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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Only first time homebuyers put down just 20%!

On our second home we put down 60%. It's easy. Live your life on one income and save the other's income. [/quote]

Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.[/quote]

No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all. [/quote]

Come back when you have kids.  You are really fortunate and I say congratulations, but you come across as smug.  Not everyone makes as much as you nor have they been as fortunate.[/quote]

Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either. [/quote]

Than how did you save $60k/year for at least 7 years to get your $400k downpayment??  That requires about $100k additional pre-tax salary, so where did savings come from?  Any outside help or lucky investments (ie you bought before the last bubble?)[/quote]

It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage. [/quote]

You're speaking so far out of your ass at this point that you should really refrain from giving household savings tips to others. I say this as someone who shares your sentiment: too many people say it's too hard, too much of the time. That said, you've materially misrepresented your situation and left off -- and, here, as elsewhere I'll constrain myself to speaking from experience -- one major component of savings/consumption: children.

I'll break it down for you. In DC, daycare will run about 2k per month for the first 3 years (that's an average). It will decline by a few hundred dollars in subsequent years. **(See below.)

Once your child reaches school-age, you'll quickly realized that school hours are short, much shorter than working hours. So you'll need some care around the ends of the day. And in the summer. You'll either be looking at an au pair or some other arrangement costing about the same.

Next, with your income, you'll likely be hit by the AMT. That hurts. Factor in about 5k in additional taxes.

Finally, the child will really squeeze your day. Effectively, career-advancement is on-hold for a few years. This is the trade-off you should be cognizant of going-in, and acknowledge that you're fortunate enough to be in such a position. But, this does limit your income gains for at least a few years.

Oh, and start saving for college. But, honestly, on 180k, this will be tough. You're in the exact wrong spot for college: high enough income to not qualify for financial aid, but not high enough that you can comfortably swing the cost out-of-pocket. Yeah, this will suck, so start planning ahead now.

Signed, 
Parent of 2, HHI @300k, mortgage around 900k.

**Yes, you can find cheaper daycare options. But, extrapolating from your HHI, you'll probably find the cheaper options not to your liking. A family daycare may be fine for most people (and I personally believe it is in no ways inferior), but you'll probably elect to go a more corporate route. Probably located nearer to your employment. 
[/quote]

I do realize what you're saying. We waited until we had a home we wanted to raise children in before having children. Our mortgage is very low ($1500) so that we can afford children, saving for college, daycare or even if one parent wants to stay home. We love that low mortgage. I'm not speaking out of my ass... I'm not trying to give household tips to others. I would never, but I don't think it's fair to say that only Asians can save or that it's not doable in this area. Yes, it's harder. [/quote]

No, you don't realize what I'm saying. The picture you should be getting here is that you *don't* know.

I used to be the same way, before I had kids. They really are blood-sucking financial leeches.

Each child will cost around 2 times your current mortgage payment, not including saving for college. Your fabulous vacations just got 25% more expensive. (You have to buy a full-price seat after age 2; the hotel room will stay the same.) [/quote]

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