re: How does a family do it financially

Don't buy alot of shite you don't need... buy cheaper or used shite you do need. Don't eat out.

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Was just thinking the average middle class income is 80k a year for a family of 4-5. How do they afford life?

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That’s a wide range based on where you live but generally 80k for a family of 5 is not a model most should aim for

They don’t spend 18% of their income on a mortgage. In your case, that’s an almost $2,000 a month house payment.

frick.
That.

My wife and I make more than you and yours and our mortgage is $1,280 a month including taxes and insurance. We have two children and we save $1,550 a month, spend $600 a month of her car note, and we eat out about twice a week. You just gotta live beneath your means and learn to be happy with what you have.




Y’all can downvote this all you want. Doesn’t bother me. I’ve come to realize that 90% of this board consists of 20-something year old retards with unrealistic views of life. Live about 10-15 more years then we can have a serious conversation on this topic. In my opinion you shouldn’t have a $2,000/month mortgage unless your income is $200-200k a year. Two thousand dollars a month for the house is ridiculous.

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There are places in this country where houses are still just 5 figures. We sold my grandmother’s house for around $50k a year ago. Big house, a couple acres, just outdated and in a podunk town.

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We just had a 900 sq ft family house off N 7th in west Monroe (not great area, but not ghetto) sale for like $120k. You're talking the serious sticks to be 5 figures

290, with a dp

We bought it in 2016 which was indeed before our income was anywhere close to where it is now BUT we have no plans to upgrade now that our income is better. We’ll be doing a kitchen remodel at some point if we can find a reputable pro to do it for under $40,000 (it’s a small kitchen) but so far that hasn’t happened. Gonna wait until the recession hits and gets deep. Those frickers are going to be desperate then and that’s when we’ll pull the trigger. I’m not paying 40k+ for a 200 sq ft kitchen remodel. That may be the normal price now but I’m not paying that for that amount of work. Sorry, just not gonna happen.

Financial Peace University by Dave Ramsey

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Yeah this is right. Only contribute enough to get the maximum employer match. Put the rest of your saving money in an IRA. You have a lot more options in an IRA and it’s considered personal property unlike the 401k which is community property. Those target date funds…money just leaks out from those things.

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You all know you can do both of these things, right? Max out your 401k for tax purposes, max out your HSA contributions, max out your IRA (I backdoor this puppy now), have money in a brokerage account and save some money? Oh and send kids to daycare/school.

Luxuries = Necessities for too many

Anita- I see your in the Boston area. That’s no joke. Isn’t the average home price 800k there?
So for the average family of 80k that’s before taxes and everything is taken out. My friends make under 70k before everything is taken out not after. That’s what got me thinking about this