New 2016 Budgets

brij2006 · January 2016

Since we had a post about changing budgets for 2016, how is everyone doing with their new budget? We're almost a full month in, how's everyone doing?

Are there things you are wanting to tweak for next month?

Xstatic3333 · January 2016

We have been doing pretty well! As our alcohol and fun budgets have decreased, however, I've had a correspondingly tough time keep our grocery budget in check. In theory this makes sense; less spent on going out means more eating at home. I've also been exercising a lot, which has increased both my appetite and my desire for the food I eat to be healthy. I'm okay with paying a bit more for groceries, especially when it is helping our health, but starting next month I need to budget for it appropriately instead of just scrambling to borrow from other budget areas. Our CSA starts again soon which will be very helpful. It is a much better value than grocery store or farmers' market produce.

brij2006 · January 2016

We're actually doing pretty good. This is the first month we did the monthly allotment into my Roth IRA, and we changed H's withholdings so we will hopefully no longer receive a tax return. We also added in a couple more sinking funds this year, just in case our cash flow is weak the months we have annual expenditures (car license renewals, 1/4 of beef). Going to chat with H this weekend about adding in Christmas, Vacation, and property tax sinking funds. Definitely need to add in the property tax since we used to use our tax return for that.

Think we're going to make some adjustments next month. I was really hoping to get our groceries/toiletries/cleaning products down, but it just isn't happening. I was even savvy about our cooking. Then we need a large box of Tide to wash diapers, and there goes $25. I'm realizing that our $500/month budget for all of those items, may be what we are going to have to spend. Otherwise I may try to separate them out into 2 separate categories to better track them.

What do you girls do? Do you have groceries and toiletries/cleaning products in 1 budget line or do you separate them out?

AprilZ81 · January 2016

I had to wait an extra paycheck cycle to get DH's updated take home amount because I was still on his insurance for the first one. I did the calculations yesterday and we end up with an extra $48 a month. We put it towards our "home improvement" category that includes random house items like air filters or new dish towels.

We include our "extra" paychecks in our grand total since we have enough of a cushion in our checking account to cash flow the "lean" months with four paychecks (we get paid every two weeks on opposite schedules which is really nice). I like that by budgeting this way we have more wiggle room to work towards goals but I do miss the fun of having an extra lump sum of money to do something with.

Here is our budget (likely to change again around March when DH gets his raise/bonus info. I'm not sure I will be eligible for a COL increase since I only worked half the year for the company in 2015).

Take Home: $6949 (minus taxes, 401(k), health insurance and any other benefits)

DH does 5% to his 401(k) with a 5% corporate match (fully vested)

I do 6% to my 401(k) with a 3% discretionary match (fully vested in 2 more years).

Along with our ROTH contributions we are at 17% retirement contributions.

Mortgage/Utilities/Cell Phones/Cable: $2400

Gas-Cars: $125 (we've been having a lot of surplus lately but we are hesitant to change the amount in case gas goes back up again)

Groceries/Household Supplies/Toiletries: $475

My Fun Money: $125

DH Fun Money: $125

Entertainment: $300

Church/Charity: $500

HELOC: $300 (doubling up on payments)

Sinking Fund: $101

Clothes: $50

Home Improvement: $148

Car Insurance/Car Repairs: $135

General Savings: $700

Vacation Fund: $250

Christmas/Birthday/Other Presents: $250

ROTH: $915

AprilZ81 · January 2016

brij2006 said:

We're actually doing pretty good. This is the first month we did the monthly allotment into my Roth IRA, and we changed H's withholdings so we will hopefully no longer receive a tax return. We also added in a couple more sinking funds this year, just in case our cash flow is weak the months we have annual expenditures (car license renewals, 1/4 of beef). Going to chat with H this weekend about adding in Christmas, Vacation, and property tax sinking funds. Definitely need to add in the property tax since we used to use our tax return for that.

Think we're going to make some adjustments next month. I was really hoping to get our groceries/toiletries/cleaning products down, but it just isn't happening. I was even savvy about our cooking. Then we need a large box of Tide to wash diapers, and there goes $25. I'm realizing that our $500/month budget for all of those items, may be what we are going to have to spend. Otherwise I may try to separate them out into 2 separate categories to better track them.

What do you girls do? Do you have groceries and toiletries/cleaning products in 1 budget line or do you separate them out?

We lump ours together because I do a lot of grocery shopping at Meijer (similar to Target/Walmart if you don't have them in your area). It would be too hard to split those out.

Have you considered making your own detergent? I spent about $20 on supplies and have enough to make several years worth of liquid detergent that can be used in an HE washer. I've used it for several weeks now and it seems to be getting the clothes clean! I've also switched to using vinegar as a fabric softener (clothes do NOT smell afterwards). I've been doing some reading that the chemicals in most (all?) commercial detergents are really bad stuff, and can really mess up your hormone levels. Since I have PCOS I'm trying to phase out the chemicals in our home to see if it helps. There are a ton of recipes on Pinterest.

jessica490 · January 2016

Pretty good so far. We are saving money and working on house projects so we are staying out of trouble

hoffse · January 2016

@Brij, I keep toiletries and groceries in the same line-item because of where I shop. We buy most of that stuff at either Costco, Walmart, or Target, and going through the actual receipts to sort them out is too much. Some of our stuff gets miscategorized for that reason (like I buy OTC meds from Costco and count it as "groceries" instead of "medical"), but we just pad our "grocery" budget accordingly to account for the other random stuff that might go in our carts at those stores.

Our budget has been really good. Re-working our sinking funds has been a god-send already because we have a bunch of annual dues in Q1 - life insurance, termite bond, Costco, membership dues for some civic organizations we are in, required donations for those same organizations, a few annual fees for CC's... All-told it's about $900. Last year we were just trying to cash flow all of it. This year our sinking fund had ample money in it to cover everything, and I'm so much more relaxed about it.

We also have been able to work gifts and clothing into our budget more successfully by using sinking funds for those items. It seems like there's something in the water at work, and I've been buying baby gifts like they are going out of style. Our gift sinking fund has been enormously helpful for that.

The result is we were able to cash-flow an extra $500 in January, and it looks like February is going to be about the same (we use CC's, so we're always about a month ahead). In both cases that's going to cover some furniture expenses that we had originally thought would come from savings.

I'm really loving our new budget, and I have no plans to tweak yet.

vlagrl29 · January 2016

I redo our budget every school year around August and we've been sticking to it pretty well so far. This time of year I'm super cheap and want to save more than normal.

Xstatic3333 · January 2016

AprilZ81 said:

brij2006 said:

We're actually doing pretty good. This is the first month we did the monthly allotment into my Roth IRA, and we changed H's withholdings so we will hopefully no longer receive a tax return. We also added in a couple more sinking funds this year, just in case our cash flow is weak the months we have annual expenditures (car license renewals, 1/4 of beef). Going to chat with H this weekend about adding in Christmas, Vacation, and property tax sinking funds. Definitely need to add in the property tax since we used to use our tax return for that.

Think we're going to make some adjustments next month. I was really hoping to get our groceries/toiletries/cleaning products down, but it just isn't happening. I was even savvy about our cooking. Then we need a large box of Tide to wash diapers, and there goes $25. I'm realizing that our $500/month budget for all of those items, may be what we are going to have to spend. Otherwise I may try to separate them out into 2 separate categories to better track them.

What do you girls do? Do you have groceries and toiletries/cleaning products in 1 budget line or do you separate them out?

We lump ours together because I do a lot of grocery shopping at Meijer (similar to Target/Walmart if you don't have them in your area). It would be too hard to split those out.

Have you considered making your own detergent? I spent about $20 on supplies and have enough to make several years worth of liquid detergent that can be used in an HE washer. I've used it for several weeks now and it seems to be getting the clothes clean! I've also switched to using vinegar as a fabric softener (clothes do NOT smell afterwards). I've been doing some reading that the chemicals in most (all?) commercial detergents are really bad stuff, and can really mess up your hormone levels. Since I have PCOS I'm trying to phase out the chemicals in our home to see if it helps. There are a ton of recipes on Pinterest.

That's awesome that you do all that! H and I had an interesting discussion about this last night. I have some questions...going to start a S/O post.

brij2006 · January 2016

AprilZ81 said:

brij2006 said:

We're actually doing pretty good. This is the first month we did the monthly allotment into my Roth IRA, and we changed H's withholdings so we will hopefully no longer receive a tax return. We also added in a couple more sinking funds this year, just in case our cash flow is weak the months we have annual expenditures (car license renewals, 1/4 of beef). Going to chat with H this weekend about adding in Christmas, Vacation, and property tax sinking funds. Definitely need to add in the property tax since we used to use our tax return for that.

Think we're going to make some adjustments next month. I was really hoping to get our groceries/toiletries/cleaning products down, but it just isn't happening. I was even savvy about our cooking. Then we need a large box of Tide to wash diapers, and there goes $25. I'm realizing that our $500/month budget for all of those items, may be what we are going to have to spend. Otherwise I may try to separate them out into 2 separate categories to better track them.

What do you girls do? Do you have groceries and toiletries/cleaning products in 1 budget line or do you separate them out?

We lump ours together because I do a lot of grocery shopping at Meijer (similar to Target/Walmart if you don't have them in your area). It would be too hard to split those out.

Have you considered making your own detergent? I spent about $20 on supplies and have enough to make several years worth of liquid detergent that can be used in an HE washer. I've used it for several weeks now and it seems to be getting the clothes clean! I've also switched to using vinegar as a fabric softener (clothes do NOT smell afterwards). I've been doing some reading that the chemicals in most (all?) commercial detergents are really bad stuff, and can really mess up your hormone levels. Since I have PCOS I'm trying to phase out the chemicals in our home to see if it helps. There are a ton of recipes on Pinterest.

I used to make my own a couple years ago and it was just okay. H works in a factory, so his clothes are disgusting. And after doing some research, homemade detergents don't get cloth diapers clean.

Thinking that maybe I'll try switching to a cheaper brand for our regular clothes and just use the Tide for her diapers.

Also, feel free to rack my brain about PCOS stuff. I did the PCOS diet and got pregnant with DD. It's hard work, but can make a drastic difference for some. I'll be starting it again in March.

als1982 · January 2016

We've been struggling. We made increases to our work retirement accounts to max those out in 2016 and refinanced our mortgage from a 30 year to a 15, so that's taken some adjusting. We don't budget by the month but instead by individual pay check. This worked well before, but I'm not sure it's as great of a way now. I may post our budget here after work to see if anyone has suggestions on how to better lay it all out.

short+sassy · January 2016

I didn't really change anything from my budget for last year...at least expenses-wise. Unfortunately, my expected income is currently much lower than planned because of vacancies at my rentals and a drop in my p/t income. Though the loss of rental income will be temporary for 1-2 months.

It's not just people who adjust budgets with the new year, so do companies. For my p/t job, the client dropped FOUR of my properties with the new year. That's a $300/month income loss . Super bummed about that. Though my scheduler said he expects the properties will get added back again at some point. But, until "if" that happens, I am just assuming they're gone.

The loss of income only affects my budget in it is that much less money I can put towards paying down my HELOC balance.

bmo88 · January 2016

Overall, we are spending around the same amount, but have "shuffled" our expenses a bit. We refinanced to a 20 year mortgage in order to save on interest rate and capitalize on the market appreciation of our home. We also are trying to get rid of DH's loans by the end of October and cash flow my grad degree in the meantime. Our budget will also change slightly in July when we get our annual raises and will bump up our income by about $7,500.

Our 2016 budget:

Mortgage: $1,675

HOA (trash, internet & rec center/gym): $108

Cable: $60

Phones: $90

Utilities: $140-$190

Car Insurance (both vehicles): $110

Car payment: $317

Life Insurance (both): $59

DH's student loans: $1,500

Grad school (me): $900

Health insurance (both): $240

Charity: $200

Food: $400

Entertainment: $150

Total Expenses: $6,369

Savings:

401k (me): $405

ROTH IRA (me): $475

ROTH IRA (DH): $250

PERA retirement (both): $866

Baby Fund: $400

General Savings: $500

Total: $2,896

lbonga1 · January 2016

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

bmo88 · January 2016

lbonga1 said:

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

Wow, your rent will be almost $100 more per month than we pay for our 20 year mortgage on a 3 bed, 2.5 bath, 2800 sq ft home with a basement. Have you considered moving to an MCOL or LCOL area? I completely understand the perks of living in bigger cities, but I honestly cannot imagine paying that much for living expenses.

Though I would be uncomfortable as well, it will probably provide some relief to receive the financial assistance until your DH is able to bring in more income.

lbonga1 · January 2016

We've considered it, but when we need child care it's on kind of an emergency basis (i.e. FI needs to go to the emergency room), and that could either happen a couple times in a week or once in a month. So that's where living close to his parents comes in handy. If we moved, I don't think we'd be able to find someone that would be that flexible with watching the kids.

It'll be an easier possibility once we have FI's health problems figured out. He just saw a new neurologist on Friday, who told him he has really bad TMJ and that he's likely getting severe migraines while he's sleeping, but he's in too deep of sleep to wake up and take medication. So we're on the right track anyway. He was prescribed a new medication, and if that one doesn't work then he has to get botox shots in his head.

short+sassy · February 2016

bmo88 said:

lbonga1 said:

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

Wow, your rent will be almost $100 more per month than we pay for our 20 year mortgage on a 3 bed, 2.5 bath, 2800 sq ft home with a basement. Have you considered moving to an MCOL or LCOL area? I completely understand the perks of living in bigger cities, but I honestly cannot imagine paying that much for living expenses.

Though I would be uncomfortable as well, it will probably provide some relief to receive the financial assistance until your DH is able to bring in more income.

I actually grew up in the same area @lbonga1 lives in (Orange County, CA). Within a year of graduating from college, that is exactly what I did. Part of me wanted to experience a different part of the country, but financial considerations were also a huge factor. I wanted to live somewhere with much lower housing costs. Where I could rent an apartment right out of college, without getting a roommate. Decent one bedrooms out here are about $600-$700/month.

At the time I moved, my friends and I were all in our very early 20s. They thought I was nuts to move from gorgeous, great weather year round So. CA to NOLA. 5-10 years later, those same friends are getting married and starting their families. And thinking about buying a house. Some of them moved out-of-state also because it was the only way they could obtain that dream. But, like anything else, moving isn't right for everyone.

brij2006 · February 2016

lbonga1 said:

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

Ouch! I think I would be completely revisiting the options. You have 2 or 3 children, right?

cbee817 · February 2016

There haven't been too many changes from 2015 to 2016. The biggest thing is that day care went from about $1900/month with 2 kids full time to $1200/month for DD#2 full time and after school for DD#1 (she is in kindergarten now). We also paid off our sewer bill job ($700/month) so that has freed up some more funds. DH did buy a new car (very much needed), so his payment is $500/month. I don't get a raise until April and it's usually only 3-4% (I bump my 401K contribution up 1% then too), DH gets a small raise every September when the new school year starts.

We also plan to gut our upstairs bathroom this summer and DH also wants to redo our front porch with trex so that it can stand up to the winters a bit better than wood. That shouldn't be a problem to fund- we save about $2,000/month so by July, there should be plenty earmarked for that.

We also don't have DH's W2 yet from his old school district so we haven't done our taxes- hoping to get about $1,000 back and we'll put it into our vacation fund... get that back up throughout the year since we took $3,600 out for Disney.

lbonga1 · February 2016

@short+sassy One of my friends just moved out of state for cheaper cost of living, but I also have a few friends under 30 that are starting to buy houses. I think it definitely depends on your priorities (friend #1 tends to spend her money on clothes/beauty stuff and complains she's broke).

@brij2006 We have two girls, ages 3 and 1.5. At least we don't pay for daycare...I think that would cost as much as our rent or more. We're also pretty frugal in most other areas, so that tends to make up for it for now. Here's what our current budget looks like:

Rent: $1630 (will go up to 1750 on 4/1)

Water/sewer/trash: $70

Electricity: $65

Gas: $25

Phones: $45

Internet: $55

Renters Insurance: $11

Car/gas: $325

Auto Insurance: $113

Car registration: $21

Pet care: $15

Groceries: $400

Eating out: $55

Entertainment: $75

Miscellaneous (includes toiletries, clothes, basically anything bought at Target): $150

I think that's everything. Any extra income goes toward savings, school, and/or paying medical costs for FI. My income is variable so it's not an exact amount every month. If anyone has any suggestions (besides moving of course lol), let me know. I think we've cut everything to as minimal as possible without going crazy, though.

labro · February 2016

We've been using YNAB since July last year but I think we've been doing it incorrectly because I'm pretty sure you're supposed to account for every dollar and we started off with just sticking in a bunch of amounts for each category based on guestimates without really considering our total net income. This worked just fine these last 6 months but since H and I both made the decision to max out our 401ks, we've seen a pretty significant blow to our take home pay this last month. H and I finally sat down with some coffee yesterday morning and re-did everything. We may have to re-visit it again tonight. H has his annual review today and it's possibly he'll get a large bonus and/or raise. Once we know that information I can run the numbers in the federal withholding calculator to see if we need to change up our taxes for the year which may or may not cause us to cut back more in the budget somewhere. Also, depending on his bonus it could move up the timeline on some home projects we want/need to do.

Monthly Bills
Mortgage	$858.69
Phone	$155.38
Internet	$80.00
Electricity	$80.00
Water	$25.00
Gas	$85.00
Car Insurance	$160.00

Everyday Expenses
Groceries	$500.00
Fuel	$200.00
Personal	$300.00
Restaurants	$120.00
Medical	$30.00
Clothing	$100.00
Household Goods	$40.00
Dog	$150.00
Entertainment	$100.00

Rainy Day Funds
E-Fund	$100.69
Car Repairs	$200.00
Home Maintenance	$200.00
Roth IRA	$459.00
Birthdays	$40.00
Christmas	$40.00
General Gifts	$15.00

Savings Goals
Car Replacement	$300.00
Vacation	$500.00
Siding	$300.00
New Windows	$150.00
Driveway	$200.00

Debt
Car Payment	$2,150.00


Expenses	$3,384.07
Savings	$2,104.69
Debt	$2,150.00
Total	$7,638.76

kmurphy2131 · February 2016

lbonga1 said:

We've considered it, but when we need child care it's on kind of an emergency basis (i.e. FI needs to go to the emergency room), and that could either happen a couple times in a week or once in a month. So that's where living close to his parents comes in handy. If we moved, I don't think we'd be able to find someone that would be that flexible with watching the kids.
It'll be an easier possibility once we have FI's health problems figured out. He just saw a new neurologist on Friday, who told him he has really bad TMJ and that he's likely getting severe migraines while he's sleeping, but he's in too deep of sleep to wake up and take medication. So we're on the right track anyway. He was prescribed a new medication, and if that one doesn't work then he has to get botox shots in his head.

I feel your pain on the HCOL. I think that (for the most part- there are exceptions) it's easy for those in LCOL of MCOL areas to say that you should move out of a HCOL area,but it's not that easy in a practical way. For us, it would mean leaving family, stable well paying jobs, and leaving "home". We would love to go somewhere where our rent isn't 2300/month for a 2bed/2bath (in a nice area) but I wouldn't make this same money elsewhere, and I love being close to family.

You have to make the decisions that are best for you and your family. With a sick husband and young children, I think it would be a huge unnecessary stretch to move somewhere cheaper.

brij2006 · February 2016

@lbonga1 It really depends on what your priorities are at right now before I can give you some recommendations....

Does your FI work?

If not, does he not work because of his medical condition? If so, can he apply for disability due to this?

Is the car line item a car payment? If so, what's the total amount owed on it?

Is it a high priority to purchase a home?

You also state FI. Do you intend to get married any time soon? If so, when? Reason I ask, it's not advisable to go into purchasing a home with someone you are not contractually tied to.

You also state schooling. Is this you that is in school? How is that being paid for? How much longer do you have? What is the potential for growth with it?

Sorry to have so many questions.

brij2006 · February 2016

kmurphy2131 said:

lbonga1 said:

We've considered it, but when we need child care it's on kind of an emergency basis (i.e. FI needs to go to the emergency room), and that could either happen a couple times in a week or once in a month. So that's where living close to his parents comes in handy. If we moved, I don't think we'd be able to find someone that would be that flexible with watching the kids.
It'll be an easier possibility once we have FI's health problems figured out. He just saw a new neurologist on Friday, who told him he has really bad TMJ and that he's likely getting severe migraines while he's sleeping, but he's in too deep of sleep to wake up and take medication. So we're on the right track anyway. He was prescribed a new medication, and if that one doesn't work then he has to get botox shots in his head.

I feel your pain on the HCOL. I think that (for the most part- there are exceptions) it's easy for those in LCOL of MCOL areas to say that you should move out of a HCOL area,but it's not that easy in a practical way. For us, it would mean leaving family, stable well paying jobs, and leaving "home". We would love to go somewhere where our rent isn't 2300/month for a 2bed/2bath (in a nice area) but I wouldn't make this same money elsewhere, and I love being close to family.

You have to make the decisions that are best for you and your family. With a sick husband and young children, I think it would be a huge unnecessary stretch to move somewhere cheaper.

I don't think moving is the best option. However, if the income doesn't match the HCOL housing and expenses, then that's when it needs to be revisited. Making $30k/year in a HCOL area is where drastic changes would need to be made (not sure if this is her income).

bmo88 · February 2016

brij2006 said:

kmurphy2131 said:

lbonga1 said:

We've considered it, but when we need child care it's on kind of an emergency basis (i.e. FI needs to go to the emergency room), and that could either happen a couple times in a week or once in a month. So that's where living close to his parents comes in handy. If we moved, I don't think we'd be able to find someone that would be that flexible with watching the kids.
It'll be an easier possibility once we have FI's health problems figured out. He just saw a new neurologist on Friday, who told him he has really bad TMJ and that he's likely getting severe migraines while he's sleeping, but he's in too deep of sleep to wake up and take medication. So we're on the right track anyway. He was prescribed a new medication, and if that one doesn't work then he has to get botox shots in his head.

I feel your pain on the HCOL. I think that (for the most part- there are exceptions) it's easy for those in LCOL of MCOL areas to say that you should move out of a HCOL area,but it's not that easy in a practical way. For us, it would mean leaving family, stable well paying jobs, and leaving "home". We would love to go somewhere where our rent isn't 2300/month for a 2bed/2bath (in a nice area) but I wouldn't make this same money elsewhere, and I love being close to family.

You have to make the decisions that are best for you and your family. With a sick husband and young children, I think it would be a huge unnecessary stretch to move somewhere cheaper.

I don't think moving is the best option. However, if the income doesn't match the HCOL housing and expenses, then that's when it needs to be revisited. Making $30k/year in a HCOL area is where drastic changes would need to be made (not sure if this is her income).

I recognize both the financial and social benefits of living in her current area because of proximity to family, but if the numbers do not work out financially, something has got to give. Saving on day care is awesome, but if your living expenses are far above your means with the salary earned, then it may be beneficial to move to a lower cost of living area and even with paying child care, she could come out ahead. It's hard to know without knowing all the details.

@lbonga1: Is it possible to move to a suburb or outer edges of the city where it might be slightly cheaper?

kmurphy2131 · February 2016

brij2006 said:

kmurphy2131 said:

lbonga1 said:

We've considered it, but when we need child care it's on kind of an emergency basis (i.e. FI needs to go to the emergency room), and that could either happen a couple times in a week or once in a month. So that's where living close to his parents comes in handy. If we moved, I don't think we'd be able to find someone that would be that flexible with watching the kids.
It'll be an easier possibility once we have FI's health problems figured out. He just saw a new neurologist on Friday, who told him he has really bad TMJ and that he's likely getting severe migraines while he's sleeping, but he's in too deep of sleep to wake up and take medication. So we're on the right track anyway. He was prescribed a new medication, and if that one doesn't work then he has to get botox shots in his head.

I feel your pain on the HCOL. I think that (for the most part- there are exceptions) it's easy for those in LCOL of MCOL areas to say that you should move out of a HCOL area,but it's not that easy in a practical way. For us, it would mean leaving family, stable well paying jobs, and leaving "home". We would love to go somewhere where our rent isn't 2300/month for a 2bed/2bath (in a nice area) but I wouldn't make this same money elsewhere, and I love being close to family.

You have to make the decisions that are best for you and your family. With a sick husband and young children, I think it would be a huge unnecessary stretch to move somewhere cheaper.

I don't think moving is the best option. However, if the income doesn't match the HCOL housing and expenses, then that's when it needs to be revisited. Making $30k/year in a HCOL area is where drastic changes would need to be made (not sure if this is her income).

I totally agree.

I am admittedly a little sensitive to the HCOL, vs LowerCOL thing because my husband wants to move about 45min away from my work and family to get a better house for our money...so I am quick to defend staying put despite high costs. (we can afford it, it's just wont be as nice a house as he wants). So I may have jumped a bit onto that point.

julieanne912 · February 2016

I would say if the cost of child care outweighs the high rent, then stay put. I know around here, the cost to put an infant in licensed day care full time is $1200-$1500.... maybe it would be more like $1,000 in a lower cost of living area? Not sure. So anyway, that's a huge savings right there, even if the rent is high... so It's not like if they moved to a lower COL area that rent would all of a sudden become free, so they'd have child care costs, plus the rent, so it could end up costing more.

Plus, there's a big non-monetary value in having your support system nearby when you have small kids. I know I may not have that, and that really makes me sad, I think it'll be very hard to raise a kid without any family around to help.

LillibetteV · February 2016

I don't know about the rest of you, but for me to move to a cheaper town (still staying in my current state) would get me a nicer home for the same money, but my commuting costs would triple. And to take a job outside of Boston would cut my salary probably by 1/3 to 1/2. It's just always something to keep in mind that saving on housing might increase costs in commuting.

I'm also particularly sensitive to the "just move to where it's cheaper" argument because Boston is home. My entire life is here and I love this city. We're finally in a place where we are comfortable with our living expenses, but my early 20s were a struggle - a struggle that taught me a lot about budgeting, minimalism, and prioritizing what matters. There isn't a house nice enough or cheap enough in the world to make me move!

brij2006 · February 2016

FWIW H and I both commute from a LCOL to a M and HCOL area for work. I commute 35 miles (to MCOL) each way, and he commutes 50 miles in the opposite direction (to HCOL).

Our gas and vehicle maintenance expenses are higher than they would be if we didn't have such a long commute. However, we pay half the expense for daycare, our property taxes are much lower, and we have a very large home for the kind of money we paid for it. Just a few months ago we decided we were sick of the commute and looked into moving. To get the same house we currently have, we needed to spend double the money and the property taxes would triple. The daycare cost would also triple for moving to that area. When we really looked at the budget, we were actually going to spend more by moving closer to the HCOL area. So we're staying put, even though I would love to live near the HCOL area.

It also helps that the commute allows H to make twice as much as he would if he found a job near home. Not saying it's all roses, because he absolutely hates the commute. But at the end of the day, living in a LCOL is what makes the most sense for our family.

Another thing we also looked into, would we save money by living in the LCOL where "things" are spread out? Which we know we would. I love shopping, eating out, meeting up with friends, going to a gym, all of those things. We knew that it would cost us more to move to the HCOL area and then we would be more involved with things that cost money because they were easily accessible.

I know you're putting up a big fight to not move further away from the city, but maybe it's a smart choice to at least entertain the option and really weigh out the finances and how moving further may affect things.

A 1 bedroom + den with 2 small children would make me insane. Unless I knew it was a very short means to an end to get us into a larger home/apartment, I would be entertaining all of my options.

short+sassy · February 2016

I just wanted to add in

short+sassy said:

bmo88 said:

lbonga1 said:

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

Wow, your rent will be almost $100 more per month than we pay for our 20 year mortgage on a 3 bed, 2.5 bath, 2800 sq ft home with a basement. Have you considered moving to an MCOL or LCOL area? I completely understand the perks of living in bigger cities, but I honestly cannot imagine paying that much for living expenses.

Though I would be uncomfortable as well, it will probably provide some relief to receive the financial assistance until your DH is able to bring in more income.

I actually grew up in the same area @lbonga1 lives in (Orange County, CA). Within a year of graduating from college, that is exactly what I did. Part of me wanted to experience a different part of the country, but financial considerations were also a huge factor. I wanted to live somewhere with much lower housing costs. Where I could rent an apartment right out of college, without getting a roommate. Decent one bedrooms out here are about $600-$700/month.
At the time I moved, my friends and I were all in our very early 20s. They thought I was nuts to move from gorgeous, great weather year round So. CA to NOLA. 5-10 years later, those same friends are getting married and starting their families. And thinking about buying a house. Some of them moved out-of-state also because it was the only way they could obtain that dream. But, like anything else, moving isn't right for everyone.

After reading other posts, I just wanted to add in that I wasn't knocking anyone who lives in a HCOL or saying a blanket "everyone should move where it is cheaper to live".

Just that this strategy worked out very well for me and, for some people/families, can be a great option to consider. I personally moved when I was still young and fancy free. Just out of college and looking for a job anyway. It would be decidedly much more difficult at this stage in my life.

And most definitely income and job opportunities tend to be more plentiful in HCOL, so that is always something to weigh and consider.

I had an Economics professor who talked about, in her past, how excited she was to get a job offer in NYC for almost twice her salary. Except when she sat and crunched the numbers, she was much better off staying where she was.

julieanne912 · February 2016

short+sassy said:

I just wanted to add in

short+sassy said:

bmo88 said:

lbonga1 said:

Our budget has been changing a lot lately because our circumstances keep changing. We were talking to FI's parents about moving in with them while we figure out FI's health issues, but they decided they're going to just give us the amount that we would have saved by the end of the year instead. I'm not very comfortable with it, but they were apparently planning on helping us buy a house anyway. I think we still might be able to put a bit extra into savings because FI was just cleared to work for Uber; we figured that'd be a good thing for him to do when he's feeling well enough. But our rent is also going up on April 1 to a whopping $1750 for our 1-bed + den. Sadly, it's still one of the cheapest in the area.

Wow, your rent will be almost $100 more per month than we pay for our 20 year mortgage on a 3 bed, 2.5 bath, 2800 sq ft home with a basement. Have you considered moving to an MCOL or LCOL area? I completely understand the perks of living in bigger cities, but I honestly cannot imagine paying that much for living expenses.

Though I would be uncomfortable as well, it will probably provide some relief to receive the financial assistance until your DH is able to bring in more income.

I actually grew up in the same area @lbonga1 lives in (Orange County, CA). Within a year of graduating from college, that is exactly what I did. Part of me wanted to experience a different part of the country, but financial considerations were also a huge factor. I wanted to live somewhere with much lower housing costs. Where I could rent an apartment right out of college, without getting a roommate. Decent one bedrooms out here are about $600-$700/month.
At the time I moved, my friends and I were all in our very early 20s. They thought I was nuts to move from gorgeous, great weather year round So. CA to NOLA. 5-10 years later, those same friends are getting married and starting their families. And thinking about buying a house. Some of them moved out-of-state also because it was the only way they could obtain that dream. But, like anything else, moving isn't right for everyone.

After reading other posts, I just wanted to add in that I wasn't knocking anyone who lives in a HCOL or saying a blanket "everyone should move where it is cheaper to live".
Just that this strategy worked out very well for me and, for some people/families, can be a great option to consider. I personally moved when I was still young and fancy free. Just out of college and looking for a job anyway. It would be decidedly much more difficult at this stage in my life.
And most definitely income and job opportunities tend to be more plentiful in HCOL, so that is always something to weigh and consider.
I had an Economics professor who talked about, in her past, how excited she was to get a job offer in NYC for almost twice her salary. Except when she sat and crunched the numbers, she was much better off staying where she was.

Yup, H has gotten calls for interviews for jobs in big tech areas like the Bay Area or Seattle. He turns them down unless it's a job he can do from home because even though they pay higher salaries than what he makes now, we'd end up in a tiny condo/apartment for the same cost or even more than our house on 1 acre is... I complain about COL here sometimes, but it's way better than those areas!

Not gonna lie though, the only one I was slightly disappointed about him turning down was Amazon... they have AWESOME benefits for the employee and family.

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