$14k net HHI - Budget Input
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| These threads are so fascinating. OP has the chance to build real wealth, retire early, do some amazing charity work etc. and instead she is pissing it all away on cars, manicures, classes for a toddler and shampoo. And the cost of the house makes me think she doesn't even live in a ridiculously fancy neighborhood. Takes all kids, I guess. |
Anonymous
|
Spending $750 on an 'investment' seems like a terrible idea. Investments should be making you money be definition.
$700 for a leased car is a ridiculous waste of money. That could be going into a college fund. |
Anonymous
How much should OP be investing from take home pay? |
Anonymous
+1. We used to be the same way. Luckily we figured it out. |
Anonymous
I found at least $2,500 in your budget and that's still leaving a lot that could be cut. |
Anonymous
|
Op we make a similar amount of money and used to spend a lot like you. Previously we spent it all and didn't understand what we were doing wrong. I'll post our current budget so you can see the differences. It's not just the little things that add up but some big lifestyle choices.
Take home after maxing out retirement for two earners : $15k $5k - 15 year mortgage in DC $200 - car insurance and gas. We have one car we own outright and don't use it to commute. We fill up around 1 or 2x a month. $2,000 - weekly money. We spend $500 weekly on groceries, dining out, manicures, drycleaning, coffees etc. we take $500 out a week out of the atm. $800 all utilities, cell phones, car insurance etc. $175 - gym. Hate this one. $1000 - travel, new furniture, unexpected home repair, clothing etc. $200 - haircut and color 5k - savings / investments (with baby in daycare will become 2.5k) We also earn another 100-120k each year in bonuses and save most of this. We would not be saving 5k or 2k if we drove your cars, commuted via car and also spent what you do on gifts, dining out, groceries and drygoods. We don't have a cleaning lady or a yard man. You need a lifestyle makeover if you ever want to accumulate wealth. |
Anonymous
|
You are throwing money out the window by leasing the car. When the lease is up it won't even be yours. When the lease is up but a used good car. We make $250k and bought a 2015 Subaru with cash and are still driving an old Toyota until it dies.
Your miscellaneous and clothes, gifts shopping is way too high. What are you buying? $500 of clothes every month? I love clothes and I spend half that on a splurge month. $650 on household? Are you using a roll of paper towels an hour? Get hit credit card statement and look at every purchase! Also set up your bank account to take a certain amount every month right when your pay checks hit and put into a separate savings account. Start with 10%. That money doesn't exist. Oh and max out the 401k and iras right now. |
Anonymous
|
I can't believe you're spending $1500 a month on cars. Wow. I would choose to live in a 2 bedroom condo in DC and spend $0 on cars and never have to drive on a toll road.
If you downsized to a condo or small rowhouse you could also cut out the cleaning lady and the yard guy. You'd also have access to free pre-k. You're basically spending an extra $5k each month to live in the burbs and I assume have a longer commute. That is tragic. |
Anonymous
New poster here. I don't think it's the car payments that are killing you guys, it's the rest of your discretionary spending. The most ridiculous expenses you have are $650 on home supplies, $350 on personal care, $500 on clothes and home decor, $200 on activities for pre-school child, and $200 on gifts. My husband and I make as much money as you, and we spend half on what you spend on the above you called out. |
Anonymous
| Get rid of that 'investment property' and start maxing your 401k and Roth IRA's now. |
Anonymous
It's not an either or, it's both. Assuming it's a 3 years lease, and they had to put $3000 down for the Mercedes, they are spending more that $28,000 on a car and will have nothing to show for it in 3 years. If someone can afford that, great. OP clearly cannot. Either a leased car at 1/3 of the cost, or just buying a car outright for $30,000 and keeping it for 6 years would be a significant savings. But their friends all drive Mercedes, so clearly they have to as well. But, you are right that the car isn't the only problem. |
Anonymous
Fair point about the lease. I guess my position is that most people NEED cars. $1200 in payments for 2 cars seemed okay to me. I had $550/monthly car payment on a ~$30K car, so $1200 seemed reasonable to me for 2 cars. It's true that you can get by with a much cheaper car, but 2 ~$30K cars aren't outrageous. Now, spending more than a car payment on "home supplies" (which includes makeup) per month - that's excessive. My husband and I go through paper towels and cleaning supplies like crazy, and even then, we spend about $50/month on such things. OP is likely lumping in Chanel makeup with "home supplies" which is why she's spending a ton of money. |
Anonymous
| I've seen strainers with fewer holes than OP's budget |
Anonymous
Are you planning to be wage slaves for the next 25 or 30 years? If not, the focus should be on how fast you can save enough to be financially independent. You said you made 280 but it's really 330. You don't seem to value the fact that you are young and healthy now, but some day you won't be, and you will have burned up your human capital for nothing lasting. |
Anonymous
YES. THIS. |