How much extra money should be in my living budget?
Hi, I want to move, but I don’t make a lot of money. I make 2200 bucks a month.
I was approved for a $650 a month mortgage which allows me to afford a small home in my area.
Other bills I’m thinking are the following
Utilities: 200
Cable/internet/phone: 150
Food 2 people: 500
Drs/Medicine: 100
Car Gas: 200
Car Insurance: 100
Total bills 1900
Total income 2200
That gives me just 300 breathing room and I haven’t counted anything for fun or savings or emergencies.
I have a $3000 unused credit card and $15000 in the bank.
Would you move into this situation? How tight is too tight? I don’t want to touch my savings because once its gone its gone, and I don’t want to use my credit card except to pay it off each month.
Please help. I want to move, but I’m scared that I don’t have a lot of free cash.
I have 6 months expenses in the banks and the property taxes are already figured in the mtg payment.
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April 21st, 2010 at 9:59 pm
6 months worth of living expenses is the rule of thumb. Good Luck
April 25th, 2010 at 2:29 am
I would first suggest finding out how much school taxes are in that area which you didn’t specify. My school taxes (when you own a house) are like 200.00 month. That gets es crowed on top of that mortgage payment. So your mortgage payment would be like 850 month. Sounds way to tight to me.
April 27th, 2010 at 1:27 pm
Sounds tight to me too. Your house payment should be no more the 1/4 of your take home pay each month.