- Pregnancy
- Baby & Toddler
- Parents
- Getting Pregnant
- Baby Names
- Product Reviews
-
Registry
- Community
-
More
Want a personalized experience?
Download the free app
Stay at Home Moms
Sacrifices to be SAHM
I've been a part-time SAHM for a while now and am considering going back to work full-time. We are comfortable now...renting (for very cheap considering family owns the house) and me working part-time, however, we'd like to buy a house in the near future. The only reason for me to go back to work would be to afford a mortage. I guess my question is ... Is anyone in a similar situation - renting vs. owning as a sacrifice to SAH? I've considered staying home for a few years until she's in school and then dealing with full-time work/home ownership. Any advice/similar stories would be helpful! TIA
This discussion has been closed.
Re: Sacrifices to be SAHM
Honestly, if I were in your situation, I would bite the bullet and go back to work now. By the time your LO is in school full time, you're not going to be able to get a deal on a house as you will now. With low interest rates and low prices, now is the time to buy. I know being at home is nice, but if you're looking at it from a long term, financial standpoint that is probably the best bet.
I agree with this, I also do believe that the housing market will be in a totally different place in 5 years, also I don't believe in sacrifcing a lot financially to SAH.
Exactly this plus you also would have to consider the cost of daycare in addition to a mortage and all the other expenses that come with two working parents. I say if you are happy and financially secure with one income, don't start adding things to your budget now. Just enjoy this time.
Ha. Tell that to the countless folks who have been in their house for five years or a little more and are all upside down...You cannot predict the future.
Full time daycare isnt a cost everyone accrues from working. Some people have family that helps out or can work slightly different schedules so they're not paying for full time care. Plus, some people have careers that are lucrative enough to cover daycare expenses plus have a significant amount leftover.
I don't agree with the sentiment "just enjoy the time and worry about the future later". Worry about the future now. I think that short sighted mentality is what got a lot of people in trouble in this economy. And the housing market and economy will change drastically in 5 years-look at how much it's changed in the last 5! Friends of mine live in my neighborhood, bought a house even smaller than mine, but they bought at the wrong time and their mortgage is over $500 a month MORE than mine. Buying at the right time can save you tens of thousands of dollars when you take into account interest and the smaller monthly payment. But I'll step off my soapbox now.
ETA: ALso, if your goal is to be a SAHM, if you get a cheaper mortgage sooner than later, wait a couple of years until DH gets promoted/makes more money, then you can SAH and be more financially comfortable doing so instead of SAH now then having a higher monthly bill in the future. It doesn't have to be now or never. There's certainly a benefit to being home when they're older instead of now-you can be there when they get off the bus, help with homework, take them to activities/get to watch them play activities,etc.
Of course, no one can predict the future with 100% accuracy, but I think about 99% of economists would disagree with that assessment. Most think the bottom is now (or within the next 6 months time) in regards to the housing market. Taking into account we've been in a recession for 3+ years, it's a safe bet the economy will be in a much favorable position 5 years from now. I'm not a betting woman, but I'd probably be willing to bet you a large amount of money that interest rates/home prices will be substantially higher in 5 years than they are at this minute. Of course, the prices wont be where they were before the collapse, but they wont be anywhere near this cheap either. Buying now may likely be a once in a lifetime opportunity because interest rates havent been this low in HISTORY.
When you take into account a low interest rate, low rate of purchase which means you make more when you sell, the amount you could make on that extra few hundred bucks by putting it in your savings/401k instead of a mortgage payment, etc, you're looking at hundreds of thousands of dollars in savings.
With that said, I think homeownership is slightly overrated. Your principal + interest payment may not be expensive, but then you factor in closing costs, possibly paying points on your mortgage, taxes, insurance, maintenance costs, start-up costs if you're a first-time homebuyer and don't have everyting you need to furnish/maintain a home/yard, increased utility costs (assuming that you're buying something bigger than your rental or that some of your utility costs were included in your rent), etc. It adds up very quickly. We bought our first and current home when I was 3 months pregnant with DD1. I love our house but sometimes the responsibility of homeownership stinks. I ocassionally miss the days of cheap rent when we could just call the landlord to fix whatever had broken. Just some food for thought. If homeownership is truly important to you, then you need to decide how much you're willing to sacrifice to make it happen.