Will we ever be able to not rent????

[veoh112]

Hi

I guess I am writing to you to find some direction and advice on our family’s financial situation. It is kind of complex so I will apologize now for the length of this writing.

I am a husband to my wife and a father to our 4 children (14, 10, 3 and 2). We are home owners, but not in the typical sense as the home I own is for my parents to live their golden years out in. This was an obligation I promised and I am fulfilling to my parents. I pay for all the things in regards to this house.

My wife and I, along with the kids are in a rental at this time. The rental is a 2-year contract and we are paying 4,000.00 a month for rent. We are trying to save to buy a home for us, with the hopes that in the next year we can have one last baby.

So, lets get down to numbers to see if you feel if we are able to do all the things we are wishing to do.

Parents home costs.

Mortgage 453,906.20 @2.75% with 11 years left on note. Monthly is 3,757.00, not including taxes. (home is valued at 660k)

Taxes Spring is 3,200.00 and fall is 9,700.00.

Solar panels 235 a month for 18 more years.

Water is 450 a year, Internet and tv is 300 a month, electric is 23 a month, oil and propane is 6,000 a year and home insurance is 1,300 a year.

Rental cost

Rent 4,000 a month, electric is 230 a month, propane is 2,000 a year, oil is 6,000 a year, water is well.

Living costs

Food is roughly 450 a week.

Car insurance for 2 cars is 3100 a year

Private school is 19,000 a year for all 3 kids. (2025 will be all 4).

Cell phones is 250.00 a month.

Two cars are paid in full (2019 yaris and 2021 palisade)

Our Debt

My student loans is 28,528, with 150 a month payment, wife no student debt

Credit cards total debt is 16,394

Savings

Checking 100

Savings 50

Stocks 34,639

401k 58,953.

IRA 7,200.

Earnings

Wife (32 y/o) is home maker

I am a Physician assistant (48 y/o). I make after taxes every month roughly 17,000.00 every quarter is tend to make a bonus of 6,000 a qtr. I work 70 hour weeks and have been for last 4 years.

Goals

First is pay off CC debt, I feel that will be done by end of august.

Stocks. I put 2500 a month automatically into stocks. and full 10% in 401k.

Lease ends in October 2025. Might do one more year after and then hope to buy a home.

What do you think. Are we able to get this moving?

 

[paloma_91]

@veoh112 Well the problem is that you are actually talking about buying two houses in a very challenging housing market. You appear to be paying for 8 different people’s expenses. You make a lot of money, but two houses and financially supporting 8 people is a big ask. Are you happy working 70 hour weeks with a wife and 4 kids? Is your family happy with it? I guess I just don’t understand why you are paying for your parents living expenses. That is not normal and it is really burdensome for you, your wife, and your kids. Is there some story or cultural explanation?

 

[golgothaghostwriter]

@veoh112 Of course you could own a home, if it were important to you. You’re prioritizing buying your parents a home and paying all of their home expenses, having a basketball team worth of kids, sending those kids to private school, and having a single income household over owning your own home to live in. Those are four huge factors in a family’s ability to own their home. You might be able to make things work even with your own housing being such a low priority for you, but it will be tough.

 

[eu1er]

@veoh112 Are you putting money into stocks while holding credit card debt right now? Is the 10% hitting the match or more? If it’s beyond the match reduce down to the match.

Why are you holding stocks and holding credit card debt at the same time?

Why are you paying 250 a month for cell phones? Shouldn’t be more than 120 if it’s 4 lines. Small potatoes but indicative of poor budgeting. Same with the internet + tv. 300 tv bill is boomer shit.

Due to your income home ownership is still possible despite the huge sacrifice you have made by gifting your parents a home. You are however not anywhere near that right and won’t be for decades unless you tighten up your budget.

Your budget has no room for medical expenses, vehicle emergencies/expenses or repairs on your parent’s home. Your budget doesn’t reflect vacations or eating out, which I’m sure you do plenty of.

 

[veoh112]

@eu1er Yes, the stock is a consistent 2500 automatically put in for my investments every month. The debt is 16 K half of it is 0% interest due to buying stuff at Home Depot and such hoping to have that paid off all by end of August.

As for the cell phones, I am paying for five cell phones.

The cable and Internet is needed as I work remotely from home. I agree it is some boomer shit. But I need reliable business Internet at both places as I work from both homes.

 

[eu1er]

@veoh112 So you have 8k in credit card debt accruing interest every month? Yet you invest instead.And you have 35k in stock you could use to pay it off? You should also have more then $150 in liquid cash/savings on hand for emergencies.

50/cell line is boomer shit.

You don’t need cable TV for work.

What’s the balance interest rate on the solar panels? Seems like a pretty bad investment given energy prices.

Lol just realized you probably meant 19k per kid for private school is that right? If that’s the case then you cannot afford to buy a home with these spending habits and won’t until they are out of the house, and if you pay for their college as well then it will be 20 years from now until you have some slack in your budget.

 

[veoh112]

@eu1er The solar power is 49,000 remaining on balance with interest rate of 5.5%

No, the private school is total 19,000 for the three kids this year. Next year it will probably bump up to 23,000 soft estimate.

The kids were informed that I am not paying for college, but I would pay for them to go to private school to gain the education to be ready for whatever college choices they make.

I will look into the cell phone to see if I can find cheaper plans as you are stating I am overpaying $50 per line

Cable TV is for the boomers lol. As that’s my parents home.

At my home that we rent all we have is Internet and Netflix

 

[eu1er]

@veoh112 Good to hear on the private school, that’s a good deal, I’m used to people paying 15k here per kid so 5.7k/kid isn’t bad.

For cell look at MVNOs. USMobile/mint/googlefi all have options. I have USmobile and know with them you can get 5 lines unlimited for 125 including taxes and fees.

Things aren’t as dire as if you were paying more for school but it’s hard to see any lenders looking at you and your 550k in debt and giving you the time of day.

 

[prayingkelly]

@veoh112 You're spending waaaaaaay too much money.

 

[tumbleweedangel2]

@veoh112 you are living above your means...easy...

 

[atozsolution]

@veoh112 Just keep having kids. It’ll work itself out eventually

 

[balkan]

@atozsolution 5 kids, solar panels, trad wife.

Getting some super mormon vibes here.

 

[lommakiter]

@balkan No one mentioned it cuz it’s a bit off topic, but if she is the mother to all 4 kids, she had a kid at 18 and he was 34. Is my math correct? Cuz I’m dumb.

The whole scenario seems strange.

 

[veoh112]

@lommakiter The 14 and 10-year-old are my step kids

 

[lommakiter]

@veoh112 Ah gotcha. Sorry if that was offensive, OP. Again, I’m dumb, but I say move your parents into a nice/cheaper condo and straighten out your finances to improve your home life. I’m sure they’re still appreciate it.

 

[8oo8ies69]

@veoh112 Knock out that CC debt asap before any other contributions.

 

[garnetice7]

@veoh112 You’re essentially working a second job to pay for your parents. It’s fine but remember that coming at the expense of spending time with your family. Kids are small for a very short time. From zero to five is when you can spend most of the time with them

 

[judu18]

@veoh112 You’ll need cash to buy a home and you have $150 in cash.

Do your parents need a $660k home all to themselves? Can they downsize to a smaller home and still be happy and meet your promise? If not can you refinance your 15yr mortgage to a 30 yr one?

If home is #1 priority then pause the stock auto transfers stop the 401k and plow everything into a money market fund or hysa or treasury bills. You need a downpayment and right now you don’t have one.

Can your wife work and earn more than you would pay for a baby sitter?

Can you earn more income by switching to a different employer?

Can the kids start working to earn extra income?

 

[joey1234]

@veoh112 Stop sending your kids to private school and you would have $58K more per year. Thats $4,833/month. That + the 4K in rent is 8,833 in mortgage/PI+fix it fund. You have more than enough money.

You could also stop paying all of your parents expenses. They dont have any income?

Another idea would be to move in with your parents (into your house)

 

[veoh112]

@joey1234 Hey thanks for the reply. The schooling price isn’t what you posted. For the year it’s 19k. Yes. Not a small number. But sadly the schools in upstate ny aren’t the best in our area