Hi everyone! I’m a recent divorcee that is starting over from a living situation perspective. I currently live with my parents, and lawyer fees and other unseen expenses wrecked me this year. However, because of my military experience I have access to the VA Home Loan, and so I only need to cover closing costs. I’ve run the numbers on a prospective budget and I’m trying to determine if the house I am looking to buy is affordable or just out of reach.
My budget so far-
- Mortgage: $1,187 - $1,260 (based ranging from best to worst case scenario for property taxes)
- Internet: $100
- Home Insurance: $108 (Quote from All State)
- Electricity: $200
- Heating (Natural Gas): $50 (Will be much higher in the colder months, but electricity will be lower)
- Water + Sewege (City): $40
- Car Payment: $206
- Car Insurance: $152 (Quote from All State)
- Cell Plan: $92
- Gas: $100 (Remote worker, I don’t drive a ton)
- Student Loans: $203
- Dog Food: $80 (includes tick medication)
- Groceries: $250
- Cloud Storage: $11
- Charity: $45
- Hair Cuts: $25
- Clothing: $30
- Car Maintenance: $30
- Fun Money: $100
This leaves roughly $198 - $272 left over for emergencies, overtures, and socking away for my emergency fund and home improvement projects. I’ve never lived on my own before, and my circumstances while married we’re financially irregular. Is this margin way too thin? In my area I probably wouldn’t pay much less for a two bedroom apartment. I know this runs afoul of the 50-30-20 rule, but unless I get a room mate or buy a dilapidated house in a dangerous neighborhood I’m not going to achieve that. Is my budget way off base? Is the house too expensive? I appreciate any thoughts the community has!