Reduction in Income Question | TigerDroppings.com

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veerbone
Louisiana Tech Fan
Mangham, LA
Member since Oct 2011
401 posts

Reduction in Income Question



I hate coming here with such a stupid question, but I need some "outside the box" thinking to help me out.

I am wanting to take a job making less than half what I make now. It's a dream job for me, so the WHY of it won't make sense to you.

Currently my mortgage is about 27% of my household net income. Is on 15 years and at 3.75%. We have paid on that loan for just over a year.

If I take the new job, the mortgage will be about 40% of our net, and will push us to the brink of NO discretionary income.

Selling the house is a no-go due to location.

I need some ideas. Refinancing won't lower the note enough to make it worth the extra $. I considered cashing out my 401k but I can't stand giving 40% to the government. Any other ideas?







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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19425 posts
 Online 

re: Reduction in Income Question


What is this dream job?

Because I think that detail might help with some of the creativity, aka like getting a second job, etc.






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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22561 posts

re: Reduction in Income Question


Another income stream. Cut some grasses or umpire/officiate. 40% of your net is pretty far up there.





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veerbone
Louisiana Tech Fan
Mangham, LA
Member since Oct 2011
401 posts

re: Reduction in Income Question


teaching/coaching...very time consuming for 9 months a year.





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19425 posts
 Online 

re: Reduction in Income Question


quote:

teaching/coaching...very time consuming for 9 months a year.



With all the time off, I'd imagine picking up another 5 to 10,000 wouldn't be that hard.






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veerbone
Louisiana Tech Fan
Mangham, LA
Member since Oct 2011
401 posts

re: Reduction in Income Question


quote:

With all the time off, I'd imagine picking up another 5 to 10,000 wouldn't be that hard.


Making extra in summer is possible, but what can I do to help month to month? Any experience on paying annual payments instead of monthly?






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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22561 posts

re: Reduction in Income Question


quote:

teaching/coaching...very time consuming for 9 months a year.


Summer school? I do a lot of work with a local school board and their 9 month teachers make less than the 12 month teachers of course. It sounds like some umpiring/officiating little league during the summer may be up your ally.



This post was edited on 1/21 at 3:01 pm


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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
2045 posts

re: Reduction in Income Question


quote:

Refinancing won't lower the note enough to make it worth the extra $


I would double check this. Going from 3.75 over 15 yrs to 3.25 over 30 yrs will save you a bunch.






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Htown Tiger
LSU Fan
Houston
Member since Sep 2005
1866 posts

re: Reduction in Income Question


If its any consolation, my mortgage (+ taxes and insurance) is about 40% of my net as well (wife works part time, doesnt make much). It's doable, just got to keep to a reasonable budget.





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19425 posts
 Online 

re: Reduction in Income Question


quote:

If I take the new job, the mortgage will be about 40% of our net, and will push us to the brink of NO discretionary income.


quote:

It's doable, just got to keep to a reasonable budget.


I know this sounds OTish, but if my wife/SO banged me enough I would be able to pass on going out a lot.

Good chance to parlay this into a good deal with the wife. Or, to just focus on maybe doing cheap fun stuff together, watching movies, etc.



This post was edited on 1/21 at 3:13 pm


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veerbone
Louisiana Tech Fan
Mangham, LA
Member since Oct 2011
401 posts

re: Reduction in Income Question


I thought about posting this on the OT...just to see how many people asked for pics of the wife.





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sharkfhin
Miami (FL) Fan
Hurricane alley
Member since Sep 2008
1441 posts

re: Reduction in Income Question


Change to 30 yr note....when u drop down in income , gotta make a sacrifice somewhere to get ur dream job dude...





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