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re: Looking for tips from the older crowd on budgeting. Am I doing bad at this point in life?
Posted on 2/26/25 at 7:56 am to scbctigers307
Posted on 2/26/25 at 7:56 am to scbctigers307
You've laid out around $100,000 in net income and have $89,424 in annual expenses which leaves $10-12k extra in your annual budget.
Go through each of those line items and assess if you can make any cuts. If you're looking for more with your existing income, your option is only to sacrifice in some area.
$2100 in mortgage seems pretty decent so that one I wouldn't consider moving unless you can find a great deal for a good amount less. Quality of home and living drops off pretty quick much cheaper anymore.
Cars: Is one of you willing to buy a beater and pay another one off? Again, not appealing. Do you change your own oil or do you have it changed somewhere. Not a lot of meat on that bone, but $50 savings every 2 or 3 months is something. It's easy to do and IMO more convenient.
Shop your car insurance. That sounds high to me but maybe not. I'm in Texas and we're in the $250 range for two of us. Shopping insurance is essentially free.
You're not reducing student loans. Electric, TV, Water, gas, parking are what they are. Those aren't unrealistic. And I understand the dogs line as well.
There isn't a whole lot in groceries IMO either. Although, groceries can add up quickly. Find good recipes that are cheap. Pork chops are good protein and about as cheap as it comes. Find ways to incorporate pork in meals. Spaghetti is another meal I've learned is super economical and you can make enough to last a couple of nights between two of you really easy.
The credit card is where there are a lot of questions though. Comb through that and see what is there. Are you putting your groceries/TV/Water/Electric on this and paying those off? Or is this an additional expense to all of the others you laid out?
You're obviously not just scraping by and good on you for keeping after it. Your options for finding more money are either sacrifice something you have now which I've always found more difficult mentally, or find a way to increase your income which is a time/value proposition.
Go through each of those line items and assess if you can make any cuts. If you're looking for more with your existing income, your option is only to sacrifice in some area.
$2100 in mortgage seems pretty decent so that one I wouldn't consider moving unless you can find a great deal for a good amount less. Quality of home and living drops off pretty quick much cheaper anymore.
Cars: Is one of you willing to buy a beater and pay another one off? Again, not appealing. Do you change your own oil or do you have it changed somewhere. Not a lot of meat on that bone, but $50 savings every 2 or 3 months is something. It's easy to do and IMO more convenient.
Shop your car insurance. That sounds high to me but maybe not. I'm in Texas and we're in the $250 range for two of us. Shopping insurance is essentially free.
You're not reducing student loans. Electric, TV, Water, gas, parking are what they are. Those aren't unrealistic. And I understand the dogs line as well.
There isn't a whole lot in groceries IMO either. Although, groceries can add up quickly. Find good recipes that are cheap. Pork chops are good protein and about as cheap as it comes. Find ways to incorporate pork in meals. Spaghetti is another meal I've learned is super economical and you can make enough to last a couple of nights between two of you really easy.
The credit card is where there are a lot of questions though. Comb through that and see what is there. Are you putting your groceries/TV/Water/Electric on this and paying those off? Or is this an additional expense to all of the others you laid out?
You're obviously not just scraping by and good on you for keeping after it. Your options for finding more money are either sacrifice something you have now which I've always found more difficult mentally, or find a way to increase your income which is a time/value proposition.
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Posted on 2/26/25 at 8:02 am to scbctigers307
quote:
my wife and I have each stood in an average of about 3-4 weddings a year
Do you want to go to 3-4 weddings a year or do you want to have a kid? This is excessive, and don't feel like you're obligated to go just because you're supposed to stand in it. As a single dude, it can be relatively inexpensive, but for women, it's hell to the no expensive.
Like Gorilla said, your 1.8k - 3k a month credit card spend is debilitatingly bad, and has to be categorized accurately. Stop fooling yourself that building AMEX or Capital One points is a good excuse to obfuscate your spending this way. If you are adamant about CCs being used, set a purchase alert limit of $10.00 on both of your phone apps, so at least everyone gets notified of that "had to have it" purchase at Crumbl or Top Golf, so there's going to be some transparency immediately.
TV: Dump cable.
Dog: 100% variability month to month?
quote:
savings on wedding expenses and the ring
Are the wedding expenses over with? 10k is not sufficient. HVAC goes out, roof needs repair? If you spent two months with no income, you're out of money in 60 days with ZERO credit card spending. The chances of you both being out of work at the same time are low, but not zero.
quote:
I didn’t find it beneficial to rent anymore
Spilled milk, but a refi won't fix your problems, which is discretionary spending. Also, if the cars you bought are "reasonable," I don't get why your car insurance is so high. $250 a month on a $60-70k car with no accidents is about right at least in TX for unmarried.
quote:
the wife and I try to save 11k a year in cash
That's less than 10% of your income, and you're pondering baby? LOLZ. Have you trolled the board to find out how much people are paying for daycare these days? You will be up shite creek without a paddle quick fast. Your wife will have to go back to work at some point given y'alls habits and hobbies.
Posted on 2/26/25 at 8:20 am to LemmyLives
Thanks for the insight.
My wife works. She actually works and tutors on the side.
I’m aware of the expenses that come with having a child, hence why I’m here and venting my frustration. I am also aware that a new roof would be a costly expense. I replaced the HVAC system last year and that was about 9k. I’m just trying to see where my expenses stick out like a sore thumb and/or if I need to try and increase my income.
My wife works. She actually works and tutors on the side.
I’m aware of the expenses that come with having a child, hence why I’m here and venting my frustration. I am also aware that a new roof would be a costly expense. I replaced the HVAC system last year and that was about 9k. I’m just trying to see where my expenses stick out like a sore thumb and/or if I need to try and increase my income.
Posted on 2/26/25 at 8:22 am to scbctigers307
quote:We do the same. You're doing well. Just build up savings and hsa for future kids. That's all I've got.
I should’ve clarified. The credit card payment is what we pay monthly. We don’t owe and pay it off every single month. We are just super busy and have a lot of expenses that get on there. Albeit, some unnecessary
Posted on 2/26/25 at 8:24 am to CalcuttaTigah
I got in my first at fault accident right before my policy was up for renewal a few months ago.
My wife’s is cheaper than mine (hers is about 245).
But I also have us driving around with more than sufficient coverage. I know a personal injury lawyer and I will never come out of pocket because I get in an accident and hit some sue happy riff raff
My wife’s is cheaper than mine (hers is about 245).
But I also have us driving around with more than sufficient coverage. I know a personal injury lawyer and I will never come out of pocket because I get in an accident and hit some sue happy riff raff
Posted on 2/26/25 at 8:37 am to scbctigers307
quote:Treat your monthly savings obligation the same as your debt obligations. Automate savings into an account that you commit to not accessing except for emergencies or expenditures you were intentionally saving for long term.
I try to save as much as I can a month. Some months it’s zero dollars some it’s 1k. All in all, between bonuses and monthly savings, the wife and I try to save 11k a year in cash.
Posted on 2/26/25 at 8:42 am to scbctigers307
quote:
Car Notes: 880
A rule of thumb I go by, never carry 2 notes at one time. Get rid of one of these.
quote:
Car insurance: 575
That's high. I pay $160 for a 2017 F150 and a 2024 Honda Odyssey. Shop around.
quote:
Groceries: 350
This is wildly low. If you're only spending 350 on food at home it means you're spending a lot on eating out.
quote:
Dog expenses: 100-250
Per month? What are you doing to this dog?
Overall you're not in a bad spot but you could clean it up a bit.
Posted on 2/26/25 at 8:42 am to scbctigers307
quote:
and/or if I need to try and increase my income.
Be careful with this. Your wife already has a side hustle, and you guys are outspending it. The perception that just one more side hustle will paper over spending is false, it tends to create micro-excuses on why you can afford the treat/trip/extra round of golf.
Don't get too down on yourself though, it's essentially what most people do at your age. At least you're saving for retirement; with most, it's "I'll start next year after my sister/friend gets married"... Then they wake up 10 years and 15 baby showers later, and they got nuthin. This is part of the pressure problem with the weddings that you need to start dealing with now; it's not just your kid, it's acquaintances kids, the 100 Christmas cards you think you need to send out with pictures of the kid, and all that unnecessary shite. Learn how to say no now, because most of this battle is going to be between you and your wife and the pressure of social expectations. The fight is coming, it's better to have the discussion sooner and not when you're 35 and in a real hole.
Posted on 2/26/25 at 8:53 am to scbctigers307
Maybe pay down some debt, improve credit score and then get that car insurance premium down. $575/ month sounds high.
Posted on 2/26/25 at 9:04 am to scbctigers307
quote:
I’m aware of the expenses that come with having a child, hence why I’m here and venting my frustration. I am also aware that a new roof would be a costly expense. I replaced the HVAC system last year and that was about 9k. I’m just trying to see where my expenses stick out like a sore thumb and/or if I need to try and increase my income.
Don’t listen to that Lemmy dude. He is a legitimate crazy person. I think he may talk to himself in threads under multiple usernames.
It looks like based on your grocery and credit card spending you guys eat out a lot. If you cut that back during the week you’ll save hundreds a month. Again, you’re in your 20s, saving for retirement and cash every month is better than most people.
When you have a kid you’re not going to be out near as much and redirect all the entertainment spending there. Generally, you are doing more than ok, just try to tighten up around the edges, get the cars paid off, and most importantly make more money. This shite gets a lot easier as your income goes up.
Don’t be a tight arse and make yourself miserable, I can guarantee you, no one looks back at their 20s and says “I’m so glad I skipped all those things with my friends to save a couple of bucks.” Get out and do shite and travel while you can, just don’t be excessive and don’t waste
Posted on 2/26/25 at 9:12 am to makersmark1
quote:This
Get rid of debt.
quote:This Did it for years
Drink only water when you eat out.
quote:- I'm 38 with fam of 3, we eat out maybe twice a month Very doable
Cook more.
quote:- disagree - sounds likes he keeps up with his finances , put everything on a card that has benefits and pay it off every month.
Quit using the credit card for anything but gas and groceries.
quote:- This!!!
No Starbucks, drinks from gas station, etc.
quote:End up being more fun (to me) and you dont have to worry about a DWI if you had a drink or two.
Invite friends to your house rather than going out.
Posted on 2/26/25 at 9:14 am to Mingo Was His NameO
quote:
He is a legitimate crazy person. I think he may talk to himself in threads under multiple usernames.
I talk to myself under the same username, thankyouverymuch.
quote:
Don’t be a tight arse and make yourself miserable
That's not what I'm advocating. Hell, maybe if they cut it down to 1 wedding a year, they can afford to take a trip to the exotic locale of Cancun once a year and still save money.
As a Director in public accounting (even at KPMG), your financial picture in your 20s was probably better than OPs. You remember all those consultants and seniors that ran out and bought Audis and condos six months after they started working at the firm? Just livin in your 20s, bro! It's not a normal people scale to make financial decisions about indulgences when two incomes and a side hustle aren't clearing Big 4 Manager money.
quote:
Don’t eat out during the week, don’t buy shite you don’t need, but also don’t skip out on a trip you may never be able to do again.
You are way overblowing a "trip you may never be able to do again." Unless your standards are so low that you'll never possibly be able to meet the same couple on the beach a year after they get married, or meet them in Nashville for a women's trip, when OP is in a better financial position.
Posted on 2/26/25 at 9:15 am to scbctigers307
You're doing good man.. its not easy out there. Always save something every month. Try to knock out the car notes and it frees up a lot of cash and keep driving those suckers for a long long time.
Posted on 2/26/25 at 9:27 am to LemmyLives
quote:
You are way overblowing a "trip you may never be able to do again." Unless your standards are so low that you'll never possibly be able to meet the same couple on the beach a year after they get married, or meet them in Nashville for a women's trip, when OP is in a better financial position.
You’re only in your 20s with no kids when you are in your 20s with no kids. You and your friends are going to grow up and get busy and have to haul kids all over the place at some point and you’ll likely see most of them less and less.
If the people that are important to you ask you to be in their wedding, do it. If your long time best friend asks you to go fishing, go, etc, etc. you aren’t going to be able to do that forever. Sacrifice the chipotle on Wednesday nights to make that happen. You won’t miss that take out meal, but you will those experiences.
Posted on 2/26/25 at 9:30 am to scbctigers307
My only thoughts are similar to others:
1) never have two car notes at the same time.
2) Find better auto insurance (or all insurance if you bundle)
3) That mortgage is really holding you back but that is tough these days. I'd personally try to find a way to get mortgage down to $1k-1.5k in the future
4) Your grocery bills will more than double with kids so be prepared for future grocery bills to be $600-800 range
5) pets are great but $250/mo is brutal
7) if you can get rid of car notes and student loan debt, do it
IMO, with kids and a relatively tight budget, you need to find ways to free up discretionary monthly budget. Between medical bills, clothes, kids activities, trips, etc. you'll get hit with all sorts of one-off expenses all the time and it is no fun living paycheck to paycheck. I personally try to have about $2k discretionary spending with my budgeting (if there are no expenses that month it goes to savings).
Sorry, one more item, just saying this as a father-to-someday-father, keep in mind that when you have kids it is OK for your wife to want to stay home. If you can get to a point where that is possible, then you will be doing fantastic. You dont want to be the one to say your wife can't stay home if you can prevent being in that situation. For a lot of mothers it is a hugely powerful feeling AFTER the kid arrives that they didn't expect. And of course it is beneficial for kids to have more time with parents and less time with daycare.
1) never have two car notes at the same time.
2) Find better auto insurance (or all insurance if you bundle)
3) That mortgage is really holding you back but that is tough these days. I'd personally try to find a way to get mortgage down to $1k-1.5k in the future
4) Your grocery bills will more than double with kids so be prepared for future grocery bills to be $600-800 range
5) pets are great but $250/mo is brutal
7) if you can get rid of car notes and student loan debt, do it
IMO, with kids and a relatively tight budget, you need to find ways to free up discretionary monthly budget. Between medical bills, clothes, kids activities, trips, etc. you'll get hit with all sorts of one-off expenses all the time and it is no fun living paycheck to paycheck. I personally try to have about $2k discretionary spending with my budgeting (if there are no expenses that month it goes to savings).
Sorry, one more item, just saying this as a father-to-someday-father, keep in mind that when you have kids it is OK for your wife to want to stay home. If you can get to a point where that is possible, then you will be doing fantastic. You dont want to be the one to say your wife can't stay home if you can prevent being in that situation. For a lot of mothers it is a hugely powerful feeling AFTER the kid arrives that they didn't expect. And of course it is beneficial for kids to have more time with parents and less time with daycare.
This post was edited on 2/26/25 at 9:34 am
Posted on 2/26/25 at 9:32 am to notsince98
quote:
That mortgage is really holding you back but that is tough these days. I'd personally try to find a way to get mortgage down to $1k-1.5k in the future
You have to have $100k cash or live in a shanty to make this happen
Posted on 2/26/25 at 9:35 am to Mingo Was His NameO
quote:
You have to have $100k cash or live in a shanty to make this happen
A shanty to you is probably a fully functional house to most others.
Posted on 2/26/25 at 9:38 am to notsince98
quote:
A shanty to you is probably a fully functional house to most others.
My salary is the same as the price of my house. I live in WAY less house than I can afford.
A $1k mortgage anywhere where other people live too will get you about 1k square feet of rotting house
Posted on 2/26/25 at 9:56 am to thunderbird1100
quote:Couldn't agree more. That is the first thing that stood out.
This is 1 thing I would tackle immediately. This is almost $7k/yr for you which is obscene if this is just 2 vehicles for the 2 of you.
Posted on 2/26/25 at 10:02 am to Mingo Was His NameO
quote:
My salary is the same as the price of my house. I live in WAY less house than I can afford.
A $1k mortgage anywhere where other people live too will get you about 1k square feet of rotting house
You have no idea how much equity they have.
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