Cost of living and how much do you really need.... (rental, health insurance)

[baycurious123]

Originally Posted by zhelder

Growing up in a household where $30,000 a year between my parents’ salaries was considered “a good year”,

How old are you?

[DannyHobkins]

It sounds like your property taxes are killing you, $16k that is outrageous! Its literally just throwing money down a toilet.

Should just move to North Carolina property taxes are 1.5k on a house that size for half the amount. Also 2.8% interest rate you can do much better like down to to 2% and no fees if you really look.

Try picking up an extra side hustle. Do doordash or ubereats its easy to pull in and extra $300 a week doing like 2 hours of 3 or 4 days a week

Vacations and flights can be inexpensive for just need to find the deals etc.

[Airborneguy]

Originally Posted by baycurious123

How old are you?

To be honest, I'm only 43 and my father was the sole breadwinner in my house growing up, making much less than or in the 30's until I was about 12. We always lived in a single family home that he owned and went to Catholic School.

[Irish Eyes]

Honestly? We knew we could have a large expensive house with all the higher costs that came with it, or financial security and some other things. We chose financial security and other things.

[Rootdkj]

The "Personal Consumer Issues" section over at Bogleheads.org is loaded with the internet's most frugal people. It's a great place to get advice on all sorts of purchases and get a free investment portfolio review.
https://www.bogleheads.org/forum/viewforum.php?f=11

[kosb]

With some rigorous preparation for FAANG interviews via leetcode or some other interview prep, your husband should be able to increase the salary from 125k to 350k. Its not easy at all and definitely very hard with the kid, family, social commitment. But I have seen few example where people have done it and have landed in Amazon, Microsoft, Facebook jobs paying 250k to 400k jobs.

[Gerania]

Originally Posted by Rootdkj

The "Personal Consumer Issues" section over at Bogleheads.org is loaded with the internet's most frugal people. It's a great place to get advice on all sorts of purchases and get a free investment portfolio review.
https://www.bogleheads.org/forum/viewforum.php?f=11

My husband used to write to companies and tell them that their product failed sooner than expected and get a free replacement. He also got free shoe repair from a couple of places. That was 20+ years ago.

[Sydney123]

I don’t know how much I’ll need, but I know how much I’ve got…..

[laxmii]

Originally Posted by Teach277

We sold our house last summer (1560 sq ft, 11k taxes) and bought a bigger one (2400 sq ft, 16k taxes) in a much nicer neighborhood. We are now surrounded by 1-2 million dollar homes.
Put 20% down on $720k price.

Used a portion of our remaining funds to refinish floors, install AC and sewer.
Throughout the whole process we have had anywhere from 20-40k in our bank accounts total.

Our mortgage is $3800. 2.75 interest rate.
Husbands salary is $125k
Mine: $76k
We both contribute to our retirement accounts.

My question is- how do people afford stuff?

I will put a water bottle in my Amazon account that the kids need and over the course of the week hit "save for later" and add to cart... like 10 times. I overthink every purchase. I buy cheap clothes from Old Navy or Target for the kids. My husband and I don't buy new clothes unless something has a rip in it or our sneakers wear out from repeated use.

I am not basing my "How do people afford stuff" off of the new neighborhood- I know they have money!

We have friends and acquaintances in other towns but they all somehow manage to take multiple flights and vacations each year, have kids in a bunch of activities, be putting additions on their homes, installing pools, patios, leasing new cars, and have cleaning ladies and babysitters.

I was raised to take care of stuff myself. But sure! I would love to have these luxuries. I just cannot see affording it.

We do not fly anywhere, I take the role of cleaning lady. No sitter for the summer or any camps. During the school year this past year we relied on the newly retired grandparents nearby. (Did daycare prior years) Own both of our cars (Hondas) that are 5 yrs old and 11 yrs old.

What are we "doing" wrong?

The new house needs a lot of work- which we are going to DIY. We completely remodeled the last house which helped us make enough profit to put the 20% down and have some left over. We do not pay for labor. But, again, we are very aware of how much is in our accounts and do not want to order anything till we have the cash.

Are we just frugal people? Is that a bad thing? I am curious how people do it all... if there is some secret I am unaware of please let me know.

People invest in stocks and earn hell a lot of money. some may even receive RSUs as part of the compensation. try to increase your income (with out taking much risks) than being just frugal.

[Recwyte22]

Your mortgage is killing you. Youre cash starved and 2800 would have been a lot better than 3800. You also bought a 720k house that needed a lot of work. $720k. Needs a lot of work. For $720k. That needs work.

I'm trying to be funny but seriously, seems you bought in a rather upscale neighborhood. Take the bad with the good.


As for as general spending...Do you have car payments? Never ever ever ever ever ever ever ever ever ever buy a new car or lease. So many good cars come off lease nowadays that are like new and last 150k miles plus. Yes, even US made. I see so make people spending 350-600 on each car per month. Plus insurance.