Living within your means

[Shell]

I am on 5.74% iirc and pay less than 1k a month on my mortgage. (and put the 10k extra on it every year)

I'm chilling and am fine, even on my incredibly shit wage.

 

[Shell]

Huge debt = huge interest payments.

$500k @ 6% interest rate is about $3000 a month over 30 years. Double that to $1m and it's $6000. Pretty simple stuff.

How are you going with your house?

 

[Shell]

That's insane. What if if one of them loses their job? What if they split up?

What do they say- you should have enough savings in the bank to live off for at least 6 months?

I have enough for roughly 2 years. And thats not including Centrelink. With that would be a lot longer.

 

[MrsEddieBetts]

That's insane. What if if one of them loses their job? What if they split up?

Yeah I was feeling panicky just listening to them speak. They also have multiple children in private school. We work in an industry that is not high in job security in this economy and if I were them I wouldn't be able to sleep at night.

 

[Scotland]

How are you going with your house?

Pretty well. I was lucky that I decided to move in 2019 when the market was OK (i.e. still expensive but not every home open had 900 people at it) and then with covid coming along the combo of rates dropping to 2%, not being able to leave Westralia and maintaining regular employment meant I was able to get ahead. I could refinance and pay less but I would rather just keep paying down the debt while I am able to.

Not remotely interested in moving any time soon given what has happened to the housing market. Upgrading by just moving one or two suburbs away or to a slightly bigger place would be hundreds of thousands of extra debt. Just not worth it.