How do you make ends meet on 130k?

[Anonymous]

OP here. I just had a nice detailed post and of course I lost it. There are some great suggestions here--I think half our problem is that we aren't budgeting so something like Mint looks good for us to start with. We are in DC for the foreseeable future due to taking care of an ailing family member. We are here until they pass or until we get an amazing job offer elsewhere. My DH is eligible for loan forgiveness is 3 years and I am eligible as well (after a decade of work), but they might do away with the program which will really hurt. I could make 100K out of the starting gate with my degree but my industry is tightening its belt with the current climate and it is reflected in hiring practices and salaries. I am figuring 60 or 70K with the possibility of reaching 100 in a few years is realistic at this point.

Here are the monthly basics:
Mortgage 2,500
Retirement 1,000 (we hope that goes up when I go back to work)
Day care 3,600
Student loans 1,500 (factoring in mine there)
Utilities 300 (we don't have a television)
Car payment 360 (our 10 year old car died two years ago)

Our take home at the moment is roughly 5K. And yes we are in the red.

[Anonymous]

Anonymous wrote:OP here. I just had a nice detailed post and of course I lost it. There are some great suggestions here--I think half our problem is that we aren't budgeting so something like Mint looks good for us to start with. We are in DC for the foreseeable future due to taking care of an ailing family member. We are here until they pass or until we get an amazing job offer elsewhere. My DH is eligible for loan forgiveness is 3 years and I am eligible as well (after a decade of work), but they might do away with the program which will really hurt. I could make 100K out of the starting gate with my degree but my industry is tightening its belt with the current climate and it is reflected in hiring practices and salaries. I am figuring 60 or 70K with the possibility of reaching 100 in a few years is realistic at this point.

Here are the monthly basics:
Mortgage 2,500
Retirement 1,000 (we hope that goes up when I go back to work)
Day care 3,600
Student loans 1,500 (factoring in mine there)
Utilities 300 (we don't have a television)
Car payment 360 (our 10 year old car died two years ago)

Our take home at the moment is roughly 5K. And yes we are in the red.

OP here. I forgot 500US for medical a month. And we have a lot of medical bills due to an ill child. Usually a few thousand a year. (The ill child is different from the ailing family member)

[Anonymous]

How long until you are out of daycare hell? Frankly I'd drop retirement for now

[Anonymous]

I think you need to get a part-time job at the least.

[Anonymous]

A side hustle would really help here. Easier said than done I know

[Anonymous]

Anonymous wrote:How long until you are out of daycare hell? Frankly I'd drop retirement for now

Start here and see where it gets you.

[Anonymous]

Did I miss where you posted your exact income and expense budget?

[Anonymous]

Drop all retirement contributions for the time being
Use an inhome daycare. That daycare cost is astronomical.

[Anonymous]

Anonymous wrote:OP here. I just had a nice detailed post and of course I lost it. There are some great suggestions here--I think half our problem is that we aren't budgeting so something like Mint looks good for us to start with. We are in DC for the foreseeable future due to taking care of an ailing family member. We are here until they pass or until we get an amazing job offer elsewhere. My DH is eligible for loan forgiveness is 3 years and I am eligible as well (after a decade of work), but they might do away with the program which will really hurt. I could make 100K out of the starting gate with my degree but my industry is tightening its belt with the current climate and it is reflected in hiring practices and salaries. I am figuring 60 or 70K with the possibility of reaching 100 in a few years is realistic at this point.

Here are the monthly basics:
Mortgage 2,500
Retirement 1,000 (we hope that goes up when I go back to work)
Day care 3,600
Student loans 1,500 (factoring in mine there)
Utilities 300 (we don't have a television)
Car payment 360 (our 10 year old car died two years ago)

Our take home at the moment is roughly 5K. And yes we are in the red.

$3,600 for daycare for only two kids? Can you find quality care for less? That seems crazy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. I just had a nice detailed post and of course I lost it. There are some great suggestions here--I think half our problem is that we aren't budgeting so something like Mint looks good for us to start with. We are in DC for the foreseeable future due to taking care of an ailing family member. We are here until they pass or until we get an amazing job offer elsewhere. My DH is eligible for loan forgiveness is 3 years and I am eligible as well (after a decade of work), but they might do away with the program which will really hurt. I could make 100K out of the starting gate with my degree but my industry is tightening its belt with the current climate and it is reflected in hiring practices and salaries. I am figuring 60 or 70K with the possibility of reaching 100 in a few years is realistic at this point.

Here are the monthly basics:
Mortgage 2,500
Retirement 1,000 (we hope that goes up when I go back to work)
Day care 3,600
Student loans 1,500 (factoring in mine there)
Utilities 300 (we don't have a television)
Car payment 360 (our 10 year old car died two years ago)

Our take home at the moment is roughly 5K. And yes we are in the red.

$3,600 for daycare for only two kids? Can you find quality care for less? That seems crazy.

Agreed -- we only have one kid but never paid more than 1200 month (so equivalent of 2400 for 2). Also paid off student loan before kid. Plus much lower mortgage than you.

[Anonymous]

Anonymous wrote:I think this is a joke.

why?

[Anonymous]

Daycare can be that pricey. I'll have a one year old in FT care next year. It's $2K per month. Thankful that my kids are widely spaced and we have public school for the older one.

[Anonymous]

I'd cut the retirement for now. I would not cut back on the day care or get a second job. I'll likely be flamed, but good child care is hard to find so if you're happy and your kids are happy, I'd stick with what you have. I wouldn't get a second job now because the kids are only young once. GL!

[Anonymous]

Mint, Learnvest or YNAB will be your friend. With budgetting I think you will be able to make it work.

I agree, reduce retirement for now and try to find less expensive daycare.

Once you have a job, you will be doing great.

[Anonymous]

How is your net only 5K/month on 130K income? That is less than 50%. You should be using a flexible spending account for childcare and for medical expenses. Also, you should have a mortgage deduction, etc..