$300k IS NOT ENOUGH!!

amother

OP ↓

Wed, Dec 18 2024, 2:56 pm

$300k pre-tax
$225k after tax
6 kids
Tri state (Monsey/brooklyn/lakewood)

$60k mortgage & property tax
$60k tuition
$24k groceries
$12k utilities
$24k medical & dental
$6k cars (insurance, gas etc)
$6k home & life insurance
$22k maaser
$12k camp ($2k/kid)

TOTAL: $226k

Income is now completely depleted.
And many of the above estimates are actually underestimated.

Here are just SOME of the things that are NOT included in the above list of expenses:

CLOTHING. TOILETRIES. NECESSARY HOME REPAIRS. Haircuts. Chol hamoed trips. Landscaping. Cleaning help. Seminary. Bar mitzvahs. Weddings. Vacations. Birthday presents. Shalach manos. Chanuka tips. Lulav and esrog. Sheitels. School supplies. Extracurriculars. Mikvah. Diapers. LITERALLY EVERYTHING ELSE.

amother

Blueberry ↓

Wed, Dec 18 2024, 3:00 pm

Yup it's hard. Same answer as for everyone else--you need to either increase your income or lower your expenses.
offhand, 6k for card seems high. Also, why is your homeowners insurance separate from your mortgage.?
what amount is your maaser based off of?
12K in utilities? Why?
and why do you pay your own insurance?

amother

Milk

Wed, Dec 18 2024, 3:01 pm

Yeah. So we are all feeling the pinch now that prices on everything have gone up. I’m in almost the same boat, and hoping for either an income tax refund, a bonus, and/or some relief over the summer when there is no tuition. I’m kind of playing a game of whack a mole at the moment.

One thing to think about is that if you are not making it on $300k, think about everyone else who is even more strapped (because most people are making less than that).

amother

↑ OP ↓

Wed, Dec 18 2024, 3:02 pm

amother Fuchsia wrote:

60K in mortgage/property taxes is crazy high.

Only someone who bought their house more than 5 years ago would ever say that.

Find me a 4 bedroom house for sale now in Brooklyn, Lakewood, Monsey or surrounding the areas that is within 1 mile walking distance of a shul and that will have a monthly mortgage + property tax payment that is significantly lower than $5k (assuming 20% down).

amother

Cerise ↓

Wed, Dec 18 2024, 3:02 pm

amother Blueberry wrote:

What do you mean why is she paying for her own insurance? Are you volunteering to pay it? Believe it or not, not everyone qualifies for government insurance

RM3 ↓

Wed, Dec 18 2024, 3:05 pm

amother Fuchsia wrote:

60K in mortgage/property taxes is crazy high.

Assuming $800k House, 6.5% interest rate, and 12k property Tax.
That would be over $60k annual payments. Which of these 3 assumptions do you think is high?

amother

↑ Fuchsia ↓

Wed, Dec 18 2024, 3:07 pm

RM3 wrote:

Assuming $800k House, 6.5% interest rate, and 12k property Tax.
That would be over $60k annual payments. Which of these 3 assumptions do you think is high?

and no down payment?

amother

↑ OP ↓

Wed, Dec 18 2024, 3:07 pm

amother Blueberry wrote:

We have increased our income, next year IyH our income will be $370k. But realistically there isn’t that much we can do to lower expenses without being very drastic.

$6k for cars is $500 a month. Approx $300 of that is gas (one of us commutes). The other $200 is insurance. Repairs and maintenance are barely covered. And we are lucky not to have car lease payments, most people do.

$12k utilities is pretty standard. I included phone and internet bills in that.

We have a special type of mortgage, home insurance not rolled into it.

Maaser based off of 10% of take home pay.

Our jobs do not provide insurance.

amother

Acacia ↓

Wed, Dec 18 2024, 3:09 pm

amother OP wrote:

$300k pre-tax
$225k after tax
6 kids
Tri state (Monsey/brooklyn/lakewood)

$60k mortgage & property tax No
$60k tuition
$24k groceries
$12k utilities
$24k medical & dental
$6k cars (insurance, gas etc)
$6k home & life insurance
$22k maaser
$12k camp ($2k/kid)

TOTAL: $226k

Income is now completely depleted.
And many of the above estimates are actually underestimated.

Here are just SOME of the things that are NOT included in the above list of expenses:

CLOTHING. TOILETRIES. NECESSARY HOME REPAIRS. Haircuts. Chol hamoed trips. Landscaping. Cleaning help. Seminary. Bar mitzvahs. Weddings. Vacations. Birthday presents. Shalach manos. Chanuka tips. Lulav and esrog. Sheitels. School supplies. Extracurriculars. Mikvah. Diapers. LITERALLY EVERYTHING ELSE.

Maaser comes after everything else. You need to figure out all of your basic life necessities, which I’d say includes a number of the things listed at the bottom, and then calculate your maaser off of what remains. If you truly cannot reduce other expenses, your Maaser should probably only be around $2000 a year.

Also 2k a month for medical is crazy high, speaking as someone in a family of heavy medical customers. I’d look into a better insurance plan.

↑ RM3 ↓

Wed, Dec 18 2024, 3:10 pm

amother OP wrote:

Not disagreeing with anything you’re saying but if you have $24k in medical expenses then you shouldn’t get taxed on the full $300k. You should have an HSA account so $24k is spent pre-tax.

amother

Bluebonnet

Wed, Dec 18 2024, 3:10 pm

Lets clarify.
60k annual is high. Yes current prices and rates these days are way higher.
Just because prices and morgage rates are higher doesnt make the price mentioned normal or easy for most people.

amother

Pistachio

Wed, Dec 18 2024, 3:11 pm

amother OP wrote:

Would you consider asking if you are halachically required to give maaser? My income is much lower, less then 100K and we're a household of 3. We keep asking because it feel wrong, but we were told that if maaser is not meant to leave a hole in your pocket.

amother

Oldlace ↓

Wed, Dec 18 2024, 3:11 pm

Only thing that is "high" is tuition

$60,000 after taxes is closer to $80,000 pre-tax.

Not suggesting it isn't a necessity but it is the portion of her budget that is out of line with her income.

amother

Daphne ↓

Wed, Dec 18 2024, 3:13 pm

amother Acacia wrote:

Strongly disagree about maaser coming after everything else. There are different opinions but plenty of valid opinions saying maaser comes out straight from your paycheck, no calculations.

Op is right the struggle is real even with 300k.

amother

Clematis

Wed, Dec 18 2024, 3:15 pm

Yep. DH and I have had this conversation.

He’ll be finishing residency next spring iyh
Salaries in his field start around 400-450k
Dh is hoping I’ll be able to stop working but I’m skeptical.
We currently have Medicaid, tuition breaks and other subsidies. We’re going to have to start paying back loans which is another whole mortgage.
I’m grateful at the prospect of being able to afford life even thou well still have to live simply.
But it’s scary to think how much money it takes to just be making it.