Annual income and does it cover

amother

Latte ↓

Thu, Jan 04 2024, 8:03 am

Our yearly income rn is about 800k. Self employed.

We hv 5 kids Kah.
Yes bh we make it with plenty to spare.
We give about 25%+ of net to tzedaka.
Pay full tuition obviously & pay abt 2500/mth for private chavrusas for boys.
I actually would not consider us Big Spenders and the majority of our budget goes to those two things and the third thing would be our food bill because I try not to skimp on food.

I don't buy designer clothes, we don't take family vacations every single year and we stay home for every yt.

Bh we put away about 200k a yr rn. Some years more if no big simchas.

Keep in mind that at this level your take home pay is about 40% less than your gross. And if you live in NJ, you'll prob owe additional tens of 1000s of taxes at the end of the year due to the worst tax laws in the country.

amother

Orchid ↓

Thu, Jan 04 2024, 8:05 am

amother Latte wrote:

Do you live in NJ? Or you’re just saying it as an FYI.
Also would you share what you do?

amother

↑ Silver ↓

Thu, Jan 04 2024, 8:07 am

amother Latte wrote:

Wow you are an inspiration!! I wish I could be like you!!

I agree NJ is pretty bad but I think NY and CA are even worse Smile

amother

↑ Latte ↓

Thu, Jan 04 2024, 8:15 am

amother Silver wrote:

Wow you are an inspiration!! I wish I could be like you!!

I agree NJ is pretty bad but I think NY and CA are even worse Smile

Don't want to derail thread, but...
Not if you have a business...nj doesn't allow business losses to be deducted from your personal income. So if your business lost money but you took a paycheck so your income is a certain amount of money you can't pass that loss through.

We file in a few states inc NY, we got a bit of a refund towards the taxes we took off from every state and federal, but New Jersey we owed over 30k ON TOP of what we withhold already. We withhold the max from every paycheck. The majority of our income this yr wasn't even in NJ.

Lovely state.

amother

Babyblue ↓

Thu, Jan 04 2024, 8:20 am

We make about 250k maybe 260k pre tax which is really like 165/170k post tax and 401k match its mostly my husband working as I do everything else for the house and try and work 10 hours a week as working more would just cause us to pay more taxes and we would all need therapy from the pressure it would create. We can bh cover our bills with some put away each month not much but between 100 and 1000 depending plus match a 401k. Live in queens/5 towns area which is a very high cost of living we have 4 kids kh live on the simpler side compared to neighbors,I try to find the happy medium where my kids are happy and not spending too much. What saves us is housing we don’t pay much rent or housing expenses as we live in a family members house which they are happy to have us live here and just cover the expenses of the house they live in apt due to being older. We currently get some tuition break our youngest is currently in upk so it’s government funded but iyH next year will be paying tution for him as well so our tuition bill will prob be like 45k if we continue to receive the breaks we receive otherwise it’s like 60k for 4 kids. Currently am learning shar habitachon to help with my emunah and to realize I’m not in control we are just vessels for parnassah and it’s all decided by Hashem.

amother

↑ Petunia ↓

Thu, Jan 04 2024, 8:21 am

amother Silver wrote:

My my calculation if we made 500k a year we’d be rich in a few years 😂 we’d invest about 150-200k a year

Don’t forget that when you make that much money they take away almost half of it so they can pay for illegal immigrants to have free housing . I live in ny 🙄 . But I’m sure it would be possible to save more then we do but you would have to be really frugal . Which we are not . We put $3000-$4000 in savings each month but many times we need to dip into the savings .

amother

Eggplant

Thu, Jan 04 2024, 8:50 am

amother Babyblue wrote:

Did you read the double take in Mishpacha last week? Please, please make it an absolute priority to buy something. Even if it’s on the outskirts and even if you just buy it to rent out because you don’t necessarily want to live on the outskirts, and cover the mortgage that way. Even if it’s in a totally different area and 100% an investment property. It is extremely hard to find yourself in a position where you go from essentially zero housing cost to suddenly needing to buy or rent a house when you are at the stage of marrying off kids with zero assets other than a few thousand in a retirement account! Unless this is one of your parents’ house and you/DH are an only child so there is absolutely no doubt that this house will eventually be yours with no splitting or sharing inheritance etc. If that’s the case feel free to ignore my advice!

amother

↑ Silver ↓

Thu, Jan 04 2024, 8:51 am

amother Latte wrote:

We had and sold a business in NJ. We paid taxes for the business and the checks we wrote to ourselves were income tax with no business deductions, that is correct. The business deductions were strictly for the business itself.

amother

↑ Silver

Thu, Jan 04 2024, 8:53 am

amother Petunia wrote:

Poster up thread said she saves 200k minimum a year and makes 600k with three kids so I think we’d be able to do it! Halevai we should make 500-600 k a year Wink

amother

Navy

Thu, Jan 04 2024, 9:06 am

amother Latte wrote:

800 is pre or post tax?

We live similarly bh . 3 kids.

But housing is a killer. We just bought a house ( that I consider very small- 2,000sq feet in a suburban area) and paid close to a million. Our monthly mortgage is 7k.

The house is far out from the community and not in great condition etc.

I have friends that bought a few years ago in the 500s, fresher nicer larger homes.

I’m bh super grateful we can swing this but I think it just shows that the math isn’t as straight forward as how much you make. someone who makes significantly less but bought earlier can be living a lot nicer than us.

amother

Gold

Thu, Jan 04 2024, 9:08 am

I think around 275k gross. 3 kids. Money is tight. Just health insurance is 40k a year as we need a very good insurance for our special needs kid. I also owe close to 100k in student loans. My kids don’t go to camp every year because they don’t want to, but not sure how we’d do it if they did. One of them started going recently as staff so that’s free. We do go out to eat once in awhile, and take a (not too expensive) family vacation once or twice a year. I do my own nails, family member does my wigs very cheap. I could spend less on clothes. I started becoming very frugal in my food spending because prices are astronomical. We currently have about 17k in savings and BH own a house that has about doubled in value since we purchased it 7 years ago.

amother

Lime ↓

Thu, Jan 04 2024, 9:14 am

We live in Manhattan and make about 220k combined. We pay 4k for housing and 3k for childcare for one kid (lol Crying

). Things are pretty good: we can go out to restaurants every so often, take a vacation, but definitely need to be thoughtful and methodical about spending. Right now things are fine but eventually we will need to buy a bigger place (currently in a cozy two bedroom apartment) and pay childcare/tuition for more than one kid. Hopefully between our salaries going up and mortgage rates going down, we'll continue to hold steady.