Reply to Why do people buy houses on the basis of 2 salaries instead of 1?

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Reply to "Why do people buy houses on the basis of 2 salaries instead of 1?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Spouse with the lower salary? What about families with a stay at home parent, or one parent who has a much lower paying job or a job that pays low but they truly believe in (academic researchers saving lives, social workers, etc.) Should they all live in shacks even if the other parent has a good salary?[/quote]

There's a hedge there which is the spouse with the salary that's low can step it up if the main breadwinner loses their job if needed.  That's not there if you've bought based on two salaries.

It's called "The Two Income Trap."  Elizabeth Warren wrote a whole book about it.  It's a great book.  We've based our whole family economy on it and it's been a great guide.[/quote]

Yes this. We also bought based on one salary (14 years ago, when that was possible in DC) and it has given us so much flexibility over the years. The "two income trap" is an amazing concept -- once you learn about it, you can't unsee it. (that people who base their lives on two salaries end up without any flex space. But if you base it on one, you can always flex up when you need to.)[/quote]

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