How to get budget below $100k?

[Mulligan]

Totoro, I agree with you. But the trouble is most people I know (no reference to OP on this) want you to find this one or two simple, painless, quick fix simple flaw in the budget and magically the problem is fixed. Only the truly zealot or desperate will make the changes. Too many areas are automatically off limits once they are questioned.
Budgeting is a lot like dieting and fitness. Many try, but most fail and return to their usual habits.


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[Al18]

A number of people, including myself have commented that budget can be trimmed about $20K without much trouble. To implement this change, I suggest opening a taxable brokerage account (if you don't already have one) and having $1500 per month automatically transferred from you checking/savings account to the brokerage. You can't spend what you don't have, and will need to make adjustments to your spending - problem solved.

 

[Philliefan33]

OP: you live on one salary and save the other, have stated that $4000 donations is less than 1% of your income....and you want to get your budget under 100K? Why? If my math is correct you are saving/ investing over 200K per year and living on half of that. Do you plan on retiring at 40? What's your goal? Your savings rate is way above average. You make good money-- it's okay to enjoy it a little!

 

[Independent]

Of course, any of us can cut expenses if we want to. Rather than give you my opinion, I thought I would give you a few hundred opinions all at once.

The first column below is the average of all DINKs with mortgages in the Consumer Expenditure Survey. These people do detailed spending diaries and interviews, the gov't conveniently accumulates the data for us.

I've tried to match your categories. Of course, there are always some classification issues.

I notice that you don't list "car replacement". That's a big expense for a lot of people.


Discretionary
1,824 …… 5,000 Clothing
3,493 …… 4,000 Dining Out
1,630 …… 4,000 Donations
476 …… 2,500 Personal Care (hair, nails)
2,288 …… 4,000 Gifts
2,071 …… 1,000 Entertainment
2,573 …… 5,000 Travel/Vacation
349 …… 1,000 Electronics
2,066 …… 1,000 Home Furnishings
16,770 …… 27,500 Subtotal


…… Semi-fixed
321 …… 500 Appliances
1,374 …… 800 Cable/Internet
1,619 …… 1,560 Cell Phone
1,672 …… 1,500 Electricity
753 …… 250 HOA Dues
710 …… 600 Natural Gas
elsewhere …… 400 Streaming services
691 …… 1,400 Water & Sewer
elsewhere …… 750 Dry Cleaning
3,405 …… 2,500 Gasoline
5,161 …… 7,000 Groceries & supplies
elsewhere …… 3,500 Costco
15,706 …… 20,760 Subtotal


…… Fixed
13,389 …… 14,424 Mortgage (P&I only)
2,113 …… 4,000 House Maintenance
3,388 …… 8,500 Property Tax
No Kids? …… 15,600 Daycare
1,287 …… 500 Car Maintenance
elsewhere …… 250 Car Registration
255 …… 200 Car Tolls and parking
1,392 …… 1,400 Insurance Auto
elsewhere …… 400 Insurance Flood
3,002 …… 3,000 Insurance Health
elsewhere …… 500 Insurance Dental
588 …… 2,400 Insurance Homeowner's
elsewhere …… 200 Insurance Umbrella
elsewhere …… 200 Dentist
1,187 …… 1,000 Doctor
elsewhere …… 200 Prescriptions
517 …… All Dental and eyecare
27,118 …… 52,774 Subtotal

Items you did not list separately. Some may be included above.
6,097 …… Cars, net purchase + lease
405 …… Vehicle finance charges
483 …… Education
779 …… Alcohol
379 …… Tobacco
1,004 …… Gifts - Tuition
676 …… Life and other Pers Insurance
1,935 …… All Other
11,758 …… Subtotal

71,352 …… 101,034 Grand Total

 

[dvalley]

I live in SoCal with one kid on approx $65k-70k in expenses. I eat out quite a bit and live pretty comfortably. I'm posting my avg monthly budget, hope it helps.

Housing: $2370
-Mortgage, prop tax, ins: $2100
-Utilities: $250
-Gardening: $20 (yes I got a deal because the gradner put in a new sod)

Transportation (two cars): $680
-DMV fees: $50
-Insurance:$75
-AAA: $10
-Gas: $230
-Repairs: $50
-Car payment: $265

Food: $700
-Groceries: $300
-Eating out: $400 (lunches everyday)

Pets: $150

Child support, school, etc: 800

Misc wants: $300-500
- Amazon Prime, Netflix
- Cell phone - $70 total (but also get a $40 stipend from work so $30 usually)
- Clothing
- Toys
- Electronics

 

[gauss]

Have you read anything by the late Thomas Stanley such as The Millionaire Next Door or Stop Acting Rich: ...And Start Living Like A Real Millionaire?

At this point in your life this may be a worthy endeavor to help you figure out your true goals in life.

I was sure happy that I found these works early in my career.

I could try to nit-pick your budget here and there to try to save you 20% or so, but if you are unhappy in the end, have we really accomplished anything.

Reading the above books may change your high level thinking on things and actually facilitate changing your values. In the end you may not change anything but at least you will be going forward into the rest of your life with your eyes open.

-gauss
Meyers Brigss: INTP - I like to work on the big issues