Post # 1
So I have sort of a personal question so I totally understand if some of you are not comfortable answering this but any answers would be a huge help.
Backstory: Darling Husband and I currently live in a rent controlled apartment that we were super lucky to find about 4 years ago. Our rent is CHEAP! It’s cheap compared to our friends’ rent and it’s a tiny percentage of our salaries. This has completely spoiled us because after paying all our bills, and rent we have a lot of money left over every month for saving and playing with.
Now we’re looking to buy our first house. We have a good down payment saved up and we have a basic range of what the houses go for in the area we want to live and we can definitely afford the monthly mortgage and still pay all our other bills plus the new bills that come with house ownership. BUT, because I’m used to having so much money left over every month, I’m completely freaked out by how much less money we would have left every month if we buy a house. But I started thinking maybe this amount is totally fine and I’m just spoiled by our current below market rent.
So if you’re comfortable, could you share how much you have left over every month after ALL of your bills are paid, (mortgage, phone, insurance, utilities, cars, student loans), and if you feel that you live comfortably on that remaining money or if you feel that you are constantly restricting your life style.
Also, we don’t have kids but plan to have a child in the next 4 or 5 years.
Any other advice is totally welcome. Thank you!!
Post # 3
We lived in a TINY apartment with a 3rd roommate before we bought our house. We were paying like $400 a month each. It was AWESOME, financially that is. I was saving anywhere from $500-700 a month. Can’t complain about that. We just bought a house and we’re paying about $750 each. Which we would have been paying anyways for a new apartment without a 3rd roommate. But the thought that I’d now be saving $200-300 if I was smart freaked me out so bad I almost didn’t buy the house. It took a lot for me to get over the mental part of it. But in the end I realized I was being silly and I have zero regrets.
By the way, when I say I’m saving that much, I mean that’s how much is being saved after I’ve spent fun money to eat out a couple times a month with my guy. I have to watch my money but it’s worth it.
Post # 4
After all of our bills (not counting gas, groceries, or savings) we have about about $2200 left over a month. Although that amount doesn’t really sound right, but I think its because I’m used to thinking in terms of half a month, since we both get paid twice a month and split bills between the two pay periods.
ETA: we love having a house, and wouldn’t go back to renting for anything, but another thing to consider is that there will be more money going into the house, for example, if we have extra money a lot of it goes back into the house, either redoing something, fixing something, or just making it more my dream house . We really don’t have a hard time with the money we have left over and we save quite a bit considering, but we don’t live in an expensive area, and we don’t go out a lot. The one thing we do enjoy is eating out, so we probably eat out less now (which is better for us anyway, healthwise), and we just eat out at more casual places normally and save the nicer places for once a month or so.
Post # 5
Its hard for me bc our savings is budgeted like a bill. Each week a certain amount is deposited into our accounts no matter what. We also have a reserve in our checking we will not fall below which is $1200. But if I tally it up we save about $2k a month in personal savings and we still have about $700-1000 left over to do whatever with. We are not rich by anymeans, we just don’t have any debt besides our mortgage. I say for a young couple we live really comfortable. We go out and do stuff but we are also frugal and sometimes we honestly would and have passed up trips bc we would rather pay our house off early or save it up for something else that we would purchase together. It’s all in what’s important to you, eating out 3 times a week? Not us.
Post # 6
I really wish I had waited on buying a home. My taxes have gone up and I’m paying almost $100 more a month than I intially planned for in just the two years that I have owned (meanwhile my salary stays the same).
At the end of the month depending on bills (I pay for my auto insurance up front so that is $500 every 6 months and will effect how much I’m able to save) we put away 500-1500 a month. The goal is 1000 and we average that over time.
We eat out / go to the bars a lot and I’m not so good at not splurging some months. I find the house lifestyle effects me most with traveling, which has been more limited than I would like since marriage 🙁
I’m really unhappy with home ownership and wish I would have waited closer to the time we wanted kids to jump into it. I thought the market was going to bounce back at the time, but that obviously hasn’t happened.
Post # 7
Our mortgage is less than most of our friends’ rents. After paying all bills and saving around £300 per month each we’re left with a couple of hundred pounds just for fun things and eating out. We each pay £500 a month into a joint account for shared bills, mortgage and groceries.
Post # 8
Ladies it’s so interesting to see all of your different opinions and approaches to the matter. It’s good to see that everyone is able to make their situation work for them.
But I’m glad to hear I’m not the only one freaking out about the change from renting to buying. 🙂
Post # 9
What do they say? You are throwing your money away in rent? We have like ZERO money after we pay our bills. But we racked up A LOT of CC bills trying to furnish the American Dream. After paying those CCs off, it shouldn’t be so bad, but right now it bites. I miss my one bedroom apt. And the xtra cash that went with it! It’s hard to say. I have my daughter living with me, so the xtra room is obviously the most important and we have a dog and cat, and most apts. make you pay xtra for that. I guess it all depends on the step you see your life going?
Post # 10
It can be scary making a move to a larger bill/mortgage, but at the end of the day you should have money leftover after paying all your bills for savings. (because dont forget you need cash to replace the roof, water heater, exterminator, vacations, cars, medical bills, kids)
If you are conservative 35% or if you arent 45% of your pre-tax income should cover ALL your taxes, interest, mortgage, insurance etc.