How do you make ends meet on 130k?

[Anonymous]

Can you find cheaper daycare? And/or can a family member help out with the kids for a year?

Cut most meat out of your diet. You'll be surprised how much your grocery bill goes down. Plus, it's probably better for you and the environment.

Are you a great shopper and a from-scratch cook? There are some amazing cookbooks for cooking on a budget. I'd suggest you read a few of those if you haven't already for ideas.

Is your current home in an area you could rent out for a month a year while you stay at relatives? This strategy has really helped a few family members.

Can you you or your husband pick up a side hustle? TaskRabbit, Uber, eBay shop?

Can you qualify for any government assistance. For example, in Houston any resident is qualified to shop at their Food Bank's market...they have awesome stuff!

As for retirement, just contribute the max you possibly can to your 401k and trust that you are doing something. 10 years from now you may have to brainstorm on how to get a bigger salary but for now, baby steps.

[Anonymous]

That's good salary, so I'm guessing you're wasting money on what most people do: housing and transportation. Minimize these costs first.

[Anonymous]

Anonymous wrote:That's good salary, so I'm guessing you're wasting money on what most people do: housing and transportation. Minimize these costs first.

+1. Housing, transportation, food--> those are the 3 biggest long term expenses. Minimize them and you're set.

[Anonymous]

Anonymous wrote:We paid off student loans before we had a baby. We use an inhome daycare because it's almost half what a center costs. We buy everything used. No car loans because we drive 10 year old cars. Our mortgage is $2100 (including taxes and insurance) and we DIY everything.

We think we live a great life. It's all about perspective.

+1000.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:Own a house that's 1x (max) HHI. Best financial decision since our marriage.

So either you don't live in DC or bought 40 years ago. Which one is it?

Or they have a very high HHI..... But I was also wondering about this comment.

But this is a thread about making ends meet on 130k. So if their HHI is 500k, that's not very helpful/applicable.

We're under 130k. We don't live in DC because we wouldn't have been able to make that rule work without buying a distressed property. The peace of mind is worth it.

You found a unicorn, where homes are cheap and your job still paying almost DC salary. Are you doctors ?

What? No. We're teachers. It doesn't take a DC salary to make 50k as a teacher, and if you're willing to live in a small town, there are plenty of 100k houses to be had.

[Anonymous]

Anonymous wrote:I raised 2 kids on under $65k for 7 years (until 2012) and then raised one on roughly $70-75k until I remarried. My tips are...
buy generic
Learn to repair and reuse rather than tossing. I got really handy with a sewing needle, spray paint, Gorilla Glue, and so on
Buy basic items at Aldi's and Dollar Tree
avoid going out (eat at home, watch Netflix)
Shop your closets, the thrift store, and Freecycle first --even before looking online
dote on your old car and cell phone so they last forever
use coupons, rebates, and any discount you can get
swap things and small jobs with family, friends, and neighbors
Track every penny
dilute your shampoo, dishwashing liquid, and laundry detergent. They work just as well at 3/4 to even 2/3 strength

During this time, my kids still ate organic eggs and dairy, took trips (including abroad), and got braces.

Why pay for Netflix when there is so much other free content.