poorkid1234 wrote:
before you call me a whiny rich guy, understand that 800k is actually 500k after taxes, which is 60k / month. that money disappears quickly.
wife and I are professionals and work extremely hard. we also have six figures of debt each from grad school, so 10k of that goes to servicing debt (principle and interest).
15k goes to our kids education (private school + 529 for 3 kids, ouch).
that leaves 25k left. where does that go?
10k to our mortgage in expensive as$ California - $2 million shoebox house
5k to entertainment (eating out, going to zoo, movies, etc with kids is NOT cheap)
3k to cars (loan, gas, insurance, repairs, etc)
3k to groceries
4k leftover for savings / retirement / investing. lol. how can you live off of 4k/month.
we are poor.
So many things wrong with this, where to start?
1) If your 800K gross turns into just 500K after taxes, you are likely getting a large tax refund each year, which you haven't mentioned.
2) 60K a month is 720K, not 500K, so which is it?
3) Assuming it is 60K a month, you said you pay 10K in student loan debt each month, plus 15K in kids' tuition plus college savings. 60K-10K-15K leaves you with 35K, not 25K. Maybe you meant to say 50K a month. Which is 600K a year, not 500K, but whatever.
4) If you have a $2 million house, do your kids really need to be in private school? Surely you'd be zoned for a decent public school.
5) 5K a month in entertainment? That's over 1K every week. If you and your wife work long hours to make that income, plus the kids have school, homework, sports, etc, there's not enough time in the week to even spend that much on entertainment.
6) 3K on cars? How many cars? Are your kids teenagers and driving as well? I suppose if all 5 of you are driving, that could add up, but you could take some of your 5K from entertainment and throw it at the car debt.
7) 3K on groceries? What are you guys eating? Even if you have 3 ravenous teenage boys, I can't imagine how you are spending that much.
8) You say you only have 4K left to live on, but this is after you've already paid all of your expenses, including entertainment. So you are already "living" just fine without this extra 4K. Even if you did use all extra 4K, that's 48K a year you are investing. Assuming your getting good returns consistent with the market, you'll be millionaires in no time. Plus you can also invest your massive tax refund you are likely getting, as mentioned earlier.
9) This whole story is likely fake, but in the off chance it's real, you need to update your w4, cut back on entertainment, and aggressively pay off your debts.