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# Help me with the math on this, please!

So, I'm pretty sure I have a good estimate on this, but I wanted a second opinion. DH and I are budgeting to buy our first home. But we are waiting for him to get a promotion and transfer at work, first. Anyway, we are trying to figure out exactly what type of income (and supplemental income) we will need to make sure we don't end up "house poor". So, here's the questions I have:
- Is it safe to assume 30% of an income will go to taxes and health insurance?
- Our financial consultant said that we will be loan-ready if we make an income of \$3600/month, considering our monthly bills and what size house we are looking for. So if my DH makes \$16/hr full time, how much will I have to make at a part time (20/hr a week) job?

Like I said, I think I have these answers, but I wanted a second opinion...

Asked by Anonymous at 3:45 PM on Dec. 9, 2009 in Money & Work

• you'll need to be making \$13/hour at 20h/week, assuming that your husband is working 40h/week. i don't know about the other question though.

Answer by mellypoo at 3:49 PM on Dec. 9, 2009

• Is that \$3600 gross or net? If gross, you only need another \$827/month. That's about \$10/hr part time.

If the 3600 is NET...part time likely won't cut it. There are payroll calculators that will tell you what your take home is in YOUR STATE based on your local taxes.

Answer by gdiamante at 4:22 PM on Dec. 9, 2009

• OP - 3600 is the gross income...

Answer by Anonymous at 7:07 PM on Dec. 9, 2009

• i think you have this backwards. you should be buying a house to suit your present income. not finding an income to pay for the house you feel you deserve. if you find a job part time or full time to supplement your husbands income to buy this wonderful house, what happens when one of you lose that job? you lose the house.
jmho, you should be buying a house you can afford on your husbands income alone, any work you get paid for is to be saved.

Answer by jewjewbee at 8:00 AM on Dec. 10, 2009

• OP - jewjewbee - I understand your opinion, but it is impossible to buy a house on an income of 16/hr. It is impossible for us to RENT a house on that income, even. We are moving to a new state here in the next couple months b/c their housing prices are half what they are where we live currently. We've figured it out that the mortgage payments plus property taxes and utilities will add up to a lot less than even renting a house (about 700/month), to buy a 3 BR house. We aren't looking for some ridiculously big house or to spend a lot - we are looking at houses in the 70,000 - 80,000 range, which is about as low as you can go these days without ending up in the slums or with a money pit house. We aren't looking beyond our range - my question was based on the idea that my husband DOESN'T ge tthe promotion we are hoping for. It is a fallback plan, so we know what we will be dealing with if things fall through.

Answer by Anonymous at 9:16 AM on Dec. 10, 2009

• GL, i hope it all works out for ya. And good luck on the move, that's really hard, i'll wish no snow for you guys.

Answer by jewjewbee at 9:27 AM on Dec. 10, 2009

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