Husband and I recently bought a house that significantly increases what we spend on the mortgage, utilities, etc on a monthly basis. Around $4,500-5,000 a month.
We’re also expecting our first child, who will go to a daycare after my maternity leave ends for around $1800 a month.
We currently make $200k annually minimum, however I am in sales so typically add at least 60k on top of that (although we only budget off our base salaries.)
We currently have around $325k invested, and we max out our retirement / HSA every month as well as Roth IRA contribution. We also have around $100k cash in an HYSA which I know traditionally isn’t advised, but considering we just bought a house and are having a baby I don’t want to risk putting more money in the market in case there’s a crash. House + baby can lead to a lot of unexpected, high cost expenses and I want cash on hand for that.
So having said all that, it sounds crazy and counter-intuitive but is it that bad if we don’t save cash on a monthly basis? We still would have a lot of cash on hand, and our retirement savings will still go up the max amount.
Obviously this is not something we’re planning on doing, and we do save cash right now, I’m just curious if there’s any significant downsides to temporarily living this way that I’m missing. A note that all my commission traditionally would automatically goes to savings, and now we’re planning on throwing at least 50% of every commission check directly to the mortgage principle.