Figuring out what is best to do...

[Project84]

I was tossing the idea around of buying a Yaris sedan 5sp a while back, but then because of another idea, I put that on hold. The "other idea" is buying a house. Well, now I'm starting to get cold feet about that, but I'm still a renter and throwing away my money each month on $650 rent!! Yikes! I also have no garage and no where to put all my toys (shop equipment, welder, tool chests, air compressor) except in my basement where none of it gets used.

So. I'm indecisive. I want to do what is best for me LONG term. Like the rest of you, I'm ate up with MPG thoughts, so much so that my SCCA race car is sitting this season out because I don't want that interrupting my focus (or adding to my expenses) on impriving MPG and my way of life.

How is the economy related to buying a house? I mean, let me just tell you, I'm 22 years old, self sufficient, but I don't have all the "real-world experience" that I might need in deciding on bigger topics like this, because I just simply don't know enough about it.

Where I'm at in my life is:

I have a chunk of money saved up, we'll call it "X". I planned on saving until I had X in the bank, then finding a home. My daily driver gets roughly what you see, 25mpg average w/ lite mods, more planned. I only drive about 9k miles per year so my fuel expense isn't much really right now. Would you guide me to lean more towards shopping for a house, or taking that X that I have saved, and buying a more fuel efficient and reliable car. My DD is the '96 Saturn w/ 139k on the odo. and showing lots of signs of maintenance needed. Shocks/struts, springs, rear suspension rust/torn bushings, valve noise from engine, oil consumption (getting past rings) is a quart every 400 miles.

What would be the best compromise? Buying a newer but USED car that gets better FE? Like finding a used Echo (sibling to the Yaris) or Honda? Then save back to to hit X again and THEN look for a house?

This is just a scary-huge decision I'm on the verge of. At 22 I'm unaware if I'm ready to be a homeowner, but I know after living on my own now for 3 years that I'm ready to stop wasting money on rent, and I have a secure job that I'm semi-happy with and I'm in college part time trying to better myself.

Sorry for such a big post... just feeling a bit of stress and wanting to ask kindly for some helpful input from good people like yourselves. I'd ask the same question over at my F-Body forum (Camaro/Firebird enthusiasts) but I'd get flamed beyond belief!

-John