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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: New here! Have questions!||Date: 5/6/2013 9:29 PM|
|Author: aj485||Number: 306988 of 309665|
i just got a promotion that starts in a few weeks.
i will make about $500 more, net, per month. which is where the extra will come from.
That's an additional $500/month, net of retirement fund contributions (especially if you get a match, you are contributing to a 401(k), 403(b) or other retirement account, right?) - we'll say 6%; SS/Medicare tax - 7.65% and additional withholding at your marginal rate? - probably either 15% or 25% on the Federal level, plus state income tax, if applicable. So, your raise is for at least $820/month, assuming a 25% federal bracket and no state income tax?
Even then $500/month is only going to put $6,000 per year into your savings account. You need to save for emergency funds (both for your family and the investment property), the down payment, the closing costs, AND the fix up costs - all separately.
and i was just reading that a 20 to 25% downpayment was just fine. i guess i'll have to ask my bank.
For an investment property that is only w