Anyone here with a “good” salary still needing to budget?

New
Valkeere

New

Valkeere
Feb 24 42 Comments

TC- $210k in California. Husband is a small business owner bringing about 100k net. Mortgage of $3900 plus preschool and after school activities and two regular cars (4Runners) have us comfortable but still waiting for the next paycheck before we feel we run out of fun money after savings and expenses.

My monthly net is $11k and his ranges but about $5-7k. How is it that it doesn’t feel like a lot and goes so fast? Starting to track what we spend on because a couple thousand in two weeks can go in a blink of an eye.

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TOP 42 Comments
  • Google
    OldNoob

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    OldNoob
    OP it sounds like you might want to know where your money actually goes to first. If you and your partner are netting ~16k-18k/month and only have a 4k mortgage…. That’s a pretty big delta to zero

    Don’t worry about budgeting… where’s you’re money going?!? I’d personally worry about the basics first
    Feb 24 8
    • New
      Valkeere

      New

      Valkeere
      OP
      We had a little rav4 and it was budget friendly. Needed more space with the kids but I guess we have one. Don’t need two
      Feb 24
    • Google
      OldNoob

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      OldNoob
      😁yeah I think you need a budget (YNAB). That’s a lot and I hope you’re able to get a handle where your money goes. At this point I would say that the good part is that you’re more than capable in terms of keeping up with everything without needing to track every penny and That’s great! And I’m happy for you that you’re looking towards getting better with a budget.

      Give yourself a few months to build up a cushion. Once you do, the stress of feeling like you’re just getting by month to month goes away and things will either get much easier or click into place. Good luck!
      Feb 24
  • You’re in California - everything goes fast! Move out.
    Feb 24 7
    • New
      Valkeere

      New

      Valkeere
      OP
      I saw a lady grabbing bags of baby clothes with her toddler next to her and basically just walk out. Not formula but kid items on a similar note
      Feb 25
    • Folks in CA should protest against this blatant discrimination - should either be free for all or everyone pays✌️
      Feb 25
  • Amazon
    🥇 realpro

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    🥇 realpro
    I'm saving around $3000 a month living on $180K TC as a couple, but no kids and only one new car. The rent for our 2 bedroom apt is also 2100(South Bay) which also helps living on low TC.

    I get most of the groceries from Trader Joe's and Costco, we don't eat out too much and we have a budget for clothes shopping and massages. I suggest using a budgeting app like Mint.
    Feb 24 2
    • New
      Valkeere

      New

      Valkeere
      OP
      That is awesome. Would be able to save like that if it wasn’t $2k + on schools.

      It’s refreshing that you still budget on food to put more money towards your savings. Healthier too!
      Feb 24
    • Amazon
      🥇 realpro

      Go to company page Amazon

      🥇 realpro
      Well, keep in mind our TC total is about 180K 😁 Your expenses will be naturally higher, but given your higher TC, you can definitely save a bit with budgeting.
      Feb 24
  • Microsoft / Eng
    MSForNow

    Go to company page Microsoft Eng

    MSForNow
    My wife and I use an app/site called You Need A Budget (aka "YNAB"). We were able to buy a house, save for vacations and home renovations, eat out pretty regularly, max 401k, and still save/invest about $8k/mo this past year by having a plan and sticking to it.

    Having a plan for your money and visibility into where it's going is a superpower. Once we started budgeting, we spent our money so much more efficiently that it felt like I'd gotten a huge raise. High-TC households may not "need" to budget the same way a lower-income household needs to, but I'd argue that the more money you have to allocate, the more you stand to gain by allocating it more efficiently.

    After all, even Jeff Bezos has to budget how much AMZN he's going to sell in order to fund Blue Origin each year.

    TC: ~275k
    Feb 24 3
    • Microsoft / Eng
      MSForNow

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      MSForNow
      I'm sure you can do it!

      We have lower income than you but we also don't have to pay any state income taxes (WA residents) and our kids aren't in preschool yet, so don't compare your situation too much with ours. Just know that it is possible to save a significant amount and that step 1 is giving every dollar a job as soon as it comes in.
      Feb 24
    • New
      Valkeere

      New

      Valkeere
      OP
      Thanks! I do need to be more intentional on how we spend
      Feb 24
  • Without knowing your finances, what’s your DTI ratio? Could be that you have a lot of debts you’re paying towards monthly.
    Feb 24 2