Our current situation - trying to be frugal, cut costs

I posted here a long while back and have some updates.

We currently have $33k in downpayment money for a home. We are being gifted $170k from our parents this December.

We make a combined after taxes $3800 before my second job. I am supplying a list of my projected costs for us buying an under 1800 square foot home on the North Shore of LI. We have seen homes and see homes that are under 8k in taxes which with star could take us into the 7k range, and in some houses we've seen, 6k. Some homes are 1200-1500 square feet.

So we make 3800 and this is my budget list:

Gas/Oil - Estimated $150
Electric - $150
Water - $15 a month
Insurance (covered in mortgage)
Cable - Playstation Vue $50.00 a month, includes ID, HGTV, etc
Internet - 50/25 mbps upload/download = $70 a month
(Cable and Internet would be $120 a month, depending on taxes vs 150 and up for cable networks)
TV - Digital Cable Antenna (no monthly charge)

Outside Home Costs:

Cell phones: Wife Verizon with smart phone at 3GB $80, Wife on Smartphone with Consumer Cellular at 3GB $55 (no contract)
Gas for Cars: $400 month
Car Insurance: for both $275 a month
Groceries: $400 a month - this can be possibly lower if we plan it out weekly
Car loans: $420

Wife income: $2400
Husband income: $1400

Total as of now: $3800

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What I am looking to do is cut cost. I know with car loans we cannot, car insurance we cannot either, gas fluctuates.

Groceries if you plan out the week/month, could very well be in our range. We'd stock up with saved money already on trash bags, soaps, detergents, etc so that will not be a cost for a long while.

With all that budgeted out, we are at a $1700 a month mortgage and with 200k down on a $380k home if not slightly less, it's quite possible.

I'm curious in hearing thoughts on how we can save? My wife wants and must have cable for when I work my second job *which was no equated in the $3800* at night.

Re: Our current situation - trying to be frugal, cut costs

Re: Our current situation - trying to be frugal, cut costs

Posted by alli3131

Our current situation - trying to be frugal, cut costs

Ok.

Re: Our current situation - trying to be frugal, cut costs

I think you need to figure out how to up your income vs cutting more costs. You don't exactly have anything to cut, except you say your wife has 2 cell phones, so if one isn't yours, you could get rid of one. But honestly you are cutting it way too close when owning a home, your budget doesn't account for savings, emergencies, house repairs, clothing, life insurance, car repairs and misc, health insurance and other health needs, it also doesn't account for taxes rising every year.

I would be using the money you have saved to pay off your car note, and either furthering education or some way of advancing your careers.

Re: Our current situation - trying to be frugal, cut costs

Maybe people missed that you already stocked up on trash bags, soaps and detergent!

You should probably buy a much more expensive house since you no longer have to buy garbage bags! Oh, also, if you save your shopping bags when you go grocery shopping, you can use those bags as garbage bags!

Re: Our current situation - trying to be frugal, cut costs

Buy a cheaper house.

Our current situation - trying to be frugal, cut costs

Theres no way on this planet that you will qualify for a 380k house with that salary. We make more than 2x that and were approved for 350k- we put 35k down and purchased our home for 252k with 7500 taxes in port Jeff. I would in no way buy a house on that salary. Ever. I don't think you will qualify to be honest. My mortgage is 2k a month.
There are so many bills- new cars if need be, home insurance, car insurance- you really need to factor these things in. If you look at the expenses you already have laid out- where is the money left to pay a mortgage?

Our current situation - trying to be frugal, cut costs

Was this the same person posting for a year on City data? Giving way too much info? Posting for a long time here asking the same question over and over?

Re: Our current situation - trying to be frugal, cut costs

Question:

A year ago (last Feb) you posted:

We found a home and at 5 percent (based upon my calculations for next year) and the home we saw yesterday was in Melville and in our range and 8k in taxes, its $1775 based on MLSLI. with us having 140k in savings after our 200k down payment we would be off pretty well :) not buying this particular home but just good to know there's nice capes in Melville in our price range.

What happened to the $140? Now you only have $33K?

Re: Our current situation - trying to be frugal, cut costs

We can definitely buy house for under $400,000 but we obviously want to go lower than that and our monthly payments are targeted to 1400 to 1500 a month which is what I have budgeted out.

We spoke with a mortgage broker who told us that we are within budget and that we can afford a home without $200,000 down payment up to somewhere in the 400s. Would we? No way.

Re: Our current situation - trying to be frugal, cut costs

Re: Our current situation - trying to be frugal, cut costs

It's $200k. My father invest in property and he is waiting on $170,000 from his investment and that is coming in December. And I asked the mortgage broker when we be able to use that gift and money as down payment and he said immediately.

Re: Our current situation - trying to be frugal, cut costs

$140K down payment Plus $170K gift buys you a house at all cash.

So where did the extra $107K go?

Re: Our current situation - trying to be frugal, cut costs

She has more of a career direction than I do. She got a masters in what she does and I've been doing temporary work for many years and recently in the last 2 1/2 years started working my way up in the healthcare field. I also have a second job that varies with monthly income so I don't think that in the 3800.

Re: Our current situation - trying to be frugal, cut costs

$200,000 down payment in general. Not 140 and not once not 140 and not 170.
We also have over $105,000 in savings and are continuing to pad up that savings. Her father passed away earlier in the year and we are selling his boat so that's an extra 20,000 right there. Her father passed away earlier in the year and we are selling his boat so that's an extra 20,000 right there not going to include that in the savings until it actually goes in the bank.

Our current situation - trying to be frugal, cut costs

Between your potential mortgage payment and your monthly expenses, that leaves you almost zero $ for any unexpected expenses - things go wrong/break in a house ALL THE TIME! It is highly unlikely you would qualify for a mortgage with no discretionary income for those unexpected expenses (never ind savings etc). Your debt to income ratio would be way over the lending guidelines

Message edited 10/26/2015 2:28:20 PM.

Re: Our current situation - trying to be frugal, cut costs

Message edited 10/26/2015 3:08:23 PM.

Our current situation - trying to be frugal, cut costs

You have a list of bills, not a budget. What about car maintenance, blow money, entertainment, medical co pays, home maintenance, retirement, gifts, eating out?

Eta: expect your taxes to increase each year, as well as heat and electric

Message edited 10/26/2015 5:32:54 PM.

Re: Our current situation - trying to be frugal, cut costs

How's your job?
Same Question, Different GroupHere we go again!!

Seems like you just go from website to website asking the same question! You have received excellent advice every time and never listen. If you father is an investor...why don't you ask him?

Message edited 10/26/2015 5:36:08 PM.

Re: Our current situation - trying to be frugal, cut costs

My second job ranges in extra money that I make. That's what covers all you mentioned. It's different every month. 105+ in savings as well.

Re: Our current situation - trying to be frugal, cut costs

Retirement money: when our parents pass and we need to sell their homes. That can also be savings.

Re: Our current situation - trying to be frugal, cut costs

Re: Our current situation - trying to be frugal, cut costs

3800 paid on what frequency? If you make 98,000 you can afford a small 300,000 house with your downpayment. The issue will be taxes. Really you need to make more income. At a certain point it is not about what you can cut from expenses but bringing more money in. And there was a poster who replied about having less than you and she is on here all of the time complaining how others have more than her and her kids do. Even with a huge downpayment you still need income.

Re: Our current situation - trying to be frugal, cut costs

Message edited 10/26/2015 8:05:27 PM.