My wife and I (30M/28F) make $135,000/year combined and we can't seem to save any money. Advice?
Anonymous in /c/personal_finance
0
report
When my wife and I first got married, we were determined to maintain an "independent" life style. Separate bedrooms, separate apartments, separate lives. But we eventually realized we didn't need to be ashamed of being together, and we could probably save a lot of money by living together. That was the idea, anyway. We merged our finances, and we don't feel like we're getting ahead. Here is how our money is distributed every month. **Rough estimates.** My wife keeps track of everything but I'm trying to paint as accurate of a picture as possible.<br><br>Required Expenses:<br><br>* Apartment & Parking (1.5mi from our office). $1,400<br>* Food. $600<br>* Gym. $100<br>* Cell phone. $100<br>* Car. $100<br>* Hulu. $30<br>* Netflix. $30<br>* Apple Music. $20<br>* Subscriptions (NYT, WSJ, etc.). $50<br><br>Total Required Expenses: $2,300<br><br>Other regular expenses. We try to stay within these budgets but often go over.<br><br>* Discretionary Food. $300<br>* Travel. $600<br>* Personal Expenses (Health Products). $400<br><br>Total Other Expenses: $1,300<br><br>Total Monthly Expenses: $3,600<br><br>With 0% savings rate. Our savings currently sits at 4.5 months of expenses.<br><br>Income:<br><br>* I make $70,000/year plus a $25,000/year bonus. $95,000/year total.<br>* My wife makes $40,000/year plus a $100,000/year bonus. $140,000/year total.<br><br>Total Combined Income: $235,000/year<br><br>So, 0% savings rate is obviously not good. We're saving a little bit here and there, but it's being eclipsed by our spending. Here are some takeaways:<br><br>* Our biggest expense is living.<br><br>* Food costs way too much. We should cut back on eating out.<br><br>* I feel like we're being ripped off by our cell phone provider. We need to switch.<br><br>* I've never had to budget carefully before, so I'm bad at it.<br><br>* We spend a lot on health products. Which is to say, my wife spends a lot of money on health products. We're working on this. We've made progress and cut down a lot of unnecessary expenses, but there's still more to go.<br><br>I think if we made a little bit more of an effort to save, we should be able to get to a 20% savings rate. Maybe higher. I don't even want to think about how much money we could save if we got rid of a single subscription. **Just kidding, sort of.**<br><br>How do you manage your finances? And how do you stay within a budget?
Comments (0) 2 👁️