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-> Household Management
-> Finances
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amother
Ivory
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 Wed, Aug 21 2024, 11:53 am
| amother Eggshell wrote: | Again, I said we make $70,000 per month, not per year.
My income is three times yours. Every penny is reported. But we are paying less taxes. |
How are you paying less than 25% taxes? We earn similarly to you and are in a 40% tax bracket but you seem to be paying significantly less than that. Tell me your ways!!!!
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amother
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Wed, Aug 21 2024, 12:15 pm
| amother Eggshell wrote: | 300,000/12=25k
Your take home was 9700+(1400+600), est 11700.
65% would be $16250. |
She said per pay period, not per month. Maybe its biweekly, and if so it is indeed a little over 65% take home pay.
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amother
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Wed, Aug 21 2024, 12:19 pm
| amother Eggshell wrote: | Wow that's a lot of taxes & insurance.
Do you get a tax refund at the end of the year?
How much is insurance?
I say this because our pre-tax income is about 70k, post Is abt 52k per month. We don't take off insurance, but yours still seems a lot. |
This only makes sense if you live in a tax free state. And if someone lives in New York city for example, there is an extra New York city tax (besides state).
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amother
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Wed, Aug 21 2024, 12:45 pm
| amother NeonPink wrote: | | She said per pay period, not per month. Maybe its biweekly, and if so it is indeed a little over 65% take home pay. |
Yes this is correct.
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amother
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Wed, Aug 21 2024, 1:07 pm
| amother Ivory wrote: | | How are you paying less than 25% taxes? We earn similarly to you and are in a 40% tax bracket but you seem to be paying significantly less than that. Tell me your ways!!!! |
Move to Florida.
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amother
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Wed, Aug 21 2024, 1:46 pm
| amother Ivory wrote: | | How are you paying less than 25% taxes? We earn similarly to you and are in a 40% tax bracket but you seem to be paying significantly less than that. Tell me your ways!!!! |
I live in tristate, so plenty of income tax.
State we don't get a refund. Sometimes we owed.
Federal we do. We give a lot of tzedaka (20%) and that's a big deduction. We have mortgage & property tax. And a top accountant. It led to a federal refund.
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amother
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Wed, Aug 21 2024, 1:51 pm
As requested, I will post our general budget soon. I have to go through QB to compile it. But I want to clarify our financial situation first:
We are not frugal. We are also definitely not lavish.
When my kids were young we were very frugal. All large purchases (furniture, baby equipment, etc) were second hand. I welcomed good condition hand-me-downs and shopped at children's place and old navy on sale with coupons. I went out to eat (to a takeout place) twice a year - my birthday and anniversary.
As my kids got older, their requests for more made me anxious. We discussed our situation with our Rav, and this is how we were advised:
We should provide family and kids with whatever is considered "normal" in our community (obviously within reason. I still don't understand how 4k Sq ft homes became normal.) Hashem wants us to live normally, not to penny pinch, and He will provide.
Our kids are not spoiled. They do not have anything name brand. No Lululemon, alo, Michelle, pandora, Tiffany or similar. But they do want 2 new shabbos dresses (not hand-me-downs) every season. And yes, every kid on the block gets that, so that is normal. Every single girl starts school with a band new pair of loafers. Mine need too as well, even if they are expensive. Girls go to sleep away camp - that is normal.
My original post that triggered this S/O was when I said that the organizations that give steep discounts (or even free) to low income/klei kodesh families does a huge disservice to us as it raises the bar of "normal". E.g. well to do families go on vacation. Now there is the iggud that offers very cheap resort vacation for yungerleit. What about my kids? We are not going for 4 days to a resort. We can't afford it. But rich and poor can afford it, so now that is normal.
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amother
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Wed, Aug 21 2024, 1:54 pm
| amother Gray wrote: | | Why wouldn't they be? When I was making 70k a year myself, that's about how much I was paying... about a quarter of my salary went to taxes. |
With a family/ several kids?
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amother
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Wed, Aug 21 2024, 2:13 pm
| amother OP wrote: |
My original post that triggered this S/O was when I said that the organizations that give steep discounts (or even free) to low income/klei kodesh families does a huge disservice to us as it raises the bar of "normal". l. |
Yes. 100%
I buy my girls nice clothing reasonable priced every season at the cheaper stores. Shoes I don’t buy at frum stores.
They aren’t stupid. They want to know why their friends can afford reg school shoes and Shabbos shoes. Or get fancy sweatshirts that cost over $100 or many other things we just don’t buy.
I’m thrilled organizations are helping ppl. I just wish it wasn’t at a luxurious level middle class cannot afford. And raising the standards for everyone.
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amother
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Wed, Aug 21 2024, 2:20 pm
Currently I'm married, with young kids and we still pay about a quarter of our combined income to taxes. We make about $150k together, probably. I'm not even exactly sure, because my husband's income is variable and I'm not sure how much he made this past year.
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chestnut
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Wed, Aug 21 2024, 3:00 pm
Did you make bar mitzvahs? How did you manage, with no savings?
How are you planning on making weddings?
Are you from the circles that support young couples?
If Hashem will provide once you're retired without savings, why wouldn't He provide now if you save for retirement?
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amother
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Wed, Aug 21 2024, 3:26 pm
| amother Grape wrote: | We live frugal by choice. 6 kids. Oldest is 19. We are young 40s. Prob make around 250k. Pay full tuition. Only recently started making this amount. For years made much less Everything in the books. Taxes and health insurance take a large part of it.
We manage to save monthly - it’s done automatically do we can’t choose not to.
$150/kid/month. Since each kid was born. Will hopefully pay for wedding and support.
401k maxed and matched for me.
Some sort of Roth for dh.
We also try to invest regularly in a mix of areas. And don’t touch that money or when we cash out automatically reinvest.
I’m not sure what we do different.
We live in a very, very small house when most ppl I know have double or tripe the square footage. It keeps out Mortgage, property tax and utilities lower.
We buy used cars with cash and then drive until not worth it anymore or fix it costs are high. Typically about 7-8 years.
I shop around for kids clothing.
Vacations are Sunday road trips.
Shop food sales.
Cook from scratch. Never eat out.
Not sure what else.
We do send to camp. Have cleaning help. I couldn’t work otherwise.
I don’t feel rich. Bec I save before I get my money I don’t feel like I have for extras so we live tight and think before we spend. But in reality we are going ok.
I don’t think my expenses will go down. My youngest is 6. I hope to help my kids in future. Weddings are crazy expensive even if careful. And life is expensive. |
What is your total tuition, annually or monthly?
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amother
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Wed, Aug 21 2024, 3:32 pm
| amother OP wrote: | | Yes, but on top of federal income tax there is state tax and up until a certain number there is the standard 7.5% payroll taxes. |
Yes, city taxes as well as deductions for health insurance, life insurance, dental and FSA. Arguably FSA is a net savings but it's still a payroll deduction.
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amother
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Wed, Aug 21 2024, 4:37 pm
Your federal tax bracket would be 37% of your income. And that's only federal taxes, not even counting state taxes if you have that. If you were earning 850k per year and paying the correct tax rate for your income bracket, you would $44,650 per month, but in reality it would be less if you also have state income tax. And FICA. OPs numbers make sense for her tax bracket, but your don't.
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amother
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Wed, Aug 21 2024, 4:44 pm
| amother Pear wrote: | | Your federal tax bracket would be 37% of your income. And that's only federal taxes, not even counting state taxes if you have that. If you were earning 850k per year and paying the correct tax rate for your income bracket, you would $44,650 per month, but in reality it would be less if you also have state income tax. And FICA. OPs numbers make sense for her tax bracket, but your don't. |
Her federal tax would be around 20k per month if shes earning 850k per year. It's only 37% on any amount above 731
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amother
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Wed, Aug 21 2024, 4:48 pm
| amother Tiffanyblue wrote: | | Her federal tax would be around 20k per month if shes earning 850k per year. It's only 37% on any amount above 731 |
We pay an accountant monthly, & everything is 100% kosher.
As I mentioned we give a lot of charity and that comes with a rebate. Many states have a cap on the percent that they take regardless of your income.
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