Me (27M) and my wife (27F) want to start saving for a house (live in California), but aren’t sure how to budget for it. Right now, we’re considering pulling back (or fully stopping) our monthly retirement contributions to start saving for a downpayment. But we would love to get your feedback/suggestions.
Additional Financial Info: My monthly post-tax income will increase by $1100 in January. My wife is still in school for a couple years, but her post-tax income will increase by roughly $2000 in 2027. We’ll be making a combined post-tax income of $120k by 2028. We live in an area where many homes are currently listed between 550-600k.
Additional Savings info: We have roughly $10,000 in retirement, and $4,000 as an emergency fund.
Our current spending budget ($7,000 monthly) is as follows: NEEDS
My husband and I saved $15k in a year by living below our means—no eating out, pack lunches. It’s hard, but it works. We’re still saving to invest in another property
Don’t stop retirement savings at 27—time’s on your side! Review grocery budget, cut subscriptions, and move vet expenses from ‘wants’ to ‘needs’ in your budget.
At least get your employer match for retirement—don’t miss free money. Cut dining, subs, personal, and travel spending. Save for a home by slashing ‘wants.’ Aim for a $20k FHA down payment in 18-24 months.
Thanks for the budget advice! We plan to cut ‘wants’ and are now considering REO homes. With my remodeling experience, it’s a great option. My wife and I appreciate your thoughtful response!
I would not stop retirement . I’m still not clear how much you are making . I follow I will teach you to be rich on you tube . Lots of help with budget . And the budget mom