Should I be freaking out.... (rent, credit, home)

[deeds]

can you explain what this is and where can i find out more information....thanks

[davenj08]

i kinda agree with you azwildcats70. we are in the same boat - planning to buy a house and one of our salaries would go in home payments (mortgage + tax + homeowners insurance). after all other expenses (grocery, life insurance, commuting, maintenance and miscellaneous) we will be left with about 1500-2000 from the other salary and i feel that is scary. we both max out our 401k but just the idea of saving less then 20k in cash on hand every year seems a little too less. maybe i am being over conservative, but give the market conditions being conservative seems sensible.

[Lusitan]

Originally Posted by azwildcats70

Just realized today that our monthly mortgage payment is going to be my entire salary. My hubby's salary will be left over and he makes 20% more than I do... but, THAT'S SCARY... RIGHT?

Well, if you aren't planning on leaving the workforce anytime in the near future, then I suppose you are still better off than many people who overstretched these days - there are people who have a mortage that takes up 100% of one salary plus some of the other salary ...

At least you will be able to fall back onto your husband's salary if you lose your job (although, it doesn't sound like that would leave you with much left over).

Best thing you can do is make sure you have 6 to 12 months of monthly living expenses (included mortage payments) saved up in a safe account (savings or CDs) to use as an emergency fund if either of you lose your job. That should be enough to tide you over until you replace the lost income. Don't worry if you don't have that money saved up yet - just work on saving it up month by month until you reach that level.

Good luck, and good for you to be thinking this through ... many people don't which is why we're in the mess we're in today.

[Tungsten_Udder]

Originally Posted by azwildcats70

No, that's total house payment... mortgage, homeowners and taxes.

I keep trying to look at it this way... if we were a one income household and we were offered a house for free, we'd take it, right?

It's still daunting. I mean we will have $4800 a month left over for utilities, bills, food, expenses. To me, that seems pretty good, but my husband is freaking out a bit.

Man, I wish I had $4800 a month coming in. I wouldn't be freaking out in that situation.

[azwildcats70]

Well, before anymore folks direct hostility toward me... let me give a smidge more info...

1. Our utilities alone run about $800 a month.
2. Car insurance is a bit high because I had a bit of an incident a little while back.
3. My cost to commute each month is $350
4. My husband travels extensively for work and has to pay for it himself and then wait to be reimbursed by his company.
5. We don't use credit cards, so anything we want or need, we pay cash.
6. My husband has heart issues and we spend about $300 a month on medical
7. My mother is brain damaged, so when my father passes, she will come to live with us and we have to save for that.

it all starts to add up... so in response to a certain someone... we are way more grown up than we should be at our age.

[todd72173]

Sounds like you are way better off than majority of people. I would not worry.

Begin worrying when job lose or kids come into picture.

[mczabe]

AZ,
You don't have to justify your income level or your expenses to anyone. Last time I checked it wasn't yet a crime nor a character flaw to be well-paid. And it certainly is just as easy - maybe easier - to bankrupt oneself on a large income as it is on a low one - so you are right to ask the question.

I do think it sounds like you'll be ok, as long as you have a safety cushion in case of emergency. For example, when your mom comes to live with you, will you have to give up your job to care for her? Those are the things I'd be thinking about. For now, it sounds fine...but do you have any irons in the fire that might be a problem in the next 5 years?

[azwildcats70]

Thanks gang... I think what some people don't realize is income level only comes through hard work and being frugal. I think I worry so much because we are in the position we are in because we have been frugal and conservative, now I feel as though we are being risky.

[CuCullin]

Originally Posted by azwildcats70

Just realized today that our monthly mortgage payment is going to be my entire salary. My hubby's salary will be left over and he makes 20% more than I do... but, THAT'S SCARY... RIGHT?

My mortgage payment is about 1/3rd my take home salary. Gf's income is negligible at best until she graduates.

Hell yes its scary. Every damn month

[EEEPNJ]

Amen CuCu - AZ....welcome to the NJ nut board.... we're all in the same place, to some degree!