Posted this in the wrong sub and got ripped for ‘having too much money’ but don’t know that we fit in middle class yet. First time home owner, trying to pre-plan budget, but trying to confirm our mortgage to income is good. All of this is new (11 years ago I was a single mom to a newborn on the brink of homelessness and now I’m in a committed relationship with a big kid and considering another baby in the next 2 years). Hope that helps with context. I’d think we are lower to mid-middle class with significant increases in income coming soon even though I don’t feel middle class. In a MCOL are. If other middle class folks could help check me that would be great.
Income: ~140K Gross. net monthly is ~8800. This does not include my partner’s or my side hustles which net anywhere from 500-3000/mo for me, and 500-800/mo for him. Our yearly gross will increase to 350K+ in 2 years when I finish residency.
House cost: 351500. Put 25% down (about 88000).
Loan: ~264000 at 6.5%
Estimated utilities based on previous owners reports: Going to get set up with budget pay at about 275/mo for all utilities.
Planned mortgage: 2100 including home insurance and property taxes.
HOA: 67/mo
Debts:
> student loans: 500K for me and growing, medical school is astronomically expensive and IDR doesn’t match the interest while I’m in an extended residency (5yr). On IDR/PSLF, current 0/mo payment but going up to about 500/mo in December on recert.
> car note:540/mo but selling as soon as my sister’s car is out of probate. Her car is being paid off by the estate and we will have no car payment. Insurance will also go down
> credit cards: 160/mo on his to pay off, will be paid by March 2027. Not currently using so not building new credit debt. I use my credit card for recurring costs and pay it off every month (subscriptions mostly). My recurring fees are in the budget.
Car insurance: 300/mo for 2
Gas: budgeting 300/mo for both of us but will likely go up to 400-500 with the gas prices rising so much.
Groceries: 600
All Other stuff including childcare: about 2000
I have a more detailed (but rudimentary working) budget, and by my calculations after putting in for retirement, savings, HSA, emergency funds, childcare, etc we should have ~ 2000 left over before any side hustle income.
In EF: 20,500. Putting in 500 monthly until we hit 6 mo of costs.
In housing maintenance fund: about 13,750 putting in 200/mo.
In vet bill fund: about 250, putting in 500/mo until it’s up to 3000 again, then going back down to 250/mo.
Questions:
Not house poor right? I think it all works but being a first time owner feel very overwhelmed by the loan. All appliances, roof, etc are <5 years old, no big maintenance staring us down at purchase.
Any good budget spreadsheets or models anyone recommends? I get paid monthly and my partner gets paid weekly. I have a working budget that so far hasn’t led us astray but trying to do a spread sheet with weekly vs monthly incomes is difficult. Our incomes are quickly increasing and I’m finding the steady increase a little overwhelming. Could use a good model to include retirement, etc more accurately.
Daycare will be about 1800/mo if we have a baby, so our side hustle money is going to go into a fund whenever we start actively trying and through any pregnancy to account for that cost as our incomes increase. Won’t start trying until at least December 2026. Is this a good plan to prep?
Sorry for all the info, If it’s too much I’ll edit it with better bullets!