Anonymous
Post 07/28/2022 15:15     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:We went from $150 to $260 and I feel like we have less money now. Our mortgage is lower than yours and we don’t have daycare costs.


You make 260k/yr, have LESS than 2.4k in monthly housing costs, and don't have daycare costs.... and how exactly do you feel like you have less money? Youre in the 1%
Anonymous
Post 07/28/2022 15:09     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Unless you live on the water, skip the boat. Start with a new car and start planning a vacation. But bank as much as you can. Stick in a savings account if you're not sure, but the best way to avoid lifestyle creep is to act like you're not really earning more money, so that you are spending intentionally and not just because it's there. We did that, and we now save almost $100K a year because we just never "leveled up" in terms of house or car or anything.
Anonymous
Post 07/28/2022 14:17     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:We made 300k and never went on vacation for 10k or bought anything expensive like a boat. You don't make enough for a boat and ongoing expenses. Take a modest vacation. There is no need to upgrade your car.


This. Don’t buy a boat. It’s a money suck. Keep driving the old car, but when it needs a major repair, get a new or new used one instead. So maybe start thinking about what car you will want to buy now so you can move quickly when the car blows a transmission or something.

Take a small vacation. It does t need to be 10k. Flying with kids that he is a pain anyway. Drive somewhere and get away for a few days.

Anonymous
Post 07/28/2022 14:06     Subject: Re:I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:
Anonymous wrote:Under no circumstances should you buy a boat. That would be really unwise due to the ongoing expenses.

What kind of shape is the car in? If it’s unsafe or likely to die soon, I’d prioritize getting a few or good used one. If you expect it to last a couple more years, I’d definitely start planning a vacation. Doesn’t have to be anything fancy, but your older child is at that age where there is a lot of wonder and excitement about exploring new places, and it’s past time for you all to start making good family vacation memories.


This a ridiculous comment. Not every family goes on vacation. It is a luxury. And no such thing as "past time"--vacation is not any better than spending regular time together. No one needs a 10k vacation. Maybe once in a lifetime but regularly? No way.

I’m the poster you are responding to, and I stand by my vacation comments. Like I said, the vacation doesn’t have to be anything fancy, and it shouldn’t be for now given the likelihood of a car replacement in the near future.

But if you are trying to tell me it’s fine and normal to not go on vacation at all (which I guess you are, since you claim staying home is just as good) I completely disagree. There are thousands of interesting things to explore in driving distance from here, and any family making $150k (or $100k or $50k) has the funds to have fun family time with their kids in a new place. When kids look back on their childhood, vacations (and any other non experience that breaks the routines of everyday life) will absolutely stand out in their memories. And it is always a growth experience to get out of the bubble of your day-to-day life. I really hope that you have not truly convinced yourself that never traveling is great for you or your kids.
Anonymous
Post 07/28/2022 13:25     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Yes, get a newer car. Personally I’ve always gotten used but who knows if that makes sense in this market. Take a vacation. Start a boat fund that you add to as you add to your emergency fund.
Anonymous
Post 07/28/2022 10:07     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:Set up a separate savings account and move the extra cash into it. Once you have $25k in the account, then make a decision about what you want to do with it.


Yes, this.
Anonymous
Post 07/28/2022 09:52     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:We went from $150 to $260 and I feel like we have less money now. Our mortgage is lower than yours and we don’t have daycare costs.


Why do you feel like you have less money?

We went from about $150 to $200 and it feels like we have significantly more. Same mortgage, same car - but our 11 year old Kia is starting to show signs that she's ready for retirement, and we're looking at cars in the $30k range now which feels wildly extravagant.
Anonymous
Post 07/28/2022 09:51     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Ignore the snarky snobs. You're doing great, OP! I personally would prioritize a new-to-you car because I would want something with more modern safety features. Depending on how expensive used cars are right now, maybe even look into a brand new modest car like a Civic that will last you another 10 years and be relatively maintenance free for the first 5.

Other than that, I agree with the people telling you to bank it. You could use a bigger safety net. When the timing is good, take a nice vacation but it doesn't have to be a $10k vacation. Don't spend $10k for the sake of spending $10k.

And do NOT get a boat. Those are nothing but money sinks.
Anonymous
Post 07/28/2022 09:49     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Look- OP wants to celebrate a bit- and tbat doesn’t necessarily mean continued lifestyle creep (unless you buy a boat. Don’t buy a boat).

OP— In your shoes, I would definitely consider a vacation, though you may want to start planning now and go sometime in the next year-ish. Having a 1yo on vacation isn’t really vacation— once you get to 2+, when naps aren’t as vital, you can have a lot more fun. Plus, studies have shown that a lot of the emotional enjoyment of vacation comes from having something to look forward to. It also doesn’t need to be a $10k vacation— it can be much lower cost and still tons of fun!

Planning ahead for a vacation also gives you time to figure out if you need a new car. Used car prices are high and (from my understanding) will likely stay high for awhile. But for you guys, it seems like the car is on the bubble between a nice-to-do and a must-do, given mileage.

Anonymous
Post 07/28/2022 09:29     Subject: Re:I truly cannot wrap my head around our HHI jump from $150k to $260k
You are not capable of banking your extra money instead of spending it, OP? I would just bank it and forget I had it, but I do not need much.
Anonymous
Post 07/28/2022 07:22     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
We have similar numbers to you. I would do $500 per kid in the 529 not $500 total. You can definitely take a vacation but I eould cap it at $5K max. If car prices weren't sky high I'd say replace the old car too but if you can I'd try to hold off until the chip situation evens out hopefully in a year or so and prices come down a bit.
Anonymous
Post 07/28/2022 01:26     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
We made a similar jump. We didn't change much. We upped what was going into the 529s. And we spent a little more on our summer vacation than normal (but travel is always what we were willing to spend on, and it was nothing crazy). Dh still drives a beat up car, and my newer Honda will be mine until our oldest can drive it. We still have some moderate house projects we haven't done, and we are waiting for the first bonus to pay for that, without touching the regular income.
Anonymous
Post 07/28/2022 01:02     Subject: I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I feel stupid, but my brain does not make sense of the math. We will absolutely NOT fall victim to lifestyle creep. We are already in our forever home. We both grew up LMC and understand how fortunate we are to have already started 529s, Roth IRAs on top of 401k etc. That is where our money will go- into the future.

That being said, we would like to make one purchase to celebrate- a vacation, boat (used), or (used) car for DH as his has 356,000 miles. I truly cannot comprehend what we can afford.

We have a 5yo and a 1yo. We are 31/32yo. Here's an overview of our finances:

HHI 260K
Bought our house 5 years ago (tomorrow!) for $325,000 by putting down $45k with a 30 year mortgage. We just got out of PMI.
$2400/mon mortgage, taxes, insurance
$1400/mon daycare (older DC will be in public next year)
$4000 left on my car (will pay off eventually we have 0% interest)
No student loans or other debt

We have been putting $500/mon into 529s, maxing 401Ks, I have a Roth IRA on top of that, and we have $40,000 emergency fund.

Can we make a $10k vacation, $15k boat, or $25k vehicle purchase without worrying? Not planning on changing anything else except adding more monthly to 529s.






Oh bless your heart. You’re already in that slippery slope.

Because you grew up LMC is going to be even harder for you especially since you think you are now filthy rich.


Not OP but this is remark is unnecessary and snarky. You contributed nothing to the conversation and clearly only wanted to knock someone down a peg.


Np and thank you. Such a disgustingly mean-spirited remark.
Anonymous
Post 07/27/2022 23:05     Subject: Re:I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:
Anonymous wrote:Under no circumstances should you buy a boat. That would be really unwise due to the ongoing expenses.

What kind of shape is the car in? If it’s unsafe or likely to die soon, I’d prioritize getting a few or good used one. If you expect it to last a couple more years, I’d definitely start planning a vacation. Doesn’t have to be anything fancy, but your older child is at that age where there is a lot of wonder and excitement about exploring new places, and it’s past time for you all to start making good family vacation memories.


This a ridiculous comment. Not every family goes on vacation. It is a luxury. And no such thing as "past time"--vacation is not any better than spending regular time together. No one needs a 10k vacation. Maybe once in a lifetime but regularly? No way.


Maybe I do not necessarily need them, but I value nice vacations highly. We spend about 30k a year on travel (Europe in the summer, skiing in the winter, Caribbean during spring break plus a few long weekends) and I do not regret a penny. However,. I do not own any designer clothes, our furniture is from IKEA and we have one mid-range car. We simply value experiences and that is where a good chunk of our money goes. This is on a 500k HHI so not really a stretch for us. I would not spend as much on OP's HHI, but she should definitely treat herself to a nice vacation if that is what she desires.
Anonymous
Post 07/27/2022 22:41     Subject: Re:I truly cannot wrap my head around our HHI jump from $150k to $260k
Anonymous wrote:I think you can probably afford to sell the 350K mile car and buy a new one. Just not a luxury car.


+1 You can replace your car, and you can also start putting $500/month into a vacation fund going forward, not for one family trip but so that family trips are part of the plan in perpetuity. Just make sure the majority goes into savings/investments.

Don't get a freaking boat. You are not at "boat people" levels here. The only person I know IRL with a boat makes $3M+/year, and still his wife complains about what a money pit it is.