I posted about my partner's reluctance to buy a place even though we need to change our living situation elsewhere and I've run the budget by him, but I wanted input from Reddit as well. He's having a hard time with the costs of everything, but he's never been the guy who does any of the finances, either the input or outflow of them. I'm hoping to break it down in a more detailed way than what I already have, and fill in any gaps we might have.
Income Take home = 8313/month. Includes deductions for retirement, FSA, gym and monthly commuting passes for both of us
Costs Top mortgage+HOA+tax cost = 3650 as 30% of gross pay
Utilities = 450/month, using high number for padding, current for similar sized place is 150-200/month
Food including restaurants = 450/month (we spend about 350 now, adding 100 for padding)
Credit cards = $1500/month - this includes clothes purchases and travel that could be cut back fairly easily
Savings = 2215/month
Roth IRAs (x2 year) = 11000
HOA covers most repairs but add 1000/year for internal maintenance (i.e. internal plumbing issues) This has not been at all what our apartments have cost, our apartments have run maybe 100-200/year
Yearly savings = 14562.
Discussion Now the X factor is we are trying to have a kid. If/when that happens, we have a combination of our parents doing caregiving and daycare available to us, at $12000/year for 5 years. If this for some reason stops working out, my partner plans to quit his job and stay home full time. This will reduce our income by about 15k a year, with no daycare costs. This is also not a likely situation, but we are budgeting for it.
The other factor is the 11k/year into the Roth IRA can stop for 5 years and pay for daycare or the difference in income if he stops working. I max out my 401k at work and our retirement income is currently way above what it "should" be for our ages. Using the calculators online if I stopped putting money into the Roth IRA for 5 years we are still looking at a very golden retirement as far as I can tell.
The other X factor is as the breadwinner, if something medically were to happen to me during pregnancy and/or birth, it could be an issue. I assume that my medical insurance takes care of a lot of it, I have really comprehensive insurance that includes maternity care, but I'm not sure how to really check that.
EDIT: college funds - we have parents who have committed to helping with college, and we figured out that for 1 kid you should put 400/month into a 529, and we can cut that out of our travel budget. It's not realistic to think we'll be going on fancy vacations with a little kid so we can safely remove that.
Submitted March 02, 2018 at 08:56AM by BlushingBride603 http://ift.tt/2GXH92m
