We spend around 18K a month, where does it go?

[Anonymous]

I’m not a math person but some of the math here does not add up (the $18k for starters). Some of the content overlaps (eg groceries in two different categories). Your list does not include charity donations, church/ synagogue offerings, medical expenses, vet bills, pet care, and/or travel. But overall, we are not that far off.

We probably spend similar amounts, or at least in the same ball park, as you with only one kid still at home. This is a very expensive area to live in, even when we mostly shop at Trader Joes/TJ Maxx/ Dollar Store/ Target. We drive modest, second hand cars. (Much cheaper than many driven by local public school students).


Auto and Transport - 1,000
(includes 750 for a super low interest car loan and 250 for gas, ubers, misc. repairs, car washes)
>>>> we spend a lot less than that at the moment but probably will be similar once have to commute to school and work again.


Children - 2,000
(includes 500 a month for regular babysitter, 500 a month on clothing for 3 young kids, and about 1000 a month on activities, music lessons, etc)
>>>>> yeah we spend that easily on private school, tutoring, and therapy for one kid.
Not so much for generic non designer clothes or skin/ hair care.


Entertainment - 500
(includes TV services, digital subscriptions, amazon prime, tickets to events, etc)
>>>>> Yeah we spend a bit less but same ball park for Verizon Fios/ Netflix/ Hulu and Disney plus but don’t go out anywhere yet until youth vaccinated.


Food and Dining - 3000
(about 1K a month eating out, 2K on groceries for family of 5)
>>>>> we spend around the same / groceries for family and pets very expensive for balanced diet. Also trying to support local restaurants but not to the tune of $1k a month.


Gifts - 500
(for extended family at Christmas, plus weddings, birthdays, etc)
>>>> Not every month but $500 a month collectively is probably close

Health and Fitness - 100
(Peloton, yoga classes, etc - used to be more before covid)
>>>> yes easily

Home and Property - 7400
(electricity and gas is 300, yard care is around 250, twice weekly housekeeper is 1250, mortgage and tax is 5500)
>>>>> Our weekly housekeeper is $600/ month and mortgage tax lower while utilities more so maybe around $4 k month

Insurance - 150
(life and auto)
>>>> We pay way more for house and car insurance

Personal care - 500
(hair, nails, dry cleaning, etc)
>>> bit less but close

Shopping - 2500
(clothes for both adults, not children, plus home goods, like vacuums or decor items, plus small random things like paper towels or advil)
>>>> groceries already listed under food and dining. No where near this mount for random shopping

Utilities - 400
(phone and internet)
>>> yes easily including other utilities - gas/ electricity/ water - probably
However, i included internet under entertainment since Verizon Fios is bundled.


Do not want to retire on a fixed income in this area, but it is a wonderful thing lace to raise children. Culturally diverse, great schools and lots going on usually. There are many non tangible benefits to living in DMV.

[Anonymous]

I agree about hiring help. You are paying someone’s bills and giving them a job. A quiet safe job which is not available to everyone.

[Anonymous]

If your burning through 18K a month please say you own a boat over 30’ or have an airplane or a piece of rental real estate or mountain/beach/lake house. 18K-mortgage is is entirely too much consumer spending without including any money going towards assets that either appreciate or depreciate slower than consumer spending.

Plenty of people load up retirement accounts, and still have “productive” spending other than their home. Productive spending is very common amongst “rich” people, and is considered smart. Consumer spending at all levels is always considered dumb, although necessary to an extent.

[Anonymous]

1K a month on eating out is insane.

[Anonymous]

Anonymous wrote:If your burning through 18K a month please say you own a boat over 30’ or have an airplane or a piece of rental real estate or mountain/beach/lake house. 18K-mortgage is is entirely too much consumer spending without including any money going towards assets that either appreciate or depreciate slower than consumer spending.

Plenty of people load up retirement accounts, and still have “productive” spending other than their home. Productive spending is very common amongst “rich” people, and is considered smart. Consumer spending at all levels is always considered dumb, although necessary to an extent.

Of the $18K only $5500 is mortgage.

[Anonymous]

Anonymous wrote:Outside of private school tuition, vacations, donations, and routine savings (401K, HSA, 529s, brokerage, etc), we spend 18K a month. Although we can "afford" it, I sometimes feel like we are just bleeding money, and I'm not quite sure what our worst offender is. So here's the breakdown of our monthly "budget" (which really is a snapshot of how we spend money more than dollar limits). What strikes you as the most absurd category? Or is it just that everything is a bit bloated? We are a family of five, two adults and three kids.

Auto and Transport - 1,000
(includes 750 for a super low interest car loan and 250 for gas, ubers, misc. repairs, car washes)

Children - 2,000
(includes 500 a month for regular babysitter, 500 a month on clothing for 3 young kids, and about 1000 a month on activities, music lessons, etc)

Entertainment - 500
(includes TV services, digital subscriptions, amazon prime, tickets to events, etc)

Food and Dining - 3000
(about 1K a month eating out, 2K on groceries for family of 5)

Gifts - 500
(for extended family at Christmas, plus weddings, birthdays, etc)

Health and Fitness - 100
(Peloton, yoga classes, etc - used to be more before covid)

Home and Property - 7400
(electricity and gas is 300, yard care is around 250, twice weekly housekeeper is 1250, mortgage and tax is 5500)

Insurance - 150
(life and auto)

Personal care - 500
(hair, nails, dry cleaning, etc)

Shopping - 2500
(clothes for both adults, not children, plus home goods, like vacuums or decor items, plus small random things like paper towels or advil)

Utilities - 400
(phone and internet)

I know this budget is far from "normal" (except maybe on dcum) but I'm really curious if any one category seems unusually high. Thoughts?

You should be giving us tips on how to save. We are $26K per month in expenses.

[Anonymous]

Anonymous wrote:You are spending $3k a month on CLOTHES. I just, I can't.

Bookmarking this thread so I can link to it the next time someone claims that rich people are rich because they are better with money.

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