Singel parent on $228K income
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
$30K/year to retirement That leaves $198 pretax After retirement, taxes, FSA, health insurance premium I see $4660 biweekly. So $9K/month. $3K to rent $60 water + $70 electric + $60 WiFi + $60/m subscriptions + $100 cellphone $800 groceries + $100 pharmacy $200 gas + $100 car insurance + $100 parking. Car is paid off. $700 student loans $400 supplemental disability insurance $1000 combined summer camp, vacation & annual travel That leaves ~$2K for school needs (public school), babysitters, entertainment, clothing & shoes, books, health care co-pays and deductible, gifts, sports for kids, accountant, special services like lawyer or financial advisor when needed, car repairs, computer equipment/office supplies, haircuts, pet food/care & vet bills, home goods, gym/exercise (no gym membership), and everything else. I barely leave home or shop, have no cable/TV/landline am somehow living paycheck to paycheck apart from the retirement savings. |
Anonymous
| It’s the lack of homeownership. All these people saying they do fine on less bought homes years ago and refinanced at historic lows. OP has to face record high rents vs record high prices at high interest rates and low overall value for her timeframe. |
Anonymous
How many kids? $800 for groceries seems high to me but I have 2 kids. I think you're feeling the pinch from the $700 student loans and $400 disability insurance. That's $1100 in disposable income that is spoken for. Everything else seems pretty much inline. |
Anonymous
How many kids? Are you saving anything for college in 529s? No other savings coming out? I recommend a budgeting app like YNAB to really hone in on expenses. Reduce your mandatory spending as much as you can, and then pay down that student loan debt to free up more cash flow. Your rent is within general parameters of no more than 30% of your gross, it's even close to 30% of your net. But you still have those student loans which are hurting you. The disability insurance seems high - is there any chance of cutting that down by extending the waiting period to claim it? If you are contributing to an FSA, doesn't that cover your health care co-pays? Are you overwithholding from your paycheck? Will you get a tax refund? Honestly 2K per month for everything else seems like it should be about enough, though. That's AFTER you have covered your "Four Walls" of food, shelter, transportation (except repairs), and utilities AND you have set aside money for vacations, debt repayment, and summer camps for the kids. |
Anonymous
| When the pet(s) die, don't get a new pet until you can comfortably afford to pay for your children's college. |
Anonymous
It’s a cat. It won’t die until after college, unfortunately. |
Anonymous
The 700 in student loans and 400 in supplemental insurance is the main draw. You actually have 9320 after taxes and retirement and subtracting all of the outlined you have 2570 left per month. Im not sure what your FSA is for if you are paying healthcare copays and if dependent care you are essentially taking out 5000 per year plus 12000 for summer camp and travel so 17k!? Not to mention there are 2 paychecks not account for with bi-weekly so 4660*2+2570*12= 40k total disposable. You should definitely be able to buy: school needs (public school)- such as? babysitters- how many times are you needing a babysitter per month? entertainment- you have 60/mo in subscriptions and a 17k summer camp plus vacation budget what more entertainment do you need? clothing & shoes- you need to track this and shop sales books- library, use it. health care co-pays and deductible - why isn't FSA covering this? gifts- cap to 50/100 per incident and 250-300 per kid for xmas and birthday sports for kids- accountant- for what? special services like lawyer or financial advisor when needed- for what? car repairs- 200 per paycheck =5k repairs saved computer equipment/office supplies,= this should be a nominal amount. 1500k per year haircuts- how much do spend per year? pet food/care & vet bills- how many pets do you have? home goods- minimize or shop sales gym/exercise (no gym membership)- how is the a monthly cost? get some dumbbells and bands and a 20-30/mo subscription everything else. |
Anonymous
|
(Sorry I messed up the earlier formatting.)
OP -- here's my suggested budget breakdown for this $2000 left that you have: school needs (public school)...............$20/month per kid babysitters .......................................$0/month (join a babysitting coop) entertainment.................................$25/month (do free stuff, you are broke!) clothing & shoes..............................$25/month per kid (buy stuff at the thrift store) clothing & shoes..............................$25/month for you (you surely have clothes already?) books.............................................$0/library card health care co-pays and deductible.....$0-$50/month (isn't that what your FSA is for?) gifts................................................$20/month per kid for holiday/birthday; small gifts for family birthday gifts for kid friends................$10/month per kids (social reasons - dependes how many friends they have) sports for kids...................................$200/year per sport per kid = $16/month accountant........................................$360/year = $30/month lawyer or financial advisor when needed $. wild card -- depends car repairs..........................................$200/month computer equipment/office supplies.......$100/month haircuts- kids......................................$10/month per kid haircuts - me.......................................$40/month pet food/care & vet bills.........................$75/month home goods.........................................$25/month - stop buying stuff for your home, get it at thrift store etc. gym/exercise (no gym membership)....... $20/month towards new sneakers; exercise for free everything else/miscellaneous..................$200/month That totals about $900/month in expenses, if it is just you and one kid, or about $1100/month for you and two kids. There's still a good $800 left over to pay down that student loan debt. |
Anonymous
LOL. Sorry!! |
Anonymous
| OP, I'm the 12:04 poster and it is interesting that 11:57 and I came up with much the same suggested amounts for your budget - car repair, birthday/christmas, etc. |
Anonymous
I am 1157 and yes, they are similar although I think yours may be a bit more restrictive. OP- I will say that I think you have WAY more disposable income than you think you do considering your monthly after retirement, housing, utilities, car, student loans, insurance, travel/camp is 2500, not 2k. That 500 makes a big difference and you are forgetting the two paychecks that arent accounted for in the biweekly calculations. Biweekly calculates 24 paychecks but there are 26 per year. That right there is an additional 9-10k. If you have FSA dependent and healthcare and are maxing those then you also should be getting 8k reimbursed. You arent tracking every dollar. |
Anonymous
Ok thanks. So those 2 paychecks will go straight to 529. And you’re right about the FSA. Next year though I want to do an HSA and have that go towards retirement. It still feels like there’s not much left over monthly for cash flow after filling these not very optional buckets. |
Anonymous
I would definitely discuss that with your accountant  Is a high-deductible plan the only option? How many kids?
The not-options buckets need limits. I am a spender and can easily keep swiping the card and finding reasons to buy things that we need but maybe not in the quantity or price point that befits my disposable income. What is the $100 pharmacy line item btw? Also on a year that you don't use the 5k in car repairs, keep half in the car repair bucket and move the remaining to savings for a new car. When are your student loans paid off? Positively, I think you have great limits on grocery, gas, insurance, vacation, utilities, etc. You are saving 30k per year for retirement. I would look into changing cell phone plans personally but again, it isn't clear how many kids you have. Paying $100/mo is ridiculous if its one person only. Google Fi is like $50-65. You may need to find lower cost summer camps and/or limit travel to EOY. Its really hard to tell whether your costs are in line with the number of kids or not. |
Anonymous
| ? $100/m pharmacy is not a lot. 1-2 meds, vitamins + tampons + saline solution + occasional shampoo & toothpaste is easily that much! |
Anonymous
Exactly what I was going to say. Groceries, gas, and student loans are high. You said you're 50? Why are your student loans still so high? I'm 42 and took out mega loans for law school but I pay a little extra every year and they should be paid off before I'm 50 (well before). I would take some of the money you are currently putting towards retirement and plug do a one off loan payment. Do that once or twice a year until they are gone. How much do you have left? If you have two or fewer kids, groceries should absolutely be able to come down. What's your food waste like? Do you guys eat leftovers? Is it lots of prepared foods and snacks? Doing some meal planning and trying to get the maximum amount out of what you buy can change that a lot. We spend closer to $400-500 for two adults and one kid, and that includes all lunches. And we eat very well, shop at Whole Foods, no dieting or penny pinching. But we generally make big meals and then eat leftovers for a day or two, meal prep breakfast/lunches/snacks on Sunday so that we don't need to buy a lot of snack items, etc. It helps. Gas also seems high though I know of course gas is high right now. But any chance you can reduce car usage a bit? Are you in office every day? Any way to incoprorate public transportation or limit your driving a bit? Or look to invest in a hybrid or electric vehicle for next car if you are super car dependent -- it will be an upfront expense that could pay dividends down the road if you have to drive a lot. |