Getting a little tired of being so frugal...

[mnpqrd]

We've talked and talked and talked to death. I don't think you can afford the house even with the house credit, and substantial downpayment. It's $300k and you aren't quite making $80k year, something like in 2 years right? And even then you'd need $150k downpayment.

$150k downpayment for a $300k house? I thought 20% or $60k is all needed.

[ScrimpAndSave]

Why would I need a $150k downpayment?

[mnpqrd]

I know. I'm going to be complaining and/or rambling at the same time.

But I'm really tired of watching where every single dollar goes. I currently send $500 a week to my ING account and I am closing in on a savings total of $20,000 within the next month. I did this in one year on my $47,000 salary. Not too shabby if you ask me - but it really didn't leave a lot of wiggle room for very much.

Saving $20k a year on a $47k salary is pretty good. Does $20k include retirement contributions? I'm currious how you do it. I always max out 401k and Roth so after these, tax, insurance, etc. there's not much left then paying rent, util bills, ... I think the most I can save is $10k.

[bqmother]

Look at the percentages

With your raises, even if you're paying the same percentage of your income, you'll have quite a bit more money to spend!

Hypothetically, let's say someone is saving 30% of income, which happens to match yours at $47,000. That leaves 70% which would come to $32,900per year.

When this hypothetical person gets raises totaling $9,800, the income for the year would be 56,800. If Miss H (for Hypo) continues to save 30% she would then have $39,200 to spend (70% of new income.) That's an increase of $2700 in savings, but it's also an increase of $6300 in spendable $$$, or $525 per month. (My figures may be off, but you get the idea.)

Of course, her tax bracket may rise up and bite her!

[wincrasher]

You are not considering taxes. That's why her savings rate is so amazing.

If she's got a $47k gross, then take home is probably about 64%, which would be $30k. If saving $20k of that, then the pennies are surely being counted!

Saving so much is definitely a fun exercise, but it can become a never ending marathon.

[jIM_Ohio]

Why would I need a $150k downpayment?

Probably because 300k mortgage on a low income suggests a certain payment to be 30-40 percent of income.

[ScrimpAndSave]

I am currently not finding my ROTH IRA...but my school district does pull 7.5% of my pay for my pension. My original plan was to aggressively save until 2011 - and then I am going to fully fund my Roth (I figured I would have 20% down on my home by then).

My take home pay is about $1350 right now. (26 pays a year)

$1000 - Goes to savings
$200 - Goes to Dad for rent
$ 20 - Gym membership
$ 10 - Gift fund (for birthday gifts throughout the year)
$ 50 - Vacation Fund

The rest is play money...

[m3racer]

You need to stop beating yourself over the head with this stuff. It's just not healthy. If you don't start spending and start having some fun than I will be forced (along with other forum members) to take you on a wild night out. Seriously, you need to take a step back and just enjoy yourself. You're in your prime and you're only young once.

[ScrimpAndSave]

I know. Something has to give...bc I am not happy with my life like it is.

[jIM_Ohio]

SnS has admitted to being OCD and we can see why.

I have often said she has no real plan- she's just doing what she's doing because she is so OC on not spending.

For example not funding the Roth now, when your taxes are lowest, makes little sense (if you plan to do it later, stop waiting and do it now). It would still have her saving close to 61% of her paycheck for her house, yet she is so focused (or obsessed- you choose) on the one goal she does not see the other parts of plan making sense.

She sees every tree, but has yet to find the forest.

[kork13]

SnS has admitted to being OCD and we can see why.

You say that like it's an entirely bad thing! And btw, I prefer to think of it as "CDO". It's alot like OCD, but in alphabetical order............like it should be.

[ScrimpAndSave]

I'm not OCD. I'm bipolar.

[jIM_Ohio]

I'm not OCD. I'm bipolar.

My apologies.

One more tree, I hope you eventually find the forest.

[ScrimpAndSave]

Thanks.

[m3racer]

She sees every tree, but has yet to find the forest.

Great line!