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[quote=RowingMunkeyCU;2401291]You're right, I suppose that is something that not everyone ends up with (I just sortof assumed everyone did, since tuition costs are so ridiculous these days). ....
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Thanks for the comment back... I know many kids that are going to community colleges, technical colleges, and state colleges that are doing it without lots of financial aid or much debt (if any at all).
Many many many community and state colleges are very reasonably priced - not out of control like Universities and Private colleges. They pay as they go, work hard during the summer and live very very frugally to pay the next school year. Many I know then supplement that during the school year with work study or they work full-time and go to school part-time.
I've just seen so many kids go this route that I don't buy into the idea that you have to go to a University or Private college and leave with tremendous debt.
[quote=RowingMunkeyCU;2401291]It'd be nice to ditch the cell phone and fast internet, but they're both requirements of my job (software development) and I'm 'on call' if one of the processes I'm responsible for has an issue.
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Won't disagree that these are job requirements, but if that's the case then factor into your budget the related expense reimbursement for those items. If the employer requires these extra items then you have a reasonable expectation to be reimbursed.
Won't disagree that these are job requirements, but if that's the case then factor into your budget the related expense reimbursement for those items. If the employer requires these extra items then you have a reasonable expectation to be reimbursed.
Or, if not reimbursed by the employer, then at least deductable from income on your taxes.
Or, if not reimbursed by the employer, then at least deductable from income on your taxes.
I was going to make that same comment, then thought differently... I was assuming since he didn't have a house (and related interest/tax deductions) that he wouldn't be eligible to itemize his taxes. But, I shouldn't have made that assumption and you make a great point. Thanks for clarifying what I was saying.
Yea, if you eat nothing but pancakes - that number is way low!
Back to your original question - when my husband and I first got married combined we made around $100k, and we easily afforded a mortgage of $1,600 month. We used our wedding money ($15k for our downpayment. All closing costs and moving expenses were paid through a relocation) and cut back on vacations/entertainment for a while.
Once the kids came and we went down to one salary, it was a little tougher but still doable. However, fast forward 8 years, 3 kids, 3 promotions and 4 houses, and our mortgage is almost $4,000 a month!
On paper it does seem like a lot, but somehow it all works. We were very lucky in that when we bought our houses we were doing so because of a job relocation and any and all closing costs were paid for - that makes a huge difference!
Also, don't forget to factor in that mortgage interest and property tax are tax deductible. So, for instance, with our big mortgage and 3 kids, we have 12 deductions on my husband's pay check which give us more cash in hand each month - and we STILL end up getting around $7k back at tax time.
<SNIP>So, for instance, with our big mortgage and 3 kids, we have 12 deductions on my husband's pay check which give us more cash in hand each month - and we STILL end up getting around $7k back at tax time.
Good luck to you!
Slightly off topic, but close enough to leave it here.
I prefer to not let Uncle sam have my money in his pocket without paying me interest for it's use. I always try to tweak my deductions so that I am keeping as much as possible during the year, and then pay a small tax bill on April 15th. If I want to, I can take the additional cash and put it in a money market fund or something similar and gain a few dollars in interest over the year.
Some people prefer the refund, as they see it as a sort of forced savings account. And for those people, that works, so keep doing it.
We didn't start saving for retirement until we were already in our house for a couple of years. After that every raise went to retirement. Since our living costs were already set we didn't miss the increased spending $$ since we never saw them.
Also as others have said we had no student loans. My husband went into the military at 18 just for the educational reimbursement benefit. I stayed at my parents and went to a local college and worked my way through.
We also bought old cars. No car loans and cheap insurance.
We bought a place that was a fixer. Anyone that is healthy can clean, paint and garden. Beyond that maybe there is someone in your family or circle of friends that can teach you more? I am not saying they should come to your house and fix things... you go to their house and help them with jobs so you can learn. You can start this anytime, that way you will have some skills and confidence when you get your own house. We occasionally hired a handyman and let him know up front that we wanted to learn and would be working along side him.
When the kids came along we wanted a larger house in a neighborhood with better schools. With all that we learned on our first house we bought a 3 family flat. Lived for almost free in a beautiful neighborhood.
Don't be afraid to work your way up, you'll get there if you take your time
After graduating college, and looking to get a family started, it is totally beyond me how people manage to actually buy a house.
After calculating things out, it seems a family would have to be making in the neighborhood of $75,000 to afford a barebones house at around $150k. So once you deduct your basic living expenses, you're left with next to nothing to try to buy a house. Just to crunch a few numbers, would this seem like a reasonable (rough) estimate?
Home Ownership expenses
--------------------------
$4000/yr - Property Taxes - Rochester, NY area
$ 800/yr - Homeowners Insurance - NY average
Subtotal = $ 400/mo
Total before mortgage = $2120/mo
$150,000 30yr 6.0% fixed mortgage = $900/mo
So post-income tax, you'd have to be making in the neighborhood of $3000/mo just to EXIST (or around $50,000/yr pre-tax). And that's not even including 'extras' like emergency money (car trouble, appliances breaking, job loss), kids college, clothing, vacations, or whatever other expenses might crop up. Ugh.
Looking at your "Basic living expenses", (ALTHOUGH INADVISABLE), some people pick up $900/month by defaulting on their student loans, not putting anything into retirement, and going without insurance.
On a more appropriate note, while living on a strict budget is probably the best way, we weren't very good at this. Therefore, I worked two and sometimes three jobs for the first few years. Everyone has to live with their own personal choices.
Once the kids came and we went down to one salary, it was a little tougher but still doable. However, fast forward 8 years, 3 kids, 3 promotions and 4 houses, and our mortgage is almost $4,000 a month!
I know what I make and where every dollar goes. I'm a tightwad. If you have a 4K mortgage on one salary (not including other fixed/variable monthly expenses), your husband must be making high 2's to at least 300K or more......I don't see how else you can stay afloat, pay for your retirement, 529, etc, unless you had some major, major financial help years ago.
After graduating college, and looking to get a family started, it is totally beyond me how people manage to actually buy a house.
After calculating things out, it seems a family would have to be making in the neighborhood of $75,000 to afford a barebones house at around $150k. So once you deduct your basic living expenses, you're left with next to nothing to try to buy a house. Just to crunch a few numbers, would this seem like a reasonable (rough) estimate?
Home Ownership expenses
--------------------------
$4000/yr - Property Taxes - Rochester, NY area
$ 800/yr - Homeowners Insurance - NY average
Subtotal = $ 400/mo
Total before mortgage = $2120/mo
$150,000 30yr 6.0% fixed mortgage = $900/mo
So post-income tax, you'd have to be making in the neighborhood of $3000/mo just to EXIST (or around $50,000/yr pre-tax). And that's not even including 'extras' like emergency money (car trouble, appliances breaking, job loss), kids college, clothing, vacations, or whatever other expenses might crop up. Ugh.
It all depends on where you live. I can't see how people in areas where real-estate is out of sight (the Northeast, California, etc) can live just starting out.
I live in Central Arkansas and I'll still have to stay at home and put my money into savings for the first two years after college. As a teacher, I'll be lucky to make 32,000 a year.
As a guy, it hurts your dating life, but I'll take money in the bank and being able to survive over a social life any day, lol.
A $150,000 house around here is nice...a brand new one at that price would probably be a 3 BR, 2 BA, and 2000 square feet with 1-2 acres of land.
I'd still have to shop in the $80-90K range, which would be a mortgage payment that's lower than most rent costs.
Just move to the South, if you can bare it, haha. Bad sometimes, but the affordability is worth the headache.
how do u only spend 200 a month on food for a family?
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So once you deduct your basic living expenses, you're left with next to nothing to try to buy a house. Just to crunch a few numbers, would this seem like a reasonable (rough) estimate?
