• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Budgeting for Home and Life Changes

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.
I would setup a savings account and have money go to it automatically. I have a TFSA regular bank account and a TFSA stock account. The stock account will be used for playing around with stocks so I don't really consider that savings as I could easily lose it all but something fun to do, the other TFSA is just an emergency/toy fund. Any house projects and stuff that is not an immediate need I save up for it fully. I try to put extra money in that account when I can too.

Basically try to automate some kind of savings transfer at pay day, and treat it like any other bill. It's money that's coming out of your account and going somewhere else. It's less tempting to spend when your account is low.

Of course that's just one way of doing things, really depends what works for you. For someone single I am generally kinda bad for buying toys myself, I tend to go on spending spurts, then realize I have to stop spending so much money and stop for a while, then go back to spending again. Amazon and Ebay is dangerous. 😛
 
Red Squirrel said:
I would setup a savings account and have money go to it automatically. I have a TFSA regular bank account and a TFSA stock account. The stock account will be used for playing around with stocks so I don't really consider that savings as I could easily lose it all but something fun to do, the other TFSA is just an emergency/toy fund. Any house projects and stuff that is not an immediate need I save up for it fully. I try to put extra money in that account when I can too.

Basically try to automate some kind of savings transfer at pay day, and treat it like any other bill. It's money that's coming out of your account and going somewhere else. It's less tempting to spend when your account is low.

Of course that's just one way of doing things, really depends what works for you. For someone single I am generally kinda bad for buying toys myself, I tend to go on spending spurts, then realize I have to stop spending so much money and stop for a while, then go back to spending again. Amazon and Ebay is dangerous. 😛
Click to expand...

This is good advice. I do the same.
 
edro said:
I used a Roth for 3-4 years to save for my first house (in my early twenties).
In hindsight, I should have left the money there and never bought the damn house.
But... as usual... it all worked out.
Click to expand...


Hey, you take that back 😡
 
Red Squirrel said:
I would setup a savings account and have money go to it automatically. I have a TFSA regular bank account and a TFSA stock account. The stock account will be used for playing around with stocks so I don't really consider that savings as I could easily lose it all but something fun to do, the other TFSA is just an emergency/toy fund. Any house projects and stuff that is not an immediate need I save up for it fully. I try to put extra money in that account when I can too.

Basically try to automate some kind of savings transfer at pay day, and treat it like any other bill. It's money that's coming out of your account and going somewhere else. It's less tempting to spend when your account is low.

Of course that's just one way of doing things, really depends what works for you. For someone single I am generally kinda bad for buying toys myself, I tend to go on spending spurts, then realize I have to stop spending so much money and stop for a while, then go back to spending again. Amazon and Ebay is dangerous. 😛
Click to expand...
Yeah, definitely a good tip. We already do this to some extent. Will have to reallocate once the student loans are paid off.
 
+1 for the vote to stay as long as possible in your place. Having a toddler in a 1000ft^2 condo was easy for us, three other families in our building had 2 kids in ~1300ft^2 condos (2 bedrooms). Now that we are in a big home we have far more useless junk than I ever dreamed of. We made the move to the suburbs because of commuting reasons and a 2nd child, otherwise we would have stayed longer. The key as someone else said is that this move should be into the house your kids go to high school in.

Also +1 for tracking every $ spent in a spreadsheet. It doesn't take much time and it's fun to lob it over to the wife when she is getting too crazy and ask her if we can sustain at the current burn rates. Hard to argue with numbers.

Before kids we blew unbelievable amounts of money going into NYC and eating/drinking out. As someone else said it wasn't wasted, it was a life style. Which has since changed now that we have kids and a suburban home. This new life style is not something you should be running towards, enjoy the good restaurants while you can as long as it's not jeopardizing 401k/student loans/etc.
 
So, uh, I guess I never really updated this thread.

We put a deposit down on a new home in February. We close on Thursday! Everything went great with the sale of our current home. Except for a few small fixes, the new home is ready to go.



Oh, and the wife is 10 weeks on Friday. I guess it's all happening!
 
Exterous said:
Ah good ol Putle Homes. Seems like SE Michigan is either them or Toll Brothers these days.
Click to expand...
It's no custom build, but we had a good experience with Pulte previously and they've been pretty good this time as well. Just have to stay on top of them a bit.
 
The single largest issue I see in financial planning is lack of a big picture. Too many concentrate on becoming more comfortable, new house, car, trips etc., rather than deciding how they want to live. Worse, too many think acquiring those things IS success.
 
ponyo said:
First thing I noticed. You can open your window and pass a beer to your neighbor.
Click to expand...
Hey, an upside. Yo, RC, bud's just fine. Thanks.😀
MagnusTheBrewer said:
The single largest issue I see in financial planning is lack of a big picture. Too many concentrate on becoming more comfortable, new house, car, trips etc., rather than deciding how they want to live. Worse, too many think acquiring those things IS success.
Click to expand...
I see that a lot. The perception of wealth is the same as wealth. Customers will have a $700 car payment and live in a cardboard box.
ctbaars said:
Hope no guests throw poo out the bathroom window.
Click to expand...
😀 Pretty sure my wife would nix any other women in the house besides her family.
 
rcpratt said:
Update - Post #35

Well I know this isn't fatwallet or whatever but you guys always give good advice. So here goes.

My wife and I are 28. We own a townhome/condo that we bought 3 years ago. Things have gone well in our area and we probably have about $60k in equity in that home right now (not exactly sure on the taxes/realtor fees).

We're somewhat considering upgrading. The townhome is fine, but it's probably a bit too small to expand the family. The "plan" would probably include having our first kid somewhere around 30. We have some flexibility in our budget right since the wife's student loans are just a few months from being paid off (was doing $1,600/mo). But what I'm really having a hard time with is figuring out our expenses 3-10 years in the future when things are quite different.

It's just hard to get a sense of where things will go out and where things will go down and how it will all settle out. Yes, I'm sure there will be a ton of money spent on kids and kid things. But we're also rather wasteful right now as dual-income 20-somethings. There are plenty of weekend trips, sports events, restaurants/bars, etc. that probably won't be quite as much of our life in the future.

The wife would probably go half-time at some point when we have a family. But because she's a teacher and the stupid way their pay scales work, 5 years from now, she'll be making just about the same half-time as she is right now full-time. On the other hand, I'm perfectly confident in my career growth.

I mean, is it safe to go up to ~25-30% of our monthly income with our mortgage/taxes? We'd be fine with that right now, but I just worry about growing expenses. Halp.
Click to expand...

I highly recommend having your kids ASAP to avoid higher risk of complications.
 
rcpratt said:
So, uh, I guess I never really updated this thread.

We put a deposit down on a new home in February. We close on Thursday! Everything went great with the sale of our current home. Except for a few small fixes, the new home is ready to go.



Oh, and the wife is 10 weeks on Friday. I guess it's all happening!
Click to expand...


Congrats OP -

Personally (my own experience opinion I've learned over the years) is that as much as I want to move, I honestly don't think it's that great of an idea to do so before a baby. No matter what you're thinking whether it's creating the kids room or whatever (not sure if your old place had enough bed rooms) chances are it's really just not necessary for them. Our baby isn't going to sleep in a full-size crib anytime soon, so it's just a little basket that is on the other side of our room.

Don't get me wrong, I REALLY want to move. I hate the neighborhood and hate the neighbors of where I live - BUT, where we currently are at is significantly below our means. I already have over half the house paid off from extra principle and I'm still raking in extra to savings and maxing out retirement (401k+IRA for both me and the wife) as well as building a 529 for the kiddo. It's a damn good feeling to live below your means instead of trying to keep up with the Jones and saddling debt your whole life. Ultimately I'm looking towards the distant future of ~5 years out when my kid is actually going to be going to school. THAT is when I will want to move - because I'll want a school district that is halfway decent so I don't feel like I need to send them to private school.

Speaking of Keeping up with the Jones', I have some in-laws that are like that. Their money burns a hole in their pocket so quick that they just don't have any anymore. They spend money before they have money and just live a life of always paying things off. It's pretty sad as they play a constant game of "neighbors have a pool - we need to have a pool" and "my car doesn't look as nice anymore compared to the neighbors - I need a new one".

Best of luck with everything and growing a family.
 
Last edited:
You must log in or register to reply here.

TRENDING THREADS

Back
Top