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Care to share your combined income, as well as your mortgage payment? If not I Understand, but it just gives a clearer insight and comparison to struggles of young couples starting out today.
For us, the cost of childcare is crippling. We pay 800/mo for 2 days in a center, then another 165/week to a sitter to watch them for 3 half days that DH isn't home. If we were to go FT at a center, each child would be about 1200/mo give or take a few hundred. That is more than double what friends elsewhere in the country tell me they're paying.
We live very frugally, I spend less than $600 month on groceries including diapers/formula/hygiene products for a family of 4. We have 1 car note ($250/mo) and 2 vehicles. I have no desire to keep up with the Jones, let them wallow in debt. In our home, things are only replaced when needed, not because we WANT them. Clothing is also purchased on clearance when needed. I spend probably 2k/year max on the kid's clothes and probably half that on DH and myself. I don't buy myself trendy items so my wardrobe lasts longer. I have friends who replace their entire wardrobe every year. Really? That is necessary why?
We can afford to buy, but it would be a huge struggle for us. We can do the mortgage, we can do the utilities, we can't do a second mortgage payment for property taxes. It would be DIFFICULT but not impossible to stay on LI at under 100K/year. I am sure once our childcare expenses are lessened it will be much easier though. We'd be comfortable without that expense, actually.
I don't think it's impossible to survive on less than 100k/year but most people don't want to make the sacrifices
So why don't you trade in you Escalade for a Pinto?
See, I can play the "ner ner, I'm smarter than you" role too.
I sympathize with you. Daycare expenses are a killer, I've tried to make the math work for my family without them..but it just doesn't. You spend $12,000 a year to make 85K more, it's worth it. I wonder where the cut off point is though? When is that second income low enough that you consider dropping it?
I didn't say that it was a necessity..I said that 2 cars for 2 working people are a necessity. The genius I quoted tried to make a point using silly and stupid numbers that apply to virtually no one.
What is the minimum amount you think a family of 4 needs to shell out every month to have 2 RELIABLE cars..not free ones form their family, I'm talking from scratch.
By the way, I have 2 cars that have been paid off for over 3 years, 0 credit card debt, and I live well beneath my means,..not EScalades, no DVD players in the cars, no jet skis, I spend less than $90 on 2 cell phones per month,oh my god I have a 46 inch TV......
So before anyone else knocks themselves over patting themselves on the the back ................ Isn't that what these threads end up being about? Instead of talking about the issue of surviving here with how expensive it is, it's most of the people trying to tell you how smart they are because they're doing so GREAT!!!!!!
And yes, in the grand scheme of things when you are paying $2,000 for a mortgage $10K a year in taxes and $1,000 a month in child care, your cellphone anecdote is irrelevant.
So your metholody is, "I'm paying $2,000 for a mortgage $10K a year in taxes and $1,000 a month in child care, so why not buy the Escalade instead of the honda civic" in the grand scheme of things the difference between the two car payments doesn't matter. Sorry but all your go for more instead of less adds up.
I won't give no pats, because I'm not making it here either but at least I acklowedge it's expensive and either I leave or I cut my costs and increase my income till I can spend where I want and not on expensive necessities.
So your metholody is, "I'm paying $2,000 for a mortgage $10K a year in taxes and $1,000 a month in child care, so why not buy the Escalade instead of the honda civic" in the grand scheme of things the difference between the two car payments doesn't matter. Sorry but all your go for more instead of less adds up.
I won't give no pats, because I'm not making it here either but at least I acklowedge it's expensive and either I leave or I cut my costs and increase my income till I can spend where I want and not on expensive necessities.
Where did I say that? This shouldn't be so difficult to explain.
I said that 2 cars on LI for a family with 2 working people are a necessity. I asked how much you think that costs. It's part of the overall discussion of living here on 100K.
Some of these clowns want to factor in $0 dollars...which is complete BS. You're going to be spending over $500 on cars and car insurance no matter what..if you get old clunkers you're going to have to pay to get them fixed constantly. That's real money and a legitimate expense. The 25K/2 year loan/Escalade w/DVD player is a red herring ..as I said, I don't know any family making 100k a year that has any of those things apply to..it's s stupid example.
I can tell you personally, we bought a house here a few years ago. At the time our income was above 100k. I was pregnant with our second child, and had to have an emergency C-sec. Unlike the easy birth of our first child, I ended up with over 6,000 in out of pocket costs. (As it turned out the policy has a 3,000 coinsurance per person for a hosiptal stay, and of course the baby counted as a separate person) This was with health insurance.
2 months later my husband gets laid off from his job. So then you can add the 1,000+ a month COBRA premiums onto that. Plus unemployment pays nothing really. My husband found a job a few months later, but it paid less than 100k and also offered no medical benefits. So not only did he take a salary cut, but we were also still on the hook still paying the 1,000 for COBRA. Oh and the $400 a month for LIRR/metro card combo.He stayed at that job for nearly a year. I have two young kids. Zero school loans for either of us. Both cars paid off. No iPhones, escalades, etc. Honestly, I am a very frugal person. But of course our cesspool backed up into our basement and needed to be replaced and our roof needed to be done. So add that on there. I explored going back to work but the childcare was prohibitive with 2 children under the age of 3.
We put down 20%, no consumer debt, no car payments, mow our own lawn, i work freelance from home with no childcare (which is incredibly hard) etc. That year just killed us with the medical costs. Luckily he got a new job a few months ago with medical benefits for all of us, but still. I think childcare and insurance costs are a huge component for many people. We will have a few more lean years until my kids are both finally in free school. Baby is now toddler and almost ready to potty train and that will mean no more diapers. Also factor in preschool x2 for a few years and it is all expensive.
I can tell you personally, we bought a house here a few years ago. At the time our income was above 100k. I was pregnant with our second child, and had to have an emergency C-sec. Unlike the easy birth of our first child, I ended up with over 6,000 in out of pocket costs. (As it turned out the policy has a 3,000 coinsurance per person for a hosiptal stay, and of course the baby counted as a separate person) This was with health insurance.
2 months later my husband gets laid off from his job. So then you can add the 1,000+ a month COBRA premiums onto that. Plus unemployment pays nothing really. My husband found a job a few months later, but it paid less than 100k and also offered no medical benefits. So not only did he take a salary cut, but we were also still on the hook still paying the 1,000 for COBRA. Oh and the $400 a month for LIRR/metro card combo.He stayed at that job for nearly a year. I have two young kids. Zero school loans for either of us. Both cars paid off. No iPhones, escalades, etc. Honestly, I am a very frugal person. But of course our cesspool backed up into our basement and needed to be replaced and our roof needed to be done. So add that on there. I explored going back to work but the childcare was prohibitive with 2 children under the age of 3.
We put down 20%, no consumer debt, no car payments, mow our own lawn, i work freelance from home with no childcare (which is incredibly hard) etc. That year just killed us with the medical costs. Luckily he got a new job a few months ago with medical benefits for all of us, but still. I think childcare and insurance costs are a huge component for many people. We will have a few more lean years until my kids are both finally in free school. Baby is now toddler and almost ready to potty train and that will mean no more diapers. Also factor in preschool x2 for a few years and it is all expensive.
Nah, you just need to cancel your cellphone and sell off your baby sling, and that cesspool bill/medical bill/roof repair bill will vanish in no time (20 years or so) ..at least according to the genius back-patting math of the average C-D poster.
I sympathize with you. Daycare expenses are a killer, I've tried to make the math work for my family without them..but it just doesn't. You spend $12,000 a year to make 85K more, it's worth it. I wonder where the cut off point is though? When is that second income low enough that you consider dropping it?
I have read it is 50k annual salary for more than 1 in daycare. For us the reason I left was the cost of after hours care plus commuting costs on LIRR. Now, had I known my husband would get laid off from his job of 10yrs, I would have kept my<50k job for the benefits alone. But of course hindsight is 20/20!
2 year loans on $25K cars? Talk about fudging up the numbers to make your point.
If you need 2 cars at the same time and don't have enough to buy them outright, you're going to be spending at least $500 a month for 2 reliable cars.
Those are not luxuries, they are necessities.
Childcare during that same month will cost you $1,000 Your health insurance premiums (with a good company, not free from the taxpayer) will cost you $400+ a month.
That makes all the talk about cell phones and tv's irrelevant.
Then there are those of us here who have to pay our own way and who've raised their copays ($45) and decreased their coverage in order to keep the monthly health insurance bill at $1,575 or $18,900 per year before copays and RX copays. The premium alone is 19% of that $100K gross salary.
Where did I say that? This shouldn't be so difficult to explain.
I said that 2 cars on LI for a family with 2 working people are a necessity. I asked how much you think that costs. It's part of the overall discussion of living here on 100K.
Some of these clowns want to factor in $0 dollars...which is complete BS. You're going to be spending over $500 on cars and car insurance no matter what..if you get old clunkers you're going to have to pay to get them fixed constantly. That's real money and a legitimate expense. The 25K/2 year loan/Escalade w/DVD player is a red herring ..as I said, I don't know any family making 100k a year that has any of those things apply to..it's s stupid example.
I got ya, I agree.
Based on the topic heading I agree $100K is very hard here,
Trust me I know the struggle I make a combined income over $100K and have that same amount in combined student loans, car loans and pay $1800/month rent. What's holding me back is the cost of debt, not the cost of living here. I could afford a mortgage right now and one of our income goes right to debt repayment. Throw in a child and I'm screwed. But take out the loan payments and that frees up childcare costs. This isn't a pat on my back and I know it's hard here. but it's hard all over the place, cost of living is all relative. Private salaries need to increase drasticly, especially on long island
Then there are those of us here who have to pay our own way and who've raised their copays ($45) and decreased their coverage in order to keep the monthly health insurance bill at $1,575 or $18,900 per year before copays and RX copays. The premium alone is 19% of that $100K gross salary.
Well, I didn't tell you to buy that $200 Android. If you hadn't bought that, all of these bills would magically be paid off.
How friggin' stupid is that argument? The concept is fine, don't buy stuff you don't need, but in terms of it's impact on peoples cost of living, it is virtually irrelevant.
Consumer goods are cheaper relative to income than they've ever been. Thanks Chinese manufacturing. We only lost our good paying jobs and retirement packages to make them possible!! It was well worth it that I can have 5 great techno gizmo gadgets for a few hundred bucks...I work at Wal-mart, have no health insurance and no hope of ever retiring, but i have a flat panel TV and an Android or whatever.
Yeah, if I hadn't bought that TV and Android, I would have been able to ret.....nevermind, they wouldn't have made jack squat difference.
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