OP,

Most people posting on DCUM are quite wealthy, and can't imagine living a frugal lifestyle (unless it means getting by on a mere 200K a year).

We had one child in daycare when our HHI was 60K. It was tough. We lived in a one bedroom rental.

We had our second child when our HHI was 85K, no daycare and with family help bought our first house in a good school district (read: expensive).

Now we have a little breathing room at 120K and no daycare costs, but compared to others in this area, we are still very frugal.

You need to think long and hard about this, OP.

We are comfortable on ~100K a year for a family of 3 but we don't have day care costs, a mortgage/rent, car payments or student loans.

Anonymous wrote:Let's assume you take home $5,300/month, which is probably about right given what your credits and refunds will be.

Assume $2400 for day care right off the bat.

Housing/ $1800 for a 2br - You could find a 2br that's a bit larger for close to $1700 in parts of not-super-desirable Arlington. You could also likely find a 2br for $1800 or so in Glover Park or other parts of DC (Fort Totten, Takoma, etc...) that's public-transit accessible if you looked hard. I'd recommend living IN the city because you'll be able to take advantage of free preschool earlier (age 3) and save a ton.

This leaves $1300 for food, transit, utilities, and extras. That's tight but you can do it if you're careful and a planner, or if your day care costs are less than I quote.

Do you have a car payment or loans?

What does the wife do? Is it possible to find a higher paying job or a PT job that allows you to cut down on childcare while making a similar amount?

That's pretty much the minimum for daycare if one of the kids is under 2...

Daycare at a licensed facility will run $1500+ per kid (some offer a discount for a second child but it's not a ton). Now an in-home licensed place may run around $1200 per child. Unlicensed home is $800-$1000. It just depends on your priorities...

You'll also want to balance the DC commute with a decent area. Are you prepared to commute an hour plus each way? If not then a lot of affordable areas in VA/MD will be out.

I do not think it's doable. Daycare, even at a low budget place, would be $1000 a month for each kid.
$2000 in rent would get you a house in a poor school district.

OP, don't let people talking about saving and retirement and buying a home bog your down. You're not gonna do those things on 89K in DC. It won't happen. But if you're young and if you plan to move up or move out in a few years, you can absolutely get by if you budget and live within your means.

Strongly consider living in DC in a neighborhood where 2br apartment is under 2K to take advantage of free preschool, and remember to keep your eyes on the prize, which in your case would be a higher paying job(s) or lower cost of living city in a few years.

If you can live in the cheap and keep an emergency fund of 2K around (which may take a few months to build up) you will live day to day just fine assuming your housing and day care isn't excessive.

Anonymous wrote:We are a military family that currently live in the area. I work as well and make about $33,000. My husband was offered a job that starts at $56,000. We have two little's in daycare. Is this enough combined income to be comfortable? My husband thinks we will be fine, but looking at housing costs and daycare costs, I'm thinking we just barely be able to make it. Where places we should look for housing? I work in Arlington and husband will work in DC.

Based on where you will both be working, no less than $100K if you rent. I'd say $150K if you plan to buy.

350 K.

As someone said, it depends on your alternatives. I'm former military, also. I'd say if he can work for a government contractor in Hamton Roads, and instead of making $56k, he'd make $48k, you guys would be better off there.

What about Quantico? There are defense contractors all over the place. Transitioning out is stressful, but don't feel like you have to take the first thing that comes along, and don't just take it because you already know the area. Keeping costs down is the most important thing you can do for your quality if life--it's more important that earning more money because every dollar you don't spend is a dollar you keep; every dollar you earn has to be taxed.

How old are your children? If you live in DC where you can get free full day care start at 3, that could make a serious difference depending on the age of your children. There are aftercare coss but they generally have a sliding scale.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you live in the far far suburbs where things cost less, tight but doable.


With 2 kids and littleno debt I think you need @$150k/yr.

Yeah, no. We have 2 kids, make $100k, have lots of student loan debt, a mortgage. We're not saving much, but that'll change when the loans are paid off.

Do you have two in daycare? Is your commute into DC/close-in burbs? Do you have any family in the area that can help? These things make a difference.

Exactly. If you have two in daycare and live anywhere closer than the exurbs, please tell me how you do it. Daycare plus housing alone is over 50k/year for us and I don't think we've made extravagant choices. What is your budget breakdown?

I think it would be really tight with 2 kids in day care. We make $160k and have 1 in day care and we feel like we aren't saving enough for retirement or a downpayment on a house and we never travel or do anything expensive. We live in DC, but not a very desirable neighborhood.

What are your alternatives? Would you stay where you are now or move to another city?

We live in North Bethesda and when both of our kids were in preschool/daycare at the same time it cost us about $33,000.00 for the year. And our children are in places that would be considered not expensive. For instance, our infant care was $1,500 while many pay $2,000/month. Daycare truly is the killer expense in this area. I don't think we could have even done it on $150K.

Let's assume you take home $5,300/month, which is probably about right given what your credits and refunds will be.

Assume $2400 for day care right off the bat.

Housing/ $1800 for a 2br - You could find a 2br that's a bit larger for close to $1700 in parts of not-super-desirable Arlington. You could also likely find a 2br for $1800 or so in Glover Park or other parts of DC (Fort Totten, Takoma, etc...) that's public-transit accessible if you looked hard. I'd recommend living IN the city because you'll be able to take advantage of free preschool earlier (age 3) and save a ton.

This leaves $1300 for food, transit, utilities, and extras. That's tight but you can do it if you're careful and a planner, or if your day care costs are less than I quote.

Do you have a car payment or loans?

What does the wife do? Is it possible to find a higher paying job or a PT job that allows you to cut down on childcare while making a similar amount?

What are the alternatives OP? I mean this sincerely and with care for you - I don't think you want to do this. $80k is plenty in lots of places but not here.