Cheaper house or better this way??

[Anonymous]

We bought $700,000 house 10 years ago and I feel like we are still struggling to pay the mortgage and taxes (that keep rising!) we have 2 kids - we have 200,000 annual income (no luxurious cars or vacations) but spend money on food and kids activities etc. We still barely have enough retirement savings and we are 50. I am upset because I feel like we should have bought a $300000 house 10 years ago but at least the money is in the home which is appreciating. We don’t know how to save more Inflation- any suggestions for people that are 50 and are feeling the pinch?

[Anonymous]

I have no idea why you're feeling the pinch on $700K house with presumably a 3% mortgage on a $200K a year in income. I'm sorry I can't help you because that income level is plenty IMO. I guess make more money is the answer.

[Anonymous]

It's all in your expenses. As the PP said, your income is not out of range for your home. Where does the money go? Seriously.

Get one of those apps connected to your bank account and it will automatically categorize your spending. (YNAB, Mint, Pocket guard, Empower) The answer will be there: too much on vacations or nails or clothes or eating out or gadgets. Don't guess, look at reality.

[Anonymous]

I get it. We have two teens, a $3100 mortgage payment (450k mortgage, 20 year loan), and went from making 120k to now 250k, and still that mortgage payment is a drain. We are desperately saving for retirement to make up for those early lean years, and we don’t really have anything left over each month after our expenses and our retirement/529 savings. (With company matches, we save 60k/year in two 401ks, and my retirement calculator still tells me I’ll be short 500/month in retirement.) If someone had told me that one day I’d have a 250k HHI and still have money worries, I’d never have believed them.

[Anonymous]

OP it has to be your unfixed expenses - such as kids activities, eating out, shopping etc., because with your income, and a mortgage that's probably around $3K a month, if not less (just my rough math) I don't understand how this would otherwise be financially difficult. In terms of your property tax, have they really increased that much over the last 10 years? Yes I know they've gone up, but how much?

[Anonymous]

Anonymous wrote:OP it has to be your unfixed expenses - such as kids activities, eating out, shopping etc., because with your income, and a mortgage that's probably around $3K a month, if not less (just my rough math) I don't understand how this would otherwise be financially difficult. In terms of your property tax, have they really increased that much over the last 10 years? Yes I know they've gone up, but how much?

Mine have gone up 130% in last 10 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP it has to be your unfixed expenses - such as kids activities, eating out, shopping etc., because with your income, and a mortgage that's probably around $3K a month, if not less (just my rough math) I don't understand how this would otherwise be financially difficult. In terms of your property tax, have they really increased that much over the last 10 years? Yes I know they've gone up, but how much?

Mine have gone up 130% in last 10 years.

That tells me nothing. What are the numbers.

[Anonymous]

Anonymous wrote:I get it. We have two teens, a $3100 mortgage payment (450k mortgage, 20 year loan), and went from making 120k to now 250k, and still that mortgage payment is a drain. We are desperately saving for retirement to make up for those early lean years, and we don’t really have anything left over each month after our expenses and our retirement/529 savings. (With company matches, we save 60k/year in two 401ks, and my retirement calculator still tells me I’ll be short 500/month in retirement.) If someone had told me that one day I’d have a 250k HHI and still have money worries, I’d never have believed them.

Sorry, you don't have money worries if you save $60K a year and also put money into 529 accounts.

[Anonymous]

What are your other expenses? We’ve got a $3k/month mortgage on a similar HHI and really it’s everything else that is killing us. Cell phones, kids’ activities, car payment, car repair, groceries, new clothes and shoes for kids, visiting families… We’ve cut eating out down to once a month plus maybe twice a month a kid gets fast food when they are hangry after an activity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP it has to be your unfixed expenses - such as kids activities, eating out, shopping etc., because with your income, and a mortgage that's probably around $3K a month, if not less (just my rough math) I don't understand how this would otherwise be financially difficult. In terms of your property tax, have they really increased that much over the last 10 years? Yes I know they've gone up, but how much?

Mine have gone up 130% in last 10 years.

That means your property value has gone up about that same amount. Congratulations! Lots of folks would love to be in your position.

[Anonymous]

Anonymous wrote:We bought $700,000 house 10 years ago and I feel like we are still struggling to pay the mortgage and taxes (that keep rising!) we have 2 kids - we have 200,000 annual income (no luxurious cars or vacations) but spend money on food and kids activities etc. We still barely have enough retirement savings and we are 50. I am upset because I feel like we should have bought a $300000 house 10 years ago but at least the money is in the home which is appreciating. We don’t know how to save more Inflation- any suggestions for people that are 50 and are feeling the pinch?

Are you or your spouse sending money to relatives? Stop that.
Childcare? Nanny -stop that and do daycare. Aftercare - budget for when the kids will be old enough to stay home alone. Camps - do the cheapest ones.
Vacations - expensive flights because you are obligated to see relatives at a particular holiday every year - stop this.
Gas - get ab electric vehicle or hybrid that doesn’t guzzle as much gas.
Groceries- drop the processed food, cook from scratch more, use Costco

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP it has to be your unfixed expenses - such as kids activities, eating out, shopping etc., because with your income, and a mortgage that's probably around $3K a month, if not less (just my rough math) I don't understand how this would otherwise be financially difficult. In terms of your property tax, have they really increased that much over the last 10 years? Yes I know they've gone up, but how much?

Mine have gone up 130% in last 10 years.

That means your property value has gone up about that same amount. Congratulations! Lots of folks would love to be in your position.

Whoops, sorry folks, I’m not the OP but I did say my property taxes went up 130%. Didn’t want to confuse folks.

[Anonymous]

Anonymous wrote:I get it. We have two teens, a $3100 mortgage payment (450k mortgage, 20 year loan), and went from making 120k to now 250k, and still that mortgage payment is a drain. We are desperately saving for retirement to make up for those early lean years, and we don’t really have anything left over each month after our expenses and our retirement/529 savings. (With company matches, we save 60k/year in two 401ks, and my retirement calculator still tells me I’ll be short 500/month in retirement.) If someone had told me that one day I’d have a 250k HHI and still have money worries, I’d never have believed them.

Never retire, like the rest of us.

[Anonymous]

You should easily be able to afford a $700k house on $200k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get it. We have two teens, a $3100 mortgage payment (450k mortgage, 20 year loan), and went from making 120k to now 250k, and still that mortgage payment is a drain. We are desperately saving for retirement to make up for those early lean years, and we don’t really have anything left over each month after our expenses and our retirement/529 savings. (With company matches, we save 60k/year in two 401ks, and my retirement calculator still tells me I’ll be short 500/month in retirement.) If someone had told me that one day I’d have a 250k HHI and still have money worries, I’d never have believed them.

Never retire, like the rest of us.

Waaahhh I’m so poor after I save $6000 a month.