The Personal Finance Podcast Should You Buy a House Now or Wait it Out? (Money Q&A)
May 21, 2025
Explore the current housing market's complexities, weighing the pros and cons of buying a home now versus waiting. Discover key budgeting strategies, like the '20-55 rule,' and gain insights on homeownership costs beyond just the mortgage. Delve into the importance of maintaining a solid credit history and effective financial management. Plus, examine a cautious approach to investing in Bitcoin, discussing institutional adoption and smart investment techniques. Tune in for essential tips to navigate your financial future!
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Effective Budget Breakdown
- Aim to save at least 20% of your income for your future through retirement or investment accounts.
- Allocate around 55% for baseline expenses and 25% for things you enjoy, adjusting based on your goals.
Backdoor Roth IRA Strategy
- Use a backdoor Roth IRA to invest if your income is too high for direct contributions.
- Contribute non-deductible amounts to a traditional IRA then convert it to a Roth IRA, preferably using easy platforms like Vanguard.
Smart Car Buying Tips
- Avoid spending all your savings on a car; maintain emergency funds separate from depreciating assets.
- Put at least 20% down and aim to pay off car loans in 3 to 4 years to avoid perpetual payments.