Is this a reasonable amount of spending money per month based on our income?

[Anonymous]

HHI is 320k. No debt except mortgage on a townhouse. Both our paychecks go into the same joint account.

I proposed to my wife that we each get $1200/month of personal spending money to go into our own bank accounts that we can spend judgement free. I think she’s okay with it but also wishes she could have more per month to blow on stuff. Is this too low? We have no kids yet but will start trying in the next year and are also aggressively saving for a down payment on another house.

This isn’t money for needs like bills, food, gym, or for shared wants like vacations, activities, or new stuff for the house. It doesn’t include gifts either, that would come from our joint account. It’s basically just an amount that we can individually spend on ourselves without needing to justify it to the other person.

[Anonymous]

What percentage of your gross income are you guys saving each month? Do you have a fully funded emergency fund? Are you saving adequately for any large expenses like car repairs and home repairs? Do you have a full budget so that you are directing your money where you want it to go and you have this money available to spend? Are you aware that these amounts will go down dramatically if you have kids and need to utilize daycare?

[Anonymous]

So almost $30,000 per year to just blow on whatever you two want? Why not just spend what you need to and agree to talk about anything more than a certain dollar level. And, if you are aggressively saving for a down payment on a new house wouldn’t this help out? Pre-kids this is when you should be saving as much as you possibly can, not having fun money accounts.

[Anonymous]

Anonymous wrote:What percentage of your gross income are you guys saving each month? Do you have a fully funded emergency fund? Are you saving adequately for any large expenses like car repairs and home repairs? Do you have a full budget so that you are directing your money where you want it to go and you have this money available to spend? Are you aware that these amounts will go down dramatically if you have kids and need to utilize daycare?

We save probably 10k a month right now including 401k contributions so some is pre tax.

[Anonymous]

Calling Dave Ramsey! Couple on DCum need help.

[Anonymous]

Anonymous wrote:So almost $30,000 per year to just blow on whatever you two want? Why not just spend what you need to and agree to talk about anything more than a certain dollar level. And, if you are aggressively saving for a down payment on a new house wouldn’t this help out? Pre-kids this is when you should be saving as much as you possibly can, not having fun money accounts.

Easier for us to track this way and lots of small purchases add up so it seems like having a dollar threshold of say $300 wouldn’t be that effective if you have 10-20 small purchases that fly under the radar. We are both guilty of being mindless spenders at times.

[Anonymous]

I think it's way too much. I think $600 a month would even be a bit much.

[Anonymous]

Anonymous wrote:I think it's way too much. I think $600 a month would even be a bit much.

Maybe. She told me she just spent $200 at Sephora. I don’t mind her purchase at all but just wanted to point out that $1200/mo doesn't go far if you have certain tastes. The inflation has made everything so expensive and things like a basic meal for two at a sit down restaurant cost about $100 give or take.

[Anonymous]

$1200/mo for one person is a lot to use as funny money when one is trying to save for a house and have kids soon.

I have two kids and a sfh. Both are expensive. You should save more so you won't have a huge mortgage. That's what we did, and our PITI is $2500/mo on a house we bought at $730K; we put close to $530K down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's way too much. I think $600 a month would even be a bit much.

Maybe. She told me she just spent $200 at Sephora. I don’t mind her purchase at all but just wanted to point out that $1200/mo doesn't go far if you have certain tastes. The inflation has made everything so expensive and things like a basic meal for two at a sit down restaurant cost about $100 give or take.

Yes, I exist in this world as well. So I know that there's no need to spend $200 at Sephora every month - you don't run out of makeup or skincare every single month. There was just a thread three pages long with people singing the praises of Trader Joe's dupes. And it doesn't matter how much money I have, I still don't believe in blowing it. Saving for emergencies is something I value, because I've seen enough of them.

[Anonymous]

Why?

[Anonymous]

Anonymous wrote:I think it's way too much. I think $600 a month would even be a bit much.

+1
Our income is twice yours and we give ourselves $600/mo. We save a ton and are close to paying off our mortgage on a $3M home. Our kids are older- 20, 17, 15, 10.

[Anonymous]

It's too much. I'd encourage you to save, save, and save some more while you can and it's easy. You won't regret it!

[Anonymous]

Few things feel as good as working fewer hours or (if you are not a sociopath) helping people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's way too much. I think $600 a month would even be a bit much.

+1
Our income is twice yours and we give ourselves $600/mo. We save a ton and are close to paying off our mortgage on a $3M home. Our kids are older- 20, 17, 15, 10.

You make 640k and have a $3M house? Seems like a stretch to afford that. I would rather live in a 1M home and put the difference towards things like toys and experiences. The delta between a 1M and 3M house is probably 10-15k a month and you only give yourself $600/month each. That seems crazy to spend so much on a house while having such a barebones spending budget.