U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-03-2019, 10:54 AM
 
Location: Dallas TX
15,022 posts, read 21,719,486 times
Reputation: 22165

Advertisements

My husband and I are debating how to best move forward. He has had a tumultuous few years of employment causing us to go into a tailspin of debt. We now (knock wood) seem to be stable.

We currently own our home, absolutely love it. We put it on the market and stand to make approximately $70k if we sell. We had a couple of offers who pulled out at inspection so we took off the market temporarily to fix a few things we didn't realize were in need.

If we sell, we'll be completely out of debt with the exception of our car payments.

Now we are having sellers remorse. We are currently looking to refinance to see how low we can get our mortgage. With insurance, mortgage and taxes we are at $3900 a month. Our credit card debt is $1100 per month.

If we move, we'll rent, houses around here are $3000 a month average.

We gross $13,750 monthly.

Thoughts? Advice? Need further info?
Reply With Quote Quick reply to this message

 
Old 06-03-2019, 11:42 AM
 
Location: The Triad (NC)
28,482 posts, read 62,084,629 times
Reputation: 32131
Quote:
Originally Posted by veuvegirl View Post
We gross $13,750 monthly (or $165,000 annually).
How much of that are you putting into the Save/Invest accounts?
At 15% of gross... well, $25,000 can do a lot.

Quote:
We currently own our home, absolutely love it.
We put it on the market and stand to make approximately $70k if we sell.
okay... but where will you live?
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 11:49 AM
 
Location: Dallas TX
15,022 posts, read 21,719,486 times
Reputation: 22165
Quote:
Originally Posted by MrRational View Post
How much of that are you putting into the Save/Invest accounts?
At 15% of gross... well, $25,000 can do a lot.

okay... but where will you live?
Right now we are putting a very small amount into savings, which we blew through when he was not fully employed these last three years. The only investing currently is our 401K.

If we move, it would be nearby until my daughter finishes high school, which is in a year. Essentially we would save about $1k a month because we'd have no debt.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:05 PM
 
2,497 posts, read 1,423,359 times
Reputation: 5192
How old are you both and how much is in the 401k

The more honest you are the better the answers will be
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:12 PM
 
Location: The Triad (NC)
28,482 posts, read 62,084,629 times
Reputation: 32131
Quote:
Originally Posted by veuvegirl View Post
We currently own our home....
Do you use this financial literally or is it just a euphemism?
If you actually do own... stick with it and pay down the other debts @+/- $20,000/yr.

Quote:
Right now we are putting a very small amount into savings...
With a gross of $165,000 DO MORE.
This is so whether you own or not or rent or not.
The rest is about how you budget your income.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:20 PM
 
Location: Dallas TX
15,022 posts, read 21,719,486 times
Reputation: 22165
We are definitely financially strapped. We don't own the home literally.

I am 51 and only have $80k in my 401k

My husband is 56 and has $30k

We definitely need to do a better job budgeting, we have been horrible. I now feel like we are on solid ground that we need to do something more savings. That's why we put the house on the market, get ourselves fully out of debt. If we do sell to get $70k in our pocket, we can pay everything off and invest/save $20k
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:20 PM
 
Location: Vienna, VA
290 posts, read 153,185 times
Reputation: 337
Keep the house if you like it; selling, renting and buying again will easily cost you $20k between fees and moving costs. You make enough where you can tackle that CC debt within a reasonable amount of time. What are your car payments like? That would probably the first thing I would get rid of depending on age/equity/payments.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:28 PM
 
Location: Dallas TX
15,022 posts, read 21,719,486 times
Reputation: 22165
Quote:
Originally Posted by 22003yo View Post
Keep the house if you like it; selling, renting and buying again will easily cost you $20k between fees and moving costs. You make enough where you can tackle that CC debt within a reasonable amount of time. What are your car payments like? That would probably the first thing I would get rid of depending on age/equity/payments.
We have one car payment for $200 a month, but do need to purchase another car.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:29 PM
 
Location: Dallas TX
15,022 posts, read 21,719,486 times
Reputation: 22165
I'll also should mention we are looking to re-finance which will hopefully save us some money.
Reply With Quote Quick reply to this message
 
Old 06-03-2019, 12:38 PM
 
2,497 posts, read 1,423,359 times
Reputation: 5192
Quote:
Originally Posted by veuvegirl View Post
We are definitely financially strapped. We don't own the home literally.

I am 51 and only have $80k in my 401k

My husband is 56 and has $30k

We definitely need to do a better job budgeting, we have been horrible. I now feel like we are on solid ground that we need to do something more savings. That's why we put the house on the market, get ourselves fully out of debt. If we do sell to get $70k in our pocket, we can pay everything off and invest/save $20k

Sell the house and downsize your life significantly. Get the debt paid and dump your payments into investment accounts. You have the income to fix this assuming you get serious about it but fact is you're well behind given the income.

That means you've had debt issues in the past and I promise you're not alone. Many people with decent incomes get caught in the spending trap. Anyway, keep the credit cards at home, don't buy expensive cars and once they are paid off drive them until the wheels fall off and take that payment and invest.

Now is the time to reduce your expenses and get that side of the budget in order so you can have enough to not be forced to work you're entire life. There is time but you'll need to be aggressive in both your savings, cost cutting and investments.

You should also look at your 401k investment options and ensure you're getting a decent return and not stuck in some low return fund that you barely looked at when you signed up 30 years ago.

Some napkin math for you.

Check with social security, get your estimated benefits in today's dollars, spouse can claim the larger of their own or 1/2 spouse to family max.

Then take what you're spending now monthly, subtract that social security benefit. This is your monthly retirement shortfall. Multiple by 12 for yearly shortfall and then Divide that number by .04. That will give your a rough idea of what you'll want in retirement accounts

You'll reduce some expenses, you'll actually want to have a bigger nest egg than that at current spending, surviving spouse will only take the larger of the two benefits at death etc but in the end it's just some spitball math you can do in a few minutes to show you roughly where you'll want to be.

One thing to keep in mind is most people generally don't reduce expenses as much as they plan. Not even close. You'll have no work and more play time and unless you sit in front of the TV or post on city data all day you'll have much larger entertainment, hobby and travel expenses which will eat up a lot of that savings from debt hopefully being paid. Higher earners tend to have more lavish desires, but also have the means to cut back more if they're personalities allow for it. You can play with the numbers but you have to be reasonable in what you can actually do.

Posted on mobile

Last edited by aridon; 06-03-2019 at 01:19 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top