Consider sacrifice when money is tight | shop


I’m bringing home about $ 2,800 a month and our mortgage payment is $ 1,100. We have been forced to occasionally withdraw money from our savings account over the past year in order to be able to pay the bills. My wife loves to stay at home with our two preschoolers, but even she talks about finding a daycare for the children so that she can get back to work and help financially. How do you feel about this idea and our situation?

I can’t blame your wife for loving the idea of ​​staying home with your kids when they are so young. Being a home mom is a great thing when you can make the numbers work. Still, I’m sure it’s no picnic trying to make a living on $ 1,700 a month with two little ones in the mix.

Let’s think of it like a math problem with three components – house money, income, and lifestyle. 40% of your salary goes to home. That’s too much. Your mortgage payment or rent should never be more than 25% of your net income. I suppose you could look into refinancing your home, but that won’t solve all of your problems.

One option would be to find a way to make some extra income, be it a part-time night or weekend job, or additional training or certification to increase your income at work. Another is to sell the house and find a cheaper alternative, but I’m never a huge fan of this idea – especially in a family situation – unless there is absolutely no other way to avoid bankruptcy or foreclosure.

I think you and your wife need to sit down and spend some serious time discussing things, working the numbers, and making a plan. There will be some sacrifice for everyone, and only the two of you can decide what is and is not worth it – for you and your children.

God bless you and your family, Cade.

Dave Ramsey is America’s trusted voice for money and business and CEO of Ramsey Solutions. He has authored seven bestselling books. The Dave Ramsey Show is heard by more than 11 million listeners each week on 550+ radio and digital channels. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Dave Ramsey is America’s trusted voice for money and business and CEO of Ramsey Solutions. He has authored seven bestselling books. The Dave Ramsey Show is heard by more than 11 million listeners each week on 550+ radio and digital channels. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.


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