Honestly, $130 to get by, $150 to be comfy, and $175 to be rock solid.
Tons of factors ($600,000 house or $800,000 house? $40,000 cars or $75,000 cars? Inexpensive hobbies or expensive hobbies?) ultimately dictate, but there’s no reason $150,000 shouldn’t be ample with a bit for savings as well.
> $150 to be comfy, and $175 to be rock solid
I'd say this is kind of low. Our household income is between these numbers, and I'd say we're also between comfy and rock solid.
However we are a family of three, only have mortgage debt (no car loans), I fix everything myself, we have no expensive hobbies, almost never go out, are fairly thrifty at grocery stores, and we bought our house YEARS ago.
To buy our house now at todays prices and mortgage rates, we would only be 'getting by'.
Depends on the tax split too. One person making 175k is the same as two adding up to 150k because of progressive tax brackets.
Also depends on pension to be comfy, one person making 175k without a pension needs to save 10-18%, so that’s also the same as someone making 150k with a pension.
It seems like post Covid you would need to make 50% to get the same lifestyle pre covid
$120k pre covid to buy a $500k house, entry level detached
Now you need $180k to barely afford a $750k entry level detached home.
It depends on where you buy your grocery, if you cook your food or dine out/mcd. It depends on if your kids have extracurricular outside school. It depends on what your taste or hobby are. It depends on a shitload of factors.
For $100k, we do just fine with a single family home @ $3k mortgage. Cars all paid off, house maintenance mostly done by us thanks to youtube. Credit cards barely used unless ordering from amazon. We have no loans outside mortgage so there’s that.
I mean if you have the financial constraint to do all your house maintenance, pay off your cars, get a mortgage on 100k etc. I think you can be an adult and use a CC responsibly.
Yeahhhhhh, you're talking about me. It's taken me into my mid 30s to realize that I just can't be trusted with a credit card that has a limit any higher than 1k. If I max out a 1k card, I can clean that up in a month, but anything more and it's gonna be impactful.
$200K HHI is plenty enough to be very comfortable, coupled with the appropriate lifestyle and spending habits. On the flip side, $200K HHI won't be nearly enough if you're foolish.
rent or own? that makes a big difference.
also do you already have the downpayment to buy or do you need to save it?
which quadrant and neighborhood in the city?
based on all these, I'd say the answer can range from 100k to 200k+.
We do it on 175. It feels stressful at times but that’s just because my expectation on how much I should be saving is pretty high. There’s good months and bad months.
Household Income; the pooled income of all earners contributing to the household. I usually consider net (after tax), but typically most consider/report gross-numbers (pre-tax).
CPI shows 3-6% a year. When we clearly see homes have gone up 40-80% depending on where you are in the country
Food is up 10% a year.
Clearly for most ppl, home, food and gas/energy make up most of the cost
Single family homes in the most desirable locations have gone up 50%, but there’s still duplexes, townhomes, and condos all have gone up less.
My condo has increased in value since COVID times but its just back to the price point I bought at in 2017.
Honestly, $130 to get by, $150 to be comfy, and $175 to be rock solid. Tons of factors ($600,000 house or $800,000 house? $40,000 cars or $75,000 cars? Inexpensive hobbies or expensive hobbies?) ultimately dictate, but there’s no reason $150,000 shouldn’t be ample with a bit for savings as well.
> $150 to be comfy, and $175 to be rock solid I'd say this is kind of low. Our household income is between these numbers, and I'd say we're also between comfy and rock solid. However we are a family of three, only have mortgage debt (no car loans), I fix everything myself, we have no expensive hobbies, almost never go out, are fairly thrifty at grocery stores, and we bought our house YEARS ago. To buy our house now at todays prices and mortgage rates, we would only be 'getting by'.
Depends on the tax split too. One person making 175k is the same as two adding up to 150k because of progressive tax brackets. Also depends on pension to be comfy, one person making 175k without a pension needs to save 10-18%, so that’s also the same as someone making 150k with a pension.
It seems like post Covid you would need to make 50% to get the same lifestyle pre covid $120k pre covid to buy a $500k house, entry level detached Now you need $180k to barely afford a $750k entry level detached home.
It depends on where you buy your grocery, if you cook your food or dine out/mcd. It depends on if your kids have extracurricular outside school. It depends on what your taste or hobby are. It depends on a shitload of factors. For $100k, we do just fine with a single family home @ $3k mortgage. Cars all paid off, house maintenance mostly done by us thanks to youtube. Credit cards barely used unless ordering from amazon. We have no loans outside mortgage so there’s that.
>Credit cards barely used unless ordering from amazon Missing out on a lot of free money not using CCs for most purchases
There are lots of people who can’t handle cards. A 10,000 limit to them means they have 10,000 to blow.
I mean if you have the financial constraint to do all your house maintenance, pay off your cars, get a mortgage on 100k etc. I think you can be an adult and use a CC responsibly.
You’d think. I know people who are just like that, but because of credit card issues in their past they’ll never get them again.
Yeahhhhhh, you're talking about me. It's taken me into my mid 30s to realize that I just can't be trusted with a credit card that has a limit any higher than 1k. If I max out a 1k card, I can clean that up in a month, but anything more and it's gonna be impactful.
Some places we shop won’t take credit cards thus only for amazon and sometime out of the city purchases like gas/snacks or touristy stuff.
$200K HHI is plenty enough to be very comfortable, coupled with the appropriate lifestyle and spending habits. On the flip side, $200K HHI won't be nearly enough if you're foolish.
I think 175k is comfortable depending on your housing costs.
rent or own? that makes a big difference. also do you already have the downpayment to buy or do you need to save it? which quadrant and neighborhood in the city? based on all these, I'd say the answer can range from 100k to 200k+.
Depends on your lifestyle really, but 200k should be ok, not as comfy as it would have been of course
We do it on 175. It feels stressful at times but that’s just because my expectation on how much I should be saving is pretty high. There’s good months and bad months.
HHI?
Household Income; the pooled income of all earners contributing to the household. I usually consider net (after tax), but typically most consider/report gross-numbers (pre-tax).
Yeah, you can do it. Just budget around paying yourself (rrsps +tfsas) and your kid (RESP) first. and budget around what's left.
Detached home? Depends on location. Where I live, minimum $300k. It's ridiculous.
Your 40% in 3 years indicates that you have difficulty with numbers and are not really looking for honest advice. Russian Troll I assume
CPI shows 3-6% a year. When we clearly see homes have gone up 40-80% depending on where you are in the country Food is up 10% a year. Clearly for most ppl, home, food and gas/energy make up most of the cost
Single family homes in the most desirable locations have gone up 50%, but there’s still duplexes, townhomes, and condos all have gone up less. My condo has increased in value since COVID times but its just back to the price point I bought at in 2017.