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Old 03-01-2007, 04:33 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,987,139 times
Reputation: 991

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Seems like everyone has their own ideas. My formula is different for single people, partners and families. Did you know it can cost around $15k a year to raise a child? Google that

Single person, single annual income:

under $18k, spend under $20k on house
$25k, spend $30k to $50k on house
$30k, spend $36k to $60k on house
$40k, spend $50k to $90k on house
$50k, spend $65k to $115k on house
$60k, spend $80k to $150k on house
$80k, spend up to $240k on house
$120k, spend up to $400k on house
High income, spend up to 4x to 5x on a house.

If you have dual incomes, subtract $15k of house for the same income because there are two people with two expenses! Deduct another $15k each child you have. If a household with 2 children make $60k a year, spend up to $105k on a house. Probably less depending how much money is left after all the expenses. The only expense that doubles is food and cloth because you share the utilities and prop. taxes and insurance is the same still.

The higher your income, the higher percentage of income you can spend on a house because after food, cloth, gas, utilities, taxes youll have plenty money left. My guidelines are "safe" and following them will reduce your chance of ending up foreclosed or being "house poor"
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Old 03-01-2007, 05:08 PM
 
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I have 2 teenagers, and while they cost me a lot, they in NO WAY cost me $15,000. a year!! I would be living in a box if they did!
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Old 03-01-2007, 05:50 PM
 
1,775 posts, read 7,345,566 times
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NAH....I have one daughter and i spend no where near $15,000 on her in a year. How do you come up with that figure anyway? Do you have a breakdown of the costs? I'd like to know to compare myself to it?

And how do you figure the higher the income, the more money you'll have. I don't know about you but working at home like me, I have to pay in double the taxes from my income which for me is 30% of my pay just to cover both SS and Medicare. If you add my husbands income, that puts us in the higher tax bracket as well so still we pay out more taxes.
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Old 03-01-2007, 06:16 PM
 
Location: NE Florida
9,362 posts, read 22,794,597 times
Reputation: 9286
Nah- In a previous post you cited the cost of 18k per child. Now you say 15k- 16% less....and you don't even have any children. Childcare costs alone can vary from 10k for an infant to nothing for teens. And the expense for "cloth" would depend on if you have two boys (hand me downs) or a boy and girl. And the eonomony of scale in having five children vs. one would be a factor, as well. This is just not your area of expertise and it colors our reliance on other things that you state as fact.

The information that you provide is, for the most part, derived from your virtual life. Get a camcorder, go to Oil city. You are like someone who has learned a foreign language by reading books. Once you get to the country where it is spoken, nobody can understand you.

And, BTW, it's CLOTHES, not CLOTH.
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Old 03-01-2007, 06:21 PM
 
Location: Spots Wyoming
18,696 posts, read 36,433,176 times
Reputation: 2147483647
I have a very simple formula, but lets set some ground rules. haha

First, do not get a loan that vary's. Get a fixed rate. You can always refinance later if interest rates drop. But at least with fixed, you will know exactly what your payments are going to be.

Secondly. Figure out your bills. Credit cards, car payment, insurance, utilities, and such.

Here's the formula. Monthly income 1/3 goes to bills. 1/3 goes to morgage. 1/3 is left over and not designated for anything.

This allows for entertainment. It allows for a new tricycle for xmas. This allows for savings and investing. It leaves you a buffer.

I also realize that this is not reasonable for some. But it's safe.
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Old 03-01-2007, 06:24 PM
 
1,775 posts, read 7,345,566 times
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Quote:
Originally Posted by jgussler View Post
I have a very simple formula, but lets set some ground rules. haha

First, do not get a loan that vary's. Get a fixed rate. You can always refinance later if interest rates drop. But at least with fixed, you will know exactly what your payments are going to be.

Secondly. Figure out your bills. Credit cards, car payment, insurance, utilities, and such.

Here's the formula. Monthly income 1/3 goes to bills. 1/3 goes to morgage. 1/3 is left over and not designated for anything.

This allows for entertainment. It allows for a new tricycle for xmas. This allows for savings and investing. It leaves you a buffer.

I also realize that this is not reasonable for some. But it's safe.
right and that 1/3 you spend on your mortgage includes your kids bedroom, that 1/3 you spend on bills includes your kids living there. I don't think it makes a huge difference if you have kids in the home or not. Those 1/3's are going to be the same with kids or not.
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Old 03-01-2007, 06:30 PM
 
Location: Spots Wyoming
18,696 posts, read 36,433,176 times
Reputation: 2147483647
Quote:
Originally Posted by daniellefort View Post
right and that 1/3 you spend on your mortgage includes your kids bedroom, that 1/3 you spend on bills includes your kids living there. I don't think it makes a huge difference if you have kids in the home or not. Those 1/3's are going to be the same with kids or not.
Yup. That's true. I think the people that come up with the statistics figure in everything to come up with that $15k figure. For instance: A couple, no kids, only needs 1 bedroom. With one kid, you now need two bedroom

So half the rent, plus, 1/2 the heating bill, plus half the groceries, plus.... You get the picture. That, I could see, may justify the figures.
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Old 03-01-2007, 06:31 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,987,139 times
Reputation: 991
Look up google "cost of raising a child" and use the calculator. There is the basics like food, cloth, shelter and medical. You also will want to give your child an education, toys, shopping and entertainment. That costs plenty of money. The more you spend, the happier your child will be. You could go cheap and give him nothing except the basics. My parents spent a ton on me, my brother and sister so we would not be bored and miserable. Its the right thing to do. You want children, your gonna have to attain to their needs with money, time and love. If this means you have to make sacrifaces like not being able to get your dream house then be it. You have the responsabily that your children come first before "must have this house"
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Old 03-01-2007, 06:38 PM
 
1,775 posts, read 7,345,566 times
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[quote=Need_affordable_home;416898] The more you spend, the happier your child will be. You could go cheap and give him nothing except the basics. My parents spent a ton on me, my brother and sister so we would not be bored and miserable. Its the right thing to do. QUOTE]

What the heck does spending a ton of money have to do with having happy children??? I thought it's the little things that matter in life not what you have to show for it. wow, you hit a touchy spot for me but not taken to heart by all means especially from you. My gosh i have a blind child who doesn't have half as much as other kids though i wish she could but anyone who meets her will tell you she's the happiest person in the world. So now at least we all know how the adults who expect everything handed to them were brought up as a child.

By the way, i did google cost of raising a child (the very first site that came up) and middle class statistics showed $9702 for a 14 year old and that included all aspect down to clothing, childcare and cost of living in general. Oh and before you ask, I don't get SSI for my daughter to assist with her living expenses.

Last edited by daniellefort; 03-01-2007 at 07:52 PM..
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Old 03-01-2007, 07:00 PM
 
2,833 posts, read 9,784,003 times
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Hey, look at it this way, Oprah grew up in poverty, and look how good she turned out.
Paris Hilton, well Daddy spendt and still spends a lot on her and where is her life going???
Money has nothing to do with happiness.
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