Question by Janet: Costs of living in Virginia for a family with 2 kids?
What would the budget for a family with 2 kids (age 7 and 4) living in Virginia and a total gross income per year of 110000 USD look like? The father works as a software developer and the mother works as an environmental scientist/chemist.
I am thinking about the costs for
– private primary school
– house insurrance
– car insurrance
– other insurrance
– utilities (gas, water, heat, light)
– other taxes than income tax
– any other items that is not listed above
What would your estimate be of how much money this family would have left for savings after all expenses have been paid?
Answer by The New UKKR
10,000 health care
8,000 car payment and gas
2,000 car insurance
That’s about 65,000 dollars without the primary school or unexpected things that always come up. Then, furniture and old credit card debts or college loans have to be paid for. Maybe money for 401k or something although lots of companies are paring back on that in this economy (it’s the first thing to go). The kids need money for school projects, and giving to charity is something that people do. I assume income taxes and Social Security can take $ 30,000 out of the paycheck. All of those numbers can go up and down. If it was me, I would always save at least 10% of my check, and I would also set aside lots of money that your budget doesn’t catch at first like trips to McDonalds, Pizza Hut, cigarettes or slurpees from convenience stores, cups of coffee from Starbucks. That stuff never seems to find its way into the budget until you wake up one day and ask why you are 15% over budget. And, that is always the cause. The choice is up to you: you can live 10% over budget or 10% under budget. I hope you avoid the credit trap and make sure you come under budget every month for years and years to come. Good luck.
If the car or fridge breaks down, or you find yourself without a job, you will want 20,000 in the savings account.
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