Thursday, September 9, 2010

$40k in bank, $80k/yr, $20k debt. What can and can't I do?

I have about $40k in a very safe, short-term investment right now. I don't work, and have no credit. I do occasional free-lance stuff and am planning on more of it, but wouldn't count on more than $1k/mth for a while.



My fiancé has a secure job; $80k/yr, and about $20k in debt. Nothing too unusual.



Can we buy a (mediocre) car and $200k house?



I'm after 'quality of life,' rather than a good investment. There are cheaper houses, but I'd rather keep renting than buy something too small. Getting a less-than-ideal deal on a mortgage is not a big deal. The car, given where we'd move, is a necessity.



Should we stick with the rented apt, pay off the debt asap, and forget the house and car for the moment? I am horrible at saving, so there's a lot of appeal in even a lousy mortgage. There is enough in the bank for the expenses of a new home, though. (Current rent is $900.)



How realistic is a house & car right now, if 'quality of life' is the priority over $?



(NB: in Canada.)