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.
Sounds tight to me too. Your house payment should be no more the 1/4 of your take home pay each month.
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6 months worth of living expenses is the rule of thumb. Good Luck
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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.
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Sounds tight to me too. Your house payment should be no more the 1/4 of your take home pay each month.
References :