Anonymous wrote:Your mortgage is way high for that income level. That's the big one. I realize there's nothing you can do about that but it's still REALLY high. You can get a TH further away but still in Fairfax or Montgomery County for much cheaper - under 400 in places like Springfield/West Springfield and Burke.

You're going to have to cut back on vacations, cut down on grocery spending, give up kids' sports and cut back on the clothes/gifts category. I also wanted to ask who's health insurance you're paying for $400/month? Isn't it taken out of your H's pay? Anyway, at that point where I'm giving up on the stuff that makes life fun and enjoyable like travel and enrichment for my kids, I'd question whether staying home is really worth it.

This...are you in a life changing situation like the other OP who had a special needs child or is this just a desire? If its the latter I would encourage you to keep working as you would really be putting your family at financial risk. Now obviously if you are ill or have to take care of aging parents or your children have special needs thats a different situation.

Anonymous wrote:Can you shop around for auto and home insurance rates? Bundle them with one company to save more.

You should stop monthly visits to relatives out of state. Have them visit you once in awhile!

Stop eating out, if the grocery bill includes dinners out.

Why do you pay your in-laws' phone bill? Remove them or get them to reimburse you for their portion of the bill.

No more gifts and no more new clothes. Use what you have (and only buy new clothes if kids outgrow them, then go to Goodwill and other thrift stores).

Auto and home as cheap as we can manage.

In laws have little wealth so can't cut phone or travel there easily.

New clothes includes shoes and clothes for growing kids. Probably can't cut too much.

We never eat out and don't have cable. Mortgage is real hurdle I guess or need more income.

Your mortgage is way high for that income level. That's the big one. I realize there's nothing you can do about that but it's still REALLY high. You can get a TH further away but still in Fairfax or Montgomery County for much cheaper - under 400 in places like Springfield/West Springfield and Burke.

You're going to have to cut back on vacations, cut down on grocery spending, give up kids' sports and cut back on the clothes/gifts category. I also wanted to ask who's health insurance you're paying for $400/month? Isn't it taken out of your H's pay? Anyway, at that point where I'm giving up on the stuff that makes life fun and enjoyable like travel and enrichment for my kids, I'd question whether staying home is really worth it.

You won't be able to do it with your current finances. You'd have to move.

You're short each month, and I don't see anything for savings outside of 401k...emergency fund? Savings for new car? College?

Can you refinance? That mortgage is too high for that income.

We would be in a similar situation if our lower earner stopped working.

Hi OP! I was in your shoes a few years ago..Our second DC was born special needs and we unexpectantly had to drop to a single income. Dh at the time made 110k and we had 2 kids under 5. Our mortgage was 2100 and it was VERY tough. We cut groceries to 110 a week (still spend about that actually, once you get use to very little meat its not very hard), no activities outside of preschool and therapies, no new clothes, no pool pass, etc. The sacrifices sucked but it had to be done so we did it. If I had to do it over again I would of moved before I stopped working. Think really carefully about this decision and if you have to do it then by all means please do but realize its tough at our income level. My DC's are both in school now and I have gone back to work 3 days a week and DH is earning more and we are just not 5 years later feeling like we can breath.

Shouldn't health insurance already be included in your net? Perhaps you're double counting that expense?

You could also save about $100 a month by switching to Tmobile. I made the switch a few months ago and I've been really happy with it. Reception is decent and the WiFi calling feature has really good call quality.

Can you shop around for auto and home insurance rates? Bundle them with one company to save more.

You should stop monthly visits to relatives out of state. Have them visit you once in awhile!

Stop eating out, if the grocery bill includes dinners out.

Why do you pay your in-laws' phone bill? Remove them or get them to reimburse you for their portion of the bill.

No more gifts and no more new clothes. Use what you have (and only buy new clothes if kids outgrow them, then go to Goodwill and other thrift stores).

Could you do some consulting or a part time gig? 15-20,000 would make a big change here and could allow you to mostly be home.

If the working parent is a fed, I'm surprised that health insurance comes out of your take home pay. Is that health insurance for someone else?

Is there something very part time the SAHP could do to earn a little money? Watch an extra kid at home, or pick up some work on the evening or weekends when the parent is home?

PP, I assume that Petro is actually gas (petroleum) and not metro. But, it's high either way.

OP, with a SAHP, you're going to have to cut way down on groceries and enrichment activities for the kids. Also, be prepared for your electricity and other utilities to increase a little, if you normally have nobody in the house all day.

With your mortgage, it's going to be very tough.

Is Petro Metro? Is $300 a lot? That seems high.

Honestly, though, I don't see how this can work. Your phone bills are high. DO your inlaws live with you?

Are you ever going to put gas in the car?

And what are you saving besides 401K? Anything? Do you have good savings?

How many kids? You could probably cut groceries if one parent is home and able to plan/cook more around sales. Maybe cut that by $200.

But your budget has no wiggle room at all - when do you go out to dinner? What if the fridge breaks down? Do you want to go to the movies? Do anything fun that costs money?

Why do you want to have one parent SAH? Based on this budget, I don't see how it is possible.

Anonymous wrote:Mortgage and groceries. But mostly mortgage. You can't spend almost half your take home on your mortgage unless you have a very high income.

Sigh was afraid of that. so where can we live on $104k a year, I guess where houses are $300k? WV?

Mortgage and groceries. But mostly mortgage. You can't spend almost half your take home on your mortgage unless you have a very high income.

Ok, here's the scoop. Right now we are two income family, but looking to have one parent stay home. We are not high income earners (Fed) so this is not trivial.

Salary for working parent will be $104k and not much growth unless leave civil service.

Current mortgage is high $2772/month (TH in close in neighborhood with good schools), but back of envelope this is 1/3 gross salary so this *should* be possible. But budget is not working.

Here's what we have, maybe it's medical issues is our biggest problem?

Gross $8600


Takehome (2/3 -- estimate after tax & 401k deduction) $5700
Mortgage $2700
Electricity $100
Mobile Phone $250 (In-laws + us)
Water/Seware $75
Gas $75
Life Ins $200
Auto Ins $100
Home Ins $100
Health Ins $400
Groceries $800
Vacation $200 (visiting family out of state)
Kids sports/Enrichment $200 (soccer, dance, piano)
Clothing/Gifts $200
Petro $300
Medical $500 (chronic health issue & treatment)

We are short about $600/month.

What are the numbers for other lower-income SAH families? What numbers jump out here as too high?