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The solar payment is about the same as what our PGE bill was during the year but far, far below what it would have cost during spring-early fall months ( a few times as high as 650!). The solar has been a HUGE improvement. Agreed on meeting with a financial planner for long term planning Thanks!
You should eat it and sell the boat. A fifteen year loan on a toy? People would get crucified for taking out a 15 year loan for a car and a boat should be no different
What is your child care situation now? Will it change with the second child being born? A lot of families get into debt based on two incomes and then find out one parent needs to quit working when a child is born.
What I see is a typical high earner high spender budget. I was there in my 30s, and am just now catching up to where I should be in terms of my savings (401k etc).
You are behind the curve on 401k savings, and have a lot of debt. I agree with poster who says that "affordability" is not equal to being able to make monthly payments.
Our child care situation now is pretty good. My wife works 3 days a week and I work 48 straight hours so we usually are able to arrange our schedules pretty well to not have to shell out a ton for child care. We are close to her parents and my grandparents as well which always helps. We have a great nanny we use when we need help with a babysitter who is a family friend, and our sons day care is right up the road from us. As far as child care goes we are fairly well covered. I agree tat affordability is not equal to being able to make monthly payments.
I should also clarify that we don't feel we "need" to sell our home to afford the situation we are in, we were just having a deeper hypothetical conversation about how we "could" sell our home and eliminate all of our debt, and then start fresh with another home of equal value--mortgage being the same on the new house. Thousands of $$ saved on Interest payed on each of those loans as well as being less likely to finance things due to the fact that we would have so much left over after our mortgage was paid each month. Our plan has been to chunk our debt down and max out on our savings and will continue to do so. There is just something gratifying about know we "could" sell our house and eliminate all of our current debt in a short time vs. over many years. There will always be new expenses, voluntary or not.
we were just having a deeper hypothetical conversation about how we "could" sell our home and eliminate all of our debt, and then start fresh with another home of equal value--mortgage being the same on the new house.
so you are going to pay off debt only to buy new debt in the form of a mortgage for another house?
how is this different than selling the car/truck/boat and keeping the house and buying a cash/cheap car from a financial stand point?
In one case, you end up with cheaper house with more expensive toys, the other you keep expensive house and have a cheaper car
if you wanted to take a mortgage of equal value, you could refinance current one and use it to pay off loans, as well... again, trading one debt for another
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There is just something gratifying about know we "could" sell our house and eliminate all of our current debt in a short time vs. over many years.
same could be said about selling any of those other things
Yes, the situation would be that we would sell our home, pay off everything and then buy again at the same price point as the home we sold. The difference being that we no longer would have any other debt than our mortgage. We would still have all of the things we were financing the difference being that we actually own them all outright and can now take all that extra money that was going to those loans and put them towards savings, retirement, investments, etc....really just a different way of living than how we and many others live.
Yes, the situation would be that we would sell our home, pay off everything and then buy again at the same price point as the home we sold. The difference being that we no longer would have any other debt than our mortgage. We would still have all of the things we were financing the difference being that we actually own them all outright and can now take all that extra money that was going to those loans and put them towards savings, retirement, investments, etc....really just a different way of living than how we and many others live.
This is silly you would own the depreciating assets outright while owing more on your house. Why not just do a cash out refinance? Still seems silly and doesn't address the fundamental issues that got you into the spot you are in.
Yes, the situation would be that we would sell our home, pay off everything and then buy again at the same price point as the home we sold. The difference being that we no longer would have any other debt than our mortgage. We would still have all of the things we were financing the difference being that we actually own them all outright and can now take all that extra money that was going to those loans and put them towards savings, retirement, investments, etc....really just a different way of living than how we and many others live.
somehow the math doesn't work out
you have $168k of debt between truck/car/boat/student loans and $200k in home equity
if you wanted to be a home of same value of $400k, you would still need a down payment of $80k.
your plan is still short $50k, if you wanted solar on new house, it also adds more debt
then you have all the closing costs/buying costs/etc
you mentioned living with family for 6 months to save up a down payment, if you can save $80k in 6 months, why can't you pay off $80k in debt in same time period?
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Thanks!
