Reply to Just bought an $800,000 house on a $186,000 salary and now I'm panicking....

Forum Index » Money and Finances

Reply to "Just bought an $800,000 house on a $186,000 salary and now I'm panicking...."

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think OP is fine as long as they don't live a high-price lifestyle. Many people are commenting that they couldn't do that, but if those people have student loans and/or daycare, that makes a huge difference in monthly expenses (could be $2k-$3k per month).

We value a nice home in a neighborhood with good schools more than luxurious vacations (though we love travel), hair/nail salon visits, high-end restaurants, etc. That stuff doesn't really interest us.

After healthcare, taxes, and 401k contribution, our take-home pay is $7,850 per month. Of that, $2850 is our mortgage. That means the rest of our expenses come out of $5000 a month. I'm sure that's unfathomable to some of you or maybe impossible. But we have no student loans, have no daycare, are DIYers, and live pretty simply. We have emergency savings and categories we could easily cut if we had to or wanted to. Rough budget:

Mortgage $2850
Groceries $800
Utilities/phones $500
Travel $500
Car Ins./Gas $400
Activities/Eat Out $500
House/Auto Maint. $200
Clothes $200
Gifts/Charity $200
College savings $500
IRA savings $1000
Misc./Other $200

[/quote]

How much do you save for retirement? I don't see any line items for property taxes or home and life insurance.[/quote]

-We max out the 401k for one earner (whatever the latest figure is) plus a 50% match from the employer. Then we do the $6000 each for IRAs as listed above. So something like $40K per year total.
-Property taxes and home insurance are included in the mortgage figure.
-Life insurance is maybe $200/year plus we have some from my husband's work which is taken out before that $7850 figure above.
-We also have an umbrella policy which is included in the car ins. line because I was trying to simplify the budget here.[/quote]

You sound very underinsured. Most people are.

Term life, yesterday. [/quote]

[b]Back to finance basics school for you...yesterday,.[/b]

You appear all high and mighty. Most people posting on these forums are let’s just say upper middle class....they will feel offended if we call them well to do or some such factual label.

You cannot give advise whether someone needs term life insurance or not unless you know their NW. [b]In most cases also factoring in future inheritances.[/b]
If someone has a NW of say $5M why would they need term life even if they are 50 and only spouse works and they have kids. In that case it’s not clear cut. You will be surprised how many people here have NW in the millions.[/quote]

Thank you, PP. I am the poster who posted the above budget. This is exactly our situation. We had more insurance when our kids were younger and we had less net worth. Now with one child who is an adult and two others who are teenagers and a much higher net worth ($3M), we don't need as much life insurance. Calling out a specific budget item from my post was meaningless, anyway. The point of my post was to show that our family lives on $5K per month just fine (even extra life insurance wouldn't add that much), and I'm sure the OP can live on $7K after they pay their mortgage.[/quote]

If you are factoring future inheritances into your insurance needs and retirement planning, I think you are the one who needs to go back to finance basics school.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics