I think I may be overly focused on savings to my own detriment.

[Indiana_Rizzler]

So as a quick breakdown: I have $48,000 saved up but I only make $45,000. My rent is $575 a month + electric. Just started my 401K a little over a year ago so not much there. So everything is great for now, but I just feel like if I ever wanted to move to a nicer or more expensive apartment, with my earnings I'll barely be scraping by. I know I'm "supposed" to buy a house but the idea of going into debt for it makes me feel so uncomfortable, I've never been in debt my whole life. 

Aside from that I find myself pushing back big purchases further and further because I have this goal to reach $50,000 saved up. I've been pushing back getting a new mattress to hit the goal and my current mattress is terrible. I've also been forgoing buying a new PC so I can run some software for career development purposes. 

I just feel like I could be putting my money to better use

[Batya33]

I recommend the book Stacked by Birken -one of the co authors I recall the name.  Also how old are you? Of course you don't have to buy a house. I've been investing my money with the help of a financial advisor since around 2003.  I also had a 401(k) when I worked full time (I am 58, I work part time).  If I were you I'd keep saving and buy what are necessities - a PC for career development purposes qualifies IMO.  I took a chance a few years ago and bought a refurbished business level Dell laptop recommended highly -and spent over 1,000 less.  Despite being refurbished it runs beautifully and I did it with purchase protection via Amazon. 

I recommend you speaking with a financial advisor at your bank and figuring out next steps.  Again it's not essential to own a home. I never have and am thrilled not to despite being able to afford to buy a lovely and large home on my own if I wanted. I do not want to.  

[ShySoul]

You don't have to buy a house. For many people it's actually not a reality they can afford. Depending on where you live, prices may be too high and putting yourself in debt over it may not be the best call for you to make.

Speak to a financial advisor. Figure out what your goals are - short and long term. Then work out a budget and plan to get you there. 

Also that you are thinking abot this is a good sign. You are taking it seriously and aren't likely to waste money on frivalous things. But know it is also good to splurge every now and again. If you need a new mattress, get the mattress. You shouldn't feel the need to give up essentials just to hit an arbitrary goal (and mattresses are essential). 

[yogacat]

I purchased my first house on my own in my thirties, best decision I made, I rent it out now and it is a source of passive income. If you're not comfortable with real estate, find something that can bring passive income in.  $50k is a milestone, ask yourself what you would do with the money beyond the $50k goal, if nothing then put it towards something that can bring passive income. Making money passively allows you to focus on other important things in your life. Don't feel bad about needing software for your business, embrace it as you are spending money on your career development which will pay off in the long run.

[Kwothe28]

20 hours ago, Indiana_Rizzler said:

I just feel like I could be putting my money to better use

Lots of it depends on the needs. For example, I have some money saved now, and was thinking about buying some upgrades for my older computer. But the current one I have is enough for my needs. I dont play new computer games nore do I have a lot of time for them. And I dont do "software heavy" work to need a better one. So I will invest that money in my home instead. 

And I would recommend for you to look at it in that way. You need better mattress because your body would be more relaxed not to mention that you wouldnt probably have health issues because of bad mattress. You need a new computer because you, unlike me, need better one so you could run software heavy stuff and maybe advance your career. So, I would look at that stuff as "investment" and not as something you would waste your money for. Yes, saving and buying a home is great. But that doesnt mean you shouldnt spend your money if you need to and if it would bring you great benefit. Whether financially or just overall to save time or even for your health.

[Cherylyn]

You can still save for a house while buying a PC and a mattress.  Consider the PC and mattress as investments toward your house meaning,  you're preventing a sore back and the PC is a source of income towards your work and job. 

We rented an apartment for two years and then a condominium for one year.

I've been a homeowner for a long time.  My husband and I bought our starter house while still in our 20s and moved up several times thereafter. 🏚️ 🏠 🏡 🏘️ Had we not invested in real estate back then,  we couldn't afford to get into the housing market today.  We were lucky to have bought our house years ago otherwise we would've had to buy a house faraway from coveted,  affluent areas.

[shouldhavelearned]

In my opinion, the younger you max invest the better. It helps to set you up for an easier future.

Like mentioned above, passive income and reading about the variety of ways to safely invest are key.

Make your money work for you and not the other way around.

[TeeDee]

Buying things you need to improve your life is not frivolous.  Get the new mattress & the new PC.    If you sleep better, you will be more productive.   The PC will help you be more efficient. 

While saving is good, you do need to have some fun too.  I have what I call a "fun money" account.  It rarely has more than $1,000 in it but when I want to do something silly or extravagant, the money comes out of there.  It helps me to not feel deprived.