What is the reasonable HHI income for wife to stay home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't stay at home spouses realize they are losing out on retirement savings like 401k + Employer match?

I’m not a SAHM partially for this reason, but yes, I imagine they do. They are choosing to raise their kids full time.

Thank you. I am always amazed at how people think SAHMs and their husbands don’t consider basic finances when making the choice for one spouse to stay home.

[Anonymous]

I decided to stay home after my DH income went over $500k. My salary truly wasn't making a dent in our finances any longer and my time was better appreciated at home.

[Anonymous]

Anonymous wrote:My DH makes about 320k and I could SAH on this. I make 250k and he could SAH on my income as well. However it would greatly hamper our financial goals.

The key point is financial goals. I know a mid 40s couple that has $10M (after tax) from a company sale. Husband is "retired" and takes one-off gigs. Wife takes care of the kids. I doubt they make more than $400k in HHI, but already have the big slug taken care of.

[Anonymous]

We both earned 60k each when I decided to stay home. Income slashed in half, but we made it work.

[Anonymous]

Anonymous wrote:Is the number different from what would be required for a husband to stay home?

Hahaha good one

[Anonymous]

There is so much more to it than money. Childcare - once you get to more than two kids, it seems like it would make sense to stay home. Work:life balance - does someone have a flexible enough job to be home when kids are home from school, summer camps, etc.

I had the luxury to have a job where I could work a part-time
job that I loved when the kids were little. My husband made around $125K at that time - I pulled in around $60K, part time. I tried the SAHM life, but it wasn't for me in a full time state.

[Anonymous]

Anonymous wrote:We did it with $150K and three kids in NoVA.

that would be super tight if you are also trying to max out retirement.

We did it at $140K -- two kids -- but it was super tight. $160K gave us some breathing room but only barely. I don't think we were contributing to a college fund at that point (kids were early ES).

Agree with PPs that it really depends on your expenses.

I would say if you don't have an extra $1k every month after all expenses and saving for retirement, then it's questionable.

I don't know how old OP's kids are, but mine are now teens, and kids get more expensive as they get older.

[Anonymous]

Anonymous wrote:$150 for us. One kid.

Us too. I worked until the kid was 5. Our expenses are very low and our savings above average. We live in DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$150 for us. One kid.

Us too. I worked until the kid was 5. Our expenses are very low and our savings above average. We live in DC.

So your parents bought you a house?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$150 for us. One kid.

Must add - 11 yr old kid in private and many activities and one big trip. But first we paid off cars and home and had $1M in retirement. House worth $800k. 529 is about $200k. I retired at 45 last year. DH will retire in 12 years.

You are role model.

easier to do with one kid. Much harder with multiple.

We have $320K in college savings for 2 kids and still adding to it; $2.5mil in retirement/savings, no loans other than $180K mortgage with $700K home equity. We are in our 50s, and we want to retire early. But, private health insurance is expensive, and health issues go up as you get older.

[Anonymous]

used to be 200k but with inflations its about 400k

[Anonymous]

Anonymous wrote:Don't stay at home spouses realize they are losing out on retirement savings like 401k + Employer match?

Of course they realize that. It is still possible to retire with one income if you're smart about saving and investing. Also, a lot of SAH parents do it for a few years then eventually go back to some type of work.

[Anonymous]

Anonymous wrote:$150 for us. One kid.

We did this for a few years with 2 kids, and DH still maxed out retirement contributions. Ultimately I wanted to go back to work because we needed more money for all of the extra things, and I wanted to increase my retirement contributions.

[Anonymous]

Anonymous wrote:$125K+ It really depends on your expenses.

We had one income when the earning spouse made $98K. It was tight but do-able with grandparents contributing annually to the college fund.

When the main income went above $110 a year things felt less tight. Again, with grandparents giving 16K a year to kids' college funds.

Now at $145K for the earning spouse, and $10K a year from the non working spouse with a side hustle, we feel flush with cash and have upped our charitable giving to $350 a month.

[Anonymous]

Anonymous wrote:As ever, HHI is only one of a handful of crucial factors.

It's all about the mortgage, IMO. With a PITI under 1600 the number is lower than if your PITI is 3000, obviously.