Help me figure out how to better allocate our 300k income.

[Anonymous]

As far as I know, you don't pay childcare for 30 years and anyone who is paying off student loans for 30 years, especially at that number, is already a financial nitwit.

In the meantime, they are living above their means and racking up cc debt because they don't think it's fair there isn't enough money leftover after they spend it all.

Sorry. Doesn't compute.

[Anonymous]

Anonymous wrote:

Anonymous wrote:yup this is why 300k hhi is hard and the home isn't even that expensive

Oh, shut up. Please. Her 300k allows her to pay a huge mortgage, 1600 in student loans and 2800 in childcare. Most people can't pay their loans at that rate or afford a mortgae's worth of childcare.

Not to mention a housekeeper.

When her huge loans and credit debt are paid off, and childcare is in the rear view, she won't know what to do with her income.

+1

OP to answer your question, do you have a firm idea where the $800 in bills/misc is going? That is a large chunk of change to lump together if you're not sure of the specifics.

[Anonymous]

Anonymous wrote:As far as I know, you don't pay childcare for 30 years and anyone who is paying off student loans for 30 years, especially at that number, is already a financial nitwit.

In the meantime, they are living above their means and racking up cc debt because they don't think it's fair there isn't enough money leftover after they spend it all.
Sorry. Doesn't compute.

Hmmm, I don't really think that's it. I think its hard because we took a big hit when we bought the house and I went part time (income went down $70K). Husband has big loans and yes, we are paying them off quickly. But we clearly are living above our means, I am just wondering what we need to do to get within them -- I think we need out of the mortgage.

[Anonymous]

I'm guessing that's utilities, phone/Internet/cable, and cell phones. Am I right, OP?

[Anonymous]

Anonymous wrote:I'm guessing that's utilities, phone/Internet/cable, and cell phones. Am I right, OP?

Yes, and cc payments.

[Anonymous]

Oh, also insurance.

[Anonymous]

Anonymous wrote:

bills/misc.
groceries/gas etc. eat up the rest.

I think you need to be more specific in these categories. These ares are where a lot of your discretionary spending happens, and you're probably spending more than you think, at least in some categories.

What are you spending specifically on groceries? Clothing? Home/garden expenses? Eating out? Entertainment? Travel? Gifts? Cable? Phones?

I think if you divide out expenses by category, you'll be surprised by the result.

[Anonymous]

Your numbers don't add up. How much do the two of you take home each month? 18K or so? If so, there should be several thousand left over after the expenses you listed. Figure out where they go.

[Anonymous]

Why the heck did you spend so much on housing? And leasing a car? What are you going to do when the lease is up?

I agree that there's not enough information. What kind of vacations do you take? Spending on dinners out, lawn service, weekends away, clothes and toys for the kids, entertaining, gifts. You need to dial way back on your expenses, at least until your kids are out of daycare and/or those loans are paid off.

Seriously, you should be embarrassed that you make so much money and are still such a financial wreck.

[Anonymous]

A good house is at least a million in this area. no shock that 300k isn't enough. You need 400 and higher to be comfortable and not give up a middle class lifestyle that you are accustomed to if you live in most other parts of the usa.

[Anonymous]

Anonymous wrote:per month:
mortgage - $4,200 (too much).
car - $500 (payment and insurance)
bills/misc. - $800
student loans - $1600
child care for 2 under 2 - $2800
parking - $250
housecleaning - $240
groceries/gas etc. eat up the rest.

It almost feels like no discretionary income, and we both have credit card debt because things feel tight. what can we do about our mortgage? when we bought, I was making more, and have since gone part time. we have only owned for 2 years. would it make any sense to sell?

What? No charity? At that income level? Shame on you.

[Anonymous]

Anonymous wrote:A good house is at least a million in this area. no shock that 300k isn't enough. You need 400 and higher to be comfortable and not give up a middle class lifestyle that you are accustomed to if you live in most other parts of the usa.

haha. gotta love the lack of perspective some people have. yeah, nothing that isn't condemned under a mill.

[Anonymous]

OP do you have a plan regarding where you would move - how you would pay less in a mortgage? I wouldn't sell until you've really looked into if there are options out there for what you want to pay/where you want to live.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A good house is at least a million in this area. no shock that 300k isn't enough. You need 400 and higher to be comfortable and not give up a middle class lifestyle that you are accustomed to if you live in most other parts of the usa.

haha. gotta love the lack of perspective some people have. yeah, nothing that isn't condemned under a mill.

seriously. we're doing just fine in our townhouse.

[Anonymous]

I second the posters suggesting that you start by losing the housekeeper. You say you can't because you have 2 kids under 2, and I get that. But if you both work and you have two young kids, don't hold yourself to some unattainable standard of cleanliness that can only be met by having a housekeeper. How long have you had the housekeeper? Remember what it felt like to not have one? You can go back to it. It's a want, not a need.

Looking at the bills category also seems important. Cut out cable, with 2 kids under 2 how much time do you have for TV anyway?

I guess it's too late to say anything about the mortgage, but can someone explain to me why so many people here buy houses they can't actually afford?