Hey everyone, my wife and I are moving soon and we’re about to take on a mortgage payment of around $4300 per month. We’re looking at houses priced between $230k and $250k. We’ve got about $60,000 in the bank for closing costs. Just to give you some context, we don’t plan on having kids, so we want to make sure our budget is solid. Here’s what we’ve budgeted so far, and I’d love your thoughts on it.
Your budget looks pretty solid. Your housing costs at 26-31% of gross income are within a reasonable range. The $60k emergency fund is also a great cushion. Just make sure you’re accounting for all possible expenses.
@Raleigh
What do you mean by ‘accounting for all possible expenses’? Like, are there specific things you think I might be missing?
Frost said:
@Raleigh
What do you mean by ‘accounting for all possible expenses’? Like, are there specific things you think I might be missing?
Yeah, like car maintenance, unexpected home repairs, and any potential increases in insurance. It’s good to have a buffer for those kinds of things.
I think your food budget seems low if it includes eating out. Have you thought about increasing that? Food can add up quickly.
Zephyr said:
I think your food budget seems low if it includes eating out. Have you thought about increasing that? Food can add up quickly.
Yeah, I was thinking about that too. I might raise it to $800 per month. We usually spend about $400-450 on groceries and then another $400 on dining out, but we’re planning to cut back on that.
@Hollis
Makes sense, especially since you’re moving further away from the city. That might help with grocery costs.
Just a heads up, $1000 a month for property maintenance might be on the higher side. Have you checked the typical range for homes like yours?
Emerson said:
Just a heads up, $1000 a month for property maintenance might be on the higher side. Have you checked the typical range for homes like yours?
Yeah, we have a large house, about 3000 sqft, so I figured it would be reasonable to budget that. Plus, we want to set aside some for future maintenance.
And what about vehicle expenses? Have you included things like gas and maintenance in your miscellaneous budget? It could add up.
Macon said:
And what about vehicle expenses? Have you included things like gas and maintenance in your miscellaneous budget? It could add up.
Good point, I figured those would fall under the $1200 miscellaneous category. I also have auto insurance included in my budget, which is $360 per month for both vehicles.
What about retirement savings? You mentioned you’re not prioritizing that right now, but it’s good to have a plan to start contributing once you’re settled.
Jules said:
What about retirement savings? You mentioned you’re not prioritizing that right now, but it’s good to have a plan to start contributing once you’re settled.
Right, we have about $500k in RRSPs and TFSAs combined, plus $1.5M managed in a registered account. We’re not focusing on contributions now, but it’s definitely on our radar.