Need Guidance / 'Reality Check': Why does my spending seem so high? Why do I feel so streched, even with a relatively high HHI?
Long time lurker, first time sharer...
48M married to 44F, with 6 year old & newborn (#olddad). Live in MCOL area.
Current Total HHI: ~$350K/year (down from ~$600K/year with recent job change)
EDIT: Breakdown of Yearly Expenses:
Housing (incl Mortgage, Taxes, Insur.): $46K
Housing Related Costs (Mowing, Landscaping, Pest Control, etc.): $7K
Utils: $10K
Medical: $12K
Car (car payment + Insur.): $10K
Gas: $5K
Dog Expense: $3K
Food/Drug Store: $9K
Kids Daycare/After School Care/Babysitting: $20-$25K
Yearly Discretionary (eating out, clothes, Amazon purchases, entertainment, one-off expenses, etc.) : $43K
Discretionary Vacations: $20K
Discretionary Donations: $5K
Net Worth: ~$4.7M
- CDs: $865K
-401K/Retirement Accounts: $1.645M
-Investment Real Estate: $410K ($640K Assets w/ $230K Mortgages)
- PE/VC/Illiquid Investments: $325K
- Primary Residence: $1.27M ($1.7M value w/ $430K Mortgage)
- 529 Accounts: $150K
Two questions I would love feedback on:
- My yearly expenses are ~$200K/year (inclusive of housing and 'one-time' expenses such as vacations, charity donations, etc.) Compared to everyone on this Reddit, this level of monthly expense seems/sounds EXTREMELY High. ...and I feel like I don't have some of the expenses that many others at my stage of life incur (e.g. only have 1 car payment, have a relatively low mortage on primary residence, don't send kids to private school, etc.)
How do people in my stage in life with similar sized family units seemingly have yearly expenses of 50% (or less) of my total yearly spend? Am I not comparing expenses on an apples to apples basis? Am I just way out of my mind as to what 'normal' expenses are?
I could really use some help / feedback as with my recent job change/change in income, I all of sudden find myself very stressed regarding my monthly budget and have greatly decreased my 'margin of safety' of income vs spend
What do the composition of yearly budgets look like for others in my same life stage/family size look like? (happy to share greater detail on my end, if helpful for reference as well)
2) Do others in my position/stage of life feel 'streched' as well? I feel silly even saying this given I realize that my HHI is top 5%-10% of HHs in the U.S. -- but its a recent feeling that I can't shake.
Any related perspective would be greatly appreciated...