You know this thread is sponsored?

Anonymous wrote:

Anonymous wrote:Is this a joke? That's perfectly fine for most people.

+1

+2

OP here:

for those asking about net income: i could probably make my exemptions more accurate, but currently it is about

10.5 k net a month

Anonymous wrote:You really need to look at your net, OP. We net about $13K/month after taxes, all benefits deductions, retirement savings, etc. and are totally fine with a $3100 PITI AND our childcare costs and other stuff. Gross isn't particularly useful in this case.

Yes and your gross income is clearly wayyy above OPs. Of course you are comfortable. That's almost my net and i make 290k/yr and that's on one income.

Despite at the time gaving a HHI of over 400k, we saved enough money to drive our mortgage down to 2900/mo.

Very very glad we did that. DH lost his job a few months ago and it has been BRUTAL finding a new one. We had to move onto my health insurance which is expensive. Im still able to max my 401k, still able to contribute to 529 and wr havent canceled our summer vacation. Thete has been no interruption in lifestyle, just the amount of cash we can sock away.

Agree it's best to look at net income Bc people's tax positions can be very different. A one breadwinner family living in va vs a two breadwinner family in moco will have pretty different net income.

PITI $1600 HHI $65k

You really need to look at your net, OP. We net about $13K/month after taxes, all benefits deductions, retirement savings, etc. and are totally fine with a $3100 PITI AND our childcare costs and other stuff. Gross isn't particularly useful in this case.

Agreed. We decided what we could afford based on net income, not gross. We pay 3k a month on a net income of 10-12k (depends on the month). Conservative, yes. But it allows you to save and be prepared for the future when there are childcare costs, etc.

Anonymous wrote:

Anonymous wrote:I think it's high, but you have childcare covered so that means you more have wiggle room than most. We do 3.3k on 340HHI (no childcare yet but very high SLs) and it feels okay but not luxurious.

HUMBLE BRAG

No, it's really not. I'm posting for the opposite reason of bragging, it's a warning. Honestly we thought we were being super conservative but it feels tight some months. And we're not the "my G8 is over 3 years old, how can I show my face at DD's private school" people who post about feeling stretched on $500k. One of the most important decisions you can make in terms of setting yourself up for financial security is keeping fixed costs low, and your primary home is the biggest fixed cost for most people. If OP feels like $k/month seems high to him/her, they should think long and hard before getting suckered by a chorus of "we spend $8k/month on our house on a HHI of $250k, you'll be fine!" DCUM posters.

When the calculators tell you one thing but your gut tells you another, pay attention to your gut.

Anonymous wrote:I think it's high, but you have childcare covered so that means you more have wiggle room than most. We do 3.3k on 340HHI (no childcare yet but very high SLs) and it feels okay but not luxurious.

HUMBLE BRAG

you need to use "net" home pay. you know, the money in your pocket?

I think it's high, but you have childcare covered so that means you more have wiggle room than most. We do 3.3k on 340HHI (no childcare yet but very high SLs) and it feels okay but not luxurious.

Anonymous wrote:25% gross sounds fine in theory, but $4k sounds high on that salary.

OP here.

exactly how i feel. 25 percent of gross seems great! but then when you think about it as 4000 dollars, it doesnt seem so great anymore. but at teh same time, this is our 2nd home, a long term "forever home"....

wouldn't it make sense to stretch in this situation?

I'm more comfortable using net, not gross.