Since my husband and I own an electrical contracting company, I not only work outside of the home full time, but also do our books, payroll...etc. We know have 8 employees (full time) and around 17 builders. How can I figure if we have enough for me to stay at home? We have just built a new house and are closing on our old one Jan 15th, so we will be able to pay off that mortgage along with a car payment. I think all we will be left with will be my husband's truck payment, our new mortgage and a tractor payment. I know to make a list of bills..etc, but what is the ratio/ debt/income formula they say use?
Oh and I will lose insurance on me and my husband, but I can get it through our business, while I get it on my employees. So what can I do?
2007-12-28 05:52:56 · 6 answers · asked by GreeneyedCowgirl 5 in Business & Finance ➔ Personal Finance
We are not effected by the housing market. We are selling our old house, and closing on it Jan 15th. Our new house has a mortgage which we can pay with no problem.
2007-12-28 06:13:44 · update #1
I would make a list of all of your bills. Don't forget to include a little extra play money every month. Once you have made you list, look at how much money you and you husband will be making if you did not work outside of the home. If you have more money in the end, go for it.
2007-12-28 06:14:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If I were you I would work until you pay off all debts other than your new home (the old mortgage, truck payment and tractor payment). Without having to worry about those additional payments (and the extra money it will free up) you may be able to better calculate if you can stay home.
2007-12-28 05:58:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With all the obligations of the business, the downturn in the housing market and the debt which you will have with the new mortgage, it is best that you continue working. Once you are debt free that is the time you have financial security and that is the time to relax.
2007-12-28 06:08:57 · answer #3 · answered by googie 7 · 0⤊ 0⤋
Here is a quote from Bloomberg
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRCJiTVGyuT4&refer=home
The deepest housing recession in 16 years will worsen as discounts fail to lure buyers and mounting foreclosures swell the glut of unsold properties, economists said. Falling property values may cause consumer spending to cool, increasing the odds the expansion will falter in 2008.
``The most important implication of this is it's going to drive down construction outlays and that's a direct effect on GDP,'' said Neal Soss, chief economist at Credit Suisse Group in New York.
you need to keep your job for the next 3 months, then reevaluate the situation. it may be you need to keep it longer. If the house hasn't closed yet, you can not be 100% sure something won't happen.
the risk in the next 3-6 months may be very high and there is no reason not to hold your job a little longer.
2007-12-28 11:41:58 · answer #4 · answered by yeeooow 4 · 0⤊ 0⤋
Given the conditions of the housing market, it would probably be a good idea to hold on to your job if it is not related to the housing industry. I would first think about hiring an outside bookkeeper to reduce your work load with the company at least on an interim basis.
2007-12-28 06:00:26 · answer #5 · answered by VATreasures 6 · 0⤊ 0⤋
calculate all of you expenses and compare it to the income that you would have if you were not working. If the income is higher then go for it. If not then rethink your plan. A debt/income ratio does not tell you how much you can afford. Nor can the ratio tell you that you need to live within your means.
2007-12-29 17:01:06 · answer #6 · answered by stunna3m 3 · 0⤊ 0⤋