I severely underestimated the cost of owning my new property after selling my previous home. I’m trying to figure out if I should sell this house and look for something cheaper, or hold on and hope for income growth. I’m 35, earning $120k with a $20-30k bonus, and my wife earns $80k. We have significant investments and savings, but we’re facing high ongoing costs for our new home, which has nearly doubled our mortgage and increased utility costs significantly. With two kids on the way, I’m worried about being in a $1,000 monthly deficit soon. Should I consider selling or gamble on career progression?
Where are you in your career path? If you expect big raises, it might be worth staying put for now. But if you feel maxed out, consider selling.
Dallas said:
Where are you in your career path? If you expect big raises, it might be worth staying put for now. But if you feel maxed out, consider selling.
I have potential for career growth ahead, but it’s hard to predict when that will happen.
Take a breath and review your budget. Identify areas to tighten up. Also, discuss with your wife about what sacrifices you both might be willing to make.
I’ve tightened up as much as I can. My wife loves the house, and it’s meant to be our forever home, but I worry about future costs.
Childcare often has discounts for multiple kids. It may help to know that costs decrease as they grow older, plus you have savings to cushion any temporary deficits.
Lian said:
Childcare often has discounts for multiple kids. It may help to know that costs decrease as they grow older, plus you have savings to cushion any temporary deficits.
Thanks for the tip! I’ll look into those childcare discounts.
Consider cutting back on your 401k contributions to the match only, and focus on increasing your income or reducing other expenses.