Reply to $14k net HHI - Budget Input

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[quote=Anonymous][quote=Anonymous]You've gotten a lot of good suggestions, OP.  But specific suggestions aren't really enough for you - you need a fundamental readjustment in your approach to money - perhaps some basic money management courses.  Consider these points:

You aren't maxing out your retirement accounts, yet felt it OK to spend $700/month on a car LEASE.  That's on top of your existing $500 month car payment.  
You hired a nanny at $3000/month, plus additional groceries and classes, without considering whether you could afford it, or realizing that you would be $600 in the hole.  
As many posters have pointed out, you have overlapping categories of expenses.  This appears to be a way to inflate those categories while not really taking responsibility for it.

Someone else said it best - you make enough money to afford virtually anything, but not everything.

As an aside, clearing $14,000 on an income of $280,000 seems suspect.  Our HHI is calculated on an annual salary of $280,000 per year.  You are grossing $23,333 each month.  8% 401k (which is nowhere near maxing out) brings it down to $21466.  OASDI brings it down to 20,095.  My federal withholding (which may be high) brings it to $15813 and state brings it down to $14,200.  That's before any insurance premiums, pre-tax parking, HSAs, etc. are withheld.  Our monthly total is $10,800, and while our mortgage is more than yours, we don't; have a nanny, and I wouldn't DREAM of signing a $700/month car lease.  I don't care what my friends are driving.  And you are spending a combined $2700 on groceries/home supplies/personal care/shopping/entertaining.

Your husband may want to keep the investment property, but you have to recognize that doing so requires cutting back in other areas.

As first steps, you need to:
- rethink the nanny and look for cheaper childcare options
- sell back the Mercedes lease and get something affordable
- Cut that 2700 for groceries/home supplies/personal care/shopping/entertaining in half, or at lease by $1000    
[/quote]

I was going to say something very similar. I do think that people like OP need a fundamental change in attitude; sadly, most of the people I know who spend like this never get better.[/quote]

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