Support a family of 4 on $55k/year

[Anonymous]

Anonymous wrote:you are all nuts who think you can do this in Metro DC for $55k. We do $225k as a couple and have 2 kids and I think it's not enough for where we are (childcare is a mortgage in itself)!

Well, I don't think anybody is saying that trying to do it on $55k is going to be easy. We have two kids and make less than half your family income. And thousands of Washington area families do it on half of what my family makes.

I think many of us try to be thankful that we don't have to live in those "terrible" areas and don't send our kids to lousy schools but many people don't have the money to do otherwise.

From another DCUM thread:
Here are the Census data for DC for 2010:
http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml

Median Household Income: $58,526
24% of households have income < $25,000
70% of households have income < $100,000
90% of households have income < $200,000

[Anonymous]

I have a good friend whose husband made 64k a year (GS 11 clerkship) and they had 3 kids in silver spring. Their rent was 1400 a month for a three bedroom. One car, metro/bus subsidized. And they had enough to eat, pay utilities, cheap phones, no cable, etc. It's doable and I'm pretty sure they didn't go into any additional debt (although they deferred student loans and I think were getting WIC). They were generally happy and had a fun year however there was a light at the end of the tunnel--the 6 figure salary moving west with a lower cost of living. I think if you are prepared to be super frugal with no extras and that sacrifice is worth it to stay home v. work than go for it. For me (both DH and I make 75k live in Falls Church in 2100 rented 4 bedroom townhouse with 2 kids, pay about 2500 a month for a nanny and 600 a month for student loans) I don't think I will be prepared to stay home until my husband makes around 100k. At that point we could maintain the same standard of living we have now (we have to budget but we do ok and can eat out, occasional short trip, save a bit, etc) one once income when you take into account the lack of childcare expense. But I've lived with money stress and it's not worth it to me right now. If you are motivated and can restrain spending it can totally be done.

[Anonymous]

We couldn't do it unless it was temporary, like the person who posted about federal clerkship above. We make $130K with one child and are not living high on the hog (no cable, old cars). I think $75-80K is more realistic.

[Anonymous]

Anonymous wrote:you are all nuts who think you can do this in Metro DC for $55k. We do $225k as a couple and have 2 kids and I think it's not enough for where we are (childcare is a mortgage in itself)! The problem here is HOUSING. You are so screwed with the money you shell out on housing here. Have you seen prices in Arlington? Anything that is metro accessible is going to cost you. That is the biggest problem. And the metro is crazy expensive and 1/2 the time tracks are closed on the weekends - WTF! I'm from Chicago and do business in NYC - public transportation should not work that way esp. for how expensive metro is!

On $55k at about $3500/month net - you are looking at min 1/2 of that on a place to live. My husband has a rental property in Reston we rent at $1800/month - for the sake of keeping the same tennants month/month - we have not raised rent in like 2 years and won't - we barely break even on the investment but at least don't worry about it. Let me tell you I will not let us live there. It's a 3BR with a finished basement - actually very nice house but terrible neighborhood with in Reston as we all know, there is no metro. But it's pretty safe and centrally located.

So we're down to $1800/mo. I don't know I suppose you can say $600/mo in groceries for a family of 4 (assuming you aren't eating all starch/fast food every meal and sneaking some nutrition in). Probably at least $200 on utilities and $200 on bus transportation when possible or say you have to have a car/gas - that hikes it up to at least $400/month. Some money for clothing, insurance, etc. You know in life you have to bank a little for emergencies - so um, isn't that all your money? It's the housing here that does you in I'm convinced of it. Anywhere else in the US you can afford something ok for not as much - but not here!

I respectfully disagree and suggest that, in fact, you are NUTS to be so insular that you think that $225k isn’t enough to live on! It may not be enough to maintain your lifestyle but you are extremely privileged and it saddens me that people like you don’t realize that.

Sure $55k may not be enough to live in a perfect SFH in a perfect neighborhood with all the amenities you want, send your kids to private school, pay car payments on two expensive SUVs, go to Europe every year (and buy a seat for your one year old on the plane), max out your college and retirement savings and everything else. But life isn’t like that for most normal people.

You are clearly living in a bubble.

Here’s some context: I live in a 1350 sq foot house with my husband and son, soon to be a second child. We are thinking we won’t have room here to be a family of four. And yet, we bought the house for a family with four children living in the same space. A hundred years ago there might have been more people living in our small house. It’s all relative.

[Anonymous]

Anonymous wrote:I agree. I support myself and my DD on around $40K with occasional child support amounting to around $4K per year. No gov't assistance at all. If the kids shared a room, a family could rent a 2 bedroom place which would make rent cheaper.

Maybe, maybe not. Depends on the area and the management and/or landlord. Some have a rule that children over the age of 6 may not share a bedroom.

[Anonymous]

I you are NUTS to be so insular that you think that $225k isn’t enough to live on!

I agree. We only make very slightly more than that, and I feel that we have a really good lifestyle (a decent house that we brought this year within 1/2 a mile of a metro station, new clothes, the ability to eat out, two cars, yearly vacations and trips to see the grandparents).

[Anonymous]

Anonymous wrote:

I you are NUTS to be so insular that you think that $225k isn’t enough to live on!

I agree. We only make very slightly more than that, and I feel that we have a really good lifestyle (a decent house that we brought this year within 1/2 a mile of a metro station, new clothes, the ability to eat out, two cars, yearly vacations and trips to see the grandparents).

We have all that except just one car and two metro stations within a mile on less than $90k a year. And also save about 20 percent of our income.

[Anonymous]

Anonymous wrote:you are all nuts who think you can do this in Metro DC for $55k. We do $225k as a couple and have 2 kids and I think it's not enough for where we are (childcare is a mortgage in itself)! The problem here is HOUSING. You are so screwed with the money you shell out on housing here. Have you seen prices in Arlington? Anything that is metro accessible is going to cost you. That is the biggest problem. And the metro is crazy expensive and 1/2 the time tracks are closed on the weekends - WTF! I'm from Chicago and do business in NYC - public transportation should not work that way esp. for how expensive metro is!

Some of you people are so out of touch with reality. According to the census bureau, the median household income in Washington DC from 2006-2010 was $58,526. For Fairfax it was $97,900. For the entire state of Virginia? $61,400. And the average household was roughly 3 persons. Yes, $55K is tight, but it is doable for many families out there. There are a lot of families that make it on median or below median incomes.

[Anonymous]

Been there, done that w/family of 3 on 35k, without government assistance in Fairfax. Tight but we made it.

[Anonymous]

We have all that except just one car and two metro stations within a mile on less than $90k a year. And also save about 20 percent of our income.

Wow, that's terrific! Just curious, do you have childcare expenses?

[Anonymous]

I guess I could work budget magic and do it, but it would be a miserable existence. No cars, no cell phones (maybe pay as you go phones, for emergencies), no cable/internet, no dinners out, no fun activities. And I'm not living a lavish lifestyle at it is; I SAH and my DH makes $106,000. We are comfortable, but by no means do we have a nanny and lawncare or go on expensive vacations or $300 dinners. We do fine, but to imagine living on less than half of what we have now would be really, really tough. And yeah, it's the rent up here that would kill you. It makes me sick to think of paying for a shitty apartment close in for $2300 a month when I know my parents' 5 bedroom house on 3 acres of land on a lake had a mortgage of less than than in Georgia.

[Anonymous]

Anonymous wrote:

We have all that except just one car and two metro stations within a mile on less than $90k a year. And also save about 20 percent of our income.

Wow, that's terrific! Just curious, do you have childcare expenses?

No, my husband looks after our son full time and I work full time. (Actually we have had some expenses for a co-op pre school but it's less than $200 a month). We do have a relatively low mortgage and when I said we save 20 percent that was retirement, college and regular savings combined. No debts. I feel like we're pretty extravagant at times (especially compared to when I was younger) so I can't imagine how people with $200k plus combined can find it tough!

[Anonymous]

I would not live like that just to have a parent stay home. No freakin' way. And you would have absolutely no safety net in the event of illness or job loss.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

We have all that except just one car and two metro stations within a mile on less than $90k a year. And also save about 20 percent of our income.

Wow, that's terrific! Just curious, do you have childcare expenses?

No, my husband looks after our son full time and I work full time. (Actually we have had some expenses for a co-op pre school but it's less than $200 a month). We do have a relatively low mortgage and when I said we save 20 percent that was retirement, college and regular savings combined. No debts. I feel like we're pretty extravagant at times (especially compared to when I was younger) so I can't imagine how people with $200k plus combined can find it tough!

Well, I'm no math genius but.... 90K is about 35K more a year that 55K isn't it? After taxes, that can easily be $1,500 more a month. At that income level an extra $1500/month is HUGE.

Yeah it is great to save 20% of your income, but I don't think it could be done on 55K a year. This is the perspective of someone who was a SAHM when her DH was earning 70K a year, just one child, one bedroom apartment. Doable, but TIGHT.

[Anonymous]

There are people who live like this in this area. None of them will post on here because anytime someone admits to being A Poor they get raked over the coals, accused of being leeches on the government teat, crappy parents and all around horrible human beings.