I make 250K and I am broke

[Anonymous]

Just did a retirement calculator and it says I need like 7 million. My net worth is 1.2 million.

Primary Residence 166,000 equity
Two rental Properties 210,000 equity
Retirement Accounts 460,000
Kids UTMA Accounts 100,000
Gold Coins 40,000
Private Equity Investment 57,500
Life Insurance Cash Value 200,000
Cash on Hand 60,000 (after doing some house stuff and probably have another 10,000 on House)

Credit Card Debt 30,000 (Paid Down from 55,000 when sold rental property)

Eat out a lot, two expensive foreign SUVs

Mortgage 3300/mo Cars 2000/mo

3 Kids

My parent helps out and pays mortgage and with kids expenses

Mother pays vacations once a year which are extravagant and once not extravagant. I probably pay one vacation of 5K a year.

Projection says I get to like 3 mill and am short 4 Mill at 62. I am mid 40's.

Help. Is it just eating out and Cars? I am embarrassed that my parent pays mortgage and I am still negative every month. Take home 11K in two checks after putting 1 K plus in retirement. Probably negative 2-3K every month (hence credit cards). Spend probably $500 a week min eating out.

[Anonymous]

You've got to be kidding. You have $33k in credit card debt and you make $250k? Come on.

[Anonymous]

If you have $60k cash on hand you're not broke. Your cars are hella expensive. Our HHI is a little less than yours and a higher mortgage but we had no car payment (old cars) and its liberating. Do you need 2 SUVs? Try to cut down

[Anonymous]

Where are you eating out?

[Anonymous]

OP here once a week we got to expensive restaurant date night in DC. 150 usually for two. Once a week with kids like Saturday another 150. daily lunch. Nights usually Chillis or Applebees.

[Anonymous]

the bigger question is you make 250K and your parent pays your mortgage????? OMG. We make less than half of that and we pay our own mortgages. . .

[Anonymous]

OP here. Right PP. I am embarrassed as I said. Parent pays 1/2 but when we refied she pays same amt so ends up being the whole thing. We have a HELOC of 600 I pay. Lord help me when rates go up.

[Anonymous]

Gets worse, OP again. I am looking for a government job which could pay anyway from 140-180 and I will burn through savings. Good career move for 1-2 years.

[Anonymous]

Your minimum figure for eating out is 26k per year.

[Anonymous]

Make lunch. Stop going to Applebee's and chills its not good for you and overpriced. You can get a rotisserie chicken cooked at the grocery store and make a salad and rice/pasta and that would be cheaper and healthier. I already posted above but really assess your cars. That money is just floating away every month and they are depreciating and you'll never get it back. We also stated switching off date night. Every other week its at a nice place and the other weeks its something fun but cheap - local ethnic hole in the wall or frozen yogurt walk etc.

[Anonymous]

This has GOT to be a joke. No way on earth you have that much CC debt when you're holding onto gold and investments. Pay that off TOMORROW. Absolutely ridiculous.

Oh, and $2k a month on cars? LOL Another ridiculous item. Sell them and buy something in cash that you can afford.

[Anonymous]

Hah I am broke too at 330.

[Anonymous]

How are you smart enough to make $250k and dumb enough to spend it this way?

[Anonymous]

You can't buy much of a house on 250k

[Anonymous]

OP- are you married? Why two cars?

Ok- make a list of the things you can't live without - with the most important at the top. Start cutting out the bottom ones... and move up the list until you are cash flow positive and paying your own mortgage.

Example:


Necessary clothing
eating out for dinner
cleaning person
"just because" clothing
landscaper

Start by doing your own yard work
restrict yourself to buying clothes that are absolutely necessary
move the cleaner to 1X month from 1X week
Cancel all restaurant meals aside from work-related ones; cook at home for dates

ETC........