Reply to $14k net HHI - Budget Input

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[quote=Anonymous][quote=Anonymous]We are struggling to not overspend each month on a take home HHI of $14k per month (after retirement/taxes). I feel like (i know) this is ridiculous, so I'm looking for input from those with similar incomes on where we are spending more than average. And would also love to know how you cut back to spend less in those areas.

The way our average spending is coming in now we're in the hole about $600 more than we take in each month without savings (other than automatic to retirement), travel and any unexpected expenses. So something has to give. Obviously I know we could cut out things like the house cleaner that are optional. But I feel there must be other areas we're spending more than the norm we need to cut back on to get things under control.

Here is our average monthly spending by category - What looks out of whack to you with HHI of $14k per month?

Nanny/PT Preschool for one child - $3k per month
Mortgage - $3100 per month
HOA Fee - $200 per month
Investment Property - $750 per month (what rent doesn't cover)
Home Insurance - $125 per month
[b]Car Payments - $1200 per month (2 cars)[/b]
Car Insurance - $110 per month (2 cars)
Gas - $200 per month
Tolls - $35 per month
Groceries - $1k per month, family of 3 plus nanny (weekdays breakfast & lunch for her). Includes wine/beer and hello fresh for weeknight meals
[b]Restaurants/Take Out - $500 per month (normally one 'nice' date night dinner and the rest inexpensive)[/b]
[b]Home Supplies - $650 per month (all the basics like toilet paper, paper towels, cat food/litter, shampoo, OTC meds, cosmetics, diapers, baby supplies, blah blah)[/b]
Student Loans - $350 per month 
Personal Care - $350 per month (hair cuts/color, waxing, nails)
House Cleaner - $300 per month
Lawn Care - $135 per month
[b]Shopping (Clothing/Accessories/Home Decor) - $500 per month[/b]
Gifts - $200 per month
Work Lunch - $150 per month
Entertaining - $200 per month (having guests over/parties)
Kid's Activities/Lessons - $200 per month (swim class, music class, outings)
Doctor/Dentist - $150 per month 
Pharmacy/Medications - $100 per month
Water Bill - $100 ($300 every 3 months)
Gas Bill - $140 (in winter, much less in summer months)
Electric Bill - $200 
Cell Phones - $200
Pets - $100 earmarked per month for vet visits, meds etc every few months
Entertainment - $150 per month (going out for drinks/movies/etc)
Cash - $200
TOTAL ~ $14,600

The investment property seems like an obvious thing to cut but Husband wants to keep the investment property as we should be able to refinance that and charge more rent to have that monthly cost go away in the very near future. And all of that $$ we're paying is going towards principal on the mortgage for that property, and it's in a great location in arlington so will hold/increase value. 
[/quote]

We bring in around $13k net after maxing retirement, so I fit the bill of people you're looking for responses from.  The things that are out of whack, IMO, are bolded above.

The good news is, your mortgage is really a good amount for your income, and you make enough to cover almost anything you could want in life.  But not everything-everything, which is where you seem to be running into problems.  I know some people really like cars, but maybe cut back to one awesome car and one perfectly reasonable Honda/Toyota/not-luxury-boat?  $1200/month on car notes is the craziest thing in your budget, as far as I can tell.  You're spending a heck of a lot on take-out/restaurants for people who pay for HelloFresh for weeknight meals -- can you cut back to going out half as much? Additionally, you've got $1100/month earmarked as what amounts to "miscellaneous".  You're not spending $650/month on toilet paper and soap, I promise.  Nor do you need $500/month of home décor and clothes.  This is going to be the easiest place for you to cut: instead of buying whatever catches your eye (no judgment; I've been there myself), consider putting it in your cart and switching to another screen.  If you come back to it a couple of hours/days later and still feel like you want to make the purchase, go for it.  Also, check your email because the store has probably sent a coupon to entice you into buying it.  But much, much, much more often than you might believe, you will no longer care about whatever it is.  Putting things on wishlists instead of buying when the urge strikes saves me thousands a month.

Your medical bills seem pretty high to me, but the fact that your prescription meds have a line item makes me think that might not be somewhere you can make changes.[/quote]

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