Reply to Is this a reasonable amount of spending money per month based on our income?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think it's way too much. I think $600 a month would even be a bit much. [/quote]

+1
Our income is twice yours and we give ourselves $600/mo.  We save a ton and are close to paying off our mortgage on a $3M home.  Our kids are older- 20, 17, 15, 10.[/quote]

You make 640k and have a $3M house? Seems like a stretch to afford that. I would rather live in a 1M home and put the difference towards things like toys and experiences. The delta between a 1M and 3M house is probably 10-15k a month and you only give yourself $600/month each. That seems crazy to spend so much on a house while having such a barebones spending budget. [/quote]

Yes, we bought the home 13 years ago for 1.2M. It's 3M now.  We put 20% down and got a 15 yr fixed.

Do whatever you need to do for your finances, but don't just assume others have or have had the same circumstances as you.  There is a wide range.  Our bare bones spending has also allowed us to purchase 2 vacation homes and send our kids to private school.  HHI is a bit higher than your assumptions too.  Yes we are frugal.  You know the type - drive subaru and wear non trendy clothes - boring.  It works for us.[/quote]

Subarus are not exactly cheap, paying for private school is literally the opposite of being frugal, and buying a house for $1.2 million puts you in a pretty exalted class of spenders. You may not wear nice clothes, but you are a spender, friend. You just spend on different things than others of us. I think OP's spending is fine - but we drive one 14 year old Kia Soul and bought our house for $330k. I know - you could NEVER. That's because you are spendy but on different things than we are spendy on.[/quote]

Yes, I'm spendy on appreciating assets.  That's what makes people rich.  Subaru require little maintenance and running 200k miles.  Schools set kids up to launch and also help with emotional intelligence and values, etc. Homes grow in value if taken care of, so I'm frugal AND spendy.[/quote]

Cars don't appreciate in value, friend. You wanted a luxury car but one that screams sensible instead of fancy. Private school isn't an appreciating investment no matter how you'd like to spin it. And that's great your house has gone up in value - ours has, too! It's really a wonderful thing to get into the real estate ladder at the right time - congrats for your good fortune and good timing. Spend however you like, that said! But looking down your nose at other people's luxuries while dismissing your own is silly.[/quote]

The cost of owning a Subaru vs Kia for 14 years is about the same. Difference is with the Kia you will be spending more after year 5-6 on repairs, repairs, repairs.  
Oh and the Subaru will have a good resale value at 150K+ miles.  
I sold my Acura SUV 13 years old, 130K for over 25% of what I paid for it.  And it had $3-5K of repairs needed (electrical issues and some dents).  So in reality I got almost 30%+ of what I originally paid.  Suburus will hold similar value.  A 14 yo kia, not so much.

I agree with the PP, that owning a Subaru and paying off your home in 15 years is very different than just "random 1.2K+/month spending money".

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