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...I also want to add that I also eliminated the money I put into my 401K, childrens 525 college fund, and my own personal saving account. So even after that, it would be $800.
Quote:
Originally Posted by chet everett
...I think it is foolish, perhaps even downright DANGEROUS to ELIMINATE contributing to your own retirement, a general "savings / emergency" account and kids educational savings. ...
My interpretation was that she did not stop the contributions, but only excluded them from her monthly extra $ available, the $800. Plus, she also mentioned saving another $300 in addition to the the $800. OP, please correct if needed.
I think you are being very wise and I don't think you'll be house-poor. I allowed my ex husband to make us housepoor - with no thought to the insurance or taxes when we bought a house based on his future projected income. We lived hand to mouth to loan for many years. It was horrible. I think you've got most things covered except: car replacement (forget normal wear, etc, consider accident necessitating a replacement). Other than that, sounds like you have a liveable plan. You DO know that kids get more expensive as they get older. Clothes cost more, they want stuff/activities, and they eat more. But if you are a wise shopper or a couponer, your food budget is low but practical.
Go for it and enjoy those babies. 2-7 is my favorite age range!
The $800 is also after the deduction of my families health insurance. Gas would be about $125 (if the gas prices dont beat me down!). Food-around $300 (sounds crazy, but we eat A LOT of chicken and fish. No junk food. And two potty trained kids!)
Oh, and the property taxes, PMI, and hazard insurance are rolled into the 1263 mortgage payment.
I plan on saving 300 a month for emergency funds (which was deducted before the $800 leftover, so that wouldn't come out of that). On top of that...I have would have about 4000 in the bank after closing costs/downpayment.
It's getting awfully close now. Your $800 a month is down to $375 after food and gas. And if gas goes up like some are saying that is going to increase not only your gas budget but just about everything else.
Together with the fact that you would be left with only 4K in the bank would definitely make me nervous.
My interpretation was that she did not stop the contributions, but only excluded them from her monthly extra $ available, the $800. Plus, she also mentioned saving another $300 in addition to the the $800. OP, please correct if needed.
Quote:
Originally Posted by noellea
I also want to add that I also eliminated the money I put into my 401K, childrens 525 college fund, and my own personal saving account. So even after that, it would be $800.
I assume it meant it was "eliminated" from pool of money that was going to be left over. Meaning it didn't need to be part of the $800, not that the payments were stopped.
Sorry. I meant to say that I had already deducted the savings ($300), retirement (410K), medical from the total income. Those would not be deducted from the $800.
I understand that kids get more expense, but I won't be incurring those costs alone. Their father has to cover half of the extracurricular and schooling expenses.
I've read all of the arguments for renting and I've already ruled it out. It can get expensive to jump from rental to rental with deposits, set-up fees, etc. I want to be in one place all the time. So buying is important to me. Why pay someone else's mortgage anyways?
I understand that money will be "tight" at first. But I do plan on advancing out of the $50,000 bracket at some point. In fact, I'm on a growth plan right now with my company, so I'm not too concerned with that aspect. But I do know that things can happen. I understand that.
But one can't just continuously fear the what-ifs. What-ifs are going to happen no matter what path I go down and they are all going to have their own life changing consequences. I do appreciate all of the advice though. I've thought of all of those things.
Interest rates are only going to keep increasing (I would be getting 5%) and with the proposed cutback of FHA loans, I want to get in while those are still available.
I did, the poster needs to learn how to properly write what he/she means to say
I guess some of us are just mind readers.
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. You need to consider the entire post and context.
