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Post by papersilly on May 16, 2017 21:06:45 GMT
Scroll down to view their list of expenses. Do you find any of it unreasonable? what, if any, would you cut out? this is for a family of 4. living on $500k a year |
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Deleted
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May 18, 2024 20:07:37 GMT
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Post by Deleted on May 16, 2017 21:15:30 GMT
My first thought was is three vacations really necessary? That's $6,000 per vacation! I would cut back to two and find less costly trips to go on.
The rest you can't avoid. Taxes in an expensive city is nuts. Childcare for two young children is pricy. Maybe change childcare to something that's not so expensive, assuming it's a private preschool or something.
$500,000 in my city, hell my state! can go a long ways. I'd be living on the lake if we had that income and we would probably be facing the same high taxes.
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Post by ktdoesntscrap on May 16, 2017 21:16:16 GMT
1. Reduce the house size. Buy a cheaper house until the student loans are paid off.
2. Drive cheaper cars
3. Take fewer/cheaper vacations.
If the two kids require full-time child care.. which is an assumption based on the 40K price tag.. then do they really need another 12K in lessons? That would probably be a last place to cut.
Of course, they could economize on food and clothing. But if there house and cars were cheaper.. and they paid off the student loan debt then they don't need to do much else to live and save comfortably within their means.
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Post by compeateropeator on May 16, 2017 21:18:06 GMT
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inkedup
Pearl Clutcher
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Jun 26, 2014 5:00:26 GMT
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Post by inkedup on May 16, 2017 21:19:57 GMT
I don't know, but I'd like to try!!
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Post by Zee on May 16, 2017 21:21:04 GMT
Yes, I think almost all of us here manage just fine.
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Post by papersilly on May 16, 2017 21:22:04 GMT
i live in an expensive city and not much seemed that unreasonable except for the vacations. i would probably not give so much to the Alma Mater but that's just me. and sad to say, a modest $1.5 million dollar home is not so odd these days in high cost of living cities. sometimes, moving out of an expensive city for cheaper housing might mean moving out HOURS away and not just a few miles. it's just not worth it.
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Deleted
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May 18, 2024 20:07:37 GMT
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Post by Deleted on May 16, 2017 21:22:15 GMT
Barely scraping by? They still have $7,300 leftover all while funding retirement, donating to charity, taking three vacations a year, and having a $10k yearly slush fund. That's the antithesis of barely scraping by.
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bethany102399
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Post by bethany102399 on May 16, 2017 21:22:51 GMT
my first reaction is depends on where they live.
Having read it. there are several things you can jettison on that list. Vacation, kids lessons, charity, plus they have 7,500 left at the end of the month. How is that paycheck to paycheck?
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Post by refugeepea on May 16, 2017 21:25:04 GMT
I can't bring myself to read the story, it would be too depressing. The answer would be yes! One time there was a thread where a pea said they felt bad for people who make a certain amount of money a year. That's what my husband makes.  I thought we were doing okay.  |
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Post by papersilly on May 16, 2017 21:25:42 GMT
they have 7,500 left at the end of the month. How is that paycheck to paycheck? that's $7,500 left over at the end of the YEAR. |
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Post by twistedscissors on May 16, 2017 21:27:05 GMT
I could live on that for 10 years! I've had exactly two vacations in the last 27 years, costing nowhere near $6,000 each. Lol. I drive a 2016 vehicle and my payment is less than $300/mo. They could cut a ton of expenses there.
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Post by jamielynn on May 16, 2017 21:27:26 GMT
I'm surprised even figuring in full time care that childcare runs them $10/hr/child - even $20/hr for a nanny for both seems high.
Three vacations is a choice not necessary - Why do that vs putting an equal amount to savings?!
That seems like a mighty large mortgage for someone with student loans that likely have interest.
$500/month per child on activities is ... shocking but again not unheard of. However seems a lot for kids still needing full time childcare (so under 6).
I must be an awful person as I wouldn't donate $1500/month to charity if my savings wasn't being funded more than that or if I had student loans that money could go on. Crazy!
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Post by farmdpea on May 16, 2017 21:28:04 GMT
My first thought (before reading the article): Well, bless their hearts!  |
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kelly8875
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Post by kelly8875 on May 16, 2017 21:33:21 GMT
I wouldn't say they can barely do it. They are easily getting by.
Both are maxing out their 401k, donating to their causes, taking several vacations, and miscellaneous spending. Those costs are not needed to live.
Daycare, child spending, insurance, mortgage, taxes, clothing & food are the necessary items...
Plus, they have money left over that they can spend as they wish or save. They are not barely getting by, no matter where they live.
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Post by *KAS* on May 16, 2017 21:39:08 GMT
I think it's a nice breakdown of expenses, but I disagree that they are barely scraping by.
I understand housing costs in a big city, so I wouldn't touch that, and I think their car expenses are reasonable given their income.
But they have $17,300 in 'extra' money after all bills AND funding their retirement, so they are automatically out of 'paycheck to paycheck.
They probably don't 'need' to spend $18k in donations, unless that particular amount is helping them on their taxes. Let's reduce that to $10k.
You can cut a vacation and save another $6k, or don't go quite as extravagant and still get 3 vacations for $12k instead of $18k.
And their $42k childcare SHOULD reduce down right about now with a 3 & 5 year old, unless of course they put them in private school as well (and if not, they probably need to be saving for college).
Even leaving childcare alone, I have them with $31,300 in 'free' money that could go to savings per year. Seems pretty reasonable to me, and I didn't touch their $500 week for food/misc, the $1k a month for activity fees, their cars or their house.
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Post by bc2ca on May 16, 2017 21:41:05 GMT
Barely scraping by? They still have $7,300 leftover all while funding retirement, donating to charity, taking three vacations a year, and having a $10k yearly slush fund. That's the antithesis of barely scraping by.  I think they are living comfortably within their means. If they can fund 401K's, $12,000 worth of children's activities, vacations, make charitable donations and still have a $10,000 miscellaneous fund plus another $7,300 leftover they are doing just fine. Even their food budget is generous at $442/week IMHO (especially assuming with the childcare cost we are talking about preschoolers). If they really wanted to have more money at the end of the year there are plenty of places they can scale back. The college debt did make me weep a little for them - $32,000 for 10-20 years?! |
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Post by papersilly on May 16, 2017 21:42:51 GMT
i do agree with one poster who said that there should be college savings somewhere in there. sad to think the student loan cycle will continue with their children because there is no college fund.
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Deleted
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May 18, 2024 20:07:37 GMT
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Post by Deleted on May 16, 2017 21:43:08 GMT
NYC is crazy.
When my husband retires, I would love to move there as a nanny, housekeeper/driver couple. A minimum pay of $200,000.
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RosieKat
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Post by RosieKat on May 16, 2017 21:44:08 GMT
Considering they are living in NYC, most of it seems reasonable. If they are trying to cut back, there are definitely a few areas that stand out. They could easily spend less on vacations, for starters. I also agree that $12K in lessons for 2 & 4 y.o. kids who are in full time childcare seems excessive. I also wouldn't be making car payments on a BMW if you believe you're "barely scraping by." To me, the lifestyle they appear to be living is nowhere near barely scraping by. They are saving for retirement, going on plenty of vacations, have twice a month date nights...it sounds like they live far more luxuriously than we do, and I would not consider us to be "barely scraping by." I will concede that they are not as "rich" as a $500K income would make you believe.
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Post by MichyM on May 16, 2017 21:49:32 GMT
NYC is so crazy expensive. My 27 YO son lives in Manhattan, with 2 roommates, in a small 3 bed / 1 1/2 bath in Harlem, and barely scrapes by on 50k a year (net). He hasn't been able to save long term (for a down payment on a house, or anything else) yet :/
Looking at that family's food bill is pretty outrageous IMO, and I'm not one to scrimp on good quality food. I'm also scratching my head at the car costs. Trying to figure out why they need 2 expensive cars in a city where public transportation is so good?
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Post by tamaraann on May 16, 2017 21:52:05 GMT
Um, their PMI is $60 K a year? And they live in a $1.5 million dollar home? Either they should not have PMI, or they should have a smaller priced home! That alone is 5K a month!!!!!
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Post by tamaraann on May 16, 2017 21:53:38 GMT
And 18K a year to charity when they still have 32K in student loan debt? They could pay the student loans off in one year if they skipped vacations and charity!!!
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jayfab
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Post by jayfab on May 16, 2017 21:55:28 GMT
Cry me a river. Anyone who can spend that much on vacations a year is NOT just getting by.
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Post by yivit on May 16, 2017 22:47:57 GMT
If you don't argue about how they're spending their paychecks, then that IS technically living paycheck to paycheck since one week's pay is about 9600.
And yes, that hurt to say they pull in almost 10 grand a week.
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peabay
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Post by peabay on May 16, 2017 22:53:09 GMT
Why do they need two expensive cars in NYC? I'd love to see how often they actually drive the cars. That's one expense they could likely reduce.
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luckyexwife
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Post by luckyexwife on May 16, 2017 22:54:59 GMT
And 18K a year to charity when they still have 32K in student loan debt? They could pay the student loans off in one year if they skipped vacations and charity!!! They PAY 32K a year, that is not the total amount of debt. |
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Post by busy on May 16, 2017 22:55:36 GMT
my first reaction is depends on where they live. Having read it. there are several things you can jettison on that list. Vacation, kids lessons, charity, plus they have 7,500 left at the end of the month. How is that paycheck to paycheck? It's $7,300 "left over" *annually*, which is only 1.5% of their annual income. Are they "scraping by" - no, there are obviously places they could cut. However, nothing seems frivolous or excessive to me. All pretty standard stuff for professional families - the numbers are just larger because they are in a super expensive place to live. |
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luckyexwife
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Post by luckyexwife on May 16, 2017 22:56:01 GMT
Um, their PMI is $60 K a year? And they live in a $1.5 million dollar home? Either they should not have PMI, or they should have a smaller priced home! That alone is 5K a month!!!!! P&I, as in principle & interest, not PMI insurance. |
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Post by pondrunner on May 16, 2017 23:01:14 GMT
I find this more a cautionary tale how quickly one family can actually spend through a sizable income.
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Alright maybe not, but close. 
_on_the_beach.jpg)
I thought we were doing okay. 
I think they are living comfortably within their means. If they can fund 401K's, $12,000 worth of children's activities, vacations, make charitable donations and still have a $10,000 miscellaneous fund plus another $7,300 leftover they are doing just fine.
