Posted on 08 Nov 2018
Currently, we have 50k in our combined savings.
Is there a way to extend my mortgage so that the monthly repayments are lower?
Is it strongly not advisable for my wife to quit her job?
From the current single income salary that u have.. I don't think ur cpf is able to cover the monthly loan.. and with the combined income that ur family have as a safety net.. is quite risky too if any unforseen circumstances happen(e.g. hospitalization, loss of job, etc). Even if u can barely scrap through with ur per month salary to cover all the loans and fixed expenses, ur wife n u may have to compromise on other things such as holiday or letting ur kids attend extra lessons, etc..
Would suggest u to:
1) save at least a yr of annual income(usually is 6months of ur pay, but since u have loans and family to take care of, ur expenses is way higher)
2) Talk to ur wife.. see isit becos she dislike her current job.. maybe she can change a job that is less stressful n more flexible though maybe lower pay..
3) calculate the avg expenses ur family need.. N future big ticket items such as kids education to see what is the ideal income that u need to earn before the family can just rely on ur single income.. assuming ur income will rise gradually..
In a scenario that ur wife really wants to quite.. u probably should also consider the following:
1) talk to her to see isit ok for her to get a part time job to cover some expenses
At the end of the day.. years later, u won't want to be in a scenario when u dont have enough for retirement, could not even spend anything to enjoy life or stuck in a job where u can't quit cos of the debts that u have piled up..
Meanwhile u should also look for ways to earn more money.. such as put ur salary in banks with better interest, learn about low risk investments, etc..
How much reserve in ur CPF account? Maybe able to cover the mortgage payment for 1 to 2 years?
It will be ideal for ur wife to look after ur child if circumstances allow. The benefits and enjoyment will definitely outweigh the material losses.
My wife is looking after our 4 month old boy boy full time. She is enjoying her motherhood and the time spent with our baby. Babies grow up really very fast, time spent together with them is definitely priceless!!
Decide after you see the kids expenses... You may change your mind....
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