What is the cost of living in USA?
I live in Scottsdale, Arizona, USA. I'll give you the price comparisons with what things cost me:We rent a small 3 bedroom house for $1450/month. This is cheap in our area.Our electricity bills averaged over a year are about $200/monthOur internet is bundled in with our cable TV service. $145/monthWater bill is around $40-50/monthAn average health plan costs around $150-$200/month for one person. The details will vary but usually the deductable for that plan is around $5000. That's what you have to pay out of pocket before your coverage kicks in. Then it is usually 60%-80% of the bill is covered.Minimum wage for a 40 hr/week job is $16,120 yearlyAverage cost of a private college education is $31, 231/year What's the Price Tag for a College Education? As you can see, everything is more expensive here.
How do people afford $150,000 for a down payment on a house in the San Francisco Bay area? Do parents and relatives chip in? Does an FHA help reduce the down payment required?
To get together the down payment for a $800K home, which is about the entry point in early 2016 for the San Jose Bay Area, you should change your thought process and it'll get much easier. Rather than try a brute force attempt to save up $160K, you should break the process up into manageable steps. (BTW, plenty of people work in two income households and earn over $300K a year, allowing them to save $50-100K per year. That's how they can afford $800K homes as first time home buyers. Of course, those tend to aim even higher and buy $1.5M homes.)When you live in an area that has such high home prices and high appreciation rates, saving for an ever increasing downpayment is tough. And, I strongly advocate avoiding an FHA loan. Rather, an easier way is to save up $40K and buy a small condo for $400K at 10% down. (A few years ago when prices were about half, I helped some buyers start with about $20K.) After a few years, you can trade up your increased equity to a $600K townhome along with another $20-30K in savings. Do it again in a few years to a $800-900K homes and you're there, having saved only $80-100K total in 5-6 years. You get to leverage all the tax free gains as a homeowner. It's quite a sweet deal.EDIT (2-24-16): Based on the comments about the anticipated appreciation rates, I want to re-iterate that I'm assuming Bay Area home prices will continue to appreciate given the current dynamics. If you don't agree with that assumption, then the logical choice is to continue saving until you've put together the downpayment. Of course, who knows how long the current appreciation will last before the next correction. Still, for those home owners who are able to hold on for at least 5 years, buying a home in the Bay Area (in particular the peninsula and south bay) has not been a losing proposition for the past 40 years.
How can I become a billionaire?
The first thing that you have to realize is that anyone can become a billionaire. It doesn’t require innate talent, superior genetics or whatever else you may believe.The following information is derived from The Millionaire Fastlane by MJ DEMARCO:The first thing that I want to clarify is that the same tactics, and strategies can be used for becoming a billionaire.There are only 3 types of people in this world.Side-Walkers : They are people who go through life without any financial planning, and never really think. They are always desperate for that one lottery ticket that will change their lives. This is the ultimate LOSER mentality. This is the one path that will lead to poverty.2. Slow laners : They do not take the optimal approach as they sacrifice the best years of their life in order to live with safety and in comfort later on once they retire. They are usually middle class individuals. They can be defined as mediocre, who will always value money above everything else. These people will definitely be better off than Side walkers, but they WILL not become Billionaires.3. Fastlaners : They are individuals who create a product or an idea, in which they invest time once in their lives, and continue to draw benefits from it. they value their time more than money. These are the people who will DEFINITELY succeed in their lives, and become self-made billionaires.Tips to become a Fast Laner:Dump Hope as a financial plan. Don’t rely on the stock market to go up, or don’t hope to win the lottery.Make Time your Ally. Have patience. Remember that Patience is a virtue.Tangible Value Creation - It is a source of income that doesn’t require your existence to grow, and to make numerous sums of money. It can be a podcast, e-book, or an idea.Don’t chase money. Strive to meet people’s needs, and you’ll be on your path to become a Billionaire.Always plan all the way to the end.Reinforce your walls, and have many options that you can considerSummary:Need : You need a business that offers what people needEntry : Know the risks of being an entrepreneur, and that this is not going to be a piece of cakeControl : Be your own man! Don’t let anyone fool you into giving up on your dreams.Time : your idea or invention should exist on its ownI hope that this answer will help you to become a future billionaire. Thank you for reading this answer. I really appreciate it :)