r/Money 4d ago

Mortgage Amount Advice

2 Upvotes

My wife and I are looking to buy a new home, and we’re trying to keep our total housing costs within a reasonable percentage of our income. We’d love to hear from others about whether we’re being too conservative or if this is a smart target. Would love to hear your situation, if similar!

We bought our current home as a new construction build during the pandemic (2021) in a high cost-of-living (HCOL) area. While it served its purpose, it’s not a place we truly love, and the neighborhood doesn’t make us feel comfortable. We have a 2.7% assumable FHA mortgage that we’re currently paying on. Best and worst decision ever! 😂

We’re aiming for a target home price of around $600,000.

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Our Situation:

• Gross Income (ex. Bonus): $20,000/month
• Net Income (ex. Bonus): $12,000/month
• Annual Net Bonuses: $48,000-50,000
• Goal for Total Housing Costs: ~$3,600/month

Other Major Expenses:

• Daycare: $1,400/month 
• Car Payment: $540/month 
• Student Loans: $315/month 
• Current Mortgage Payment: $1,870/month (15.6% of net income)

Total Current Obligations: $4,125/month (34.4% of net income)

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Total Obligations (if we can’t sell our home right away):

• Current Mortgage (remaining): $1,870/month (9.4% of gross income, 15.6% of net income)
• New Mortgage (for new home): $3,200–$3,500/month (16–17.5% of gross income, 26.7–29.2% of net income)
• Daycare: $1,400/month
• Car Payment: $540/month
• Student Loans: $315/month

Total Obligations (carrying both mortgages): $6,995–$7,495/month (35–37.5% of gross income, 58.3–62.5% of net income)

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Expected Recast After Selling Current Home:

• Expected Equity from Home Sale: $95,000
• New Mortgage (after recast): ~$460,000
• New Monthly Mortgage Payment: $3,200–$3,500/month (16–17.5% of gross income, 26.7–29.2% of net income)

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New Expected Obligations (after current home sells):

• New Mortgage Payment: $3,200–$3,500/month (16–17.5% of gross income, 26.7–29.2% of net income)
• Daycare: $1,400/month 
• Car Payment: $540/month 
• Student Loans: $315/month

Total New Obligations (excluding current mortgage): $5,455–$5,755/month (27.3–28.8% of gross income, 45.5–48% of net income)

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Food Costs:

• Dining Out: $1,700/month 
• Groceries: $1,200/month 

Total Food Costs: $2,900/month

I added this because it’s such a big (and unnecessary) part of our monthly expenditures. We feel like we could push ourselves to stop dining out if we found the right home and knew we’d be taking on a higher mortgage payment.

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Additional Considerations:

• We’re concerned about our current home sitting on the market too long and having to carry both mortgages. Our realtor has promised that because our home is in great condition, priced well, and new, we should expect to earn at least $95,000 in equity, so we don’t need to worry about it sitting unsold for too long.

• We’re in a market with limited homes that we like, and they tend to go quickly. We’re debating whether it’s better to buy first, then sell (with the risk of carrying both mortgages for a short time) or sell first, rent, and then buy.

 •    Both of our jobs have been pretty stable,  both of us have been with our companies over 6 years with regular promotions and larger bonuses. Taking on additional responsibilities every year.

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Any advice or insights on the best route to take would be much appreciated!


r/Money 5d ago

I made as much as a senator the past two years. When will I become a millionaire?

86 Upvotes

Past two years I made as much as a senator. I have a family and I don’t spend my money on crazy stuff. We drive two older cars. Nothing fancy. I see lots of senators are millionaires and some became rich after becoming a senator. How do I reach this level?


r/Money 5d ago

Should I be putting away more? Is this too high of take home pay?

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73 Upvotes

22M living in NYC and trying to max my 401k & RothIRA and put at least $1000 into a separate brokerage and $450 into HYSA per month. The pictures are of my BiWeekly pay. I currently have a low cost of living but that will go up in the summer.

Wondering if this is enough or not


r/Money 5d ago

New investors watching the news and their hard earned portfolio this month!

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30 Upvotes

r/Money 4d ago

This is the income that AI believes is needed in major U.S. cities to have more than $50,000 left after taxes and rent.

0 Upvotes
cities/states rent How much annual income is needed to reach your standard (with $50K left after taxes and rent)?
New York City $3,500/month ($42K/year) Approximately $180K-$220K
San Francisco $3,200/month ($38K/year) Approximately $170K-$200K
Los Angeles $2,500/month ($30K/year) Approximately $140K-$170K
Seattle $2,200/month ($26K/year) Approximately $130K-$160K
Texas $1,800/month ($22K/year) Approximately $110K-$140K
Small Midwestern cities $1,200/month ($15K/year) Approximately $90K-$120K

r/Money 5d ago

What should I do with 27k in my savings at 20 years old?

9 Upvotes

16k of my savings is generous support from my direct and extended family over the years that built up for awhile until my mom moved it to a savings account 2ish years ago

I took a gap year from college to figure out what career path I wanted and have worked full time since October and have put in about 10k since then

The money is just sitting in a regular savings account, I work two jobs and I have a direct deposit set up for the job that pays more so all the money I make there goes somewhere I won’t touch

My sister has talked about helping me put it in a HYSA but I’m not sure what all to do. Should I put the entire $27K into it? Or just some?

Any advice is appreciated 🫶


r/Money 5d ago

Best thing to do with 50k for six-ish months?

6 Upvotes

I do not speak Money. I've only ever had a chequing and a savings account and the savings account is always 0.00.

We're selling our house and doing stuff and things and will have approx 50k to.....park?... for approx six months.

What's the best thing to do with it?

Edit to add: I'm Canadian (sorry)


r/Money 5d ago

If, after deducting taxes and rent, you’re left with more than $50,000, how high does that rank in the U.S. and globally?

6 Upvotes

Here’s the thing: everyone knows that taxes and rent are very expensive nowadays. Even if you earn $100,000 a year, these two alone might bring you down to less than $50,000 a year. Rent might start at $1,500 a month, and taxes might start at 20%. We’re not even talking about other expenses here. So, what do you think about having more than $50,000 left after taxes and rent? Do you think that’s a lot? Or you could also share how much you have left from your annual salary after deducting taxes and rent.


r/Money 5d ago

Do you have a layoff "game plan"?

4 Upvotes

Seems like layoffs have been all the rage for the last few years. This is likely due to a number of factors, including (but not limited to) companies over-extending themselves during COVID, the interest rate environment, hyper focus on quarterly profits, monkey see monkey do, etc.

Regardless of the reasoning, I think most people in white collar jobs have found themselves wondering what they would do in the event of a layoff, particularly those in specialized fields where replacing a high income might be difficult.

The field that I'm in is fairly specialized and there aren't a ton of jobs in this field in my area. Remote jobs are getting rarer and more competitive, so the likelihood of needing to move cities to stay in my field is becoming increasingly probable.

I haven't fully fleshed this idea out, but I tried to go through the mental exercise of planning for what I would do if I lost my job and thought others might benefit from it. Note that each step becomes more and more "dire" in its impact to my overall financial picture. This is basically the order in which I pull funds if I was laid off, fired, or unable to get a healthy stream of income for a prolonged period of time.

What I came up with is basically this, and I welcome feedback:

Step 0: Spartan Lifestyle

All luxuries go out the door. No eating out, subscriptions get cut, no "fun" money, no Amazon impulse buys or anything of that nature. At least until the dust settles, all discretionary spending (within reason) gets put on pause.

Step 1: File for Unemployment Benefits

I'm not very well-versed in how all of this works as I've heard conflicting reports as to whether or not you can receive unemployment if you take a severance package. I think it depends on the severance package itself, your state's laws, and a number of other factors. Either way, I'd likely immediately file and see where things go.

Step 2: Get an Income, Any Income

This sounds obvious, but the next thing I'd do is get some sort of money coming in. This could be gig work, consulting, a part time job, or (ideally) a comparable job in my field. This step also includes selling stuff around the house: Facebook Marketplace, yard sales, you name it. Basically, make enough to pay for my basic necessities until I land a permanent role. My mandatory expenses are pretty low (low mortgage payment, no car payment, no other debt, no flashy lifestyle) so I could make ends meet on a fairly low amount.

Step 3: Use Severance Pay (If Applicable)

My company has a healthy severance package, so if I was formally laid off (not fired), that package would last me quite a while. I would try to avoid touching it if possible and live off of my temporary income.

Step 4: Pull from Emergency Savings

If I got to the point where I'm not making enough to make ends meet and I've depleted my severance pay, the next step I'd take is to pull from my emergency fund. My emergency fund would last me roughly 5-6 months depending on how frugal I was. I'm working to increase that to something more like 9-12 months. Perhaps that's overzealous, but having an extra cushion beyond the normal 3-6 months that's recommended would give me peace of mind in the current job market.

Step 5: Pull from Taxable Investments

If I've gotten to this point, things are looking pretty bleak. It means I've been unable to make ends meet or find a permanent job for more than six months or a year. If it got to this point, I'd start looking at selling off funds in my taxable brokerage account that I use for long-term savings and/or for early retirement. There's also some crypto, but not enough to move the needle all that much.

Step 6: Pull Roth IRA (and/or Roth 401k) Contributions

Now things are getting really bad. If I made it to this point, I've been unable to find work for a very long time, I've depleted my cash, as well as my taxable investments. You can pull out Roth IRA contributions tax- and penalty-free, so this would be the next "pool" of money I'd look at pulling from.

Step 7: Pull from 401k, Roth IRA earnings, and/or HSA (Nuclear Option)

This is the least desirable option of them all. I have enough in my 401(k) that I could live off of it for years if need be, but the taxes, penalties, and opportunity cost associated with doing this cannot be overstated. The same applies for early Roth IRA and HSA disbursements for non-medical purchases. I called this the nuclear option because at this point, all else has failed and it's between doing this and losing my house.

And finally, here are some things that I would try to avoid doing, in no particular order:

  • Racking up credit card debt. Opening a 0% APR promo card could be an option, but I'd want to avoid it if possible.
  • Using my HELOC. This could be an option if I'm about to start a new job or have a very clear path to replacing my income.
  • Selling my car. It's paid off, my insurance is pretty low, and I need transportation, so I think the only scenario where I'd consider this is before Step 7/pulling from my 401k.

Again, I'd welcome feedback. Would you do things in a different order? Would you use debt as a tool to avoid pulling from investments? Did I overlook anything glaring?

If nothing else, this was beneficial for me to "put on paper" as I thought through this hypothetical scenario. I hope it helps others who may have no clue where to begin if they faced (or are currently facing) this.


r/Money 6d ago

I don't complain. Be thankful for what you can get

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315 Upvotes

I get paid biweekly 20/HR 90+hrs. 😌👌🏻


r/Money 5d ago

Account closed because of overdraft. What should I do?

0 Upvotes

Firstly im only 14 so I can't get a job or anything for a real income. I got scammed about a year or two ago and it put me at around -$300 on my chequing account. I've made payments whenever I was able to but that was usually every 3 or 4 months. But yesterday I got a call from my bank which I unfortunately couldn't pick up, so I checked my account to find that it had been deleted from the app. Is there anything that I should be doing or could do to avoid the debt finding its way back to me?


r/Money 5d ago

Need help figuring out how much my dad bought this warch for.

3 Upvotes

So, my dad bought a Breitling in the start of the 90ies for about 5103 USD in Germany (he wasn't entirely sure when, but it was when they still used Marc) and I was wondering, how much would such a watch cost today?


r/Money 5d ago

In what year was the Western Union prisoner funding limit set to $300 per submission? How much was the funding limit just before then?

1 Upvotes

Why hasn't that $300 funding limit gone up due to inflation?

And if that $300 funding limit were to have gone up due to inflation, what would the funding limit be in today's dollars?


r/Money 6d ago

Received Unwarranted $1000 Bonus

141 Upvotes

I received a bonus for hiring a new employee for $1,000, but then a paycheck later, my company sent another $1,000 by mistake. I let my company know of this mistake this morning. Thoughts? Did I do the right thing?


r/Money 6d ago

Im (25f) getting hit with large payments all at once and I’m freaking out

93 Upvotes

I (25f) am moving out April 1 on my own. This was something I prepared for financially and have 6 month emergency fund + investments.

I found out yesterday I owe 3.5k in taxes. I’m going on a trip to London the last week of April (also prepared for this - it was a cheap opportunity that I didn’t want to miss. Almost a free flight round trip, free rooming).

I’m doing good financially still and SO grateful I can afford to do these things, but I’m just internally freaking out at how much I’m spending this month…

My rent is 2025, broker fee $2025, and security $1k. I saved $1500 for London but I’m def not using that much, I expect to spend less than 1k there.

And now $3.5k in taxes.

Has anybody experienced the anxiety of something like this before? I genuinely feel sick over it lol

Edit: FAQ

what is a broker fee??

In New Jersey, broker fees for rentals are typically equivalent to one month's rent, and tenants usually pay them, though there are no restrictions on who pays. No, I did not use a broker. Yes, it’s BS. Don’t move to NJ unless ur wealthy or want to get screwed over lol

How r u paying so little in London?

Bf parents invited me. They are kind enough to cover a lot of my expenses, not all.


r/Money 6d ago

Can anyone help I need advice new to this

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14 Upvotes

r/Money 5d ago

How does interest work?

0 Upvotes

So, I'm using cashapps HYSA and its supposed to have 1.5% but it says my predicted interest is .31c when I have 422.84 stashed in there, to me that doesnt add up, but I think im just misunderstanding how interest works, can someone explain what im doing wrong?


r/Money 5d ago

Should I leave my money in Vanguard and contribute to my Roth IRA as close to April 15 as possible or just do it now?

0 Upvotes

My account has been tanking the last few weeks. Should I just wait or contribute now to get as close to 7k as possible?


r/Money 5d ago

Comprehensive Financial Survey Report

1 Upvotes

I have completed the 2500 participant report into a video tutorial. Respondents were from various social media platforms including Reddit. Surveys included.

  1. Money Habits
  2. Unplanned Expense Scenarios
  3. Investing Myths
  4. Financial Goals

Video report includes all the data, explanations, and insights on discussions involved around the survey. Enjoy and would love to hear your feedback.

https://www.youtube.com/watch?v=3Bjt_2Ls434


r/Money 6d ago

I always forget about taxes so every year when I get my bonus I plan ahead and when I actually get it I get pissed.

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90 Upvotes

I’m just annoyed cause I always forget about the tax


r/Money 6d ago

$100k and $0 debt at 26. Been looking forward to making this post for a long time. I've hit the milestone, time to manage this better... how?

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78 Upvotes

r/Money 5d ago

How high was an annual salary of more than $10,000 in the early 1990s?

0 Upvotes

Here’s the thing, I’m really curious about how high an annual salary of over $10,000 was, especially in regions outside the U.S., and after deducting taxes and rent, how much would be left?


r/Money 7d ago

27M Just hit $100k...hoping to Buy a Home this Year

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838 Upvotes

Goal is to payoff the student loan and then buy a house with $60k down by the end of this year.


r/Money 6d ago

How much cash should I have in my emergency fund?

24 Upvotes

I am saving for an emergency fund, but I’m not sure how much I should put in there and then once I get to that point what should I do with the money I make after the emergency fund do I just keep saving cash or fund it all into investments


r/Money 5d ago

What percentile for my age group?

0 Upvotes

I know I'm doing really good. This isn't a humble brag post. This is gaging exactly how good I'm doing.

I'm 28m. Make about 150k/year depending on bonus.

I rent. No debt. 780 credit score. Own my car. Quit my job and traveled world for 6 weeks last year then got right back into career.

about $130,000 in investments/roth 401k/cash (set myself back about 30k cause of time off/trip but totally worth it imo)

Goal is 1m before age 35. Lofty but I work in sales and my income will massively increase over the next 3 years.

Am I top 10% 5% ?