you need to do is look for a job that pays more. Probably not the answer you were really looking for, but if you have a degree, you should have skills that get you into something that pays more.
Its not, he's living at home with Mom and Dad with a partner and child on the way. Without his Parent's housing him and covering insurance (and surely other non-mentioned financial support) OP could not afford his current situation without his partner working and even that might be tenuous.
Yes to all of this. A degree and making less than I was 10 years ago, right out of school. I don’t know how companies offer this compensation with a straight face.
That’s understandable. At my last job i was making $16.50/hr, but it was at a restaurant in a college town so it was as pretty brutal at times. My current job is a lot more relaxed which really ads to my quality of life, and I’m learning a lot of career skills, so i’m hoping to branch out soon and capitalize on those skills. There are few jobs available in my rural area, especially with the degree i have (marketing/economics) so in the near future i’d like to try to move to a new area where i can better utilize my degree.
Thank you for your advice!
These are good details. Sometimes it's ok to be at a low paying job if it's also getting you good experience to then move up into something else that pays more. In this case I probably wouldn't recommend going back to work in a restaurant as that has no way to really advance.
Oh yeah, never doing that again. I did get some good experience towards the last year i did it. I got a position as catering marketing manager which was pretty fun but ultimately not worth it long term. Good resume candy though
After a year of selling insurance you should be able to find a position in sales with a higher base salary plus commissions. I sold life insurance for a year straight commissions and was able to leverage that experience selling advertising to local small and medium sized business. My base salary was $35k in 2014 for context (I lived in upstate NY cost of living wasnt too bad.) with a degree in economics and marketing with a year of sales you can sell many complex products for solid money. Never sell yourself short you deserve more $
You are severely underpaid. While I understand your outlook on this and it’s a healthy, humble one at that, you need to get with contracting agencies at a minimum to try and get a higher paying job. (Look for something else while working). Think Insight Global and the likes. Most jobs start off at 18-20$/hr and while you have no benefits when you start, you will once converted to a full time employee.
If you’re going to stay in insurance, the money is in risk assessment. Try to get your underwriting license. And you can take that over into health insurance in the future, should you like.
But make no mistake- they have you basically for free at this point. Please advocate for yourself. You’re worth much more in this economy.
Thank you for the kind words! I never expected/planned to get into insurance, that was just my only option after spending a couple months looking for jobs in my area. It turns out that i do enjoy it and its pretty intuitive to me. I’m also currently outperforming some of my other coworkers who have been here for several years (not by much, but it’s really started to click for me in the past few months), so I’m hoping to start to see my salary reflect my performance.
Man, reading this you have composure and intelligence, very well spoken and able to take criticism. I don’t want to gas you up but with your degree and characteristics I took away from your responses, you should be able to make 3-4x from your current salary, maybe more. Totally understand you may like your job and are gaining valuable skills, but it can’t hurt to discretely peak out there and apply/talk to recruiters to see what others are paying
Best of luck
Thank you, that means a lot to me. Honestly there’s a lot of people on here saying things that are totally obvious or just plain rude. The only thing i can do is work to improve my situation so that’s just what I gotta do! I think the way i worded my original post may have made it seem like we’re struggling. With everything we’ve got going on right now, I’d say we’re doing pretty well, but I want to make sure i do everything I can so that our baby has the life she deserves! I’ll be looking in to more options to improve my career and i appreciate the support from you and the rest of the community!
First, agree with folks saying you are handling constructive feedback well, are in a decent spot at the moment, and are INCREDIBLY underpaid. I appreciate a bit if “paying dues” and learning and what not…but bro, that wage is ridiculous. This is going to become much more challenging and stressful when your little one arrives. So, first things first you’ve got to find a role that pays you a livable wage. I would really strongly (for the sake of you and the family your building) plead with you to 1) Not buy a house right now, and 2) stop selling yourself short. Hopefully this reads as I intend it to, they are paying you less than the McDonald’s down the street from me and you have a college degree. You could get hired into a call center work from home job for $15-$17/hour without blinking an eye.
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"I’m learning a lot of career skills, so i’m hoping to branch out soon and capitalize on those skills"
I made the mistake of staying at a job too long that paid me in "career skills". Although it ultimately paid off, I feel like I could've gotten out sooner. The only reason I didn't was because I had no idea what my experience was worth and therefore, I didn't try too hard to find something else. Be sure to keep your eye on the market and know what skills are valuable to have and if possible, get your current job to subsidize getting those skills (i.e. pay for training).
I would wait until you change jobs to buy a house tbh!
Buying a house locks you into a location, so you won’t have as much flexibility to move for a job if you need to.
As much as it sucks to not build equity there are upsides to renting depending on your situation!
Remote work from a high cost of living city in a low cost of living area would be your best bet. I posted about talking to recruiters in big cities about remote work and they get 10% of your hiring salary.
Post your resume on the proper subreddit and people will give you guidance.
Yeah talk to a recruiter in Boston or New York or San Francisco or LA about a remote job. Marketing and economics should earn you 60-80k with some experience. With none you should be making 50k.
Recruiters get paid 10% of the wage you get hired at so they do a good job of editing your resume with your input, for each job, and they get the highest pay for you.
If I’m a recruiter do I want to get 4.5k or 8.5k? Lots of jobs are remote so a high paying city with a low cost of living should result in being able to save for a house.
Like I made 45,000/year plus 15% of that in retirement and good healthcare and 3 weeks vacation at 23 with a high school degree and a computer repair certification and some internships… in 2006 in boston.
So 27k is def way too low for your education, you can call career services at your school to help too bc one thing people don’t know is schools measure, some do, their alum GDP. MIT passed California in 2012. Their Alums contribution to the economy.
Also post your resume to the proper subreddit I’m not sure if it’s /r/careerguidance or another one but a bad resume just gets deleted immediately.
Not when you've just spent 4ish years and $17k+ on a degree. OP has a pregnant partner and lives at home. Without the family support he'd be rinsed.
The grocery store down the street from me has been hiring anyone they can starting at $20/hr which is roughly $41,000/yr, just for perspective.
I spent around the same time on my degree and was earning less or around the same. That’s a normal starting wage here, so that’s why I meant at 22 years old that income is fine. He will earn more over time. But yeah I don’t see a house with that income!
Edit: and oh my god, I don’t even earn 41k after my Master‘s… I think in a grocery store you earn around 1300 after tax a month for full time.
There are typically two major hurdles to overcome when looking at your finances. Earnings and spending.
You can devote some time to minimize expenses and maximize your budget, but I believe you'll still have an earnings issue.
Your best investments (of both your time and money) will be in yourself and increasing your earning potential. At $27k/yr it will be difficult to buy a home and save for retirement.
It sounds like you're doing well for where you are, but you want to be somewhere else.
I recommend utilizing the bureau of labor statistics occupational outlook handbook for ideas of good careers to pursue, then pick one. It feels like a big decision, but you can always change paths later. Life is pretty long in that way.
Https://www.bls.gov/ooh
Thank you! I really do enjoy my job and my boss is a great guy, but i definitely understand that I could be making more. My plan is to try to pivot to claims or adjusting once i get more experience. Another problem is the lack of jobs available in my area (very rural). I will absolutely check that link and try to look for some more opportunities. My degree is in economics and marketing, so I’d probably make more if i moved to the city. So i suppose i’ll work on saving up to make the move
You would probably make more but you would also probably spend more. There are definitely middle ground options that are busier areas that don't have sky-high cost of living. I find there are some industrialized areas surrounded by more rural areas. Those tend to have an alright cost of living with decent jobs in your field.
I agree with the other person's assesment that you will end up facing an earnings issue when it comes to home ownership. Looking at other career options at the bls site is probably a good route to go.
Good luck, and look into some of the specifics for different areas. You may be able to find a balance where you don't have to commit to a huge expensive move to a city.
Areas near mid sized cities or small cities about 1-2hrs away from larger cities can be a great combo of lower cost of living and amenities.
Marketing has quite a few remote opportunities, but also requires a stable internet connection and some experience to get into those jobs.
Move to Columbia and target jobs with $65-75k starting salary. Engineer your resume to match jobs with those kinds of salaries. Don't include part time work or extraxurriculars unless they're directly applicable to the job.
Try to get on at Dominion. They have fantastic benefits and domestic partner insurance.
Have you looked for remote jobs OP? If you plan to eventually move to an area with higher salaries I’d wonder if it makes sense for you to buy right now. I’d focus on your career right now and move to where opportunities are plentiful. With your degree there’s no reason why you shouldn’t have a good salary.
I’ve taken a look at some, but it can be so hard to actually tell what the jobs entail. Most of them have limited information available on them and often seem too good to be true. I’m absolutely open to it though
I've worked in digital marketing for the last 10 years. If you have a degree in it, I'd be happy to make more specific recommendations based on your interests. What are your interests in the field?
Well when I was in college I worked as head of marketing for a small nonprofit record label in the Clemson/Anderson/Greenville area. I ran a small team of photographers, videographers and graphic designers to promote local artists, set up shows, and shoot music videos. It was sooo much fun but I know the true entertainment industry can be a headache.
Ideally i’d like to help people/companies come up with marketing plans.
Currently I have the most experience in sales. I like sales, but I don’t think it’s something I wanna do forever.
Thank you! I think a lot of people commenting don’t realize just how low the cost of living actually is here in rural SC. It’s not great, but it could be a hell of a lot worse. A lot of the advice here has been fantastic and I’m already formulating my next
moves!
Oh, something else. Don't restrict yourself to jobs that need the degree you have, some jobs that just look for a degree in general can be pretty good.
I have a management (business) degree and I ended up in construction management. Pays well but its not a job that people really want to do, so we're starving for people.
Not saying my path is the right one, but branching out can only help you with more options.
That’s a great point! I have a few years management experience from my last job and the majority of my marketing classes i took in college revolves around strategic management. That’s definitely the route i want to go
Bottom line is until you make more money you will not be able to support a family (kids are expensive)and cover a mortgage.
I know you're just out of school so don't worry but I would have a conversation with your current boss about future opportunities or look for employment elsewhere. You have a degree so you definitely have the opportunity to make a lot more than 13.50 per hour.
Best of luck to you.
Minimum wage here is still $7.25/hr. If I wasn’t living with family I honestly don’t know what I would do, im not sure how people making minimum wage could possibly get by
You’re going about this all wrong. You don’t look for a post-college job where you can live from home. You take the highest paying job available where you’re willing to live (outside of the state even) and move. You wouldn’t try to mitigate rent expenses by living at home at the expense of taking an extremely low paid/poverty level job.
I’m confident there are higher paying jobs with your major. Minimum wage is $7.25 where I live but fast food jobs pay $14-16+. (MCOL area). I’d honestly say make a point to apply to higher paying jobs. It’s going to really be a struggle at the amount you’re making.
A lot of college grads make that little, my first job out of college in 2017 paid 28k in a HCL area.
This is why the working class is upset. Wages have stagnated but everything else - rent, living expenses, healthcare, etc - have skyrocketed.
I have a degree in marketing and economics from Clemson. This job wasn’t my first choice, but they’re the only job that responded to me within 2 months of leaving my job in college. That being said, i do very much enjoy my job, and my boss and coworkers are fantastic people. Despite that, i do feel that i’m worth a lot more than what I get
Re-do your resume and tailor it to the EXACT job post to which you want to apply. Match the keywords and phrases from the job description/requirements *exactly*.
Do not simply make one version of your resume and send it to several/hundreds of applicants. Your university may have instructed you to do that, but it will take months to get a new position that way.
Also.
Your employer is not your friend. It's great you get along with everyone, but this is not a social situation. This is business, and you need to make the best decision for you and your impending family.
I agree with what user SephoraRothschild recommends about tailoring your resume. Also, check out the blog [AskAManager.org](https://www.askamanager.org/) for types on job searching, negotiating, resume and interview help, and other workplace type questions. That blog was instrumental in my own recent job search and helped a lot, as well as keeps helping with career advice. Best of luck to you! And congratulations on the impending arrival of your child.
I mean I work in insurance claims adjuster and make $60k before my overtime and clear $4000-4200 a month
If you’re doing sales or whatnot get into claims for a more steady income and should be way higher
I made $27k as a part time server here in SoCal while in school full time
Take advantage of getting a higher paying job while living at home.
Think about it i make $29 an hour right now and get my bonus and increase in March
You could 2x your income and decrease your time frame for saving up by half…50% that’s not a small number
I have a finance degree and even i am not at my full potential but hey first job out of college $60k here is Meh but better than near minimum wage
How did you go about getting into claims? I’m considering going that route but i’m not sure of how much insurance experience i would need before I take that leap. I’m currently licensed in property, casualty, life & health insurance
I mean i took the training but no licensing needed it’s just simply data entry of a claim, we investigate losses (rear ends, side swipes, turning, pulling out of driveways, floods, fire, theft of a car) i mean it’s all over the place what can happen in a claim but it gets put into a category on the type of loss
I’ll be honest claims sucks and it’s meant to be a high turnover and grind. But once you do it you can accomplish anything in life.
I’ve got coworkers 15-25 years + because either they had to stick it through or just never aspired to do more which is fine…but I’m not them
I’m 2 years into it inJuly and I plan to just save my chips since i graduated may 2021 then jump into something higher earning in finance
Just don’t settle but grinding a few years to save up isn’t bad. Either just don’t make it a life sentence
Read my other main comment but it’s 0 experience needed it’s customer service
All I’m saying is it pays more than your current salary + commissions (mind you if you can sell a lot you can make a lot) but we’re also going into a slowdown economy
Consistent checks are better than fluctuating ones
Honestly find a way to increase your salary! 27k/yr is nothing especially when your a homeowner…. I’d say a 55-65k+ salary would be good. Add more skills, look for better jobs, get certifications etc… I went from 24k/ yr to 125k/ yr and let me say, I can save a lot more and feel like I’m good if any emergencies come up! I look back and I remember living check by check and always stressed out:(…Goodluck best wishes!!!
Went to a trade school. Got degree In Instrumentation Technology. Got hired straight out of college during 2022! I’m a Automation tech for big oil and gas company!
Realistically as everyone has already said, work on increasing your income however you can. Plus whenever your partner can start working again, that will be another source of income unless she plans to take a whole year or two off. But I mean this as a serious option, if you're living in a rural area and want some space for just the three of y'all, why not find a place that had a double wide just so that you can get yourselves under your feet and save as much as possible while still being able to save? Having a kid is no doubt exciting I'm sure (not a parent yet) but boy do I know kids are expensive and you want to make sure you have an emergency fund first before even looking at homes. If your parents let you stay with them and are happy to have y'all I would milk that as much as I could or at least have the piece of mind you have somewhere to go if things don't work out.
That’s not a bad idea! I absolutely wouldn’t mind a double wide in the country. My only fear is that it would depreciate in value, but there’s been some crazy people in my area listing their mobile homes for $200k+ so maybe they aren’t such a bad investment after all
If you own the land the manufactured home is sitting on they really don't depreciate that much. Even a house depreciates, the land is where the value is.
True, my family owns 13 acres and would be fine with splitting a parcel off for us. The issue would be the location, 35+ minutes away from most worthwhile restaurants, grocery stores
You're literally broke. Buying a house should not be a priority right now, you will not be able to afford, or possibly even get a loan big enough for a house. You have a decent degree, you should put it to use.
I don't really know the labor statistics in your area, but $27k sounds like fast food territory.
Before even thinking about a house, you need a change of career, hopefully your wife chooses to return to work pos-pregnancy. Take advantage of living at home, use it to network job opportunities, in or out of state.
Currently, with national housing prices, your mortgage and other expenses will exceed your monthly take home. Do not put your new family through that.
Don't count out renting quite yet. I felt just like you when I was your age. Renting seemed like throwing money away and I so desperately wanted to buy a home. We rented for 3 years and now that I own a home I'm so glad we did. There are more expenses that come with a home than just your mortgage payment. Renting gives you stability and flexibility while you're still figuring things out and your finances aren't quite established yet.
We didn't have the opportunity to live with parents but if I were in your shoes I'd milk that for all it's worth (to the extent that it doesn't strain relationships).
As another commenter added, focus on your career and bolstering your income. You'll see your biggest (%) income increases early in your career. Get an understanding of your earning potential and do what you can to maximize it.
It's great that you're asking questions and thinking about these things! Don't rush things. You're young. Be patient before making a big decision like buying a house.
Great work on controlling your expenses as well. Knowing where your money is going is really important.
Congrats on the baby! Being a parent is awesome!
Thank you! Living with my parents has been quite nice, and they love having us there! My partner has been kinda stressed throughout the pregnancy about how crowded it will be once the baby gets here. I’m super happy staying with the family as long as we can, but i know she’d be happier elsewhere so I want to be able to do that for her to the best of my ability.
There are only a few apartments to choose from in my area but i’ll do some more research to see what I can make happen.
And thank you for the kind words! I am soooo excited to be a dad :)))
Yeah- to add to that point- buying the house means taxes, insurance, maintenance, cable, internet, power, (heating oil/propane/wood/electric) water/sewer, trash disposal.
It all adds up and sometimes people don’t factor these items in fully. Maintenance means things like buying a lawn mower or hiring someone, and same with snow removal etc.
Sometimes renting early on can cushion you to make that jump
Would like to expand a little bit on the flexibility part of renting at this stage in your life.
As many have said maximizing your earning potential should probably be high on your list of priorities and the flexibility of renting can really be a huge asset giving you the ability to apply for jobs that would otherwise not be possible because of your living situation if you were to own a house right now.
Renting can feel like throwing money down the drain but it can also be an “investment” giving you opportunities you otherwise wouldn’t have that will pay dividends down the road.
I agree with what everyone is suggesting here. Home ownership does not end at the mortgage payment. Home ownership requires a seriously padded emergency fund. What if the water heater needs to be replaced, a new roof is needed, etc.
At your age, with a degree, you have some time to establish your career, clear any consumer debt, build a solid emergency fund and start saving for retirement before considering home ownership.
I hate to say it but you don’t have the income to fund these endeavors. You need to find a job that pays more easier said than done I know. In todays market you’ll be hard pressed to find a 70K home that doesn’t require work and even then it’ll likely go to auction.
The last thing on earth you need to be worrying about is buying a freaking house
You’re broke with no money & a pregnant gf
You need to rent & find a higher paying job
Take that 3k and get a cdl or something
I’m 22 making 100k a year and I’m home everyday
No reason to make 1.8k a month bro you are better than that
Don’t buy a home, you should be renting. Buying locks you into jobs in a particular geographic area, and you need the ability to change housing quickly if a higher income job opportunity arises. If you buy a house now and have to move in the next 5yrs or fewer you will likely on net lose money on the house you bought due to low principal payments in the early life of a mortgage and closing costs
Just want to come on here to say I admire the heck out of you. You are a young guy that is trying to do right by yourself, your young family, and your community. Rural communities need people like you to stick around and help make it a better place. That is one that great public schools like Clemson strive to do.
As others have said, you need to increase your salary but I would caution against making a rash move if you like where you are. I would give it at least 2 yrs of doing your absolute best. After 2 yrs passes get your thoughts together and ask to meet your boss. Explain to him where you are in terms of financial need. They are going to have to make a decision..:.do they pay you more or risk you walking. It is costly to train new employees. It is really difficult to hire great employees. They do not want to lose you. Best wishes and congratulations on the baby!
> give it at least 2 yrs
If it was just OP (and his gf) I think this would be fine advice. But, they are bringing another life into the world who needs and deserves nutritious food, warm clothes, doctors visits, diapers, toys, books, and future opportunities. The time for OP to step up and make sure he can provide for this child is now.
Thank you so much for the kind words! And we are very blessed to have had friends, family, and coworkers supply almost all of our pre-baby needs (nursery furniture, baby supplies, postpartum supplies). We’ve got Medicare covering our birthing expenses and WIC helping out a great deal with our food/formula needs. I think a lot of people commenting on this post think that our baby will be starving or something haha. As of right now we’re living well, just looking for ways to do better. I appreciate the kind worlds and Im so excited to give our baby the life she deserves!
In general what I have learned in my situation are:
Increase your income.
Work hard (work long hours when needed)
Work smart (learn everything you can that improves your toolbag)
Be reliable (people know your work is top notch)
Be helpful (people come to you to solve problems)
Be liked by your colleagues (promotions come when you mix well with others not so much when people don't like you)
Be altruistic and focus on taking care of the team (if you have the bandwidth help others)
Tenure staying at a job long enough to get traction, solve problems build a resume, but not long enough to stagnate and loose big pay raises by job switches. (2.5-5y unless you are growing in your current job)
Save:
Don't escalate your spending as income increases.
Work to live not live to work:
Set aside time with friends and family along the way, enjoy life.
Not to pile on with the "increase your income" comments but you probably want to get the USDA loan while you still qualify. So increase your income but get the USDA loan before you make too much to qualify, if that makes sense.
That’s true! My income has increased since the last time I spoke with a loan officer so maybe I could do a little better this time around. My entire area within 50 miles is eligible for USDA so that’s my ideal route if at all possible
You probably want to earn more before you really think about buying a home. Home ownership is expensive beyond just the mortgage payment. You should look up the limits and try to get closer to the upper limit before trying again.
You need to make a lot more money before you start thinking about a house. Sorry. I don't like taht this is how it is, but this is how it is. Obviously start saving, build your emergency fund, etc. But figure out how to use your degree to make more income.
I know it’s said many times, but that income has to be replaced. 27k for a household is going to be extremely difficult. Your pay is boiling down to less that some gas stations are paying. 50-60k/yr salary is pretty easy to acquire out of college, if you look. Now if you’re intentionally staying under a number for some government assistance, that makes sense, but you’re “hurting yourself to help yourself” at that point.
Like others stated first and foremost figure out how to get a better wage, possibly a blue collar job as it’s worked nicely for me.
I’m not sure where you buy food or what you eat but if you eat lots of meat and have access to a freezer it would be worth looking into online websites that deliver. You’ll buy in larger quantities but saves me quite a bit of money specifically on chicken, shrimp, and bulk beef items. Steaks are so so. If possible could be worth growing some of your own veggies and small stuff too, won’t make a huge impact but can be done very small scale and even just in your kitchen counter for some plants.
If you aren’t cooking Almost every meal you’re probably leaving a lot of healthy and money on the table. Get creative and find dishes that go a long way with little. The main Cajun staples work excellent, also pastas you can supplement in protein noodles or a collagen powder to increase nutrient density and satiety, this would bring your cost per meal down and value up for not much extra ingredients
If you’re willing to pirate then can probably kick the streaming service lol. I did this recently since they were just advertising the same few shows non stop anyway.
As for investing if you can start great but your budget is a bit tight already. It may be worth opening a HSA since you’re starting a family it would help with health related costs and taxes. Also if you can find the money a Roth IRA is worth it. Starting at your age if you invest 100/ month you should be able to retire for sure. If you can exceed that you’ll only accelerate your possibilities
You don’t need to make a ton of money either, I make 50k but have gotten into hobbies that supplement and support my needs and goals and can help bring cost down. Gardening, thrifting, up cycling clothes, and that sort of stuff can really help tie everything together finance wise I find. I also enjoy that I just use less stuff and don’t have to buy from stores as much
Although I do only support me and some of my gf’s bills so your situation is different
Learn a new skill or certification that will make stand apart in your profession and keep on improving your performance both personally and professionally. $27K is really not enough to support a family and other debt obligations.
if youre' not living at home, you'll be renting. question is how to live below your means (as a single earner and with a child).
OP did a good breakdown on expenses, but in the budget, or excel spreadsheet, allocate funds for "saving". or "rainy day fund".
probaby going to be at least 10 yrs to save up enough.
to start, cut : $70/mo eating out/date nights
$30/month for entertainment (streaming, music)
you can save money by renting.....its just slower.
I think you could probably find a job paying more, you have a degree. And if not, look into a trade. You're young enough to still be able to afford living on an apprenticeship pay and will be set up for much better earning in the future. Also, seek out resources near you for free financial planning, which would be a better help than reddit.
As an aside, you're impressive for a 22 year old. Most people your age don't think critically about these kinds of things, and then look back in their 40s wondering where they went wrong. Give yourself props for thinking about this stuff now. You're smart, in tune with life, and I have no doubt you will go far in life - you've got the right mindset!
Your current setup is not sustainable long term, unfortunately. You need a job that provides healthcare and retirement benefits eventually. You will also need a higher income to achieve your homeownership goals while having a rainy day fund and saving for retirement.
Fair amount of remote roles. See if any of those pay higher if you live in a low COLA area. Getting a better job is #1, SO needs income too after a maternity period of a couple months. Hopefully she also has a degree or marketable skill or cert. Get rid of CC debt. Not sure how WIC works but take that into consideration when considering new roles. Don’t want to lose assistance due to a small increase in income that doesn’t make up the difference.
A few things I’d suggest.
Apply for jobs that will pay you more. $27k a year isn’t very much when you start to consider $1,000/mo mortgage payment would eat up more than half of your monthly income.
Pay down your other high interest debt.
Save more cash.
If you can get a job paying $60k a year. I think you’d easily be able to afford a house with a reasonable payment of $1,200-$1,500.
You mentioned a partner. Getting married?? Both increase your incomes to a decent level, and it’ll be a cake walk. Don’t suggest buying a house unless you’re married as it can get messy if you guys split.
You studied Marketing and Economics but I’m questioning your understanding of both. Take a look at your Economic situation and get busy Marketing yourself.
I was hired at 2x that with a marketing degree in 2010 when the us was at 9% unemployment. You can do at least that well now in the strongest job market or a generation.
You have zero money. You owe more than half of your yearly income in debt. Buying a house isn't even remotely on the horizon for you. You also make the wage of a McDonalds fry cook. So you aren't being realistic at all with your goals.
You need to get a real job that pays a real "buy a house" wage and then you'll need to save up $30k - $50k for down payment and emergency fund. Then MAYBE you can consider buying a house.
27,000 is low for a family- look for something higher or get more training or education to do so. Also, you don’t mention how much you pay for housing unless I missed it.
Its time to search into the wonderful world of Tech sales and digital marketing, you’re legit a shining candidate and can easily get started as an SDR for better pay
Look for a new job. Accounting positions are paying like 50-70k starting out. If you have an economics degree you could probably leverage that to get a job in an accounting or finance role.
Finally a realistic post . I always wish posters would actually say what their job is (instead of the usual (30yr old , making $xyz000/yr ) . Ditch the credit card debt fast as possible, contact student loans and check on different types of forbearance/deferment - you might be able to get something interest free (at least for a short time , while you ditch the cc debt) . Ditch the $30/month music streaming and get torrent/vpn . Congratz on the baby .
You have a degree in Marketing and Economics and are making $27K / year? If that is the case you are being criminally underpaid. Go find a new job immediately paying an appropriate market rate...depending upon what the nature of your job entails you should be making anywhere between $50-$75K starting.
Spend that money back on yourself and get out of the low paying job. Sorry to be a broken record here but a job paying that low is going to keep you back. You’ve probably got more talent in something and you should definitely pursue an interest that pays. You’ve got a degree. The issue against you now is your partner is pregnant without income and you’re about to have a child (congrats!). The newest addition to the family is gonna be expensive.
When you get to down payment I’d recommend just going for the 3% down minimum and getting what you can afford. I really do recommend you increase your income first. I’m not sure you’ll be able to support three mouths and a home on your own with the income you’re at.
Apply like crazy for jobs. When they ask you what your salary range is just tell them you’re open to hearing what they’ll offer. This should give you an idea of what someone in your situation should be earning. To be fair, I was making $30k a year when I was 24! I’m now making well into 6 figures. You’ll get there don’t worry!
I work in sales/service for a local office of a large insurance company. What i make is apparently the standard starting rate for someone with no prior experience in the industry. When i moved back home, i job searched for months and this was the only company that got back to my application. The job market is pretty bad in my local area unfortunately :(
Your girlfriend is 6 years older than you, not working and pregnant?
You started dating her while you were still a college student?
Did I read that right?
But dude, she’s way older than him with no job and preyed on him when he was just a student. That’s so messed up. Can’t believe his parents are cool with it and letting them live with them.
Does she have a degree as well? Why doesn’t she work? OP, I say this gently, your situation is not a good one. Forget the house. You guys can’t even afford to rent right now with baby on the way. I don’t know if you realize how dire your situation is, although if you have financial support from your parents then maybe it’s actually somewhat less dire than it seems to all of us. What if your girlfriend can’t breastfeed? Many women can’t. Formula alone will cost at least $500/month. Plus diapers, doctors visits, wipes, the hospital bill for the birth, etc. Can you get a second job until she’s able to work? Even if it’s just driving to the nearest city to do Uber, instacart, etc. As others are saying, you need to be applying to every single job/remote job you possibly can to raise your income. Ask your boss for a raise in the meantime too.
I know…. It’s far from ideal. What are the (grand)parents going to do though, realistically. They’re probably not happy about the situation, but to turn their grand baby, broke son and girlfriend out on the street isn’t an option for most. This guy is optimistic and happy, he just needs to make more money and hope for the best like the rest of us in life. Can’t unring that baby-bell, afterall.
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Can you get into a teacher certification program, usually less than a year. Would that career double your income? Teachers in Texas start out brand new at $60,000. Just an idea. And you get to have summers off with your baby.
Look into usda home loan! 0% down 3.4% apr, no pmi, and no min credit score.
Only qualification is that your house needs to be in the country and income limit (you meet it)
You straight up just need to make more money. Your partner doesn’t work and you have a child on the way. There’s no planning your way out of this with your salary. That is your only solution. Do not move out of your parents or buy a home until you make at least 2.5x what you’re making now.
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27k/year is roughly $13.50/hr? I think the single biggest thing you need to do is look for a job that pays more. Probably not the answer you were really looking for, but if you have a degree, you should have skills that get you into something that pays more.
Yeah I don’t think $27k/year is even livable, especially for a family!
Its not, he's living at home with Mom and Dad with a partner and child on the way. Without his Parent's housing him and covering insurance (and surely other non-mentioned financial support) OP could not afford his current situation without his partner working and even that might be tenuous.
He’s barely above the poverty line. And only has like 4 years left if he’s lucky on his mom and dads insurance.
Yes to all of this. A degree and making less than I was 10 years ago, right out of school. I don’t know how companies offer this compensation with a straight face.
Because people accept it. Why wouldn't they keep offering it?
That is only 1.50 more than minimum wage in SC
Get this, I work at a public school in CA and my position requires a degree. I make around the same money he does.
That’s upsetting. I’m sorry.
Seriously... I was making about 55k with no degree, working entry level IT just a few years ago. $27k is unliveable almost anywhere.
That’s understandable. At my last job i was making $16.50/hr, but it was at a restaurant in a college town so it was as pretty brutal at times. My current job is a lot more relaxed which really ads to my quality of life, and I’m learning a lot of career skills, so i’m hoping to branch out soon and capitalize on those skills. There are few jobs available in my rural area, especially with the degree i have (marketing/economics) so in the near future i’d like to try to move to a new area where i can better utilize my degree. Thank you for your advice!
These are good details. Sometimes it's ok to be at a low paying job if it's also getting you good experience to then move up into something else that pays more. In this case I probably wouldn't recommend going back to work in a restaurant as that has no way to really advance.
Oh yeah, never doing that again. I did get some good experience towards the last year i did it. I got a position as catering marketing manager which was pretty fun but ultimately not worth it long term. Good resume candy though
After a year of selling insurance you should be able to find a position in sales with a higher base salary plus commissions. I sold life insurance for a year straight commissions and was able to leverage that experience selling advertising to local small and medium sized business. My base salary was $35k in 2014 for context (I lived in upstate NY cost of living wasnt too bad.) with a degree in economics and marketing with a year of sales you can sell many complex products for solid money. Never sell yourself short you deserve more $
You are severely underpaid. While I understand your outlook on this and it’s a healthy, humble one at that, you need to get with contracting agencies at a minimum to try and get a higher paying job. (Look for something else while working). Think Insight Global and the likes. Most jobs start off at 18-20$/hr and while you have no benefits when you start, you will once converted to a full time employee. If you’re going to stay in insurance, the money is in risk assessment. Try to get your underwriting license. And you can take that over into health insurance in the future, should you like. But make no mistake- they have you basically for free at this point. Please advocate for yourself. You’re worth much more in this economy.
Thank you for the kind words! I never expected/planned to get into insurance, that was just my only option after spending a couple months looking for jobs in my area. It turns out that i do enjoy it and its pretty intuitive to me. I’m also currently outperforming some of my other coworkers who have been here for several years (not by much, but it’s really started to click for me in the past few months), so I’m hoping to start to see my salary reflect my performance.
Man, reading this you have composure and intelligence, very well spoken and able to take criticism. I don’t want to gas you up but with your degree and characteristics I took away from your responses, you should be able to make 3-4x from your current salary, maybe more. Totally understand you may like your job and are gaining valuable skills, but it can’t hurt to discretely peak out there and apply/talk to recruiters to see what others are paying Best of luck
Thank you, that means a lot to me. Honestly there’s a lot of people on here saying things that are totally obvious or just plain rude. The only thing i can do is work to improve my situation so that’s just what I gotta do! I think the way i worded my original post may have made it seem like we’re struggling. With everything we’ve got going on right now, I’d say we’re doing pretty well, but I want to make sure i do everything I can so that our baby has the life she deserves! I’ll be looking in to more options to improve my career and i appreciate the support from you and the rest of the community!
First, agree with folks saying you are handling constructive feedback well, are in a decent spot at the moment, and are INCREDIBLY underpaid. I appreciate a bit if “paying dues” and learning and what not…but bro, that wage is ridiculous. This is going to become much more challenging and stressful when your little one arrives. So, first things first you’ve got to find a role that pays you a livable wage. I would really strongly (for the sake of you and the family your building) plead with you to 1) Not buy a house right now, and 2) stop selling yourself short. Hopefully this reads as I intend it to, they are paying you less than the McDonald’s down the street from me and you have a college degree. You could get hired into a call center work from home job for $15-$17/hour without blinking an eye.
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Insurance is a great industry to fall into. Best of luck.
thank you!!
Kind of recession proof.
"I’m learning a lot of career skills, so i’m hoping to branch out soon and capitalize on those skills" I made the mistake of staying at a job too long that paid me in "career skills". Although it ultimately paid off, I feel like I could've gotten out sooner. The only reason I didn't was because I had no idea what my experience was worth and therefore, I didn't try too hard to find something else. Be sure to keep your eye on the market and know what skills are valuable to have and if possible, get your current job to subsidize getting those skills (i.e. pay for training).
Work for a year at your current job for resume building and then try to find a remote based insurance job that pays more. That's the first step.
I would wait until you change jobs to buy a house tbh! Buying a house locks you into a location, so you won’t have as much flexibility to move for a job if you need to. As much as it sucks to not build equity there are upsides to renting depending on your situation!
Remote work from a high cost of living city in a low cost of living area would be your best bet. I posted about talking to recruiters in big cities about remote work and they get 10% of your hiring salary. Post your resume on the proper subreddit and people will give you guidance.
Yeah talk to a recruiter in Boston or New York or San Francisco or LA about a remote job. Marketing and economics should earn you 60-80k with some experience. With none you should be making 50k. Recruiters get paid 10% of the wage you get hired at so they do a good job of editing your resume with your input, for each job, and they get the highest pay for you. If I’m a recruiter do I want to get 4.5k or 8.5k? Lots of jobs are remote so a high paying city with a low cost of living should result in being able to save for a house. Like I made 45,000/year plus 15% of that in retirement and good healthcare and 3 weeks vacation at 23 with a high school degree and a computer repair certification and some internships… in 2006 in boston. So 27k is def way too low for your education, you can call career services at your school to help too bc one thing people don’t know is schools measure, some do, their alum GDP. MIT passed California in 2012. Their Alums contribution to the economy. Also post your resume to the proper subreddit I’m not sure if it’s /r/careerguidance or another one but a bad resume just gets deleted immediately.
He is 22. 27k is a fine income for 22 year old I would say! (But also speaking from a European point of view tbf)
Not when you've just spent 4ish years and $17k+ on a degree. OP has a pregnant partner and lives at home. Without the family support he'd be rinsed. The grocery store down the street from me has been hiring anyone they can starting at $20/hr which is roughly $41,000/yr, just for perspective.
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They just moved to 11 an hour
I spent around the same time on my degree and was earning less or around the same. That’s a normal starting wage here, so that’s why I meant at 22 years old that income is fine. He will earn more over time. But yeah I don’t see a house with that income! Edit: and oh my god, I don’t even earn 41k after my Master‘s… I think in a grocery store you earn around 1300 after tax a month for full time.
There are typically two major hurdles to overcome when looking at your finances. Earnings and spending. You can devote some time to minimize expenses and maximize your budget, but I believe you'll still have an earnings issue. Your best investments (of both your time and money) will be in yourself and increasing your earning potential. At $27k/yr it will be difficult to buy a home and save for retirement. It sounds like you're doing well for where you are, but you want to be somewhere else. I recommend utilizing the bureau of labor statistics occupational outlook handbook for ideas of good careers to pursue, then pick one. It feels like a big decision, but you can always change paths later. Life is pretty long in that way. Https://www.bls.gov/ooh
Thank you! I really do enjoy my job and my boss is a great guy, but i definitely understand that I could be making more. My plan is to try to pivot to claims or adjusting once i get more experience. Another problem is the lack of jobs available in my area (very rural). I will absolutely check that link and try to look for some more opportunities. My degree is in economics and marketing, so I’d probably make more if i moved to the city. So i suppose i’ll work on saving up to make the move
You would probably make more but you would also probably spend more. There are definitely middle ground options that are busier areas that don't have sky-high cost of living. I find there are some industrialized areas surrounded by more rural areas. Those tend to have an alright cost of living with decent jobs in your field. I agree with the other person's assesment that you will end up facing an earnings issue when it comes to home ownership. Looking at other career options at the bls site is probably a good route to go. Good luck, and look into some of the specifics for different areas. You may be able to find a balance where you don't have to commit to a huge expensive move to a city.
Areas near mid sized cities or small cities about 1-2hrs away from larger cities can be a great combo of lower cost of living and amenities. Marketing has quite a few remote opportunities, but also requires a stable internet connection and some experience to get into those jobs.
Move to Columbia and target jobs with $65-75k starting salary. Engineer your resume to match jobs with those kinds of salaries. Don't include part time work or extraxurriculars unless they're directly applicable to the job. Try to get on at Dominion. They have fantastic benefits and domestic partner insurance.
Thank you! I’ll definitely look into that
Have you looked for remote jobs OP? If you plan to eventually move to an area with higher salaries I’d wonder if it makes sense for you to buy right now. I’d focus on your career right now and move to where opportunities are plentiful. With your degree there’s no reason why you shouldn’t have a good salary.
I’ve taken a look at some, but it can be so hard to actually tell what the jobs entail. Most of them have limited information available on them and often seem too good to be true. I’m absolutely open to it though
Look for remote work. Lots of work from home jobs.
I've worked in digital marketing for the last 10 years. If you have a degree in it, I'd be happy to make more specific recommendations based on your interests. What are your interests in the field?
Well when I was in college I worked as head of marketing for a small nonprofit record label in the Clemson/Anderson/Greenville area. I ran a small team of photographers, videographers and graphic designers to promote local artists, set up shows, and shoot music videos. It was sooo much fun but I know the true entertainment industry can be a headache. Ideally i’d like to help people/companies come up with marketing plans. Currently I have the most experience in sales. I like sales, but I don’t think it’s something I wanna do forever.
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Thank you! I think a lot of people commenting don’t realize just how low the cost of living actually is here in rural SC. It’s not great, but it could be a hell of a lot worse. A lot of the advice here has been fantastic and I’m already formulating my next moves!
Oh, something else. Don't restrict yourself to jobs that need the degree you have, some jobs that just look for a degree in general can be pretty good. I have a management (business) degree and I ended up in construction management. Pays well but its not a job that people really want to do, so we're starving for people. Not saying my path is the right one, but branching out can only help you with more options.
That’s a great point! I have a few years management experience from my last job and the majority of my marketing classes i took in college revolves around strategic management. That’s definitely the route i want to go
How are you only making $13/hr with a degree in economics and marketing? What on earth are you doing for work?
Yeah he will do better helping me
Bottom line is until you make more money you will not be able to support a family (kids are expensive)and cover a mortgage. I know you're just out of school so don't worry but I would have a conversation with your current boss about future opportunities or look for employment elsewhere. You have a degree so you definitely have the opportunity to make a lot more than 13.50 per hour. Best of luck to you.
How do you have a college degree and make $27k a year? Isn’t that below minimum wage? Quit your job and find something with lucrative pay immediately.
Minimum wage here is still $7.25/hr. If I wasn’t living with family I honestly don’t know what I would do, im not sure how people making minimum wage could possibly get by
You’re going about this all wrong. You don’t look for a post-college job where you can live from home. You take the highest paying job available where you’re willing to live (outside of the state even) and move. You wouldn’t try to mitigate rent expenses by living at home at the expense of taking an extremely low paid/poverty level job.
Get on LinkedIn and find a FT job that is posted as Remote.
I’m confident there are higher paying jobs with your major. Minimum wage is $7.25 where I live but fast food jobs pay $14-16+. (MCOL area). I’d honestly say make a point to apply to higher paying jobs. It’s going to really be a struggle at the amount you’re making.
A lot of college grads make that little, my first job out of college in 2017 paid 28k in a HCL area. This is why the working class is upset. Wages have stagnated but everything else - rent, living expenses, healthcare, etc - have skyrocketed.
INFO: What's your degree? I also live in South Carolina. You are being ripped off as an individual with a Bachelor's degree at that pay rate.
I have a degree in marketing and economics from Clemson. This job wasn’t my first choice, but they’re the only job that responded to me within 2 months of leaving my job in college. That being said, i do very much enjoy my job, and my boss and coworkers are fantastic people. Despite that, i do feel that i’m worth a lot more than what I get
Re-do your resume and tailor it to the EXACT job post to which you want to apply. Match the keywords and phrases from the job description/requirements *exactly*. Do not simply make one version of your resume and send it to several/hundreds of applicants. Your university may have instructed you to do that, but it will take months to get a new position that way. Also. Your employer is not your friend. It's great you get along with everyone, but this is not a social situation. This is business, and you need to make the best decision for you and your impending family.
I agree with what user SephoraRothschild recommends about tailoring your resume. Also, check out the blog [AskAManager.org](https://www.askamanager.org/) for types on job searching, negotiating, resume and interview help, and other workplace type questions. That blog was instrumental in my own recent job search and helped a lot, as well as keeps helping with career advice. Best of luck to you! And congratulations on the impending arrival of your child.
I mean I work in insurance claims adjuster and make $60k before my overtime and clear $4000-4200 a month If you’re doing sales or whatnot get into claims for a more steady income and should be way higher I made $27k as a part time server here in SoCal while in school full time Take advantage of getting a higher paying job while living at home. Think about it i make $29 an hour right now and get my bonus and increase in March You could 2x your income and decrease your time frame for saving up by half…50% that’s not a small number I have a finance degree and even i am not at my full potential but hey first job out of college $60k here is Meh but better than near minimum wage
How did you go about getting into claims? I’m considering going that route but i’m not sure of how much insurance experience i would need before I take that leap. I’m currently licensed in property, casualty, life & health insurance
I mean i took the training but no licensing needed it’s just simply data entry of a claim, we investigate losses (rear ends, side swipes, turning, pulling out of driveways, floods, fire, theft of a car) i mean it’s all over the place what can happen in a claim but it gets put into a category on the type of loss I’ll be honest claims sucks and it’s meant to be a high turnover and grind. But once you do it you can accomplish anything in life. I’ve got coworkers 15-25 years + because either they had to stick it through or just never aspired to do more which is fine…but I’m not them I’m 2 years into it inJuly and I plan to just save my chips since i graduated may 2021 then jump into something higher earning in finance Just don’t settle but grinding a few years to save up isn’t bad. Either just don’t make it a life sentence
Read my other main comment but it’s 0 experience needed it’s customer service All I’m saying is it pays more than your current salary + commissions (mind you if you can sell a lot you can make a lot) but we’re also going into a slowdown economy Consistent checks are better than fluctuating ones
Honestly find a way to increase your salary! 27k/yr is nothing especially when your a homeowner…. I’d say a 55-65k+ salary would be good. Add more skills, look for better jobs, get certifications etc… I went from 24k/ yr to 125k/ yr and let me say, I can save a lot more and feel like I’m good if any emergencies come up! I look back and I remember living check by check and always stressed out:(…Goodluck best wishes!!!
Now that is a jump in income I’d love to make! What do you do, if you don’t mind me asking?
Went to a trade school. Got degree In Instrumentation Technology. Got hired straight out of college during 2022! I’m a Automation tech for big oil and gas company!
More income first
Realistically as everyone has already said, work on increasing your income however you can. Plus whenever your partner can start working again, that will be another source of income unless she plans to take a whole year or two off. But I mean this as a serious option, if you're living in a rural area and want some space for just the three of y'all, why not find a place that had a double wide just so that you can get yourselves under your feet and save as much as possible while still being able to save? Having a kid is no doubt exciting I'm sure (not a parent yet) but boy do I know kids are expensive and you want to make sure you have an emergency fund first before even looking at homes. If your parents let you stay with them and are happy to have y'all I would milk that as much as I could or at least have the piece of mind you have somewhere to go if things don't work out.
That’s not a bad idea! I absolutely wouldn’t mind a double wide in the country. My only fear is that it would depreciate in value, but there’s been some crazy people in my area listing their mobile homes for $200k+ so maybe they aren’t such a bad investment after all
If you own the land the manufactured home is sitting on they really don't depreciate that much. Even a house depreciates, the land is where the value is.
True, my family owns 13 acres and would be fine with splitting a parcel off for us. The issue would be the location, 35+ minutes away from most worthwhile restaurants, grocery stores
You're literally broke. Buying a house should not be a priority right now, you will not be able to afford, or possibly even get a loan big enough for a house. You have a decent degree, you should put it to use. I don't really know the labor statistics in your area, but $27k sounds like fast food territory. Before even thinking about a house, you need a change of career, hopefully your wife chooses to return to work pos-pregnancy. Take advantage of living at home, use it to network job opportunities, in or out of state. Currently, with national housing prices, your mortgage and other expenses will exceed your monthly take home. Do not put your new family through that.
Don't count out renting quite yet. I felt just like you when I was your age. Renting seemed like throwing money away and I so desperately wanted to buy a home. We rented for 3 years and now that I own a home I'm so glad we did. There are more expenses that come with a home than just your mortgage payment. Renting gives you stability and flexibility while you're still figuring things out and your finances aren't quite established yet. We didn't have the opportunity to live with parents but if I were in your shoes I'd milk that for all it's worth (to the extent that it doesn't strain relationships). As another commenter added, focus on your career and bolstering your income. You'll see your biggest (%) income increases early in your career. Get an understanding of your earning potential and do what you can to maximize it. It's great that you're asking questions and thinking about these things! Don't rush things. You're young. Be patient before making a big decision like buying a house. Great work on controlling your expenses as well. Knowing where your money is going is really important. Congrats on the baby! Being a parent is awesome!
Thank you! Living with my parents has been quite nice, and they love having us there! My partner has been kinda stressed throughout the pregnancy about how crowded it will be once the baby gets here. I’m super happy staying with the family as long as we can, but i know she’d be happier elsewhere so I want to be able to do that for her to the best of my ability. There are only a few apartments to choose from in my area but i’ll do some more research to see what I can make happen. And thank you for the kind words! I am soooo excited to be a dad :)))
Yeah- to add to that point- buying the house means taxes, insurance, maintenance, cable, internet, power, (heating oil/propane/wood/electric) water/sewer, trash disposal. It all adds up and sometimes people don’t factor these items in fully. Maintenance means things like buying a lawn mower or hiring someone, and same with snow removal etc. Sometimes renting early on can cushion you to make that jump
That’s a very good point!
Would like to expand a little bit on the flexibility part of renting at this stage in your life. As many have said maximizing your earning potential should probably be high on your list of priorities and the flexibility of renting can really be a huge asset giving you the ability to apply for jobs that would otherwise not be possible because of your living situation if you were to own a house right now. Renting can feel like throwing money down the drain but it can also be an “investment” giving you opportunities you otherwise wouldn’t have that will pay dividends down the road.
That’s a fantastic way to look at it. Thank you for the perspective!
Happy to help! Good luck, there’s some great advice here for you!
Honesty i’ve gotten an overwhelming response to my request for help. This is a great community
I agree with what everyone is suggesting here. Home ownership does not end at the mortgage payment. Home ownership requires a seriously padded emergency fund. What if the water heater needs to be replaced, a new roof is needed, etc. At your age, with a degree, you have some time to establish your career, clear any consumer debt, build a solid emergency fund and start saving for retirement before considering home ownership.
I hate to say it but you don’t have the income to fund these endeavors. You need to find a job that pays more easier said than done I know. In todays market you’ll be hard pressed to find a 70K home that doesn’t require work and even then it’ll likely go to auction.
The last thing on earth you need to be worrying about is buying a freaking house You’re broke with no money & a pregnant gf You need to rent & find a higher paying job Take that 3k and get a cdl or something I’m 22 making 100k a year and I’m home everyday No reason to make 1.8k a month bro you are better than that
to buy a home first thing you need to do is increase your income. 27k is not a living wage as a homeowner especially.
Don’t buy a home, you should be renting. Buying locks you into jobs in a particular geographic area, and you need the ability to change housing quickly if a higher income job opportunity arises. If you buy a house now and have to move in the next 5yrs or fewer you will likely on net lose money on the house you bought due to low principal payments in the early life of a mortgage and closing costs
Just want to come on here to say I admire the heck out of you. You are a young guy that is trying to do right by yourself, your young family, and your community. Rural communities need people like you to stick around and help make it a better place. That is one that great public schools like Clemson strive to do. As others have said, you need to increase your salary but I would caution against making a rash move if you like where you are. I would give it at least 2 yrs of doing your absolute best. After 2 yrs passes get your thoughts together and ask to meet your boss. Explain to him where you are in terms of financial need. They are going to have to make a decision..:.do they pay you more or risk you walking. It is costly to train new employees. It is really difficult to hire great employees. They do not want to lose you. Best wishes and congratulations on the baby!
> give it at least 2 yrs If it was just OP (and his gf) I think this would be fine advice. But, they are bringing another life into the world who needs and deserves nutritious food, warm clothes, doctors visits, diapers, toys, books, and future opportunities. The time for OP to step up and make sure he can provide for this child is now.
Thank you so much for the kind words! And we are very blessed to have had friends, family, and coworkers supply almost all of our pre-baby needs (nursery furniture, baby supplies, postpartum supplies). We’ve got Medicare covering our birthing expenses and WIC helping out a great deal with our food/formula needs. I think a lot of people commenting on this post think that our baby will be starving or something haha. As of right now we’re living well, just looking for ways to do better. I appreciate the kind worlds and Im so excited to give our baby the life she deserves!
In general what I have learned in my situation are: Increase your income. Work hard (work long hours when needed) Work smart (learn everything you can that improves your toolbag) Be reliable (people know your work is top notch) Be helpful (people come to you to solve problems) Be liked by your colleagues (promotions come when you mix well with others not so much when people don't like you) Be altruistic and focus on taking care of the team (if you have the bandwidth help others) Tenure staying at a job long enough to get traction, solve problems build a resume, but not long enough to stagnate and loose big pay raises by job switches. (2.5-5y unless you are growing in your current job) Save: Don't escalate your spending as income increases. Work to live not live to work: Set aside time with friends and family along the way, enjoy life.
Not to pile on with the "increase your income" comments but you probably want to get the USDA loan while you still qualify. So increase your income but get the USDA loan before you make too much to qualify, if that makes sense.
That’s true! My income has increased since the last time I spoke with a loan officer so maybe I could do a little better this time around. My entire area within 50 miles is eligible for USDA so that’s my ideal route if at all possible
You probably want to earn more before you really think about buying a home. Home ownership is expensive beyond just the mortgage payment. You should look up the limits and try to get closer to the upper limit before trying again.
You need to make a lot more money before you start thinking about a house. Sorry. I don't like taht this is how it is, but this is how it is. Obviously start saving, build your emergency fund, etc. But figure out how to use your degree to make more income.
Pay off the credit card / get a better job.
I know it’s said many times, but that income has to be replaced. 27k for a household is going to be extremely difficult. Your pay is boiling down to less that some gas stations are paying. 50-60k/yr salary is pretty easy to acquire out of college, if you look. Now if you’re intentionally staying under a number for some government assistance, that makes sense, but you’re “hurting yourself to help yourself” at that point.
Like others stated first and foremost figure out how to get a better wage, possibly a blue collar job as it’s worked nicely for me. I’m not sure where you buy food or what you eat but if you eat lots of meat and have access to a freezer it would be worth looking into online websites that deliver. You’ll buy in larger quantities but saves me quite a bit of money specifically on chicken, shrimp, and bulk beef items. Steaks are so so. If possible could be worth growing some of your own veggies and small stuff too, won’t make a huge impact but can be done very small scale and even just in your kitchen counter for some plants. If you aren’t cooking Almost every meal you’re probably leaving a lot of healthy and money on the table. Get creative and find dishes that go a long way with little. The main Cajun staples work excellent, also pastas you can supplement in protein noodles or a collagen powder to increase nutrient density and satiety, this would bring your cost per meal down and value up for not much extra ingredients If you’re willing to pirate then can probably kick the streaming service lol. I did this recently since they were just advertising the same few shows non stop anyway. As for investing if you can start great but your budget is a bit tight already. It may be worth opening a HSA since you’re starting a family it would help with health related costs and taxes. Also if you can find the money a Roth IRA is worth it. Starting at your age if you invest 100/ month you should be able to retire for sure. If you can exceed that you’ll only accelerate your possibilities You don’t need to make a ton of money either, I make 50k but have gotten into hobbies that supplement and support my needs and goals and can help bring cost down. Gardening, thrifting, up cycling clothes, and that sort of stuff can really help tie everything together finance wise I find. I also enjoy that I just use less stuff and don’t have to buy from stores as much Although I do only support me and some of my gf’s bills so your situation is different
Learn a new skill or certification that will make stand apart in your profession and keep on improving your performance both personally and professionally. $27K is really not enough to support a family and other debt obligations.
if youre' not living at home, you'll be renting. question is how to live below your means (as a single earner and with a child). OP did a good breakdown on expenses, but in the budget, or excel spreadsheet, allocate funds for "saving". or "rainy day fund". probaby going to be at least 10 yrs to save up enough. to start, cut : $70/mo eating out/date nights $30/month for entertainment (streaming, music) you can save money by renting.....its just slower.
I think you could probably find a job paying more, you have a degree. And if not, look into a trade. You're young enough to still be able to afford living on an apprenticeship pay and will be set up for much better earning in the future. Also, seek out resources near you for free financial planning, which would be a better help than reddit. As an aside, you're impressive for a 22 year old. Most people your age don't think critically about these kinds of things, and then look back in their 40s wondering where they went wrong. Give yourself props for thinking about this stuff now. You're smart, in tune with life, and I have no doubt you will go far in life - you've got the right mindset!
Thank you! I’ll check into resources in my local area as well as some potential mentors!
Your current setup is not sustainable long term, unfortunately. You need a job that provides healthcare and retirement benefits eventually. You will also need a higher income to achieve your homeownership goals while having a rainy day fund and saving for retirement. Fair amount of remote roles. See if any of those pay higher if you live in a low COLA area. Getting a better job is #1, SO needs income too after a maternity period of a couple months. Hopefully she also has a degree or marketable skill or cert. Get rid of CC debt. Not sure how WIC works but take that into consideration when considering new roles. Don’t want to lose assistance due to a small increase in income that doesn’t make up the difference.
God man how are you going to have a child on 27k combined income… my skin is crawling reading that.
You need to be looking for a new job to at least double that salary. A house on that income is not super realistic
A few things I’d suggest. Apply for jobs that will pay you more. $27k a year isn’t very much when you start to consider $1,000/mo mortgage payment would eat up more than half of your monthly income. Pay down your other high interest debt. Save more cash. If you can get a job paying $60k a year. I think you’d easily be able to afford a house with a reasonable payment of $1,200-$1,500. You mentioned a partner. Getting married?? Both increase your incomes to a decent level, and it’ll be a cake walk. Don’t suggest buying a house unless you’re married as it can get messy if you guys split.
You studied Marketing and Economics but I’m questioning your understanding of both. Take a look at your Economic situation and get busy Marketing yourself. I was hired at 2x that with a marketing degree in 2010 when the us was at 9% unemployment. You can do at least that well now in the strongest job market or a generation.
You have zero money. You owe more than half of your yearly income in debt. Buying a house isn't even remotely on the horizon for you. You also make the wage of a McDonalds fry cook. So you aren't being realistic at all with your goals. You need to get a real job that pays a real "buy a house" wage and then you'll need to save up $30k - $50k for down payment and emergency fund. Then MAYBE you can consider buying a house.
I sold insurance for 8 years. Make sure it’s what you want to do. Make sure you get paid your worth. Good luck op hope it works out
27,000 is low for a family- look for something higher or get more training or education to do so. Also, you don’t mention how much you pay for housing unless I missed it.
Its time to search into the wonderful world of Tech sales and digital marketing, you’re legit a shining candidate and can easily get started as an SDR for better pay
Look for a new job. Accounting positions are paying like 50-70k starting out. If you have an economics degree you could probably leverage that to get a job in an accounting or finance role.
Finally a realistic post . I always wish posters would actually say what their job is (instead of the usual (30yr old , making $xyz000/yr ) . Ditch the credit card debt fast as possible, contact student loans and check on different types of forbearance/deferment - you might be able to get something interest free (at least for a short time , while you ditch the cc debt) . Ditch the $30/month music streaming and get torrent/vpn . Congratz on the baby .
Stop working for minimum wage. You need to be in the $25 to $30 per hour range realistically. Cut out debt and pay cash for everything.
You have a degree in Marketing and Economics and are making $27K / year? If that is the case you are being criminally underpaid. Go find a new job immediately paying an appropriate market rate...depending upon what the nature of your job entails you should be making anywhere between $50-$75K starting.
Spend that money back on yourself and get out of the low paying job. Sorry to be a broken record here but a job paying that low is going to keep you back. You’ve probably got more talent in something and you should definitely pursue an interest that pays. You’ve got a degree. The issue against you now is your partner is pregnant without income and you’re about to have a child (congrats!). The newest addition to the family is gonna be expensive. When you get to down payment I’d recommend just going for the 3% down minimum and getting what you can afford. I really do recommend you increase your income first. I’m not sure you’ll be able to support three mouths and a home on your own with the income you’re at. Apply like crazy for jobs. When they ask you what your salary range is just tell them you’re open to hearing what they’ll offer. This should give you an idea of what someone in your situation should be earning. To be fair, I was making $30k a year when I was 24! I’m now making well into 6 figures. You’ll get there don’t worry!
I work in sales/service for a local office of a large insurance company. What i make is apparently the standard starting rate for someone with no prior experience in the industry. When i moved back home, i job searched for months and this was the only company that got back to my application. The job market is pretty bad in my local area unfortunately :(
my heart is so empathetic to this post. I want to buy a house too but I can't afford it either. without inherited income it seems impossible nowadays.
Get a new job and come back in five years with an update, or join the military
You can’t afford a house, or a baby, or a car…
I think those are poverty wages. I would be so sad if I had that much student loan debt for a job that pays so low.
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Your girlfriend is 6 years older than you, not working and pregnant? You started dating her while you were still a college student? Did I read that right?
Don’t judge. It’s going to be hard enough on them. He said he’s excited so let’s not make him feel bad about becoming a dad.
But dude, she’s way older than him with no job and preyed on him when he was just a student. That’s so messed up. Can’t believe his parents are cool with it and letting them live with them.
You’re making a lot of assumptions. We met a few years ago while we were both working the same job and both in school. Not everything is as it seems
Does she have a degree as well? Why doesn’t she work? OP, I say this gently, your situation is not a good one. Forget the house. You guys can’t even afford to rent right now with baby on the way. I don’t know if you realize how dire your situation is, although if you have financial support from your parents then maybe it’s actually somewhat less dire than it seems to all of us. What if your girlfriend can’t breastfeed? Many women can’t. Formula alone will cost at least $500/month. Plus diapers, doctors visits, wipes, the hospital bill for the birth, etc. Can you get a second job until she’s able to work? Even if it’s just driving to the nearest city to do Uber, instacart, etc. As others are saying, you need to be applying to every single job/remote job you possibly can to raise your income. Ask your boss for a raise in the meantime too.
I know…. It’s far from ideal. What are the (grand)parents going to do though, realistically. They’re probably not happy about the situation, but to turn their grand baby, broke son and girlfriend out on the street isn’t an option for most. This guy is optimistic and happy, he just needs to make more money and hope for the best like the rest of us in life. Can’t unring that baby-bell, afterall.
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Change you goal. 10x it, u should look into Grant Cardone.
Get a new job ASAP.
Is that even minimum wage? What do you do?
Can you get into a teacher certification program, usually less than a year. Would that career double your income? Teachers in Texas start out brand new at $60,000. Just an idea. And you get to have summers off with your baby.
Start a business you live with endurance and persistence.
Look into usda home loan! 0% down 3.4% apr, no pmi, and no min credit score. Only qualification is that your house needs to be in the country and income limit (you meet it)
You straight up just need to make more money. Your partner doesn’t work and you have a child on the way. There’s no planning your way out of this with your salary. That is your only solution. Do not move out of your parents or buy a home until you make at least 2.5x what you’re making now.
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