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Hi All,
Please guide do Joining Cognizant on Contractual role is worthy or not?
Current Situation - due to bgv not completing as one of my company as per CTS is black listed so they changed my hiring from permanent to contractual role.
Please guide as I have no knowledge of contractual roles. 🙏
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Seems fine. I’m at $280k base, approximately $12k/mo take home after taxes, 401k and insurance. $3k/mo student loans, average around ~$1k/mo in other expenses. About to buy, mortgage will be btw $5.5-6k/mo.
I am in biglaw, TC incl. bonus around $350k and I have substantial savings on top of this along with sizable annual salary increases. Curious why people think I’m living outside of my means here? Setting aside bonus and savings, I’m positive approx. $2k/mo that mostly goes into savings.
Should clarify in case this is the confusion, when I said mortgage, I meant all in - P&I, tax, utilities, insurance, etc.
After all the fixed expenses, what are you netting per month? And how much do you spending on discretionary things?
My wife used to keep a spreadsheet of all our fixed and variable expenses to track our spending. we then used that data to determine the price of the house that we were comfortably buying.
The $1.6k would be after the 6k mortgage
I say you’re kinda pushing it. Wouldn’t you want to leave some room for emergencies? And fun?
Thanks for your perspective.
That seems like a big stretch right now. Use an app like Rocket Money to analyze how much you typically have left over each month after your typical expenses and see if you have enough. My husband and I have the same TC, and our PITI is $2500. We have no kids, max out our retirement contributions, and invest, but even $2500 doesn’t leave us with a ton of extra money.
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I would not do this. My TC is roughly $242k and my mortgage is $3.6k, and I have a mother daughter with my mom contributing $600/m so I really only feel $3k. I don’t have daycare costs though since my wife is a SAHM to our 3 kids. With $1.6k daycare costs I would absolutely not have a mortgage as high as you’re suggesting.
Key thing is you’re both early in your careers. You don’t want to buy a piece of crap then 5 years later need to move again.
The stretch on your income also depends on where you are based.
I am assuming the home price is around $700k ?
Yes with $19k property taxes. House is in a desirable neighborhood and school district.
Is the house move in ready and updated or will you need to do work? Do you have an emergency fund set aside plus other savings for other large expenses that may come up? If yes for both of those, I think this is fine. You may not save a lot the first couple years but if you’re incomes increase and/or you can refinance the rate down the line, should be good long term.
Do you live in a high cost of living city?
Though if you’re in the Midwest you should be able to keep it under $750K and get a nice house, which would result in a monthly payment under $5,500
OP, you are not factoring the maintenance cost of a SFH (A/C, Roof, new appliances, painting, etc., etc., etc). For $500-750k house, you should put aside $1-2k monthly. Unless you are buying a new house, then you have a 5 year break. We have to replace roof becuse insurance company will drop us otherwise, $75k, nomkidding.
Our TC is $750k, monthly house payment is $5k (all included). I strongly recommend to do stress test, can you afford cash flow with just 1 income for 2years?
Try and keep your mortgage, taxes and hazard insurance below 42% of your gross pay.
Is that correct? 42% seems really high. Taxes alone take out at least 30% of gross pay. I’ve heard the percentage should be closer to 25%
Maybe if it’s a 15 year loan. Would also make sure the house is in near perfect condition for that kind of money.
I’d rather not have anxiety of being house poor
Mortgage payments plus all other debts won't be able to exceed much more than half your gross earnings, depending on the type of loan you qualify for. The best way to determine if this would be ok is if you would be to consider if you would be comfortable living on what is remaining each month after all your monthly debts are paid from your net paycheck, not gross.