TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:24:08 GMT -5
Or cannot afford to not take : when daycare more than person would be bringing in. There are still work arounds. Work opposite shifts or weekends or get into a childcare sharing arrangement. What is childcare sharing arrangement? Some jobs to not have different "shifts" available or be done at night etc
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:24:43 GMT -5
Mortgage used to be the huge income suck. Now it's SL's. Add a mortgage to that mess? You live to make payments -forever. Feels like forever but really it is not
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zibazinski
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Post by zibazinski on Sept 5, 2015 15:25:07 GMT -5
There's a reason that years ago you needed 20 per cent down and it could only be 25 per cent of your net or 33 percent of your gross. Even if a family followed that "rule"; it would have been 25% person of household net income or 33% of their combined gross income. Losing 1 income would still hurt! Or even if the person was single and followed your rule, a 50% paycut would still hurt! You betcha. The bank didn't want to own the house-ever. I had a secure job even though I was single. Had I had to sell the house, the bank would have gotten their money.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:34:34 GMT -5
Ok thanks for all the good info everyone Got the information I needed for my research!
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busymom
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Post by busymom on Sept 5, 2015 15:37:14 GMT -5
Yes, the first year is absolutely the toughest. Does it get easier after year 1? Long term wise... *I guess pay raises/promotions may bridge the gap after awhile! Yes, it got better after the first year, but I wouldn't ever say "easy". You're changing old habits in favor of new habits. I could bore you with a long list of things we did to trim expenses: turning down the thermostat when no one was home, opening the blinds on the South side of the house during daylight in the winter, to take advantage of the sun helping to heat the house...there are all kinds of tricks to help you manage. I've worked 2 jobs when DH was unemployed, & he has worked as many as 3 jobs at one time. "You do what you gotta do."
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:40:37 GMT -5
"You do what you gotta do." I guess basically at the end of the day it comes down to that!
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Deleted
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Post by Deleted on Sept 5, 2015 15:44:48 GMT -5
Same as working opposite shifts with your spouse, only with someone else. A lot of people at the company I work for do this. Weekend shift workers will watch first shift kids in exchange for getting theirs watched on the weekend. Then you don't choose from those jobs? You're acting like the only choice is your regular 9 to 5 career job or making no income and staying home with the kids. Even making 15 or 20K/year stocking shelves at night after the spouse is home to watch the kids would be better than no income if they couldn't pay the mortgage otherwise.
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Deleted
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Post by Deleted on Sept 5, 2015 15:45:59 GMT -5
There's a reason that years ago you needed 20 per cent down and it could only be 25 per cent of your net or 33 percent of your gross. Even if a family followed that "rule"; it would have been 25% person of household net income or 33% of their combined gross income. Losing 1 income would still hurt! Or even if the person was single and followed your rule, a 50% paycut would still hurt! It would hurt but should still be manageable. You should have 50% left for other expenses.
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Deleted
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Post by Deleted on Sept 5, 2015 15:49:36 GMT -5
That's the stuff you have to think about when you are setting yourself up. Otherwise you're selling and downsizing. Hindsight is always 20/20 ... In French there is a saying : "Si Jeunesse savait, si viellesse pouvait" "If youth only knew, if age only could". - what if house is upside down? Or have to bring money to the table? You talk to your bank and see if you can renegotiate for a longer term lower payments or you default. Someone else mentioned the idea of renting rooms or earning money in other ways. I'm going on the assumption that hasn't worked.
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Deleted
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Post by Deleted on Sept 5, 2015 15:51:04 GMT -5
There's a reason that years ago you needed 20 per cent down and it could only be 25 per cent of your net or 33 percent of your gross. Even if a family followed that "rule"; it would have been 25% person of household net income or 33% of their combined gross income. Losing 1 income would still hurt! Or even if the person was single and followed your rule, a 50% paycut would still hurt! My house payment is nearly 50% of my take home and that's counting child support. It's been that way for years and I make it work.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:53:28 GMT -5
Then you don't choose from those jobs? You acting like the only choice is your regular 9 to 5 career job or making no income and staying home with the kids. Even making 15 or 20K/year stocking shelves at night after the spouse is home to watch the kids would be better than no income if they couldn't pay the mortgage otherwise. At $10.00/hr X 40 X 52 they would need to work full time to make $20,800 stocking shelves... 90% of those jobs are part time so no full time hours. And I get it, second parent get a second job opposite shifts to make it work!
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:54:16 GMT -5
Even if a family followed that "rule"; it would have been 25% person of household net income or 33% of their combined gross income. Losing 1 income would still hurt! Or even if the person was single and followed your rule, a 50% paycut would still hurt! My house payment is nearly 50% of my take home and that's counting child support. It's been that way for years and I make it work. Now imagine if your pay was cut in half...
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:55:01 GMT -5
Even if a family followed that "rule"; it would have been 25% person of household net income or 33% of their combined gross income. Losing 1 income would still hurt! Or even if the person was single and followed your rule, a 50% paycut would still hurt! It would hurt but should still be manageable. You should have 50% left for other expenses. Not if you needed 100% income to make ends meet
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Deleted
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Post by Deleted on Sept 5, 2015 15:57:34 GMT -5
Then you don't choose from those jobs? You acting like the only choice is your regular 9 to 5 career job or making no income and staying home with the kids. Even making 15 or 20K/year stocking shelves at night after the spouse is home to watch the kids would be better than no income if they couldn't pay the mortgage otherwise. At $10.00/hr X 40 X 52 they would need to work full time to make $20,800 stocking shelves... 90% of those jobs are part time so no full time hours. And I get it, second parent get a second job opposite shifts to make it work! Ok then, tend bar or waitress, deliver pizzas or deliver newspapers. Anything. Factory shift work starts at $12/hour here in a LCOL area.
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Deleted
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Post by Deleted on Sept 5, 2015 15:58:26 GMT -5
It would hurt but should still be manageable. You should have 50% left for other expenses. Not if you needed 100% income to make ends meet Make what ends meet? You seem determined to say it can't be done.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 15:59:42 GMT -5
Ok maybe I will get better answers here.
For people that have gone from a 2 income household to a 1 income one... How did you make it work?
Wether it was job loss? Deciding to become a stay at home parent? Divorce?
How did you make it work? What did you cut? How did you adjust?
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Deleted
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Post by Deleted on Sept 5, 2015 16:02:33 GMT -5
Unless two incomes were providing only the most basic shelter and food, who would ever set up their lifestyle so that 100% of two incomes was necessary to sustain it?
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Deleted
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Post by Deleted on Sept 5, 2015 16:02:35 GMT -5
My house payment is nearly 50% of my take home and that's counting child support. It's been that way for years and I make it work. Now imagine if your pay was cut in half... Half my income is child support. Trust me, I have imagined that, and am prepared.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 16:08:44 GMT -5
Unless two incomes were providing only the most basic shelter and food, who would ever set up their lifestyle so that 100% of two incomes was necessary to sustain it? More people than you think
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Shooby
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Post by Shooby on Sept 5, 2015 16:09:00 GMT -5
Cutting to one income is great! Feel the pain now! Then, life gets much easier.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 16:08:44 GMT -5
Not if you needed 100% income to make ends meet Make what ends meet? You seem determined to say it can't be done. Did I say that
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 16:10:52 GMT -5
Now imagine if your pay was cut in half... Half my income is child support. Trust me, I have imagined that, and am prepared. Care to share?
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Shooby
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Post by Shooby on Sept 5, 2015 16:27:22 GMT -5
Lower your expectations. Easy peasy.
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Sept 5, 2015 16:27:27 GMT -5
We could do it. I don't want to.
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 16:27:54 GMT -5
Lower your expectations. Easy peasy. Bills?
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TheHaitian
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Post by TheHaitian on Sept 5, 2015 16:28:20 GMT -5
We could do it. I don't want to. Show off
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Deleted
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Post by Deleted on Sept 5, 2015 16:30:36 GMT -5
Half my income is child support. Trust me, I have imagined that, and am prepared. Care to share? Well, first of all, I have enough in my emergency fund and Roth contributions to carry me through for quite a long time while I sorted things out. If it was both Dads quit paying child support, I'd switch back to working production at work and start piling on the OT, or see about getting recerted so they just let me work the weekends in production in addition to my regular day job. It would be a PIA and not great for spending time with the kids, but I could up my pay by 10K/year that way. I'd cut back retirement and kids college savings, right now 35% of my gross (at my job, not total) is going to either 401K or Roth and another $2400/year to the kids 529s. So, lets see. 10K OT, $5500 ROTH, $2400 kids 529s, say 3K cut to 401K. Right there I have about 21K of the 24K I lost to child support. Then there is the discretionary spending. I put money into a vacation fund every year and have a family Y membership and the kids are in activities that could be cut. If instead of child support, I lost my job. I'd get unemployment for awhile and lets face it, I don't make much. There are tons of manufacturing around here and only 2% unemployment, so I wouldn't have much of a problem getting at least a $12-$14/hour job right away. Then, there is always the sell the house option. There's at least 100K in equity, maybe as much as 150K. I could conceivably sell and pay cash for a smaller place in town. I've been through worse than a 50% paycut.
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Deleted
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Post by Deleted on Sept 5, 2015 16:44:19 GMT -5
Our bills were always based on one income, so it was pretty easy. Sometimes DH would take on an extra short term side gig or overtime, because it was always easier for him to generate profitable income with little actual hours. We do most of our own maintenance, so we don't hire as much out as other people we know. Vacations are usually camping, but that is a preference.
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debthaven
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Post by debthaven on Sept 5, 2015 17:18:10 GMT -5
What's going on Carl? As far as I understood, you are keeping your current salary, plus saving rent / gas. Have you sent your MIL packing?
This is why most people suggest not overextending yourself.
Perhaps you can put your SLs (or rather your wife's) into forebearance?
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zibazinski
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Post by zibazinski on Sept 5, 2015 17:37:22 GMT -5
MIL stays for free. No packing. . It's darn hard when two incomes are totally necessary to pay the bills. Between mortgage, utilities, upkeep, student loans, car loans, credit card debt. Some of these things end with time. CC's get paid off. Car loans get paid off. The other things just keep increasing. Then add in food. Plus other things I can't even think of right now. That's if you go nowhere and do nothing-ever Good luck with that. Never buy gifts? Never attend family events that cost money? Not happening.
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