If your HHI is around $150k and you have 1-2 kids....

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:That's us -- we're broke. But we have two in daycare right now and keep telling ourselves when they are out in a year we won't be as stretched!

I remember it was like night and day when our kids got out of daycare. Suddenly we had all this breathing room for savings, lawn care, vacations.

I can't tell you how happy I am to hear that -- I feel like people love to tell me that I'll just use that money for other things (school supplies, etc.) But my god I can't see us spending THAT MUCH every month on them!

Camp? aftercare? Is it still not as much as daycare?

I obviously can't speak to others but for us aftercare and camp won't come close to our daycare costs. Daycare over a grand more than our mortgage -- it's crazy.

This is true. Fairfax County SACC is just under $1,000 per month for two kids (before and after care) and one week (for Spring Break) of SACC camp for two kids is $445. Then add summer SACC camps at $467 per week for 8 weeks of summer. It totals out to roughly $15K.

Now of course not many people want to send their kids to summer SACC all summer. So then you can add in the cost of a "good" camp, for an additional $150-$250 per week in the summer (x 8 weeks) for another $1500 or so. Then add in camp costs for the weeks summer SACC is not open. But then you think "it would be cheaper to take a vacation" . . .

But then you have to find the camps that have openings, and that you can actually get to while also managing to get to work. And the "good" camps close at 3 pm, so then you have to figure out how to manage your work hours around the camp locations and drop-off/pick-up schedule.

And then you think to yourself, "It was so much easier when they were in daycare."

That's still waaaaaay less than a nanny. We pay $40,000 a year with tax costs.

I'll take your $400 a week anyday and twice on Sunday

But if you're using a nanny, you have cheaper options. Chances are you're choosing a nanny either because 1) You're very picky about your child's care and believe that nanny care is the highest quality or 2) You have a demanding, complex or unusual schedule that doesn't mesh with daycare, or both.

Presumably either of those things will continue when you have kids. If you're in the first category you're likely going to be the parent who wants music lessons, and "travel" sports, and name brand camps (the ones that cost $500 a week per child with before and after care). If you're in the second category, you'll find the hours of before/aftercare aren't any more forgiving and end up paying for an au pair on top of camp.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:That's us -- we're broke. But we have two in daycare right now and keep telling ourselves when they are out in a year we won't be as stretched!

I remember it was like night and day when our kids got out of daycare. Suddenly we had all this breathing room for savings, lawn care, vacations.

I can't tell you how happy I am to hear that -- I feel like people love to tell me that I'll just use that money for other things (school supplies, etc.) But my god I can't see us spending THAT MUCH every month on them!

Camp? aftercare? Is it still not as much as daycare?

I obviously can't speak to others but for us aftercare and camp won't come close to our daycare costs. Daycare over a grand more than our mortgage -- it's crazy.

This is true. Fairfax County SACC is just under $1,000 per month for two kids (before and after care) and one week (for Spring Break) of SACC camp for two kids is $445. Then add summer SACC camps at $467 per week for 8 weeks of summer. It totals out to roughly $15K.

Now of course not many people want to send their kids to summer SACC all summer. So then you can add in the cost of a "good" camp, for an additional $150-$250 per week in the summer (x 8 weeks) for another $1500 or so. Then add in camp costs for the weeks summer SACC is not open. But then you think "it would be cheaper to take a vacation" . . .

But then you have to find the camps that have openings, and that you can actually get to while also managing to get to work. And the "good" camps close at 3 pm, so then you have to figure out how to manage your work hours around the camp locations and drop-off/pick-up schedule.

And then you think to yourself, "It was so much easier when they were in daycare."

That's still waaaaaay less than a nanny. We pay $40,000 a year with tax costs.

I'll take your $400 a week anyday and twice on Sunday

Why do you have a nanny then?

Because daycare is basically the same cost anyway.

Did you read the posts above? "That's still waaaay less than a nanny", so I asked why have the nanny?

The answer cannot be because they cost the same if s/he were complaining that the nanny was waaaaay more expensive.

[Anonymous]

We're at $160k. This income is fine if you don't have to pay for daycare for the kids. If you do, that's when it will feel tight- and understandably so at $2500-$3000 a month! Here's our budget:

Rent (we own in another state, but renter covers that mortgage): $2300
Private school for oldest: $650
Car insurance: $140
Cable/Internet/Smartphones: $350
Gas: $60
Power: $100
Preschool for youngest: $280
Water: $40
Groceries: $500
Eating out: $500

Think that's everything. We net $8100 a month (after health insurance, 401k, etc) and bills are around $5000 or so, which leaves 3k of wiggle room for savings, entertainment, things like that. I feel quite comfortable at this income level but fully recognize if the $160k were from two parents working and we had 2 kids in daycare my 3k surplus would be gone and it would feel TIGHT.

[Anonymous]

How did you get a 990$ mortgage, pp??

[Anonymous]

We have 140k income with no daycare expenses (3 dc) and it still feels hard to save. Our PITI is around $2600/month. Health insurance is expensive (800/month) and we have extra costs (one dc with autism-lots of therapy etc). DH had about a year of unemployment that wiped out a lot of our savings cushion. No college funds and only about 15k in retirement (no employer match ever).

[Anonymous]

Wow. We're HHI $85,000 with our first on the way.

What would you consider that if $150K is broke?

[Anonymous]

Anonymous wrote:Wow. We're HHI $85,000 with our first on the way.

What would you consider that if $150K is broke?

It all just depends on your fixed expenses. At $85k, we would be broke. The student loans plus basic necessities (food, clothing, shelter, full time child care, diapers for 2, insurance) would never get covered by $85k. Student loans alone are $1,100 a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow. We're HHI $85,000 with our first on the way.

What would you consider that if $150K is broke?

It all just depends on your fixed expenses. At $85k, we would be broke. The student loans plus basic necessities (food, clothing, shelter, full time child care, diapers for 2, insurance) would never get covered by $85k. Student loans alone are $1,100 a month.

True. We also just don't have a lot of stuff and don't spend needlessly. Small apartment, no cars, don't live in NW, negotiated student loans down to $150 a month for now, and family lives in beautiful parts of the country we use as vacation time.

Realistically, we'll probably move out of DC after baby is born. Family here is gone and cost of living is 40% above the national average. I don't see us ever being comfortable here with a child.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow. We're HHI $85,000 with our first on the way.

What would you consider that if $150K is broke?

It all just depends on your fixed expenses. At $85k, we would be broke. The student loans plus basic necessities (food, clothing, shelter, full time child care, diapers for 2, insurance) would never get covered by $85k. Student loans alone are $1,100 a month.

This is absolutely true. It's not how much you make that determines your quality of life, it's how much you have to SPEND of what you make. If you make $85k and have a $1000/month mortgage or rent payment, no car payment, no childcare costs, no student loans, etc. (essentially, very little debt), you're going to be doing much better than someone who makes even $130k ($50k more than you) but has a higher mortgage, childcare costs, a car payment, student loans, and all that.

[Anonymous]

It also depends how much you net after insurance, retirement, etc.
We net $8400/month at HHI= $150. Curious to hear about what others net monthly income is at this HHI?

[Anonymous]

Anonymous wrote:It also depends how much you net after insurance, retirement, etc.
We net $8400/month at HHI= $150. Curious to hear about what others net monthly income is at this HHI?

I posted a couple above you- HHI is $160 (one salary) and net is $8100. But our health insurance is not the cheapest.

[Anonymous]

Anonymous wrote:How did you get a 990$ mortgage, pp??

NP here, but my mortgage is also $980/month. Bought for $250k in 2004. Put 5% down, then had two loans - one for 80% and one for 15%. Worked our butts off (two jobs each) to pay off the 15% loan in 7 years (it was a 10 year loan). We refinanced the 80% loan because it was adjustable (and it had adjusted lower a couple of times), got a 30yr fixed. Voila. PITI is less than 1k.

We live in a rowhouse in a terrible neighborhood. So there are trade offs. But we're saving for college and a new car and other things, so we'll stick with the payment we've got for right now. HHI is $130k.

[Anonymous]

Anonymous wrote:13:06- before we didn't really have a budget. That meant we didn't save as much as I wished we had now, but we didn't really think about money and still put some aside.

The job change involved a move out of DC and wiped out most of our savings, so I don't know that our budget is entirely relevant to everyone as we try to rebuild an emergency fund. Plus, after 6 months i havent found a budget that truly works. However, I have to really watch spending now and track on Mint.com in order to save anything which continues to shock me as we lowered our mortgage and general COL when we moved.

It sounds to me, having been there myself, like you are having as many issues -- if not more -- with the fact that you left DC (despite your now-lower mortgage and cost of living).

It takes a while to adapt to a place where the people do not think themselves to be at "the center of the universe", but relax and give it time, and do appreciate those things that do make your new home and life better (perhaps more time at home with a less-stressed DH? better weather? hometown coffee shops? healthier lifestyle?).

[Anonymous]

Anonymous wrote:We're at $160k. This income is fine if you don't have to pay for daycare for the kids. If you do, that's when it will feel tight- and understandably so at $2500-$3000 a month! Here's our budget:

Rent (we own in another state, but renter covers that mortgage): $2300
Private school for oldest: $650
Car insurance: $140
Cable/Internet/Smartphones: $350
Gas: $60
Power: $100
Preschool for youngest: $280
Water: $40
Groceries: $500
Eating out: $500

Think that's everything. We net $8100 a month (after health insurance, 401k, etc) and bills are around $5000 or so, which leaves 3k of wiggle room for savings, entertainment, things like that. I feel quite comfortable at this income level but fully recognize if the $160k were from two parents working and we had 2 kids in daycare my 3k surplus would be gone and it would feel TIGHT.

PP, where do you live?

[Anonymous]

195K HHI, 1 infant in daycare
Automatically max out 401k at work = 35,000/yr
After taxes, retirement, etc. We bring home around $120K/yr. (~10,000/mo)

Daycare 1,100/mo
Mortgage 2,500/mo
Rental Property Mortgage 2000/mo
Groceries/Eating Out 600/mo
Child-related expenses 200/mo
Pet Care & Other Misc Household Items 200/mo
Gifts/Entertainment 200/mo
Travel Sinking Fund 300/mo
Internet 65/mo
Cell phones 175/mo
Lawn Service 100/mo
Utilities: Gas/Water/Electric ~350/mo
Vet plan 40/mo
College Savings 200 /mo
Other Savings= 1,000/mo
Cars/Commuting (paid-off cars) 200/mo for Gas/repairs/oil change sinking fund
Car/Jewelry Insurance 125/mo

I have free metro subsidy from work, and walking distance to metro so there is no parking fee... we don't have cable and I'm sure there are some other things I left out...