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You need to talk to a financial planner or something. I bought an apartment, paid off law school loans, have two kids, and have plenty socked away for retirement on a lot less than that.
Mentor
HCOL city with relatively high taxes too
In NYC this is not a huge amount of money people - they are probably losing 60% of the gross between taxes, childcare and cost of living. Factor in student loans and it is less money in the pot. The burbs have high property taxes, you must have a car, and you lose hours a day with the kids on commute, plus you still need babysitter.
All of this.
Mentor
My partner and I lived on $250K last year with two kids and one in private school in a HCOL. You’ll be fine.
Mentor
You mean NY?
Mentor
I would say that any of those cities, the way to go is move to the suburbs. That should provide lower cost and decent public schools, childcare will still be expensive but nothing you cannot afford with that income. I live in HCOL city and was doing OK with 250k combined income, didn’t have a car and lived in small apartment with one kid because for us the important part was to live in the city. We lived close to parks and museums to be able to entertain our one kid with cheap activities. Once our income increased and we needed extra space because of second kid in the way we found a cheap place that was not super fancy staying in the same area and bought a used car, etc. I guess my point is that you guys should move to the suburbs or stay in the city but sacrifice “luxury”.
I just switched to govt work so I can actually spend time with my kid. My husband and I will be earning under $200k combined (but I saved a lot when I was in big law, our savings/investments may cushion the daycare blow). We should only have 1 kid due to our low salaries. if BBB passes we could have 2 (it won’t).
Subject Expert
Could you provide an overview of your budget? Maybe we can help identify where your costs are out of alignment with expectations.
If I were you, I’d give ourselves like 150k a year budget and save the rest. My partner and I make like 500k a year and im guessing we combined spend 200k ish (a little more than I’d like bc we are not married / have separate expenses)
Best of luck!!! You and your partner will be able to do it when you set your mind to it and get some clarity in overall direction.
Coach
First thing you should do is make a budget and track spending...Fidelity Full View is a great resource where you can link all of your bank accounts and credit cards, etc and you can assign categories to your inflows and outflows. It sound like you don't have kids now, and no couple should be struggling on $600k household income...after tax, HSA, 401(k), IRA, necessities (housing, utilities, insurance), you should still have a few hundred thousand leftover. I imagine there is a lot of fat in the spending that can pretty easily be cut out. But first, you need to figure out what is draining your cash flow so much.
I'd say also be careful about who you select for a financial planner. There are lots of people out there who want nothing more than to charge you 1%+ of your assets every year to give you not such great advice. The most important thing first is to figure out where exactly all your money is going each month.
Even assuming maxing out 401ks and IRAs, paying health insurance premiums (the most common paycheck deductions other than taxes), I'd have to guess you're taking home at least 30k monthly if your annual gross is $600k. If you have a nice apartment in a big city, let's say that's $7k in rent. If you're eating out a lot, let's say another $3k on food monthly ($100/day). That still leaves $20k of your take-home. If you add in two high-end car payments and insurance, that would still likely leave you well over $10k each month.
Coach
My partner and I make about that much and we’re saving like 40% of our income. What are you biggest expenses?
How much is your rent/housing per month?