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What % of your takehome pay are you spending on living expenses?

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deadeyededric

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Dec 12, 2009
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And when I say living expenses im talking mortgage, property taxes, and utilities. I just cant bring myself to spend over 30%. I know people who spend 50%. I always leave room for savings or for unexpected expenses. If im bringing home say 7500$ monthly im not spending more than 22-2300 on it. There's no way in hell im going to be housebroke or be a 2 month layoff away from being in deep ****.
 
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deadeyededric said:
And when I say living expenses im talking mortgage, property taxes, and utilities. I just cant bring myself to spend over 30%. I know people who spend 50%. I always leave room for savings or for unexpected expenses. If im bringing home say 7500$ monthly im not spending more than 22-2300 on it. There's no way in hell im going to be housebroke or be a 2 month layoff away from being in deep ****.
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If you spend 2500 while taking home 7500; you can probably retire after about 7 years of work.
 
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You didn't pay cash for your house? Low life :jimlad:

I always pumped as much extra into the mortgage payment to get it paid off ASAP. Paid off both houses I have purchased in under 12 years. We have always lived significantly below our means, so now I am retired, we have no worries (as we still live pretty inexpensively).
 
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I probably require more than that to live, but mortgage including taxes and insurance plus utilities is probably like 12% or so.
 
BCClone said:
If you spend 2500 while taking home 7500; you can probably retire after about 7 years of work.
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Not if you have car payments, student loans, groceries, etc... Maybe im just unrealistic about what people are able to put away. I do decent for myself but by no means do I think im in a position to retire in 7 years. Im re ting and putting 6-700 into savings monthly. Thats after all my living expenses mentioned, other bills like auto, student loans, and things like groceries. Im single but to be honest I dont know how married couples making 170k annually joint arent shelving money. And I wouldn't call myself i "tight ass" however I dont buy **** I dont need. I invest and everything. If you know different. PLEASE give me a reality check. I will say that even though ill always be able to find work im paranoid about unexpected layoffs and things like that.
 
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The average debt ratio on mortgage-backed securities is about 39% most recently. That uses gross income and does not include utilities. Adjusting for net pay and adding utilities the average homeowner is paying over 50% of their net earnings just on living expenses, over 70% when including minimum payments on cards/loans.
 
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ClonesFTW said:
The average debt ratio on mortgage-backed securities is about 39% most recently. That uses gross income and does not include utilities. Adjusting for net pay and adding utilities the average homeowner is paying over 50% of their net earnings just on living expenses, over 70% when including minimum payments on cards/loans.
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I don't doubt it. Living in the Midwest is a different ballgame though isn't it? I expect that in the coastal areas. Things have to be different in the Midwest. TBH, most of the people i know who live in Waukee/WDM spend every dime they have just to say they live there. I know when i was in greater PHX I was willing to go to 50% just to buy a house there and then that wasn't even a reality so I reluctantly came back.
 
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deadeyededric said:
And when I say living expenses im talking mortgage, property taxes, and utilities. I just cant bring myself to spend over 30%. I know people who spend 50%. I always leave room for savings or for unexpected expenses. If im bringing home say 7500$ monthly im not spending more than 22-2300 on it. There's no way in hell im going to be housebroke or be a 2 month layoff away from being in deep ****.
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Right about 20%. That’s if I work 40 with not OT. I did happen to buy my houses right before everything went crazy and then was able to refinance when interest rates were right around 2 during Covid. I wouldn’t be able to do that now.
 
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AllInForISU said:
Right about 20%. That’s if I work 40 with not OT. I did happen to buy my houses right before everything went crazy and then was able to refinance when interest rates were right around 2 during Covid. I wouldn’t be able to do that now.
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Good for you! That would be the most ideal % ever. If you can pay all that in less than a one week paycheck you are doing great.
 
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deadeyededric said:
Not if you have car payments, student loans, groceries, etc... Maybe im just unrealistic about what people are able to put away. I do decent for myself but by no means do I think im in a position to retire in 7 years. Im re ting and putting 6-700 into savings monthly. Thats after all my living expenses mentioned, other bills like auto, student loans, and things like groceries. Im single but to be honest I dont know how married couples making 170k annually joint arent shelving money. And I wouldn't call myself i "tight ass" however I dont buy **** I dont need. I invest and everything. If you know different. PLEASE give me a reality check. I will say that even though ill always be able to find work im paranoid about unexpected layoffs and things like that.
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I’m married, have 8 kids, and my wife stays home with them, but I have basically no debt but the house. All cars are paid, student loans paid off. Groceries are a lot, but we try not to buy unnecessary things. That’s where I feel like people get in trouble. They see excess money, or don’t like to budget, and just spend it. Unnecessary spending is a huge issue I feel like people don’t like to deal with. But to each their own.
 
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AllInForISU said:
I’m married, have 8 kids, and my wife stays home with them, but I have basically no debt but the house. All cars are paid, student loans paid off. Groceries are a lot, but we try not to buy unnecessary things. That’s where I feel like people get in trouble. They see excess money, or don’t like to budget, and just spend it. Unnecessary spending is a huge issue I feel like people don’t like to deal with. But to each their own.
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Agreed. I dont think people need to be tight asses but don't buy **** you dont need. Take a vacations and stuff but no need to buy a new set of living room furniture or something every 5 years.
 
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AllInForISU said:
I’m married, have 8 kids, and my wife stays home with them, but I have basically no debt but the house. All cars are paid, student loans paid off. Groceries are a lot, but we try not to buy unnecessary things. That’s where I feel like people get in trouble. They see excess money, or don’t like to budget, and just spend it. Unnecessary spending is a huge issue I feel like people don’t like to deal with. But to each their own.
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8 kids is just a staggering number these days, you guys can have a full basketball game!
 
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AllInForISU said:
I’m married, have 8 kids, and my wife stays home with them, but I have basically no debt but the house. All cars are paid, student loans paid off. Groceries are a lot, but we try not to buy unnecessary things. That’s where I feel like people get in trouble. They see excess money, or don’t like to budget, and just spend it. Unnecessary spending is a huge issue I feel like people don’t like to deal with. But to each their own.
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I think people get caught up in the "they have a nice house" thing too often.
It's graduation season so its really bound to happen for A LOT of people and it gives them the itch to maybe look for a newer home/remodel.

We went to one at a beautiful acreage but quickly remind ourselves on the drive home "yep it was a gorgeous property but it sure is nice not having a mortgage."
 
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deadeyededric said:
And when I say living expenses im talking mortgage, property taxes, and utilities. I just cant bring myself to spend over 30%. I know people who spend 50%. I always leave room for savings or for unexpected expenses. If im bringing home say 7500$ monthly im not spending more than 22-2300 on it. There's no way in hell im going to be housebroke or be a 2 month layoff away from being in deep ****.
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Paying 50% is absolutely wild, I get that some people are in really high cost of living areas and often might not have a choice but man that’s a rough situation to have any real future unless you are just starting out.

Fortunate here that ours is less then 10% of take home but it’s Midwest living without kids and a pre covid house purchase with a during covid refi for those golden handcuffs
 
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JP4CY said:
I think people get caught up in the "they have a nice house" thing too often.
It's graduation season so its really bound to happen for A LOT of people and it gives them the itch to maybe look for a newer home/remodel.

We went to one at a beautiful acreage but quickly remind ourselves on the drive home "yep it was a gorgeous property but it sure is nice not having a mortgage."
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Cars too. Car payments are absurd, especially on brand new vehicles. I know people who have car payments that cost more than my mortgage. And they think it’s normal to always have a car payment. One of the biggest depreciating purchases you will ever buy is a new car.
 
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