How would budget 250k annual income

amother

Thu, May 09 2019, 4:02 pm

If your husband earned 250k net and yo were a sahm of 6 kids how would you budget your money yearly?
What Amounts for tzedaka, housing, tuition etc.

I know people will answer based on where they live and imokay with that.

baby12x

Thu, May 09 2019, 4:06 pm

The same way I would budget on 10k a year.
Subtract fixed expenses. Divide the rest into categories by percentages until you reach $0

https://adimesaved.com/budgeti.....ystem

amother

Thu, May 09 2019, 4:07 pm

Well a person can decided to a certain extent how much to use for housing.

Tuition would be for a chassidish school so not more than $400 a month per child

amother

Indigo

Thu, May 09 2019, 4:21 pm

we earn less but probably not much after figuring in investment income, trust disbursements...also have smaller family. my dh has money taken out of his salary for taxes. After that we put aside 10 percent for tzedakah. we take 10 percent of any gift... money

We bought a house that fulfilled our needs comfortably even though we technically could have afforded a larger house.

for a while we took out $50 a kid per month but decided to just give each a lump sum that we now invest.

we try to invest a lot for savings. My dh wants to retire young.

amother

Lime

Thu, May 09 2019, 4:51 pm

amother [ OP ] wrote:

What you need advice on is how much of the 250K should be saved/invested.

amother

Thu, May 09 2019, 4:56 pm

amother [ Lime ] wrote:

What you need advice on is how much of the 250K should be saved/invested.

That too, but also how much is okayto spend on food etc.

amother

Slategray

Thu, May 09 2019, 5:08 pm

amother [ Magenta ] wrote:

Which job earns 250k? Would love to move up the ranks

Lots of jobs. Lawyers/ doctors/ successful business owners etc

33055

Thu, May 09 2019, 5:08 pm

The first thing I would figure is maaser and then savings. 10% basic maaser and 20% savings. You can work from there. I did this when we were living on dreams.

Much of what you are asking depends on ages of your 6 kids and where you live.

amother

Indigo

Thu, May 09 2019, 5:09 pm

I view my money after tzedakah, taxes and tuition is mine to budget as I want as long as it "works" figure out what are your non negotiable and then your strong wants. I wanted a kitchen with two sinks, two ovens... so that's what I bought. I could afford it so I did. live in cleaning help isn't something I want so I don't have it. once you figure out your current numbers see if its more or less then how much money you bring in and then tinker with it.

What I'm trying to say is you can ask what is average for a family of my size to spend on groceries but that has nothing to do with your income. Once you have "discretionary" income it's then your discretion if you want food to be an area of "splurge" or not.

ectomorph

Thu, May 09 2019, 5:12 pm

amother [ OP ] wrote:

That's actually not a lot in NY. You'll have let's say 160 after tax.
40k housing
15k health insurance
50 pp pw is 8×50=400 400×52 20k a year on groceries toiletries etc (assuming 50 per person per week)
15k car
That's already 90... Then u have tuition.

amother

Lime

Thu, May 09 2019, 5:13 pm

amother [ OP ] wrote:

That too, but also how much is okayto spend on food etc.

Once you have "saved" and "tzedakad" - spend the rest how you see fit. Its all "okay" to spend - so long as you don't run out of money.

ectomorph

Thu, May 09 2019, 5:14 pm

Every thing is individual. I get cleaning help because it saves my sanity. Maybe you don't need cleaning help.

33055

Thu, May 09 2019, 5:19 pm

ectomorph wrote:

Taxes don't figure into OP's budget. I would guess neither does health insurance. We don't know how many kids are in school.

Reality

Thu, May 09 2019, 5:20 pm

ectomorph wrote:

OP wrote 250k net not gross.

amother

Oak

Thu, May 09 2019, 5:22 pm

amother [ Lime ] wrote:

Once you have "saved" and "tzedakad" - spend the rest how you see fit. Its all "okay" to spend - so long as you don't run out of money.

Agreed. It's very individual in terms of your priorities. Some people choose to spend more on cleaning help. Others on food. Others are frugal and go to pesach hotels or nice vacations. There's no rule beyond living within your means and giving what the Torah expects you to give to others.

Ravenclaw

Thu, May 09 2019, 5:33 pm

This is fun! Ok here goes.

60,000 mortgage/taxes (5000 a month)
9,000 utilities (750 a month on cellphones, landline, internet, subscriptions, water, electricity, etc)
40,000 tuition (550 x 6 kids x 12 months)
30,000 food and household things that use up like soap, disposables, etc (2,500 a month)
15,000 clothes (includes everything from sheital to men’s hats to underwear and shoes)
1,000 Waxing, electrolysis, makeup and creams
15,000 two cars and expenses
30,000 savings for kids (by the time they are 25 it’s 120,000 per kid)
20,000 retirement plan
6,000 camp
6,000 cleaning help (10 hours a week at 12 dollars an hour)
5,000 vacation
12,000 extras
2,000 Yom Tov extras not included in above