Hi Money Minder,
I’m in a bit of a pickle. My partner and I have found our dream house, but it’s at the tippy-top of our budget. We’ve got good credit, make decent money, and are savers, but the mortgage would eat up most of my husband’s paycheck, leaving me to cover the rest of the bills. We’ve got a bunch of other debts to pay off, but we’re hoping to clear them with the equity from selling our current place.
With a new baby on the way and daycare costs adding up, living frugally for a while is on the cards if we go for this dream home. My husband’s got a promotion coming up, and I’ll be getting salary bumps, so things should get easier financially down the line. Still, is the stress of tight budgeting worth the dream house? Any advice from families who’ve been in a similar situation?
Some financial deets to chew on:
- Our take-home pay: Around $8,000
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Estimated mortgage payment: Close to $4,000
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Leftover money after existing expenses: $4,000
After bills, we’ve got roughly $1,000 left for emergencies, fun stuff, and unexpected costs.
What do you think, Money Minder?
Farewell,
Anxious Homebuyer
Response from THE MONEY MINDER:
Hello There,
Congratulations on finding what seems to be your dream house! It’s clear that you have put a lot of thought into this decision, weighing the pros and cons carefully. Considering the financial information you’ve provided, I would suggest taking a very realistic and practical approach to this situation.
First and foremost, it’s important to acknowledge that committing to a mortgage that would eat away at your husband’s entire monthly take-home pay might be a bit risky. While you have upcoming raises and promotions to consider, it’s crucial to ensure that you have a sufficient buffer for any unexpected expenses or emergencies that may arise. Living off one income and being frugal for a while can be challenging, but in the long run, it may not be sustainable without additional financial security.
Given your current debt load and the potential strain of a high mortgage payment, it may be advisable to consider alternatives. One option could be to reassess your housing budget and look for a more affordable option that still meets most of your criteria. This could provide more breathing room in your monthly budget, allowing you to continue building your emergency fund, saving for future expenses, and enjoying a more comfortable lifestyle.
Ultimately, the decision to pursue the dream house or opt for a more financially conservative approach is a personal one that requires careful consideration of your current financial situation and future goals. It may be worth exploring other options to ensure financial stability and peace of mind in the long term.
Best of luck with your decision-making process. Remember, financial decisions are about finding a balance between your dreams and practical considerations. Take your time to weigh the options and make the most informed choice for your family’s financial well-being.
Farewell from THE MONEY MINDER.
