How does your family survive making under 200k hhi

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My understanding is that if you stop going to Starbucks, all of your financial problems will disappear.

and cable, don't forget axing cable.

and packing a lunch every day.

Works for me plus many other "incidentals" that I do not have that you do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My understanding is that if you stop going to Starbucks, all of your financial problems will disappear.

and cable, don't forget axing cable.

and packing a lunch every day.

Perhaps the fact that you mock this kind of idea goes a long way to explaining why you're complaining about how to make ends meet?

I didn't complain about anything. I'm doing great financially. There are many people posting in this thread.

What I am mocking is the bare bones approach that does little to instill proper habits, and doesn't remedy a lifetime of poor decision-making.

Eating primarily out of your own kitchen isn't exactly bare bones and earning less than 200k doesn't mean you made a life time of bad decisions. Have you worked for your current wealth or was it all handed to you? You don't seem to understand what it means to live within your means when you've had to earn it. I really wonder about some the replies we're getting on this thread.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

We wash and reuse our zip lock bags.

Wow, I am a pretty frugal low key person, but that is too much for me. I don't think they are a huge expense, I don't use them that often, it sounds like it would be hard to get them dry.

We do it more for the reduce/reuse/recycle mantra. Not for the savings. We use one box over a number of years as we dont use them much at all.

You can buy reusable baggies that Velcro close and can be washed by hand or in dishwasher.

Tried those, they suck

Yeah, we also tried those when we were switching over to un-papered towels and cloth diapers, but we just couldn't find a ziploc replacement that worked better than tupperware. So we expanded our stash of mini-size tupperware containers for snacks but those reuseable cloth snack bags didn't work for us.

Similar experience here. We use tupperware more than anything else for food storage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are a frugal people. All four of our parents grew up during the depression and came of age during the rationing of WWII. With the exception of a house and occasionally a car, we buy when we have the money (pay as you go).

We wash our shirts (only use dry cleaners a few times a year). We don't do Starbucks. We don't buy lunch more than once a week. We eat real food prepared at home. We keep our thermostat at 68' in the winter and 74' in the summer. We did the non sexy stuff to our house first (insulated, roof, efficient heating and Air conditioning). We drive cars until they die, but take care of them so they don't die prematurely. We fix things, reuse things then recycle them. We buy high quality clothes that last and not tons of them ( we have a regular closet- no walk in). We mow our own lawn. We do get an every other week housecleaner. We plan our errands. We plan our purchases. We tithe. We don't go to concerts or plays (except local free or nearly free ones). We use the library weekly. We clean our own gutters. We go to family for summer vacations most years (have a bigger vacation every 2-4 years- use VBRO type of places). We use DH's frequent flyer miles when we fly (which is not often). We host potlucks. DH has a smart phone from work, but the DCs and I have a pay as you go phones that cost $100/year each. We have purchased couches, beds and mattresses, but most of our other furniture is "inherited" (I call it 'early attic'). We have done renovations to our house once we have saved up the money. We wash and reuse our zip lock bags. We use cloths napkins and dish towels instead of paper in the kitchen. We use rags for cleaning instead of paper towels. From the get go, we set our expenses off of one salary and saved as much as we could.

Little things add up. It isn't just the Starbucks habit- it is 12-24 Starbuck type habits.

Wow! Way to live large, dude.

I think so. We have $1.8M saved for retirement. $600k in house equity. Fully funded college for children. To boot.

Do you make under 200K? How old are you? That's a ton of retirement savings if you are in your 30's

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are a frugal people. All four of our parents grew up during the depression and came of age during the rationing of WWII. With the exception of a house and occasionally a car, we buy when we have the money (pay as you go).

We wash our shirts (only use dry cleaners a few times a year). We don't do Starbucks. We don't buy lunch more than once a week. We eat real food prepared at home. We keep our thermostat at 68' in the winter and 74' in the summer. We did the non sexy stuff to our house first (insulated, roof, efficient heating and Air conditioning). We drive cars until they die, but take care of them so they don't die prematurely. We fix things, reuse things then recycle them. We buy high quality clothes that last and not tons of them ( we have a regular closet- no walk in). We mow our own lawn. We do get an every other week housecleaner. We plan our errands. We plan our purchases. We tithe. We don't go to concerts or plays (except local free or nearly free ones). We use the library weekly. We clean our own gutters. We go to family for summer vacations most years (have a bigger vacation every 2-4 years- use VBRO type of places). We use DH's frequent flyer miles when we fly (which is not often). We host potlucks. DH has a smart phone from work, but the DCs and I have a pay as you go phones that cost $100/year each. We have purchased couches, beds and mattresses, but most of our other furniture is "inherited" (I call it 'early attic'). We have done renovations to our house once we have saved up the money. We wash and reuse our zip lock bags. We use cloths napkins and dish towels instead of paper in the kitchen. We use rags for cleaning instead of paper towels. From the get go, we set our expenses off of one salary and saved as much as we could.

Little things add up. It isn't just the Starbucks habit- it is 12-24 Starbuck type habits.

Wow! Way to live large, dude.

I think so. We have $1.8M saved for retirement. $600k in house equity. Fully funded college for children. To boot.

Do you make under 200K? How old are you? That's a ton of retirement savings if you are in your 30's

Yes, our HHI is under $200k, but we are not in our thirties.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are a frugal people. All four of our parents grew up during the depression and came of age during the rationing of WWII. With the exception of a house and occasionally a car, we buy when we have the money (pay as you go).

We wash our shirts (only use dry cleaners a few times a year). We don't do Starbucks. We don't buy lunch more than once a week. We eat real food prepared at home. We keep our thermostat at 68' in the winter and 74' in the summer. We did the non sexy stuff to our house first (insulated, roof, efficient heating and Air conditioning). We drive cars until they die, but take care of them so they don't die prematurely. We fix things, reuse things then recycle them. We buy high quality clothes that last and not tons of them ( we have a regular closet- no walk in). We mow our own lawn. We do get an every other week housecleaner. We plan our errands. We plan our purchases. We tithe. We don't go to concerts or plays (except local free or nearly free ones). We use the library weekly. We clean our own gutters. We go to family for summer vacations most years (have a bigger vacation every 2-4 years- use VBRO type of places). We use DH's frequent flyer miles when we fly (which is not often). We host potlucks. DH has a smart phone from work, but the DCs and I have a pay as you go phones that cost $100/year each. We have purchased couches, beds and mattresses, but most of our other furniture is "inherited" (I call it 'early attic'). We have done renovations to our house once we have saved up the money. We wash and reuse our zip lock bags. We use cloths napkins and dish towels instead of paper in the kitchen. We use rags for cleaning instead of paper towels. From the get go, we set our expenses off of one salary and saved as much as we could.

Little things add up. It isn't just the Starbucks habit- it is 12-24 Starbuck type habits.

Wow! Way to live large, dude.

I think so. We have $1.8M saved for retirement. $600k in house equity. Fully funded college for children. To boot.

Do you make under 200K? How old are you? That's a ton of retirement savings if you are in your 30's

Yes, our HHI is under $200k, but we are not in our thirties.

Still - that is a LOT to be saved excluding house equity. Congratulations you are a inspiration. Did you invest well and grow your money or it is just the accumulation of savings. Not being snarky, just trying to learn. We are in our 30's just reached 200K give or take - have 2 young kids, one still in daycare. We save a lot of money but not sure if we could save 1.8M on savings alone in the next 10 years

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are a frugal people. All four of our parents grew up during the depression and came of age during the rationing of WWII. With the exception of a house and occasionally a car, we buy when we have the money (pay as you go).

We wash our shirts (only use dry cleaners a few times a year). We don't do Starbucks. We don't buy lunch more than once a week. We eat real food prepared at home. We keep our thermostat at 68' in the winter and 74' in the summer. We did the non sexy stuff to our house first (insulated, roof, efficient heating and Air conditioning). We drive cars until they die, but take care of them so they don't die prematurely. We fix things, reuse things then recycle them. We buy high quality clothes that last and not tons of them ( we have a regular closet- no walk in). We mow our own lawn. We do get an every other week housecleaner. We plan our errands. We plan our purchases. We tithe. We don't go to concerts or plays (except local free or nearly free ones). We use the library weekly. We clean our own gutters. We go to family for summer vacations most years (have a bigger vacation every 2-4 years- use VBRO type of places). We use DH's frequent flyer miles when we fly (which is not often). We host potlucks. DH has a smart phone from work, but the DCs and I have a pay as you go phones that cost $100/year each. We have purchased couches, beds and mattresses, but most of our other furniture is "inherited" (I call it 'early attic'). We have done renovations to our house once we have saved up the money. We wash and reuse our zip lock bags. We use cloths napkins and dish towels instead of paper in the kitchen. We use rags for cleaning instead of paper towels. From the get go, we set our expenses off of one salary and saved as much as we could.

Little things add up. It isn't just the Starbucks habit- it is 12-24 Starbuck type habits.

Wow! Way to live large, dude.

I think so. We have $1.8M saved for retirement. $600k in house equity. Fully funded college for children. To boot.

Do you make under 200K? How old are you? That's a ton of retirement savings if you are in your 30's

Yes, our HHI is under $200k, but we are not in our thirties.

Still - that is a LOT to be saved excluding house equity. Congratulations you are a inspiration. Did you invest well and grow your money or it is just the accumulation of savings. Not being snarky, just trying to learn. We are in our 30's just reached 200K give or take - have 2 young kids, one still in daycare. We save a lot of money but not sure if we could save 1.8M on savings alone in the next 10 years

Started early (20's- first jobs), then slow and steady. The stock market has done very well- no real secret there.

[Anonymous]

I see those people hurting the most that bought houses during the housing bubble and then the market crashed.

My neighbor bought his significantly smaller house for double what we paid for our house. They make much more than us but they are hanging on by the skin of their teeth. They are locked in at an atrocious rate, and they can't sell and move.

However, they are the people who would not have done well financially because they they live large. They have 2 kids going to private, 2 leased SUVs, expensive vacations. A few thousand in the bank and for college. I would be a nervous wreck in their shoes.

[Anonymous]

I see those people hurting the most that bought houses during the housing bubble and then the market crashed.

This sort of thing makes me very ambivalent about homeownership. My father thinks I'm nuts, since we always lived a nice upper middle class lifestyle with a nice house in a good school district and he likes the idea of being able to customize the house as well as build equity. We are currently renters, mostly because we are still young, will probably need to move in the next few years, and haven't made enough to save up for a house downpayment yet. But the idea of sinking such a huge amount of wealth into such a non-liquid investment that is subject to these crazy fluctuations in prices seems pretty unappealing. Combine that with having to deal with selling it if you need to move for work and possibly getting locked in, and that the historical average for housing appreciation is about 1%, whereas the stock market is 8%, and maintenance costs, I see no need to rush into home ownership.

[Anonymous]

Anonymous wrote:

I see those people hurting the most that bought houses during the housing bubble and then the market crashed.

This sort of thing makes me very ambivalent about homeownership. My father thinks I'm nuts, since we always lived a nice upper middle class lifestyle with a nice house in a good school district and he likes the idea of being able to customize the house as well as build equity. We are currently renters, mostly because we are still young, will probably need to move in the next few years, and haven't made enough to save up for a house downpayment yet. But the idea of sinking such a huge amount of wealth into such a non-liquid investment that is subject to these crazy fluctuations in prices seems pretty unappealing. Combine that with having to deal with selling it if you need to move for work and possibly getting locked in, and that the historical average for housing appreciation is about 1%, whereas the stock market is 8%, and maintenance costs, I see no need to rush into home ownership.

We feel the same way and have been renting for ages. However as our kids grow up, we are finding that we need to buy not to make money but to give our kids a community with friends, good schools, space and a yard. A combination of those makes renting in a good school district very expensive. Right now we rent a 2b2ba in a middling school district and are looking to buy for those reasons

[Anonymous]

We feel the same way and have been renting for ages. However as our kids grow up, we are finding that we need to buy not to make money but to give our kids a community with friends, good schools, space and a yard. A combination of those makes renting in a good school district very expensive. Right now we rent a 2b2ba in a middling school district and are looking to buy for those reasons

Yeah, we definitely may change our minds as circumstances change. But for now, renting is working out, so we'll cross that bridge when we get there!

[Anonymous]

Friends of our family have been renting the same house in close-in Montgomery County for 30-plus years. The amount of money they left on the table by never buying is staggering.

I can't imagine a still-standing home in MoCo that isn't worth substantially more than it was 30 years ago. Or 20.

[Anonymous]

Anonymous wrote:Friends of our family have been renting the same house in close-in Montgomery County for 30-plus years. The amount of money they left on the table by never buying is staggering.

I can't imagine a still-standing home in MoCo that isn't worth substantially more than it was 30 years ago. Or 20.

30 years is a long time and they could have owned that house. However, reality is that when people buy - they usually buy the MOST HOUSE they can afford. That is the big problem in my opinion. Live on half your income. And then figure out what you can afford. Buy a house at the bottom of the market, not in a seller's market. And so, it might be better to rent for some years while you are waiting for the market to come down.

[Anonymous]

This is the simple budget I am trying:

It's the 50/30/20 budget. Here's how it works:

You start with your after-tax income. That's your gross pay minus any wage-based taxes, such as withheld income tax, Social Security and Medicare taxes, and disability taxes. If your employer deducts other expenses from your paycheck, such as 401k contributions, health insurance premiums and union dues, add those back into your net pay to get your after-tax income.

You aim to limit your "must-have" expenses to 50% of that after-tax figure. "Must-haves" include all the basic expenditures you really need to make each month: outlays for housing, utilities, transportation, food, insurance, child care, tuition and minimum loan payments. If you can delay a purchase for a few months with no serious consequences -- for example, clothing or dining out -- it's not a must-have. If you're contractually obligated to pay something (a credit card minimum, child support or a cell phone bill), it's a must-have, at least for now.

Your "wants" can consume 30% of your after-tax pay. Vacations, gifts, entertainment, clothes, eating out and other expenses are all "wants." Some bills you pay might overlap the two categories. For example, basic phone service is a must-have. But features such as call waiting or unlimited long distance are wants. Internet access and pay television are two other expenditures that can feel like must-haves but usually are wants, unless you're on some kind of long-term contract.

Savings and debt repayment make up the final 20% of your budget. Warren's a bankruptcy expert, remember, and she knows the devastation that results from too much debt and too little savings. To achieve financial independence and minimize the chances of disaster, you need to get rid of consumer debt, save for retirement and build your emergency fund. Any loan payments you make above the minimum belong in this category, as do contributions to your retirement and emergency funds.

[Anonymous]

30 years is a long time and they could have owned that house. However, reality is that when people buy - they usually buy the MOST HOUSE they can afford. That is the big problem in my opinion. Live on half your income. And then figure out what you can afford. Buy a house at the bottom of the market, not in a seller's market. And so, it might be better to rent for some years while you are waiting for the market to come down.

You could also imagine that if they invested their money in the stock market, particularly in a safe vehicle like an index fund, then they could have accrued a significant amount of wealth that way, especially since they could forgo major house repairs and so on. The amount of money that it takes to put a downpayment on a house, sitting in the stock market over time is pretty substantial.