XOXO

goingtobemrs Posted: Aug 18, 2004 02:41 PM

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nferrandi Posted: Aug 18, 2004 02:45 PM

Re: Planning for House and Kids

I think that sounds like a reasonabe plan, but it also sounds like you make a lot of money. Would you be ok with having to cut back on all of your spending? It will probably be a big adjustment going from a decent pay check every week to no pay check. If you're ok with the sacrifices, than I say go for it. If FH made enough money I would be more than happy to stay at home raising our kids.

goingtobemrs Posted: Aug 18, 2004 02:48 PM

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BriBri529 Posted: Aug 18, 2004 02:59 PM

Re: Planning for House and Kids

If you are able to save that much money in a 2-3 year period, I think you will be just fine . . .

Bunnymonkey Posted: Aug 18, 2004 03:01 PM

Re: Planning for House and Kids

i have no idea if it is a good plan, i am a money moron,

but I would just like to say I admire when people go into marriage and family with a plan-something to work towards.

Good luck and God Bless!

goingtobemrs Posted: Aug 18, 2004 03:07 PM

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nov04LIbride Posted: Aug 18, 2004 03:25 PM

Re: Planning for House and Kids

The only thing is that there aren't many homes around now for $350,000, and in two years there will probably be even fewer still--especially if you want a house in a good school district. A good plan, but the best laid plans...

kpny622 Posted: Aug 18, 2004 03:41 PM

Re: Planning for House and Kids

Sounds like a good plan but keep in mind that moving back in with parents can be very difficult and often can strain a new marriage - something to think about, especially if you all don't get along really well.

Also - even though you'll want to save your whole paycheck I think it's smart to still max out your contribution to any 401K plan that's offered - especially if you'll stop working after kids and will need all of your husband's check to pay the bills. Gotta have something for retirement!

goingtobemrs Posted: Aug 18, 2004 06:49 PM

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SeptemberBride03 Posted: Aug 18, 2004 06:52 PM

Re: Planning for House and Kids

I wouldn't put more than 25% down on the house. A mortgage is 'good' debt meaning you usually get a rate of interest that is less than what you would make by investing the money. So its worth it to keep in invested and pay the mortgage payments - then get the interest deductions and get to have your money grow and have the liquidity option. Remember the time value of money - you should have control of your money - not your mortgage lender. I'm a financial planner - can you tell!

goingtobemrs Posted: Aug 18, 2004 06:57 PM

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goingtobemrs Posted: Aug 18, 2004 06:59 PM

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kakarch Posted: Aug 18, 2004 10:00 PM

Re: Planning for House and Kids

i think it is a great idea. the problem with people our age today is that we think too much for the 'now' and not for the future....i agree with your thinking, 'suck it up' for now and live with your parents so that you will not be weighed down for the rest of your life with a payment that will inhibit your lifestyle. you are going to have a '30 year tax deduction' whether you put down 10% or 40%....you have to think about your peace of mind!!..that's the most important thing...besides, what's 2 years in relationship to your entire life....work hard and save now so you can enjoy lower mortgage payments for the rest of your life....p.s. read 'the millionaire next door'...you are on the right track, girl!!

Blu-ize Posted: Aug 18, 2004 10:05 PM

Re: Planning for House and Kids

Posted by SeptemberBride03

I wouldn't put more than 25% down on the house. A mortgage is 'good' debt meaning you usually get a rate of interest that is less than what you would make by investing the money. So its worth it to keep in invested and pay the mortgage payments - then get the interest deductions and get to have your money grow and have the liquidity option. Remember the time value of money - you should have control of your money - not your mortgage lender. I'm a financial planner - can you tell!

I agree completely, I couldn't have said it better myself! Also, keep in mind property and school taxes. You may be setting yourself up for a disappointment, but I admire you for having such a focused plan!

kpny622 Posted: Aug 18, 2004 10:31 PM

Re: Planning for House and Kids

Posted by tp329

I see what you are saying, but in order for me to be able raise our children, that is the only way we will be able to afford a mortgage payment on his salary.

Well, not really - let's say you have 250K saved and want to buy a 400K house - instead of putting down 50% and having only 50K left, you can put down 20% and have 170K left. Yes, your mortgage will be larger BUT - you will still have the 170K in the bank as liquid money, some of which can be used to supplement the mortgage payment each month.

lillian771 Posted: Aug 18, 2004 10:36 PM

Re: Planning for House and Kids

Sounds like you have a great plan worked out. My brother and his wife lived in my parents' basement when they first got married and it really worked out for them. They stayed for about a year and 1/2 and then bought a house in Islandia before the real estate boom. They sold it a few months ago and almost tripled their money and now they live in a house worth about $500K...and they're only 30 years old!!!

Best of luck to you guys with your saving/planning.