ADVERTISEMENT
So a baby is on the way (or perhaps ANOTHER baby is on the way)!  It's so exciting to walk about the house deciding how to decorate the nursery or jump in your 2-door car for a quick run out to the closest baby store.  Until you realize "where are we gonna put this thing?"  (And by thing I lovingly mean the bundle of joy growing ever so quickly in your belly). Now by no means do I advocate getting a larger house or car just because your family is expanding.  What I do advocate is spending a bit of time organizing your finances to clearly see what you can reasonably afford if you do find that you would like to find a larger house or car. 

If you are looking to expand your residence, there are a couple general rules to follow so you don't find yourself "house poor" with an additional mouth to feed.  Whether looking to buy or rent, your total monthly payment for housing should be no more than 28% of your gross monthly income (that is, your income before taxes).  When purchasing a home, this would include your mortgage principle plus any interest, taxes or insurance included in your monthly payment.  Depending on your tax rate and loan interest rate, these costs can figure anywhere from 10-20% of your monthly payment.  Once you have a ballpark figure, a mortgage loan officer at your bank or a real estate agent can help you solidify a price range you feel comfortable searching in.

Here is a simple formula to see how much car you can get for your available bucks.  This should give you an ideal price range in that will fit your budget and your needs: 
  1. Figure out what you can afford to pay monthly and multiply it by the number of months you would like to pay (typically 35, 48 or 60 months).  
  2. Add to that amount any down payment or trade-in value you may have.  
  3. Now subtract out any taxes (around 7-8%) and loan interest (2-7%).

By spending some time organizing your finances and figuring out what you can afford, you can alleviate some of stress related to your upcoming family addition.  If you need further information, please consult a financial planner.  Now if I could only come up with a formula for alleviating the stress of labor pains.

 

http://organized-mama.blogspot.com/2011/11/and-baby-makeslife-expen...

Views: 11

Comment

You need to be a member of Mom Bloggers Club to add comments!

Join Mom Bloggers Club

Our newest members. Join us + 23,000 fellow mom bloggers

ADVERTISEMENT

MBC CUTIES

Our current cutie was uploaded by Stephanie WentworthUpload a photo of your cutie. They may be featured here. See all of the cuties.

Our Latest Food, Travel & Lifestyle Posts

Has Blogging Become One Big Chore?

Have you ever looked at your blog’s dashboard and whimpered to yourself, “Oh, I just cannot in any way, shape, or form write a blog post today?”

We have all been there, right? Or, is it just me?

After eight years of blogging I have whimpered that more times than I…

How to Get Your Kids to the Dentist Without Tears, Tantrums or Throwing

Growing up, you might remember a time in your life when the only thing scarier than the boogeyman was your dentist. Over the years, you grew to appreciate your dentist and his or her service to your dental health, however, it did take you some time to grow into that mentality. Give your kids a…

ADVERTISE

© 2016   Created by Mom Bloggers Club.   Powered by

Badges  |  Report an Issue  |  Terms of Service