Reply to $14k net HHI - Budget Input

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[quote=Anonymous][quote=Anonymous][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
Car Payments - $1200 per month (2 cars)
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
Restaurants/Take Out - $500 per month (normally one 'nice' date night dinner and the rest inexpensive)
[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 
[b]Personal Care - $350 per month (hair cuts/color, waxing, nails)
[/b]House Cleaner - $300 per month
Lawn Care - $135 per month
Shopping (Clothing/Accessories/Home Decor) - $500 per month
[b]Gifts - $200 per month
[/b]Work Lunch - $150 per month
Entertaining - $200 per month (having guests over/parties)
[b]Kid's Activities/Lessons - $200 per month (swim class, music class, outings)
[/b]Doctor/Dentist - $150 per month 
[b]Pharmacy/Medications - $100 per month
[/b]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]

New poster here.   [b]I don't think it's the car payments that are killing you guys, it's the rest of your discretionary spending.

[/b]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.

[/quote]

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.  [/quote]

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.  [/quote]

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