Families of five, making under 150k, share your budget

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lol! We all make more than that

I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.

The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.

You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.

We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.

OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.

$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.

And PP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.

/correction

The PP is a family of 3, which I read to mean Mom, Dad and 1 kid. $150,000 is really a totally fine HHI for a family of 3. It's when you add 2 more kids that it becomes tighter.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're a family of two at 105k. Not sure that would be helpful. I definitely know families of five making under 150k. The other PP must live under a rock.

+1. We're a family of 3 making $110k.

I am the op. We are a family of two, making $150k, and considering if it is doable to expand our family.

Thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lol! We all make more than that

I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.

The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.

You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.

We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.

OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.

$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.

And OP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.

you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.

Financial aid is part of how schools shape the student body they want, market themselves, and set their budgets. Tuition doesn't precisely reflect cost either. It's not charity. Are poor kids who get into Harvard "not living within their means"? (Don't answer that.)

[Anonymous]

Family of 6 making 175k

Our secret is.... Credit card debt.

[Anonymous]

Anonymous wrote:Family of 6 making 175k

Our secret is.... Credit card debt.

Holy crap. I thought I was drowning as a family of three at $130k. That is going to be impossible for you to pay down.

[Anonymous]

Anonymous wrote:Family of 6 making 175k

Our secret is.... Credit card debt.

Could you elaborate more?

[Anonymous]

I am often baffled on this forum how people have ability to make a decent income and still struggle to understand how to live within a budget. And no OP that was not directed at you. Just in general here on DCUM. Either it seems people want to live beyond their means, keep up with Jones, or not make necessary cuts/certain steps to obtain financial wellness/security/ what have you. I can post a budget, but I hesitate as I often find people don’t want to live the way we can afford to live in this area. However, I for one, do not want for much. I think it will help you to think about what truly brings you joy and eliminate non-necessities that don’t. Think in terms of your $ being spent as your life energy (because you labored for it at work). So really eliminate excess and focus that $ on the things that elevate your life. For you, not to impress neighbors, not on autopilot spending because “that’s just what people do.” Hope this helps!

[Anonymous]

Anonymous wrote:I am often baffled on this forum how people have ability to make a decent income and still struggle to understand how to live within a budget. And no OP that was not directed at you. Just in general here on DCUM. Either it seems people want to live beyond their means, keep up with Jones, or not make necessary cuts/certain steps to obtain financial wellness/security/ what have you. I can post a budget, but I hesitate as I often find people don’t want to live the way we can afford to live in this area. However, I for one, do not want for much. I think it will help you to think about what truly brings you joy and eliminate non-necessities that don’t. Think in terms of your $ being spent as your life energy (because you labored for it at work). So really eliminate excess and focus that $ on the things that elevate your life. For you, not to impress neighbors, not on autopilot spending because “that’s just what people do.” Hope this helps!

A lot depends on when you are in a position to buy a home. I remember when we moved to DC 20 years ago, modest homes in bedroom communities outside DC were listed in the low $200k range. By the time we saved our down payment 3 years later those houses were in the $300k range and now 15 years later they are in the $500k range. Needless to say salaries have not gone up by 150% in the last 20 years.
When people on this forum say they have very modest PITIs I always wonder if they were lucky enough to buy a long time ago. Federal salaries have not kept pace with housing and childcare costs in the DMV

[Anonymous]

Anonymous wrote:Family of 6 making 175k

Our secret is.... Credit card debt.

We were in the same boat with about $35k in credit card debt. Couldn't pay down fast enough, so couple years ago, we refinanced and pay it off. What's a relief.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're a family of two at 105k. Not sure that would be helpful. I definitely know families of five making under 150k. The other PP must live under a rock.

+1. We're a family of 3 making $110k.

I am the op. We are a family of two, making $150k, and considering if it is doable to expand our family.

Thanks!

Correction, I am the Op and we are a family of 4 (two working adults and two children) My oldest goes to public school and the toddler to daycare. If we were to expand our family, by the time baby #3 is born, child #2 will be going to public school.

[Anonymous]

OP, what’s your current budget? We have two kids and trying for a third with a HHI of $200k, two working parents. It is very doable.

[Anonymous]

Family of 6 currently earning $220, but only earned $150 for many years.

It's do-able.

Mortgage is under $2k thanks to trading up with a nearly $350k downpayment.

Older cars we drive until they die.

Adjusted our work schedules to minimize child care costs.

[Anonymous]

Family of 5 here. Make $162K one earner. No longer live in DC area but lived there for many years on about $140K. It is doable for us. However, we (parents) had no college loans, and I saved up a lot before we had kids so had savings to buy cars with cash, etc. We also don't live extravagantly. Lived in older and smaller house in Fairfax Cty. Cost of house now is similar.

Approx. Budget on $13,500 Monthly Gross
Mortgage: $2800 (15 year)
Utilities: 300
Food: 800
Internet/TV: 100
Cell Phones: 100
Gasoline/Car Ins/Maint: 600
Entertainment/Travel/Activities: 1200
Health Costs (all): 1100
Taxes (Fed/State): 2000
401K Savings: 2000
IRA Savings: 1000
College Savings: 500
Clothes: 200
Misc: 800

Having no childcare costs helps. I cook mostly from scratch. We're not big meat eaters. We aren't into designer things.

My kids aren't in travel sports (their choice) or other expensive activities. We do scouts and school sports. Vacations are mostly by car and travel points racked up from work travel. Camps are usually community ones.

We are DIYers for fixing a lot of things. We mow our own lawn, buy secondhand replacement parts, etc. We have limited data plan for phones.

It would be much harder to do with two workers at that salary due to childcare costs and not having time to cook, fix things, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.

At college, usually income from an endowment pays for financial aid. The money for the endowment came from donations to the school. It isn't coming from current tuition payments.

Also when colleges solicit donations from alumni they usually highlight financial aid in their appeal, frequently including letters from current students who describe how much they have benefited from financial aid

I worked in admissions and financial aid at a top law school for many years. Every time tuition was increased, about 30% of the increase went toward more financial aid. So yes, current students are in fact paying for other current students.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am often baffled on this forum how people have ability to make a decent income and still struggle to understand how to live within a budget. And no OP that was not directed at you. Just in general here on DCUM. Either it seems people want to live beyond their means, keep up with Jones, or not make necessary cuts/certain steps to obtain financial wellness/security/ what have you. I can post a budget, but I hesitate as I often find people don’t want to live the way we can afford to live in this area. However, I for one, do not want for much. I think it will help you to think about what truly brings you joy and eliminate non-necessities that don’t. Think in terms of your $ being spent as your life energy (because you labored for it at work). So really eliminate excess and focus that $ on the things that elevate your life. For you, not to impress neighbors, not on autopilot spending because “that’s just what people do.” Hope this helps!

A lot depends on when you are in a position to buy a home. I remember when we moved to DC 20 years ago, modest homes in bedroom communities outside DC were listed in the low $200k range. By the time we saved our down payment 3 years later those houses were in the $300k range and now 15 years later they are in the $500k range. Needless to say salaries have not gone up by 150% in the last 20 years.
When people on this forum say they have very modest PITIs I always wonder if they were lucky enough to buy a long time ago. Federal salaries have not kept pace with housing and childcare costs in the DMV

Interest rates have also come down substantially from 20 years ago. That added quite a bit of buying power.