Do you think our income is high enough to pay a mortgage -

amother

Lawngreen

Fri, Apr 20 2018, 8:24 am

We make 190k net, pay 65k in tuition, babysitting, and camp, and have a monthly mortgage of $2900. We barely scrape by, but we also put plenty of pretax dollars into retirement. Our figures seem fairly comparable. We live very frugally day to day.

amother

Yellow

Fri, Apr 20 2018, 8:42 am

amother wrote:

How many children do you have? How many tuitions? Day schools or yeshivas? Everything makes a difference

Also after tuition and camp you're left with $90k. Where does the rest of it go?

I have to say, all this does not bode well for me. We won't be making $180k net for many many years.

amother

Mauve

Fri, Apr 20 2018, 9:45 am

amother wrote:

So your gross is close to $400,000 a year.

What does frugally mean to you?

After taxes, tuition and mortgage (and, presumably, your very substantial retirement savings, which are pre-tax), you've got over $90,000 -- $7,500 a month.

WADR, if you're really feeling a crunch with this type of income, please see a financial advisor ASAP. You are, by all reasonable standards, very wealthy, and should not feel financial pressures.

Unless, of course, this is a humble-brag.

amother

Mauve

Fri, Apr 20 2018, 9:48 am

amother wrote:

Yellow, pay no mind to the "Woe is me. After taxes, tuition, and mortgage, I'm still taking home twice what the average American makes, but I still can't afford more than rice and beans" crowd. Its not a realistic view of expenses. I think you can well afford the house. Hatzlacha.

amother

Lawngreen

Fri, Apr 20 2018, 10:26 am

amother wrote:

OMG I was not paying attention when I wrote this. Our GROSS is 190k. Way different. And we have 6 children. So yes, I do think our numbers are comparable.

watergirl

Fri, Apr 20 2018, 10:32 am

I dont understand the people on this thread who say that they “hardly scrape” by out of one side of their mouths and mention the high mortgage payments for their million dollar plus houses out of the other side. Humble brag indeed.

amother

Maroon

Fri, Apr 20 2018, 10:37 am

amother wrote:

The $7,500 is prior to savings. Savings is a very good thing. OP won't be able to save.

Lots of people live on tight budgets in order to fund savings.

She didn't describe being under deep financial pressure. What she described makes complete sense. If she reduced her savings, she'd have more breathing room month to month - but values growing her assets.

amother

Mauve

Fri, Apr 20 2018, 10:45 am

amother wrote:

Not sure where you got that. She nets $190,000. She's putting money into a pre-tax retirement fund. That comes off of gross, not net.

Either way, its a humble brag. If you're taking home $190,000, but choose to put $180,000 in the bank and live in a cardboard box, you're still not barely scraping by. You're still quite wealthy, but making the decision not to spend.

amother

Mauve

Fri, Apr 20 2018, 10:46 am

amother wrote:

OMG I was not paying attention when I wrote this. Our GROSS is 190k. Way different. And we have 6 children. So yes, I do think our numbers are comparable.

Nevermind. Very different numbers.

amother

Yellow

Fri, Apr 20 2018, 10:56 am

Op here.
The point of this thread was not to judge how people spend their money and whether or not people are struggling. Everyone has their own cheshbon.
The point is for me to hear from others whether my plan is realistic enough. Or am I just setting myself up for disaster. I will not be able to save money for a few years. I just think it may be worth struggling for a while.

watergirl

Fri, Apr 20 2018, 11:00 am

amother wrote:

Sounds like you’ll be fine. Better to buy now, itll just get harder later. If you’re really worried, why not find a loan product that doesnt require 20% down and no PMI? And save more. Or get a cheaper house.

amother

Yellow

Fri, Apr 20 2018, 11:13 am

As far as I know if you put down less than 20% then you pay PMI. I don't think there's any way to get away with that. Unless you pay the PMI upfront.
Also, this house is considered cheap. We can't move out of town. It makes no sense in our line of work. Jobs for us are best in NYC.
I need to find ways to cut back. Just not sure how. As it is I don't think we live so lavishly.

amother

Maroon

Fri, Apr 20 2018, 11:13 am

amother wrote:

'net' means 'net of tax', not 'after savings and tax'. I don't recall her saying "amount on our paychecks after my company has taken off for retirement fund".

she was being real. She is living what she thinks to be the responsible way to live - and that results in being careful her day to day. Totally reasonable to me. I think for so many people, the idea of savings is a luxury - and that is the disconnect here.

watergirl

Fri, Apr 20 2018, 11:15 am

amother wrote:

I just bought a house with a Fanie Mae loan, 3% down and no PMI. Not paid upfront, not paid at all.

amother

Mauve

Fri, Apr 20 2018, 11:19 am

amother wrote:

'net' means 'net of tax', not 'after savings and tax'.

I know what net means.

But she's putting savings into a qualified retirement account, pre-tax. She never sees that money. So its almost certainly before her net.

It doesn't really matter because she confused net and gross in any case.

amother

Maroon

Fri, Apr 20 2018, 11:34 am

amother wrote:

we don't know what she has confused. I read her 'net' as before tax. If she is funding an IRA with her paycheck - she knows what comes in from her employer (call that post tax) and then what is moved out into a retirement account, leaving her with cash on hand to spend (and a tax refund).

amother

Yellow

Fri, Apr 20 2018, 11:38 am

Watergirl-
How did you get approved for that? Are you considered low income?
Please provide more details if you can.

Thanks

watergirl

Fri, Apr 20 2018, 11:40 am

amother wrote:

Watergirl-
How did you get approved for that? Are you considered low income?
Please provide more details if you can.

Thanks

My income is low, but we dont qualify for any low income programs (BH). Its not a special program. The bank I went with told me about the loan product. You are very welcome to private message me and I will give you the name and phone number of the loan officer I used.

The interest rate that we got, by the way, was the daily rate. Nothing higher than anyone else got that day.

Last edited by watergirl on Fri, Apr 20 2018, 11:47 am; edited 1 time in total

amother

Mauve

Fri, Apr 20 2018, 11:44 am

amother wrote:

No, we do know what she confused. She wrote:

Quote:

OMG I was not paying attention when I wrote this. Our GROSS is 190k. Way different. And we have 6 children. So yes, I do think our numbers are comparable.

HTH.

amother

Maroon

Fri, Apr 20 2018, 12:30 pm

amother wrote:

HTH.

I see I lost track and confused Ruby with Lawngreen.. Regardless - I can totally understand 400K gross resulting in a fairly simple lifestyle with housing costs and tuition costs being what they are (and saving appropriately for retirement and simchas).

Really this has nothing to do with OP.

She to figure out (1) without savings and a significant drop in lifestyle can I make my mortgage payment today. (2) Can I do it and still save (3) will I be able to in 5 years (3) how long can I stomach not saving.