My advice is find a compromise. Sit down and really talk to your wife and really listen to what she is saying. Why? Well, you said you didn't have a plan and you didn't know too much about money... this means you might not really know what you can or can't afford. I have this problem too.
When my wife told me that she wanted a new house (she raised hell from day one about my decision to buy us a house on a 8,000 sf lot 8 years ago) I initially thought it didn't make sense. Yes, I was tired of arguing with her but I also didn't fully understand our financial picture. My wife keeps up with all the bills, taxes, accounts, investments, etc. Once we sat down and really talked about it I found out WHY she felt the way she did. Turns out we were overpaying on taxes in our current house and it wasn't appreciating at all! For roughly the same amount of money we are building a bigger house on 2.5 acres and I couldn't be happier now! And my wife is thrifty. She saves like crazy and we've never lived above our means. You have to talk to her. Find out how much equity you've got in your current house and if once you sell it that will fund the move into the new one. If it's a wash to move and your payment only goes up a $100 or so a month you will probably feel silly about all the stress you put yourself under.
On a serious note, figure out how much house you can pay off in 5 years if income stays the same. Go over an interest calculator with her. If you finance $400K over a 30 year term at 4.5% interest you are paying $330K in interest! I am aware of all of the arguments of present value vs. future value of the dollar, mortgage interest deduction etc.; however, interest should make you want to puke. Tell here there will be sacrifices as well. No new cars, trucks, bags or shoes until paid off. :-)
On a serious note, figure out how much house you can pay off in 5 years if income stays the same. Go over an interest calculator with her. If you finance $400K over a 30 year term at 4.5% interest you are paying $330K in interest! I am aware of all of the arguments of present value vs. future value of the dollar, mortgage interest deduction etc.; however, interest should make you want to puke. Tell here there will be sacrifices as well. No new cars, trucks, bags or shoes until paid off. :-)
Bringing logic and facts to a discussion with most women is akin to bringing a knife to a gunfight. Good luck.
It is emasculating to admit, but my wife makes more than me, quite a bit more. We still discuss all financial decisions together. She is pretty level headed when it comes to money. But the few times I have adamantly disagreed with a purchase, I just say no and explain why I feel so strongly against it. Honesty and open communication is key. At least for us it is.
It is emasculating to admit, but my wife makes more than me, quite a bit more. We still discuss all financial decisions together. She is pretty level headed when it comes to money. But the few times I have adamantly disagreed with a purchase, I just say no and explain why I feel so strongly against it. Honesty and open communication is key. At least for us it is.
On a serious note, figure out how much house you can pay off in 5 years if income stays the same. Go over an interest calculator with her. If you finance $400K over a 30 year term at 4.5% interest you are paying $330K in interest! I am aware of all of the arguments of present value vs. future value of the dollar, mortgage interest deduction etc.; however, interest should make you want to puke. Tell here there will be sacrifices as well. No new cars, trucks, bags or shoes until paid off. :-)
Not a bad idea since he just got a new truck, made it in just before the cut!
Comment