Author Topic: How to make this work?  (Read 4100 times)

Mntngoat

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How to make this work?
« on: August 24, 2015, 11:08:59 AM »
Just came across this forum, and reading all i can  But need some guidance.

I am 45 and my wife is 7 years older and  have been married for 10 years. 
We  live in a very modest 52 year old 1,400 SF home, owe $340K on a home valued at $650K,  we max out her 401K every year including catch up contributions and have about $600K in 401K and 100K in 2 IRA's, we owe 15 years on the home but it costs most of her take home pay, for P&I / property tax.   
We both drive 10+ year old cars with no payment, and my employer pays for my fuel, she works from home and I ride my bike to work 2 days/ week. My other days are spent on construction sites so can't ride  but my commute is less than 15 miles each way.

How do we get to the point where we can save more?  it seems to take's my salary to put food on the table and pay the utilities, which doesn't leave much for savings  I know we can cut the cable, and eat out less.   

ML
« Last Edit: August 24, 2015, 04:21:00 PM by Mntngoat »

velocistar237

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Re: How to make this work?
« Reply #1 on: August 24, 2015, 12:10:20 PM »
How do we get to the point where we can save more?  it seems to take my salary to put food on the table and pay the utilities.  I know we can cut the cable, and eat out less.

The first step is to figure out where the money is going. The results might surprise you, or maybe not, but to get our help, we need to know more. If you want a framework, take a look at the how to write a case study topic. Case studies often get posted in the Ask a Mustachian area of the forum.

BTDretire

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Re: How to make this work?
« Reply #2 on: August 24, 2015, 03:41:42 PM »
I know real estate prices vary depending on location, location, location.
My quick calculation says you have at least a $3,400 monthly mortgage payment,
possibly more.
What would it cost to rent in your area?

Mntngoat

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Re: How to make this work?
« Reply #3 on: August 24, 2015, 04:13:47 PM »
I know real estate prices vary depending on location, location, location.
My quick calculation says you have at least a $3,400 monthly mortgage payment,
possibly more.
What would it cost to rent in your area?

  close  $2900/ month for mortgage and prop tax.   to rent a similar  property would be  $2500-2800

r3dt4rget

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Re: How to make this work?
« Reply #4 on: August 24, 2015, 04:30:29 PM »
Sell the house. Quit your jobs. Move to a lower cost of living area. Then you don't have to save money for retirement anymore, as you are there already.

Mntngoat

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Re: How to make this work?
« Reply #5 on: August 24, 2015, 04:35:20 PM »
Sell the house. Quit your jobs. Move to a lower cost of living area. Then you don't have to save money for retirement anymore, as you are there already.


thats  the plan, if i could just convince the mrs to move away from her family.    But even   $600-700K  would leave  $28K/ year  at 4% withdrawal rate. 

BTDretire

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Re: How to make this work?
« Reply #6 on: August 24, 2015, 07:48:09 PM »
I know real estate prices vary depending on location, location, location.
My quick calculation says you have at least a $3,400 monthly mortgage payment,
possibly more.
What would it cost to rent in your area?

  close  $2900/ month for mortgage and prop tax.   to rent a similar  property would be  $2500-2800

 Oh, I didn't back out any down payment from the $650,000!
Do you need a similar property?

MrsPete

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Re: How to make this work?
« Reply #7 on: August 24, 2015, 08:15:26 PM »
We  live in a very modest 52 year old 1,400 SF home, owe $340K on a home valued at $650K ...  for P&I/property tax
I'm not clear: 

Is the 52 year old 1400 sf house the 650K house upon which you owe 340K? 
Or do you live in the 52 year old 1400 sf house AND ALSO own a second house? 

I know I live in the land of low prices, but I have trouble wrapping my head around a modest old house that small costing 650K. 

I suspect the root of the problem is that you're "over-housed".  Though you didn't state your salaries, I suspect you can't afford to live where you live ... not in conjunction with saving and living comfortably. 

What's P&I/property tax?  Tell me you're not paying PMI on this large amount! 

Vanchica

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Re: How to make this work?
« Reply #8 on: August 26, 2015, 08:04:47 AM »
It sounds like you live in Vancouver- real estate here is nuts.

To bring in more cash, can you do AirBnB? Can you trim your expenses or get a raise? Can you grow vegetables on your lot?

mozar

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Re: How to make this work?
« Reply #9 on: August 26, 2015, 12:12:17 PM »
Or a roommate. It's basically free money.