Reply to Singel parent on $228K income

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]And every day some other expense doubles or increases by 10-20%. WWYD? I am 50 and don't own a home.[/quote]

I’ll bite.  I’m a single parent and I make $230.  I understand what you’re saying about the constant increases.  Everyone is feeling that.  But I’m choosing to stuff money into my retirement accounts.  I know where my money is going.  I wish I had enough to have the amount of disposable income I think I should have in my brain.  But as long as I make the choice to save it, I don’t get to spend it today.  So Op—where are you spending your money?[/quote]

$30K/year to retirement 
That leaves $198 pretax
After retirement, taxes, FSA, health insurance premium I see $4660 biweekly. 
So $9K/month.
$3K to rent 
$60 water + $70 electric + $60 WiFi + $60/m subscriptions + $100 cellphone
$800 groceries + $100 pharmacy
$200 gas + $100 car insurance + $100 parking. Car is paid off.
$700 student loans
$400 supplemental disability insurance 
$1000 combined summer camp, vacation & annual travel
That leaves ~$2K for school needs (public school), babysitters, entertainment, clothing & shoes, books, health care co-pays and deductible, gifts, sports for kids, accountant, special services like lawyer or financial advisor when needed, car repairs, computer equipment/office supplies, haircuts, pet food/care & vet bills, home goods, gym/exercise (no gym membership), and everything else.
I barely leave home or shop, have no cable/TV/landline am somehow living paycheck to paycheck apart from the retirement savings.
[/quote]

Two issues:

1) The "I can't save much after saving $30K for retirement" line is a little trite.  $30K per year growing at 8% per year for 35 years becomes $5.8M (or $2M+ in present-day dollars).  That's a lot of savings.  If you want access to some of it now, reduce pre-tax contributions and contribute instead to a Roth IRA or taxable account.

2) How do you go from $198K left after retirement contributions to a take-home pay of $108K?  Assuming an effective tax rate of 30%, you're paying $60K in taxes.  Where's the other $30K going?  Health insurance isn't that expensive.[/quote]

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