How do you make ends meet on 130k?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do one of the "buy nothing" months. Eat from your pantry / frig, go as long as you can without buying extra food, toiletries, etc.. for that month. Even if you only do this a couple of months a year, the savings add up.

How much crap do you have that you can live off your pantry for a MONTH. Yeah I do that for a week but by the end of the week I'm eating canned tuna and our pantry is bare....

I'm not PP, but we can go a lot longer than a week on a pantry clean out! We always have a zillion single chicken breasts that we froze (I usually throw those in the crockpot) and a dozen partial bags of frozen vegetables. I do supplement with fresh fruit and vegetables, though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do one of the "buy nothing" months. Eat from your pantry / frig, go as long as you can without buying extra food, toiletries, etc.. for that month. Even if you only do this a couple of months a year, the savings add up.

How much crap do you have that you can live off your pantry for a MONTH. Yeah I do that for a week but by the end of the week I'm eating canned tuna and our pantry is bare....

I'm not PP, but we can go a lot longer than a week on a pantry clean out! We always have a zillion single chicken breasts that we froze (I usually throw those in the crockpot) and a dozen partial bags of frozen vegetables. I do supplement with fresh fruit and vegetables, though.

Yeah, I probably have a couple of months of food in my pantry. Honestly, I find that to be important/comforting as I grew up poor. Just knowing that food is there if we need it helps reduce my anxiety. I also buy in bulk when I see something on super sale. I am not one of those people with a basement full of food, but my pantry is always pretty stuffed (and it is large!) Plus, I have a lot of preserved food from canning -- most fruits and veggies are only in season for a short time, so you have to make a year's supply if you want home-produced food to last you until next year. I have enough things like jams and applesauce, apple butter to last a year and give as Christmas gifts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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..

True that. I was netting $4800 a month when my salary was $90k, and I had only one exemption. Something isn't adding up.

NP here. Our HHI is $120k and we only take home $4400/mo after maxing 401ks so $5k/mo for $130k doesn't seem off to me.

That is also our take home on 91k HHI!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do one of the "buy nothing" months. Eat from your pantry / frig, go as long as you can without buying extra food, toiletries, etc.. for that month. Even if you only do this a couple of months a year, the savings add up.

How much crap do you have that you can live off your pantry for a MONTH. Yeah I do that for a week but by the end of the week I'm eating canned tuna and our pantry is bare....

I'm not PP, but we can go a lot longer than a week on a pantry clean out! We always have a zillion single chicken breasts that we froze (I usually throw those in the crockpot) and a dozen partial bags of frozen vegetables. I do supplement with fresh fruit and vegetables, though.

Yeah, I probably have a couple of months of food in my pantry. Honestly, I find that to be important/comforting as I grew up poor. Just knowing that food is there if we need it helps reduce my anxiety. I also buy in bulk when I see something on super sale. I am not one of those people with a basement full of food, but my pantry is always pretty stuffed (and it is large!) Plus, I have a lot of preserved food from canning -- most fruits and veggies are only in season for a short time, so you have to make a year's supply if you want home-produced food to last you until next year. I have enough things like jams and applesauce, apple butter to last a year and give as Christmas gifts.

OK that makes more sense. My pantry has never been like that- we can make it like a week before things get pretty bare and are left with just instant mashed potatoes . I do have some frozen veggies that your post inspires me to work into a meal though.

[Anonymous]

Our HHI is $165,000 and our take home is $8000/month. We do not max our 401Ks, but contribute to our employer's match. We max our Dependent care FSA and put $1000/year into healthcare FSA.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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..

True that. I was netting $4800 a month when my salary was $90k, and I had only one exemption. Something isn't adding up.

NP here. Our HHI is $120k and we only take home $4400/mo after maxing 401ks so $5k/mo for $130k doesn't seem off to me.

That is also our take home on 91k HHI!!

After maxing out retirement?

[Anonymous]

Our HHI is 130K and our monthly take home is 7K. We have significant deductions (401k, dependent care, healthcare FSA) so I am confused as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

I'm confused. Are you working now or not?

Please don't tell me you are paying full-time childcare while being a non-working student and taking on more student loan debt.

Um, yes! It looks like OP is not working and also pays $3600 a month in childcare. So I think we found the answer.

+1 $3600 is a lot for 2 kids for daycare especially when you're not working. you could switch to a nanny for the same or cheaper and it would probably be more convenient.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

I'm confused. Are you working now or not?

Please don't tell me you are paying full-time childcare while being a non-working student and taking on more student loan debt.

Um, yes! It looks like OP is not working and also pays $3600 a month in childcare. So I think we found the answer.

+1 $3600 is a lot for 2 kids for daycare especially when you're not working. you could switch to a nanny for the same or cheaper and it would probably be more convenient.

There is a pretty easy answer as to how you make ends meet. As others have pointed out, 130K is a salary that is higher than 95% of the US population, but you're choosing to spend a fortune on daycare when only one parent is working. Once you finish school and get a job and your kids enter school so you aren't paying 2 daycares, you will be fine. And you need to start tracking your budget-that's a lifetime habit to keep.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do one of the "buy nothing" months. Eat from your pantry / frig, go as long as you can without buying extra food, toiletries, etc.. for that month. Even if you only do this a couple of months a year, the savings add up.

How much crap do you have that you can live off your pantry for a MONTH. Yeah I do that for a week but by the end of the week I'm eating canned tuna and our pantry is bare....

I'm not PP, but we can go a lot longer than a week on a pantry clean out! We always have a zillion single chicken breasts that we froze (I usually throw those in the crockpot) and a dozen partial bags of frozen vegetables. I do supplement with fresh fruit and vegetables, though.

Yeah, I probably have a couple of months of food in my pantry. Honestly, I find that to be important/comforting as I grew up poor. Just knowing that food is there if we need it helps reduce my anxiety. I also buy in bulk when I see something on super sale. I am not one of those people with a basement full of food, but my pantry is always pretty stuffed (and it is large!) Plus, I have a lot of preserved food from canning -- most fruits and veggies are only in season for a short time, so you have to make a year's supply if you want home-produced food to last you until next year. I have enough things like jams and applesauce, apple butter to last a year and give as Christmas gifts.

OK that makes more sense. My pantry has never been like that- we can make it like a week before things get pretty bare and are left with just instant mashed potatoes . I do have some frozen veggies that your post inspires me to work into a meal though.

My HHI is a lot higher than the OP's and my kitchen/house is t big enough to buy in bulk and I don't have a pantry. I think the people posting this stuff live far outside of the beltway, or in Kansas maybe. Close living in D.C. Does not come with a pantry at $130k per year.

[Anonymous]

OP here. To clarify, I got back to work next month. I have interviews and just need to let the hiring process work. Childcare is necessary when I am working. I am hoping for 70K starting out--if I can get to 80 that would be awesome but I think I will be lucky to start out at 70. So our income is going to go up substantially in a month. I can work while finishing the last requirements of my grad degree, which was fully funded with a good stipend until I had kids.

I double checked with our take home and that is what it is. I thought it was odd too to be honest with you.

All of this advice is good and I am hopeful we can get back on our feet again.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do one of the "buy nothing" months. Eat from your pantry / frig, go as long as you can without buying extra food, toiletries, etc.. for that month. Even if you only do this a couple of months a year, the savings add up.

How much crap do you have that you can live off your pantry for a MONTH. Yeah I do that for a week but by the end of the week I'm eating canned tuna and our pantry is bare....

I'm not PP, but we can go a lot longer than a week on a pantry clean out! We always have a zillion single chicken breasts that we froze (I usually throw those in the crockpot) and a dozen partial bags of frozen vegetables. I do supplement with fresh fruit and vegetables, though.

Yeah, I probably have a couple of months of food in my pantry. Honestly, I find that to be important/comforting as I grew up poor. Just knowing that food is there if we need it helps reduce my anxiety. I also buy in bulk when I see something on super sale. I am not one of those people with a basement full of food, but my pantry is always pretty stuffed (and it is large!) Plus, I have a lot of preserved food from canning -- most fruits and veggies are only in season for a short time, so you have to make a year's supply if you want home-produced food to last you until next year. I have enough things like jams and applesauce, apple butter to last a year and give as Christmas gifts.

OK that makes more sense. My pantry has never been like that- we can make it like a week before things get pretty bare and are left with just instant mashed potatoes . I do have some frozen veggies that your post inspires me to work into a meal though.

My HHI is a lot higher than the OP's and my kitchen/house is t big enough to buy in bulk and I don't have a pantry. I think the people posting this stuff live far outside of the beltway, or in Kansas maybe. Close living in D.C. Does not come with a pantry at $130k per year.

We have a 900 square foot house and are putting a pantry in the basement as we refinish it. So, yes, it can come with a pantry.

[Anonymous]

Anonymous wrote:OP here. To clarify, I got back to work next month. I have interviews and just need to let the hiring process work. Childcare is necessary when I am working. I am hoping for 70K starting out--if I can get to 80 that would be awesome but I think I will be lucky to start out at 70. So our income is going to go up substantially in a month. I can work while finishing the last requirements of my grad degree, which was fully funded with a good stipend until I had kids.

I double checked with our take home and that is what it is. I thought it was odd too to be honest with you.

All of this advice is good and I am hopeful we can get back on our feet again.

Don't change your lifestyle and decrease it if possible. Put all that money away if you can and pay off loans.

[Anonymous]

Anonymous wrote:OP here. To clarify, I got back to work next month. I have interviews and just need to let the hiring process work. Childcare is necessary when I am working. I am hoping for 70K starting out--if I can get to 80 that would be awesome but I think I will be lucky to start out at 70. So our income is going to go up substantially in a month. I can work while finishing the last requirements of my grad degree, which was fully funded with a good stipend until I had kids.

I double checked with our take home and that is what it is. I thought it was odd too to be honest with you.

All of this advice is good and I am hopeful we can get back on our feet again.

Check around for cheaper childcare prices. You are just estimating at this point, right, since you are not actually working yet?

[Anonymous]

Anonymous wrote:OP here. To clarify, I got back to work next month. I have interviews and just need to let the hiring process work. Childcare is necessary when I am working. I am hoping for 70K starting out--if I can get to 80 that would be awesome but I think I will be lucky to start out at 70. So our income is going to go up substantially in a month. I can work while finishing the last requirements of my grad degree, which was fully funded with a good stipend until I had kids.

I double checked with our take home and that is what it is. I thought it was odd too to be honest with you.

All of this advice is good and I am hopeful we can get back on our feet again.

How much of a tax return did you get last year? Presumably it was pretty large with that mortgage and two dependents. I would add your refund back into your monthly income or, even better, reconfigure your withholdings.

I assume you're using a dependent care FSA? If so, that's coming out of your gross pay so, for budget purposes, you should add that back in as income ($400 a month).