Reply to Buyers can't have it both ways

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[quote=Anonymous]This is why I always say that young people should be more focused on saving for life than saving for retirement.  Mainstream advice tells people to contribute to their retirement accounts from the day they get their first job because of compound interest and blah blah blah, but that’s how they end up in these types of situations. Oh, you’ve contributed 20% of your income to your 401(k) since age 22?  Congrats, now you can’t afford to do some basic repairs so you don’t hate your house.

Young people should first save one to two years of living expenses in cash (the traditional 3 to 6 months is absurdly low). Then, if they want to buy a house, they should save a 20% down payment plus an additional amount for closing costs, the inevitable repairs that always come up, and some cheap furniture (I’ve seen new homeowners who spend all their money on their house and then have to leave it unfurnished for two years).  After you’ve done that, THEN start contributing to your 401(k).  Or just don’t buy a house if you value your 401(k) so much.[/quote]

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