Many people aspire to become homeowners, especially when they start families. High prices have made this dream less attainable, but some people are still buying houses, raising children, and saving for retirement.
A 28-year-old husband recently posted on Reddit (NYSE:RDDT) and sought advice on how people can achieve those three objectives. He earns $110,000 per year, but his wife currently does not work. They don't have kids yet, but want to in the future.
With finances tight, the husband turned to Reddit, and many people were quick to give their advice in the comments.
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Both Spouses Should Work
Many commenters suggested that the wife get a job, especially since the couple doesn't have any children yet. She has a Master's degree, which can result in high-paying work if she is willing to climb up the corporate ladder.
The husband edited the post to say that he knows she will get a job, so it's only a matter of time. However, it is a good lesson for people who want to check all three of those boxes on a single income. It's possible but challenging to buy a house and raise multiple kids with a $110,000 annual salary. You would likely have to narrow your focus to areas with low costs of living.
However, both spouses should work before they have children. There isn't much of a need for one spouse to stay at home when there aren't any children. If both spouses work, they can each contribute to their 401(k) plans, pay off debt, and put themselves in a better financial position. Most commenters suggested that the wife work, but the husband said he is confident that she will get a job. This advice doesn't apply specifically to the couple, but it can apply to others.
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Live Well Below Your Means
One commenter suggested that the couple "start living well below [their] means to achieve all of the goals. Buying a smaller house is one of the easiest ways to live below your means since housing is the largest expense for most people.
Another commenter suggested "writing out a detailed and realistic budget" so the couple can see where their money goes. This advice can make it easier for the couple to live below their means and figure out which expenses aren't adding any value to their lives.
The same Redditor who suggested creating a budget also mentioned having multiple budgets based on hypothetical situations. The couple can create budgets based on having a child or multiple children. Another budget can assume you have a $3,000 monthly mortgage payment or have to contend with a $4,000 monthly payment. If the couple is looking for houses with monthly mortgage payments that range from $2,000 to $2,500, then it makes more sense to focus on those numbers for hypothetical budgets.
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Have The Children Before The House
While it's common advice to have enough money to buy a house before having kids, one Redditor suggested the opposite approach. She and her husband rented a one-bedroom apartment and only moved to a two-bedroom apartment in their 30s after having their first baby.
Then, the second baby shared a room with the first child three years later. The couple continued to rent for a few additional years and finally bought a house just before turning 40.
"We determined that we couldn't have it all at once, and it was more important to start the family before any potential age-related fertility issues," the wife explained. The couple budgeted carefully to make the finances work, and neither of them was a stay-at-home parent.
Image: Shutterstock
