Support a family of 4 on $55k/year

[Anonymous]

Who spends $1000 a month on groceries for 4 people? What are you buying that costs that much?

[Anonymous]

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

[Anonymous]

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

Again. The question was "is it doable" not "can we do it while living in prime area, shopping name brands and organic groceries, yada yada yada". $1000 a month on groceries? How on earth do you spend that much?

YES it can be done. YES it can be done without aid. Posters like the above, and the other poster (12:15 was it?) are ridiculous and proving the point that those who are whining about not being able to make ends meet on XXXK a year need a reality check on what is a want vs. a need and how to budget.

[Anonymous]

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

You need a financial planner, PP. We live very, very well on less income than you.

[Anonymous]

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

What are you spending on? You make $180K, say about 23% for taxes, 10% for retirement, that's still $120K or about $10K take home a month. Take out your $2950 and $2000 and even your $1K for groceries (I agree with others, how can you pay that much!?!? unless you have two teenage boys eating $200/wk of junk) maybe $400 for utilities, you still have $3600. What do you spend $3600 a month on that you are scraping by with so little savings? At your current incomes, you should be able to save $1000-2000 per month (at least).

You need to get counseling because someone(s) in your household have no concept of basic budgeting. You need to reevaluate what needs vs wants are and learn to live within your means and not try to live up to the Jones who make more money than you do because you should not be straining financially the way you are on what you make.

[Anonymous]

I did do it. Not in Fairfax, though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

What are you spending on? You make $180K, say about 23% for taxes, 10% for retirement, that's still $120K or about $10K take home a month. Take out your $2950 and $2000 and even your $1K for groceries (I agree with others, how can you pay that much!?!? unless you have two teenage boys eating $200/wk of junk) maybe $400 for utilities, you still have $3600. What do you spend $3600 a month on that you are scraping by with so little savings? At your current incomes, you should be able to save $1000-2000 per month (at least).

You need to get counseling because someone(s) in your household have no concept of basic budgeting. You need to reevaluate what needs vs wants are and learn to live within your means and not try to live up to the Jones who make more money than you do because you should not be straining financially the way you are on what you make.

Well, I'm not PP but there are a number of expenses you didn't address at all that she could be spending on. Car payment, car maintenance, gas, transportation costs if taking metro, dry cleaning, kids clothes/shoes/diapers/wipes, maybe kids activities, utilities, entertainment, healthcare, dental work, hair appointments, etc. Maybe PP can cut costs in those areas, or eliminate costs, but to say that she has 3600 per month extra without even considering these things isn't realistic.

[Anonymous]

We live in FFx - a TH within 15 min. walk of Vienna and short drive to Dunn Loring. DH also commutes into DC.

We are living on 70K (which I know is a bit more than OP's post), but it is very possible b/c we have "left over" $$ for vacations (simple and easy-drive ones)

How do we do it? We live within our means. The cars are paid off (1989 Outback and 2000 Accord), no student loans, and we refinanced so our mortgage payments are lower now.

There are ton a of free activities for the kids (ages 2 and 4), we have an extensive veg/fruit garden growing, I use coupons combined with sale prices, AND I have price thresholds where I refuse to pay X amount for a product.

It really isn't that hard and it is very much possible. I could go on an on about other money-savers and where else we cut corners and how to spend wisely...if you're interested.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The problem with asking a question like this here on DCUM is that this board is heavily skewed toward families with very high incomes. $55k is a perfectly good salary for most people, including in the DC area. However, most of the respondents here have combined salaries of $150, $200, $300k and more. Their expenses have grown to the extent that they think that it's tough to get by on anything less than what they earn. However, you don't have to send your kids to private schools, eat out multimple times a week, spend thousands on vacations, have two brand new SUVs, live in a million dollar home etc. Plenty of people get by on much less.

We'll soon become a family of four. I earn more than $55k but relative to others here, not much. (Sole earner). If we stopped contributing to savings and 401k and cut back on eating out and trips/vacations we could EASILY make do on $55k. It's all relative. If you'r eused to taking home so much more than that it would be tough.

Yes.

Please re-read this post. Read it again. And then decide to comment.

Some of these responses are ridiculous.

"Oh you cannot do it without government assistance!"

Get a clue.

I agree. It is doable. Does it mean you can live in a prime location with a nanny and a housekeeper and a lawn service while owning 2 or more vehicles and going on multiple vacations and buying name brands and organic food? No. But that wasn't the question.

Right, and not a single person who said "it would be very tight" or "no, can't be done" said that iit would be difficult or impossible because then there would be no housekeeper or multiple vacations. No one's arguing that buying name brands is mandatory. Do you disagree that it would be "tight" even with only the absolute basics?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:And to address the PP, across Virginia, cost of living varies widely.

My husband and I are struggling with this as well. We want to save and live a decent life, but it's hard -- we earn about $180,000 combined, have two children in daycare (about $2,000), pay $2950 in rent in NWDC in a good school district. We have very little savings outside our company retirement accounts.

I worry all the time; not saving enough for our chidlren's eduction, what if something happens to one of us.

We've made all the obvious cuts: only one car, no cable, take lunch, no Starbucks. We spend a lot on groceries, which we are working on trimming (easily $1,000 a month for 4), and booze. We go out to dinner or do takeout maybe three times a month, which isn't THE MOST FRUGAL, I know, but I don't think it's exorbitant. Any time we take a holiday it's to visit family on the east coast, we've flown once in the past, what, 6 years?

UGH.

What are you spending on? You make $180K, say about 23% for taxes, 10% for retirement, that's still $120K or about $10K take home a month. Take out your $2950 and $2000 and even your $1K for groceries (I agree with others, how can you pay that much!?!? unless you have two teenage boys eating $200/wk of junk) maybe $400 for utilities, you still have $3600. What do you spend $3600 a month on that you are scraping by with so little savings? At your current incomes, you should be able to save $1000-2000 per month (at least).

You need to get counseling because someone(s) in your household have no concept of basic budgeting. You need to reevaluate what needs vs wants are and learn to live within your means and not try to live up to the Jones who make more money than you do because you should not be straining financially the way you are on what you make.

Well, I'm not PP but there are a number of expenses you didn't address at all that she could be spending on. Car payment, car maintenance, gas, transportation costs if taking metro, dry cleaning, kids clothes/shoes/diapers/wipes, maybe kids activities, utilities, entertainment, healthcare, dental work, hair appointments, etc. Maybe PP can cut costs in those areas, or eliminate costs, but to say that she has 3600 per month extra without even considering these things isn't realistic.

This is true. I'm not the poster of that comment, but I'm sure people would think the same thing of our income. "Oh, you pay X in taxes and rent and food, you should have Y left over!" But we have child support we have to pay for my stepson, a chunk of the mortgage on the house we own in another state (renter can only pay enough to cover about 3/4 of the mortgage), two car payments (don't have $40,000 lying around to pay for them in cash and last year, both of our vehicles got to the age where they were going to require thousands of dollars of work just to keep them functional and it wasn't worth it), a student loan payment. We spend a lot in gas and airline tickets in order for my husband to see his son as much as possible (lives 12 hours away). So, yes, he does make very good money and we are fortunate to have enough to spend on these things, but it's not as cut and dry as "Your only bills are utilities, rent, retirement and savings, where the hell is your money!?"

[Anonymous]

8:31 again- just want to clarify that my comment has nothing to do with the original question and I'm not "complaining" about scraping by on what we make, since I know we're pretty fortunate and while not as well off as some people in this area, are doing well in reality. Not trying to make it sound like we're scraping on six figures, just wanted to provide a counterpoint to all the people jumping on PP for what she said their monthly take was vs. income. You can make a lot of money yet still have to spend a lot of money just to live a normal lifestyle as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The problem with asking a question like this here on DCUM is that this board is heavily skewed toward families with very high incomes. $55k is a perfectly good salary for most people, including in the DC area. However, most of the respondents here have combined salaries of $150, $200, $300k and more. Their expenses have grown to the extent that they think that it's tough to get by on anything less than what they earn. However, you don't have to send your kids to private schools, eat out multimple times a week, spend thousands on vacations, have two brand new SUVs, live in a million dollar home etc. Plenty of people get by on much less.

We'll soon become a family of four. I earn more than $55k but relative to others here, not much. (Sole earner). If we stopped contributing to savings and 401k and cut back on eating out and trips/vacations we could EASILY make do on $55k. It's all relative. If you'r eused to taking home so much more than that it would be tough.

Yes.

Please re-read this post. Read it again. And then decide to comment.

Some of these responses are ridiculous.

"Oh you cannot do it without government assistance!"

Get a clue.

I agree. It is doable. Does it mean you can live in a prime location with a nanny and a housekeeper and a lawn service while owning 2 or more vehicles and going on multiple vacations and buying name brands and organic food? No. But that wasn't the question.

These smug posts are the worst on this thread. Yes, there were one or two "oh my life is so hard at $200,000!!!" posters that need a wake-up call. But you all are just as bad. The majority of people posted "couldn't do it without government assistance" or "sure, but would be tight." The people who thought you could do it, but that it would be tight indicated things like living in a cheap apartment, not having cable, ways to eat very cheaply, etc. Not a single one said "sure, but it would be tight and we would probably have to give up on the nanny and sell the high-end SUV!" No one.

So go ahead and feel smug that you're so in touch with "real America" and roll your eyes at anyone with more money than you. I'll give you that there a few clueless posters here, but most of us realize we're lucky to be making more than $55,000 and were responding in the true spirit of the thread in terms of actually budgeting out what it would take to live on $55k. Count me among the "doable, but tight" people - you would be at your basic needs and budgeting monthly and certainly not saving much if anything in this scenario. I don't think you can argue with that.

[Anonymous]

Anonymous wrote:We live in FFx - a TH within 15 min. walk of Vienna and short drive to Dunn Loring. DH also commutes into DC.

We are living on 70K (which I know is a bit more than OP's post), but it is very possible b/c we have "left over" $$ for vacations
How do we do it? We live within our means. The cars are paid off (1989 Outback and 2000 Accord), no student loans, and we refinanced so our mortgage payments are lower now.

There are ton a of free activities for the kids (ages 2 and 4), we have an extensive veg/fruit garden growing, I use coupons combined with sale prices, AND I have price thresholds where I refuse to pay X amount for a product.

It really isn't that hard and it is very much possible. I could go on an on about other money-savers and where else we cut corners and how to spend wisely...if you're interested.

At that income level, an extra $15K is the difference between really tight, and doable tight. Just my opinion but .... 15K is almost 30% of 55K. 30% more salary at that income level is a Lot!

[Anonymous]

It would be extremely challenging but there are plenty of people that do it everyday. Housing is the biggest expense but if you look at the HUD qualification tables, this area has a much higher qualification limit. So if you were able to get qualified for housing assistance (and yes, the tables go higher than 55K for a family of 4), that would help tremendously. Limiting eating out to special occasions or once a month, having assistance with childcare or no need for childcare because one parent stays home would also help.

Health insurance might be an issue but there are programs to help with that. In VA, FAMIS select helps cover the costs of dependent coverage under an employer-sponsored plan for qulaifying applicants. I just did a quick search and the regular FAMIS program (this is CHIP), gross income caps out for a family of 4 at 46K and change. This program appears to bridge a ga for those above that threshold/not able to pay for family coverage under an employer plan.

It might be challenging to contribute to a retirement account, save large amounts for education, etc. but even at 55K a family would be able to save a little. I was raised in a very low-income family. I am very fortunate to currently live in a much different situation but I am always amazed at how my mom did it. We didn't have new or fancy clothes, never ate out except for inexpensive buffets, she cooked everything at home and lived very modestly. We managed to move into a better neighborhood for elementary school but lived in the least expensive townhomes in that neighborhood. I was aware of it but at the end of the day, my mom did an amazing job because she never let on to what our financial situation was like. Ever.

But in this area there is so much wealth. I think many of us tend to forget just how fortunate we really are.

[Anonymous]

We are doing it in DC, but we bought when houses were cheap.