Do I just not make enough money?

Question

I am 34 and I make roughly 65-70 grand a year. I live in a suburban area that has upper price homes compared the rest of the country (I know people who are shocked at how little house you get for the money). I have a stay at home wife and three children and we are always paycheck to paycheck. We are not overly tight with our money but we have the average amounts of bills.

I used to work for my parents and made about the same amount I make now working for a much larger company but everyone else (in similar situations) seems to have much more money than we do. Am I just making less than most people my age? Did I leave money on the table when I accepted this job?

Answer 1

At 65 to 70K, you can support a family of 5 ANYWHERE in the country. You need to control your spending and possibly downgrade your cars and maybe your house. I know a family of 8 that gets by one significantly LESS than you make. You say you have an average amount of bills. Average is BROKE due to overspending your income. Your problem is the money you are taking off the table and spending on YOU don't know what.

Answer 2

$65K a year is not bad depending on where you live. Would not get you too far in NY, DC, or LA, but it will allow you to live quite nicely other areas of the country.

Let's take a look at what you are doing right. 1. Pretty good pay. 2. You bought a house in the desirable area of town. (Even in a housing downturn, houses will still be selling in the upscale areas.)

Good.

You are wondering just exactly where the money is going, and are looking for financial advice. Better!

Here is what you need to do:
First, for the next month to three months, write down every penny you spend and on what. Do not change your spending habits, just keep track. Tabulate where your take home pay goes. I did this and was floored to find out exactly how much I spent on coffee every month.

Then, trim out the fat from your spending. I cut out a lot of stuff that I thought was essential, but now I do not miss at all. Here are a few examples:
Cell phone: Get rid of that monthly plan, get a pre-pay cell phone. Caller ID works just fine, and it will cost you around $100 a year. Savings $59 a month.
Coffee and bottled water: I was spending around $6 a day on that crap during work. What a total rip-off. Savings, around $100 a month
Bring lunch to work. (I cheat on this one, but...) Savings around $100 a month
Cable TV, do you really watch all those 'premium' channels? Drop them, get basic plus service, and save around $30 a month.
Have kids, so entertainment is a must, but be smart about it. Playing in the park can be just as much fun as going to a movie. Get used video games from half.com, ebay, amazon marketplace instead of new from the store. If you rent more then 5 DVDs a month from Lackluster video, recommend you look into Netflix instead.

Just doing the things I mentioned above saved me around $280 a month, and I do not miss any of it. I put the savings against my credit cards, mortgage, and into savings, and now everyone is looking at me as the guy that can afford all the luxuries in life.

The important thing is to get an honest listing of where your money goes. If I had any idea how much Starbucks was taking from me $1.50 at a time, I would have never bought a single cup. Remember, it is not the big bills that eat up your take home pay. They are easy to plan form. It is the little "Oh, it's only a dollar" things that will kill a budget.

Best of luck

Answer 3

Your income is not bad, but single-earner families have it tough these days. It looks like you've already gotten some pretty good advice from others so far, so I will limit my commentary and not give you any more budgeting tips. I want to point out that you have to be careful about thinking that "everyone else seems to have much more money" than you do. Just because someone lives in a nice house or drives an expensive vehicle doesn't actually mean that they have more money. We live in a credit society where material goods are more likely an indicator of debt rather than wealth. For example, a man with a 2001 Honda Civic that is paid for has more in assets than a man with a new BMW and a $35,000 car loan.

The best advice I can give you is to not worry about everyone else and focus simply on your own situation.

Answer 4

I've got a ton of friends in the same situation. It's usually easy to 'trim some fat', but working dads that support a large family tend to be too 'proud' to be budget conscience. Little things like cutting back on the amount of cable channels, turning the thermostat down and setting a grocery budget with your wife are very important. Don't get caught up 'keeping up with the Jones's'. You kids will want a higher education someday, and you need to start thinking about retirement. It's time to 'grow up', financially speaking. If you do it now, it will save you a LOT of pain down the road.

Answer 5

Do one of these studies. I highly recommend either of them:

http://daveramsey.com
http://crown.org

My wife and I did crown and got straightened out. My brother and his wife did Dave's course and got straightened out also. I listen to Dave on the radio and on line. He's awesome! Either course is about $50 to $100. Worth it. Well worth it.

I know what you mean. I think you are pretty tight, but you can make it.

Get rid of the TV and do a family side business with your wife. Imagine if you can bring in an extra $400 to $500 / month in some kind of side biz. That'd be good stuff.

We don't watch TV much at all any more. Spend the time doing family games at night with the kids. They love it.

Answer 6

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A great way to make money is to join the website http://usagetspaid.com All you have to do is sign up and become a member and you can do surveys and offers for cash. They pay you a check once a month and you get money for referring your friends. It is great I have made A ton of money just doing this from home at my computer.

Answer 7

I would say you make great money for your age! That's my goal for that age group. I feel like like I'm always broke, wait no I mean I am always broke but I do have a child and I could only imagine how broke I would if I had 3!! Especially for back to school time. I would suggest investing. Or maybe putting some money in an IRA account to make it grow faster. Whatever can make money work for you!

Answer 8

in the journey that your discern wont assist you get a actual job attempt asking them to pay you for doing chores around that residing house. properly, the wonderful factor you're able to do to get 500 money (or besides the incontrovertible fact that lots you elect) you should first get your mom and dad to establish a reductions economic business enterprise account. as quickly as you have this set up you are able to placed your income it and (in case you get an account with a severe hobby) you will start to make money. (the economic business enterprise provides you with a definite volume of money reckoning on how lots is on your account, no longer lots although) then a week while your mom and dad supply you the ten money placed it interior the economic business enterprise account. that should take approximately 50 weeks., or approximately 2 months.... after that, you will have your "fly value ticket"

Answer 9

im older than you and you are making 3 times what I make...

$65,000 a year is a lot of money... you are likely wasting most of it if you are not on a written spending plan.... I bet your in debt like most people? You need to get on a written spending plan, every month... doing so you will find money you didn't know you had. Cut out wasteful stuff you dont need like cell phones, cable tv, car payments.... pay off debt, esp credit cards... and you will find that you have money

Answer 10

I see this a lot. I am a tax accountant in a nice suburb.

It seems that to many people, it is not what you make, it is what your neighbors think that you make.

I see so many people with no savings, no retirement and they are in debt to their eyeballs. They are, however, putting on a good show for the neighbors with the big house a two new cars.