So I live in Seattle and homes are crazy expensive here of course. Considering market and mortgage rates, I feel NOW is the right time to buy (debate is a different discussion altogether), so I'm considering buying a top of my budget home at $600k. I would put ~28% down so total loan would be $432k.
Below is my budget. Please tell me if this is reasonable and not result in being too house poor!
TAKE HOME monthly income = $9,000 (After a MAX health savings contribution each month + 11% retirement savings)
Subtract fixed monthly expenses for
- -std loans, car/home insurance, cell phone, cable/streaming tv, car payment = $1,490
- -child care, college savings = $2,106 (this will get cheaper and cheaper each year as kids are only 6mo and 2 years!)
- -utilities estimate = $500
- -NEW mortgage amount = $2,600
Leaves remaining = $2,623
Further subtract these estimates. If not spent in the category, it rolls over to savings.
- -$150 gas
- -$400 groceries
- -$200 family clothes (clothes, accessories, shoes, etc)
- -$500 home & vehicle (repair, maintenance, improvement, furniture, décor, etc)
- -$500 other (personals, fun, restaurants, drinks, etc)
= ~$550 remaining for true savings
After down payment/closing, I still plan to keep ~$30k in liquid for emergencies, etc.
I'd also say I can 75% for sure count on an extra ~$8k of income in a lump sum at end of each year. This is actually a range of up to ~$18k take home so $8k is being conservative. However, It's not guaranteed, so will not count it. This will be emergency or travel funds only.
Submitted May 16, 2019 at 06:42PM by yeahgoo http://bit.ly/2WMNQg3
