Reply to DH is a new big law partner and I have no clue how to budget

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. Thanks for the replies!

DH doesn’t want to do an financial advisor right now, and I’m okay with that. He has spoken to numerous other parters at his firm, and they all are doing something different. Many have financial advisors, but many don’t. And the financial advisors we have spoken to don’t appear to be offering any advice we haven’t already considered (and much of it we are already following). Also, my issue has been taken care of with the free advice offered on DCUM (plus the idea of doing 529s at the end of the year!).

We do have an accountant, though.

We have an account with money we set aside last year to give us a financial buffer for this year, and DH said he’ll transfer all our extra money into that account each time he gets one of his bigger checks. So our regular checking account balance wont’ show any money we shouldn’t be touching. I think this is going to take care of my issue. I figured this had to be a pretty simple fix. [/quote]

Just fyi, there was no extra money from our quarterly draws after tax payments. Sadly. And make sure you understand how much medical will be. It was 4-5k per month for us, so a high chunk out of the monthly paycheck. Made it hard to save during the year. [/quote]

Oh, sorry. Ours are. We get a set amount for salary. And then the drawers are on top of that.

Well when I say “extra” I mean we are keeping what we received each month in 2020 and putting the rest into that account. The raise I referred to earlier was actually a raise during 2021 but it happened late in the year and I knew that DH would be taking home less than that bigger number the first year of partnership so I continued to think of his salary as the 2020 number. Between the money we put away last year and what we are putting in the account we don’t normally use, we should be okay. My issue isn’t not being able to pay taxes so much as it is just keeping general track of everyday spending. Like right now the money we have in our main checking account is what we have until the end of June, and it feels good to have that concrete number. And medical is already deducted so it’s a high number but not something I have to think about when looking at how much is in the account. [/quote]

I don’t totally understand what you’re saying. As a non numbers person, here’s how I think of it. Take home is around 850k total. Including drawers and end of year. So, about 410 post taxes. The monthly salary drawer is on par with getting paid 250k for the year. Tax Drawers make up about 300k. So, now you’ve made 590k, post taxes, and have about 400k left give or take for payouts, but will pay taxes on those of about 60-70 percent.  [/quote]

But the paychecks aren’t each 1/12th of the yearly take home pay. They are all wildly different amounts. I don’t budget according to what the annual take home is, but rather what’s in our account at any given time. [/quote][/quote]

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