Without knowing the specifics, assuming OP's husband makes $100K/yr that's $8300/mo
Take away 30% taxes = $5800
Save 30% (retirement, rainy day fund) = $1800, leaving $4000
300K / 15yr Mortgage = $2400/mo, leaving $1600 for health insurance, car payments, car insurance, phone bills, utilities, food, etc.
With a very conservative plan and high savings 100K/yr isn't gonna let you live like a king, but you should be able to at least get by comfortably and put food on the table...
I think the idea of a second family is a bit far-fetched, IMO $100K isn't quite enough to support that.
More likely I'd be wondering if there are previous debts? School loans? Outstanding CC's? Possibly gambling?
Your calculations are a bit off.
First, one of the few things the OP actually contributed to this conversation was that her husband makes (at least in her mind) more than $2500/week. Assuming that she was talking gross, that is at least $130,000/year.
He is also the single provider (for at least one family) for a wife and two kids. Kids with special needs. And a mortgage. Factoring in all of the deductions and credits, his effective tax rate is probably closer to 15-20%.
It seems like they haven't been saving anything, let alone 30%.
Why would you assume 15-year mortgage? Without knowing the facts, it's much more realistic to assume they have a 30-year mortgage. Especially as a younger, single-income family.
The comments regarding the second family were more of a joke (though not outside of the realm of possibility). Mainly because the wife here knows almost nothing and the husband is never home and they live like paupers (according to her).
The wife doesn't work and doesn't seem very well educated, so I doubt she has any student loans. The husband works in "IT", so he may or may not. Hopefully he didn't fall for the tech school scam and rack up $100k+ of student loans for a 'degree' that will make you get laughed out of many interviews.
-The San Francisco Bay Area, commonly known as the Bay Area, is a metropolitan region that surrounds the San Francisco bay in Northern California.
-The Bay Area is home to approximately 7.2 million people.
-The San Francisco Bay Area is one of the wealthiest regions in the U.S.
I used to listen to this guy on am radio. I started using the envelope system it actually works. I went from not saving a penny to saving about 30% of my salary
Ramsey has his place but not with finance minded people. Ramsey's way is for people who can't control spending or save money on their own. Yes it will work to a degree. But his system is based more on emotion then numbers. His ideas on paying off cc debt is backwards to finance people. He says go by balance (because of the emotional win as you pay off debt). The numbers say go by percent (I'd rather pay off teh debt that is costing me more). In instances, Ramsey's way actually costs you more money. BUT, many people are dumb with money and need to be treated like kids. "Do this, don't do that." It's the same as a parent telling a kid "Do it because I'm the parent and I said so."
I don't mind his budgeting ideas. It has helped many weak willed people who need to be told how to do it. I wished he stopped with budgeting. The problems that are apparent in his system is when it comes to investing. His "investing" ideas are weak and should be ignored.
Use his budgeting ideas but don't use his "investing" models.
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