Family budget if your HHI is around 375k

[Anonymous]

The original poster is netting 15k, but the next poster 'making the same income' is betting 19,500. Big difference and doesn't make sense?

[Anonymous]

Anonymous wrote:The original poster is netting 15k, but the next poster 'making the same income' is betting 19,500. Big difference and doesn't make sense?

Net income can vary a fair bit even though gross income is the same. For example, one household may have higher deductions for health insurance premiums, or other types of insurance offered through work. Some may withhold more for 401(k). Some households may not need to withhold childcare expenses from a flexible spending account, etc. Some households may be repaying a 401(k) loan, etc.

[Anonymous]

Anonymous wrote:Dear DCUM money-wise people: I am hoping to revive an old thread.

Our HHI is approx $340,000 per year (taking home approx $15,000 per month after taxes, benefits, and 401(k) match). We are in our mid-40's. We are spending too much, and want to save more (outside of just the 401(k)s). I welcome any and all constructive feedback. We have an emergency fund for 6 months, and have saved a bit for retirement ($1 million combined in 401(ks)). We have no investments other than our 401(k)s. Thank you.


$3,000 Child care (part-time nanny) for 3 kids (ages 4, 11, 14)
$2,300 Mortgage (remaining loan balance is $330,000)(House is worth $800,000)
$2,000 (Activities for kids – piano and instrumental lessons and sports teams like swim team, ballet, gymnastics)
$1000 Food (we try not to eat out)
$800 Insurance (Auto for 2 cars, Term life insurance for 2 of us, disability insurance, worker’s comp for nanny, umbrella, personal articles, homeowner’s)
$600 sleepaway camps and other summer enrichment
$600 Weekly cleaning service
$600 Travel expenses (For vacation 2x year)
$400 (Home repairs and upkeep)
$400 (clothing, dry cleaning, haircuts)
$350 Orthodontic treatment for 2 kids
$350 Math tutoring for teenager who struggles with math
$300 Out of pocket medical and dental (non-ortho)
$300 Car payment
$300 Gifts
$250 Gas and car repairs (because one of our cars is old and seems to need repairs often)
$200 Entertainment
$200 Charitable contributions
$200 Pepco
$200 Storage Unit
$200 Comcast (internet, phone, cable)
$200 (AT&T cell phone service for 4 phones)
$150 Gym membership
$100 Water
$100 Gas
$ 0 529s (We don't feel obliged to save for college right now because the grandparents have stretched to give each kid a 529 now worth about $250,000 each)

Thank you in advance for any constructive feedback. I know we spend a lot of kids' activities, which seems like one to cut.

I often wonder...how is it possible that people that make so much money could be so utterly clueless? And on top of it...you are all rich....This world is doomed. Money is with the wrong people. Get a financial advisor. Your email makes me angry. And the many others.

[Anonymous]

Anonymous wrote:Dear DCUM money-wise people: I am hoping to revive an old thread.

Our HHI is approx $340,000 per year (taking home approx $15,000 per month after taxes, benefits, and 401(k) match). We are in our mid-40's. We are spending too much, and want to save more (outside of just the 401(k)s). I welcome any and all constructive feedback. We have an emergency fund for 6 months, and have saved a bit for retirement ($1 million combined in 401(ks)). We have no investments other than our 401(k)s. Thank you.


$3,000 Child care (part-time nanny) for 3 kids (ages 4, 11, 14)
$2,300 Mortgage (remaining loan balance is $330,000)(House is worth $800,000)
$2,000 (Activities for kids – piano and instrumental lessons and sports teams like swim team, ballet, gymnastics)
$1000 Food (we try not to eat out)
$800 Insurance (Auto for 2 cars, Term life insurance for 2 of us, disability insurance, worker’s comp for nanny, umbrella, personal articles, homeowner’s)
$600 sleepaway camps and other summer enrichment
$600 Weekly cleaning service
$600 Travel expenses (For vacation 2x year)
$400 (Home repairs and upkeep)
$400 (clothing, dry cleaning, haircuts)
$350 Orthodontic treatment for 2 kids
$350 Math tutoring for teenager who struggles with math
$300 Out of pocket medical and dental (non-ortho)
$300 Car payment
$300 Gifts
$250 Gas and car repairs (because one of our cars is old and seems to need repairs often)
$200 Entertainment
$200 Charitable contributions
$200 Pepco
$200 Storage Unit
$200 Comcast (internet, phone, cable)
$200 (AT&T cell phone service for 4 phones)
$150 Gym membership
$100 Water
$100 Gas
$ 0 529s (We don't feel obliged to save for college right now because the grandparents have stretched to give each kid a 529 now worth about $250,000 each)

Thank you in advance for any constructive feedback. I know we spend a lot of kids' activities, which seems like one to cut.

Your cleaning bill is too high - switch to biweekly or even better monthly and make the kids keep the house clean. $300/month on out of pocket non-orthodontic medical and dental treatments seems insanely high for someone who has insurance, even with three kids. I could see $300 in a bad month, but $300 every month? Your food bill looks good for a family of 5, and the orthodontic and tutor bills should hopefully be temporary, which will free up some cash flow. Whatever you're storing probably isn't worth $2400/year to keep; you're not even using it. Sell that and get rid of the expense. Make some minor adjustments and you should be able to invest at least $500/month, more when some shorter term bills disappear.

Overall you spend an astronomical amount of money on your kids, but there are worse priorities to have. Try to balance that with some responsibilities on their end (cleaning, yard work, volunteering) so that they don't grow up to be entitlement monsters, but you seem like you're doing okay. I hope you realize how lucky you are that the grandparents have taken the college funding problem off your hands; that's huge.

[Anonymous]

Gifts - why do you spend so much? You don't have to go to every party. Set smaller budget for gifts.

Activities - wow! 2k a month?? Are you trying to get scholarships from their activities, or is it just for their enjoyment?

[Anonymous]

Anonymous wrote:Dear DCUM money-wise people: I am hoping to revive an old thread.

Our HHI is approx $340,000 per year (taking home approx $15,000 per month after taxes, benefits, and 401(k) match). We are in our mid-40's. We are spending too much, and want to save more (outside of just the 401(k)s). I welcome any and all constructive feedback. We have an emergency fund for 6 months, and have saved a bit for retirement ($1 million combined in 401(ks)). We have no investments other than our 401(k)s. Thank you.


$3,000 Child care (part-time nanny) for 3 kids (ages 4, 11, 14)
$2,300 Mortgage (remaining loan balance is $330,000)(House is worth $800,000)
$2,000 (Activities for kids – piano and instrumental lessons and sports teams like swim team, ballet, gymnastics)
$1000 Food (we try not to eat out)
$800 Insurance (Auto for 2 cars, Term life insurance for 2 of us, disability insurance, worker’s comp for nanny, umbrella, personal articles, homeowner’s)
$600 sleepaway camps and other summer enrichment
$600 Weekly cleaning service
$600 Travel expenses (For vacation 2x year)
$400 (Home repairs and upkeep)
$400 (clothing, dry cleaning, haircuts)
$350 Orthodontic treatment for 2 kids
$350 Math tutoring for teenager who struggles with math
$300 Out of pocket medical and dental (non-ortho)
$300 Car payment
$300 Gifts
$250 Gas and car repairs (because one of our cars is old and seems to need repairs often)
$200 Entertainment
$200 Charitable contributions
$200 Pepco
$200 Storage Unit
$200 Comcast (internet, phone, cable)
$200 (AT&T cell phone service for 4 phones)
$150 Gym membership
$100 Water
$100 Gas
$ 0 529s (We don't feel obliged to save for college right now because the grandparents have stretched to give each kid a 529 now worth about $250,000 each)

Thank you in advance for any constructive feedback. I know we spend a lot of kids' activities, which seems like one to cut.

First, despite your overspending, you are OK. Not great, but OK. 529s look good and the retirement fund is workable ($1M is good for your age for most people, but considering your spending habits you need more in retirement to support your lifestyle.

Second, you do overspend. I've bolded the categories that seem out of whack to me. FWIW, we are a mid-30s couple with about your income and only one child (another soon).