A Reddit user seeks advice on buying a home that would cost 40% of their income in mortgage payments, exceeding the common 30% guideline. Though the couple usually saves significantly, they are concerned about compromising their financial health. The discussion highlights the importance of budgeting and suggests running a test to adapt to increased housing costs while still maintaining savings habits. Engaging financial advisors is recommended for tailored assistance in their home-buying journey.
Most financial advisors recommend keeping housing costs to 30% or less of your income to maintain financial stability and have room for savings.
The Reddit user’s planned mortgage payment would consume 40% of take-home pay, a significant commitment that could impact their financial flexibility.
Despite concerns, the couple's frugal lifestyle may cushion the financial impact, allowing them to still save a portion of their income.
Engaging in a test run by adjusting their budget can provide insight into whether they can sustain such a high housing cost.
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