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Old 05-05-2017, 05:24 PM
 
Location: North Carolina
3,446 posts, read 5,775,538 times
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Hubs and I are weeks out from moving to NC from Fla. Currently salary is $70k with $25k+ in savings and a potential $9k more coming when he leaves his current job. He's switching career paths into finance so we are taking a huge paycut back to $43k. Its not a permanent cut and have the potential to make nearly the same amount he is now in a year or two at the most. Being completely honest we live very comfortably and I've not had to work and not had to actually watch my spending for treats and such. I know that is all about to change and I am perfectly ok with that. I would like some tips/advice from some of the experts here on how its done. Any and all suggestions welcome. I feel a bit nervous about the cut and the fact that I have to go back to work but I'm also excited to finally have the capability to use my culinary degree.
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Old 05-05-2017, 09:33 PM
 
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I'd start by living like the salary was only $43K now. Figure how much $43K is minus taxes. That is what you have to work with. Figure out your living expenses and sock the rest away. There may be a differential in the cost of living. It's not too early to start living within your new means.

I don't know what all you are moving or own. I'd take a long hard look at what you own and whether you really need in your new place. Don't pay to take junk. Keep in mind it is sometimes less expensive to replace something rather than to haul it. If you don't have as much stuff, you can live in a smaller space

Good luck on your move and new adventure!
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Old 05-06-2017, 10:43 AM
 
Location: Las Vegas
13,447 posts, read 24,247,153 times
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Quote:
Originally Posted by Sarahsez View Post
I'd start by living like the salary was only $43K now. Figure how much $43K is minus taxes. That is what you have to work with. Figure out your living expenses and sock the rest away. There may be a differential in the cost of living. It's not too early to start living within your new means.

I don't know what all you are moving or own. I'd take a long hard look at what you own and whether you really need in your new place. Don't pay to take junk. Keep in mind it is sometimes less expensive to replace something rather than to haul it. If you don't have as much stuff, you can live in a smaller space

Good luck on your move and new adventure!
I agree. Start now. And extra savings can just be your emergency fund!
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Old 05-06-2017, 10:54 AM
 
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That's good that you have savings plus a nice bonus coming. Those will help to make up for any shortfall while your husband is establishing himself over the next couple of years. Even if you don't need to use them, they should bring you peace of mind just knowing they're there.

If online calculators are correct, your husband will be bringing home a little under $2,800 per month. While that's not a lot of money, it should be enough to pay for the basics and then some.

Housing needs to be chosen very carefully. Hopefully you've posted on the NC forum so locals can help steer you to good but cheap areas. In your position, I'd go as small and cheap as possible initially, but of course in a good, safe location. You can always move to something larger once your husband is established.

You might want to track your current expenses. By that I mean write down everything that you currently spend. That way you'll know exactly where your money is going and it will allow you to see where you can cut back.

Having a culinary degree puts you ahead of the game. Cooking at home is so much cheaper and better than eating out. If you don't now, start looking for the best prices at local stores. Unless you have been paying attention to food prices, the odds are you will be able to save a lot simply by shopping sales.

The best thing is that you recognize that there will have to be some changes in spending. Some people never figure that out and go on spending as if they are making their old, larger salary.

Good luck with the move.
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Old 05-06-2017, 12:42 PM
 
Location: The Triad (NC)
26,897 posts, read 58,020,547 times
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Quote:
Originally Posted by Sweetbottoms View Post
Hubs and I are weeks out from moving to NC from Fla.
Currently salary is $70k ...we are taking a huge paycut back to $43k. I
I would like some tips/advice...
Open your 2016 Federal Tax Return.
Do it over again using $43,000 as gross (and a lowered withholding).
See how the dependents, exemptions and maybe even EITC will play out.

Then plan from this lower net income level 12 mos (or 52 weeks).
When you look for a home/apt to rent try to keep your monthly costs low.
Low enough that one weekly check is enough to cover the monthlies (rent, utilities, etc)
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Old 05-07-2017, 12:14 PM
 
Location: North Carolina
3,446 posts, read 5,775,538 times
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Thanks guys. We ALWAYS rent according to what one check can cover. We currently own one car and are 3 years into paying off our second. No credit card debt and only 1 student loan with less than a $200 mo. payment. Other debt is standard electric, water, rent... Out side of that we don't spend beyond our means. That being said we do like to spoil ourselves and don't think twice if I want a shirt somewhere or hub needs new shoes etc. I know that will have to change. We are moving across the country so I definitely want to make sure we have that $25k net we've saved and not tap into that too much because we'd like to buy a home next year . I'm going to go over these comments and implement your tips! Thanks!
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Old 05-08-2017, 03:37 PM
 
Location: Charlotte Area
73 posts, read 47,008 times
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Also wanted to add you want to be really careful in adding any new debt with homeownership on the horizon for next year. The good news is that overall standard of living is fairly affordable in the area, property taxes are less than Florida - but you'll have to get used to state income tax when you move.

Most loan options will look at prior 2-year income, although there are some that look and underwrite with 1 year if credit is strong etc.

Bottom line, I agree with the advice others have given about adjusting early, but by all indications, you and your husband police yourselves pretty well in terms of credit already :-)
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Old 05-12-2017, 10:28 AM
 
Location: North Carolina
3,446 posts, read 5,775,538 times
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So we figured out my husband is getting a very large pay out from his job for all his vacation time (over 500 hours) and his sick time, nearly a $10,000 check for PDO and another $2000 for sick. We've decided to simply stash the cash away and allocate $1000 of it each month towards rent from both checks. That leaves rent (or nearly all but a few hundred $) saved for an entire year. We will be able to stash away $400-$500 a month from any checks my husband gets and nearly all of my checks I would get working.

I believe this would significantly impact our savings and give us a boost for even more down on a house later on, lowering our mortgage hopefully. We figure it was money we didn't have anyways so we may as well put it towards rent (which has become a source of stress with the lowered income) and take that completely off our backs, leaving a lot more free income to save. The trick will be to see if we can save up more than the amount $ we are setting aside to do this. I feel confident with both of us working we can.
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Old 05-12-2017, 08:13 PM
Status: "I am in preparation mode!" (set 13 days ago)
 
5,515 posts, read 5,514,151 times
Reputation: 4212
Quote:
Originally Posted by Sweetbottoms View Post
So we figured out my husband is getting a very large pay out from his job for all his vacation time (over 500 hours) and his sick time, nearly a $10,000 check for PDO and another $2000 for sick. We've decided to simply stash the cash away and allocate $1000 of it each month towards rent from both checks. That leaves rent (or nearly all but a few hundred $) saved for an entire year. We will be able to stash away $400-$500 a month from any checks my husband gets and nearly all of my checks I would get working.

I believe this would significantly impact our savings and give us a boost for even more down on a house later on, lowering our mortgage hopefully. We figure it was money we didn't have anyways so we may as well put it towards rent (which has become a source of stress with the lowered income) and take that completely off our backs, leaving a lot more free income to save. The trick will be to see if we can save up more than the amount $ we are setting aside to do this. I feel confident with both of us working we can.
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Old 05-16-2017, 11:35 AM
 
Location: Bella Vista, Ark
69,386 posts, read 79,598,441 times
Reputation: 38711
Quote:
Originally Posted by Sweetbottoms View Post
Hubs and I are weeks out from moving to NC from Fla. Currently salary is $70k with $25k+ in savings and a potential $9k more coming when he leaves his current job. He's switching career paths into finance so we are taking a huge paycut back to $43k. Its not a permanent cut and have the potential to make nearly the same amount he is now in a year or two at the most. Being completely honest we live very comfortably and I've not had to work and not had to actually watch my spending for treats and such. I know that is all about to change and I am perfectly ok with that. I would like some tips/advice from some of the experts here on how its done. Any and all suggestions welcome. I feel a bit nervous about the cut and the fact that I have to go back to work but I'm also excited to finally have the capability to use my culinary degree.
hubby took a pay cut twice: one time it worked great, the other it was a nightmare. The first time kids were young, we had a small mortgage and he was somewhat changing directions: he was going from print media into PR. I am talking many years ago. We didn't have to do too much adjustment in our life style, just a little more fugal with grocery shopping and a little less entertainment. The second time he did this was a "must do" it was years later, the kids were elementary and high school age ant no matter how hard we tried to cut back, there were kids activities, a life style they were used to and certain obligations. It also meant relocating to an area we were totally familiar with. We had to totally change our living habits and the kids suffered. The only positive thing: it was a pretty depressed area so many kids didn't have any luxuries at all. Still it was hard and we found ourselves deep in dept. Just be careful and understand there are adjustments to be made.

YOu can do it, enjoy and have fun with your new life.
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