If you look at the articles, opinions, and the financial indicators, Americans are living on borrowed money, month to month. Purchases are being financed from 2nd mortgages, HELOCS, and the like. Savings are at an all time minimum.
I am the only earner in my family, with a stay at home wife/mom and a 14 month old son, and I make about $40,000 less than you. They way we do it is as follows:
1. Own a small mobile home in a rent controlled park,
$350 a month space rent.
2. Drive a scooter to work which gets 70mpg in the city,
$40 a month for gas.
3. I eat breakfast and dinner at home and eat $1 frozen dinners for lunch.
4. We shop at Ross (cheap, decent clothes), Big Lots (deals on many items), and 99c stores (groceries, toiletries, etc).
5. We limit eating out to once or twice a month.
We owe about $17,000 from a remodel and costs associated with our child birth. We’re paying this off to the tune of $1000 – $1400 a month and are on track to be debt free by this time next year. That is when we plan on purchasing a house. I think the timing will be just about right to pick up a cheap REO on a 30 year, fixed rate loan.
If you’re serious about buying a house you have to make any and all adjustments you’re able. A year of sacrifice will net you a nice house by this time next year.