house buying/budget question

[moneymommy]

thanks

Edited by moneymommy - 3/23/11 at 5:40pm

[zebra15]

You have about $150/month left over.  I see no retirement savings for you, I only see 401k for DH, no IRA etc. I see no 'savings'  EF, long term savings etc listed.

I dont know how old your kids are but at some point they may want more then what is offered at the gym and they may need more than what is offered at the thrift store.

If you buy this house and deplete your savings what happens if the week after you move in the water heater dies, the pipes flood and the car breaks. Trust me, murphys law happens.

A huge tax refund this year does not necessarily mean the same thing next year.

[velochic]

In just the past two weeks, we've had the following happen:

- Alternator went out on my "reliable" older van

- The flashing on the roof was blown up by severe winds and needed to be fixed (under deductible, so no insurance coverage)

- The ignitor switch on our gas furnace needed replaced

- We had a pipe burst in the basement that had to be fixed.

My mom was also in the hospital (she lives with us) and I was eating there every lunch for a week, had to spend a lot of money on new equipment for her at home, and used a lot of gas traveling back and forth to the hospital multiple times a day.

I agree with the pp, you also have many things left out of your budget (one not mentioned is just general spending money that isn't included... grabbing a soda or coffee, a snack while out, etc.).  If you can fill those holes in the budget and have a couple of weeks like we've had without putting yourself in debt, then you can afford it.  If not, you can't afford it.  I commend you for having the 20% down, but these days, it's just not enough.

I will also do my usual PSA to say that if you are getting back that kind of refund, you need to change your withholdings so you are not giving the government a free loan.  You need to be getting that money yourself every paycheck instead.

[dawningmama]

ITA with velochic's PSA! That tax return is more than what a year of your mortgage payments would be. If noting else, you could have those same fund that are going to withholding be directly deposited into a savings account or investments to earn you a little money over the course of the year and pad your emergency fund.

[MommaJayla]

I appreciate the input :) Re the tax returns - they are mostly from child tax credits & EIC, not nearly that much actual "refunded" money.

[TiredX2]

Originally Posted by MommaJayla 

I appreciate the input :) Re the tax returns - they are mostly from child tax credits & EIC, not nearly that much actual "refunded" money.

But you might want to think about it in actual monthly numbers.  What if only $1200 of that $10K you could get "early"--- that's an extra $100/month.  What if it were $2400 (so less than 25% of the refund)--- you suddenly have an extra $200/month to consider in your budget.

Lastly, when you say that you don't include DH's two "extra" paychecks a year--- do you mean that he is paid biweekly and you only count two a month.  Because while you don't need to spend those on a monthly basis, you definately need to account for them in your budgeting!

[MommaJayla]

nm