Uptight Spender wrote:
Wife and I make a combined ~$180k a year. Two kids ages 12 and 14. It always seems like we're living tight, even though we both have very reasonable salaries. Mortgage payments, car loan payments, cell phone bill, groceries, Internet bill, etc. All compounded by trying to make sure we save enough for our kids' college educations. It's just very frustrating at times. Wanted to buy a new pair of running shoes today but needed to make sure it was within our budget first. How do you need to make before you stop worrying about your budget before buying a damn pair of running shoes?
You do NOT have a budget. A budget INCLUDES things like new running shoes...you should know how frequently you need new running shoes and it should be part of your budget as a clothing or extracurricular line item. Your budget should be conservative so that it is LIKELY you have extra money at the end of each month. You then decide what to do with that extra money, but it should NOT be needed for running shoes. Running shoes are a regular recurring expense like the gas bill is.
Beyond actually making a budget, it would be good to know why you are having trouble with that income. Do you live in a high cost of living area?
How much is your mortgage? What kind of cars are you buying?
Why are you paying for a car loan? With your salary, you should save up and pay cash. Even if you get a loan for 0% interest, you then have to put that amount in your budget every month, AND you can fool yourself into thinking that you can afford more car than your can.
So, it's not "how much do I need to make" which determines when you can be more casual about a budget, but "how much debt can I carry". Car loans do not have to be a given. Mortgages that are more than 25% of your take home pay do not have to be a given.
Also, there are many ways to go about paying for college, and in many cases, the more you save, the more you will have to pay. In your case though, assuming you may likely have a salary of over $200,000 by the time your kids start college, saving might be a good idea. For families that make under ~$120,000 a year, if you can get accepted to a great college (one of the 62 that provides full financial need), you can pay for college with small student loans, work study and a modest contribution from parents.
Living free of debt other than for a mortgage is pretty freeing. I haven't concerned myself with buying something as inexpensive as a pair of running shoes for at least 10 years now, and we make a lot less than you do. Unless you are paying WAY too much for a house, you can do it, brother!