Household spending and inflation 2022

[finalpsychyear]

Don’t like this game at all. Spent way too much…. But it is cheaper than horse shows and showjumpers used to be. I won’t tally it up but monthly - 8k in mortgage, 3k in cars…big purchases- . Bought a plane.
Trips- Germany, safari in Africa ($$$) but worth every penny, Crete and Florence. Still put >100k in side retirement and maxed out our 401ks. Work hard play hard. Husband is a pilot…. While he makes a fraction of what I do it really really helps to have a partner who does well on their own

Congrats on saving/investing 120-150k and living it up.

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[IDKwhattodoyet]

4 years out of residency

~$80k expenses last year, LCOL, had to replace a boiler and started putting more into a 529. Lifestyle creep is hitting hard, that's up by about $10k from the year prior :b

Invested >$300k into boring etfs, too dumb to try anything else.

This is impressive! I want this 4 years out of training.

 

[finalpsychyear]

4 years out of residency

~$80k expenses last year, LCOL, had to replace a boiler and started putting more into a 529. Lifestyle creep is hitting hard, that's up by about $10k from the year prior :b

Invested >$300k into boring etfs, too dumb to try anything else.

Very impressed you have at least 1 kid and 80k expenses. Great amt ur investing esp if you have done that for a few years. Keep it up into year 10 and you will be fat fired if you choose.

 

[nimbus]

Don’t like this game at all. Spent way too much…. But it is cheaper than horse shows and showjumpers used to be. I won’t tally it up but monthly - 8k in mortgage, 3k in cars…big purchases- . Bought a plane.
Trips- Germany, safari in Africa ($$$) but worth every penny, Crete and Florence. Still put >100k in side retirement and maxed out our 401ks. Work hard play hard. Husband is a pilot…. While he makes a fraction of what I do it really really helps to have a partner who does well on their own

Do you have kids or are you DINKs?

Not sure if dual income or no kids helps more. Financially, horses+kids is a bad combo but it’s worthwhile in other ways.

 

[nimbus]

On the topic of spending, been looking at getting myself a new vehicle, at the moment it's boiling down to Model Y Performance and the Toyota/BMW Supra 3.0. Which one would you guys get?

One of my good friends has both. He prefers the Supra.

 

[LivetoTell]

If you wanna be cool, Supra. If you wanna be a dweeb, Model Y.

On the topic of spending, been looking at getting myself a new vehicle, at the moment it's boiling down to Model Y Performance and the Toyota/BMW Supra 3.0. Which one would you guys get?

Supra 3.0 manual. Maybe consider Taycan 4S.

 

[vector2]

On the topic of spending, been looking at getting myself a new vehicle, at the moment it's boiling down to Model Y Performance and the Toyota/BMW Supra 3.0. Which one would you guys get?

Does it have to be a new car?

If it were me I'd rather get a used model S performance, taycan, 911, etc

 

[kidthor]

Get a 2023 Prius Prime!

 

[abolt18]

These monthly car payments are more than I paid total for my car

 

[allantois]

My wife spends about $25k on luxury purses every year. She likes Hermes and Chanel the most.

Those purses do appreciate with time..

 

[nimbus]

Those purses do appreciate with time..

Unless the dog gets a hold of it.

 

[aneftp]

Kids (and designer pets (grooming/boarding etc) will kill any budget.

2-3 kids doubles anyone’s vacation budget with kids

2-3 pets easily can add up to $5-10k extra expanse a year for people who like to travel. My friend literally paid $3k in pet boarding fees last year cause they travel a lot.

I think my kids cost me a minimum 40k last year and they attend public schools. Between funding 529 (and I really cut back on that to only 12k cause stock market doing horrible last year) . School activity (cheer, baseball, music lessons, tennis, tutors)

I probably spent 300k last year and only made around 450k pretax (according to my w2 I just got). Which means I was negative around 30k! After taxes.

Had more home renovations 50-60k (spend 300k the last 2 years)
Mortgage is reasonable at $4500/month

No car payments

I just have a spouse who likes to spend.
Food eating out etc is $3000 a month
Vacation was 50k
Daughter had hospital bill 6k (high deductible) I pay cash cause I like to keep the HSA money growing.

 

[abolt18]

Kids (and designer pets (grooming/boarding etc) will kill any budget.

2-3 kids doubles anyone’s vacation budget with kids

2-3 pets easily can add up to $5-10k extra expanse a year for people who like to travel. My friend literally paid $3k in pet boarding fees last year cause they travel a lot.

I think my kids cost me a minimum 40k last year and they attend public schools. Between funding 529 (and I really cut back on that to only 12k cause stock market doing horrible last year) . School activity (cheer, baseball, music lessons, tennis, tutors)

I probably spent 300k last year and only made around 450k pretax (according to my w2 I just got). Which means I was negative around 30k! After taxes.

Had more home renovations 50-60k (spend 300k the last 2 years)
Mortgage is reasonable at $4500/month

No car payments

I just have a spouse who likes to spend.
Food eating out etc is $3000 a month
Vacation was 50k
Daughter had hospital bill 6k (high deductible) I pay cash cause I like to keep the HSA money growing.

Please tell me you also put money into retirement.

 

[aneftp]

Please tell me you also put money into retirement.

Of course I did
20k 457b pretax
20k Roth post tax obviously
10k into 401a state (with employer match)
Plus HSA

 

[finalpsychyear]

Kids (and designer pets (grooming/boarding etc) will kill any budget.

2-3 kids doubles anyone’s vacation budget with kids

2-3 pets easily can add up to $5-10k extra expanse a year for people who like to travel. My friend literally paid $3k in pet boarding fees last year cause they travel a lot.

I think my kids cost me a minimum 40k last year and they attend public schools. Between funding 529 (and I really cut back on that to only 12k cause stock market doing horrible last year) . School activity (cheer, baseball, music lessons, tennis, tutors)

I probably spent 300k last year and only made around 450k pretax (according to my w2 I just got). Which means I was negative around 30k! After taxes.

Had more home renovations 50-60k (spend 300k the last 2 years)
Mortgage is reasonable at $4500/month

No car payments

I just have a spouse who likes to spend.
Food eating out etc is $3000 a month
Vacation was 50k
Daughter had hospital bill 6k (high deductible) I pay cash cause I like to keep the HSA money growing.

If your making 450k in household income, which is a lot, but avg for your field your spending is on the high side.
How long have you been out and making 450k?

Were the past 2 years anomalies where you spent 300k in 2022 and maybe more in 2021 due to house renovations?

How often do you eat out...more worried about general health with that much food not being made in your kitchen. Maybe its sushi and steaks and seafood galore at fine places but i doubt it with kids??

Of course maybe you plan to work into your 60s and then none of this matters and you may already have saved quite a bit so then no issues.

 

[gasresident1]

No car payments as I paid cash. Student loans are on hold, I have the money parked in a hysa at 4%.

What bank is giving you 4% on a savings account????

 

[Volatile]

Was intrigued so I just spent the time to look. I’m in my mid 30’s and we actually just hit our first $1mil in net worth, kind of crazy to see that with the market down for the year, of course I still feel behind somehow lol. Married (wife makes <$50k/yr), 2 kids. We have no debt other than our home, thanks military. LCOL area. Spending is about 100k a year all-in. Goal is to add one more zero to the net worth but I’m not sure I want to work that long. Interesting seeing how everyone spends.

 

[amyl]

Do you have kids or are you DINKs?

Not sure if dual income or no kids helps more. Financially, horses+kids is a bad combo but it’s worthwhile in other ways.

I’m the step- monster - husbands kids are 27, 31 and 32. They should be way more self sufficient and successful than they are but they’re not my kids. 🤷‍♀️

 

[okayplayer]

Surprisingly hard to answer but interesting to look at.

2022 total spending: $300,000 (ouch). Of those here are the major categories:
Horse purchase/associated expenses: $50,000
Mortgage/prop tax/homeowners: $47,000 (year 3 of 15 year mortgage)
Student loan: $42,000 (year 2 of 5 year refinance)
Home renovation projects: $40,000
Childcare: $22,000
Food, travel, insurance, etc: remaining $100,000

Investments (401k x2, CBP, Backdoor Roths, HSA, brokerage): $250,000

 

[sevo00]

What bank is giving you 4% on a savings account????

im getting 4.3 at wealthfront online savings account

 

[abolt18]

What bank is giving you 4% on a savings account????

3.91% with UFB Direct HYSA. Was at Ally before but they're sitting at 3.3%, so I moved my emergency fund.

 

[GassYous]

3.91% with UFB Direct HYSA. Was at Ally before but they're sitting at 3.3%, so I moved my emergency fund.

Many are at 4%. I was with amex before because I like their cards and customer service. But they kept dragging their feet on increases and were consistently 0.5-1% lower than the top rates. I put 100k in capitalone because they will give you an extra 1k if you keep it there for 90 days on top of the interest you get and the rest in a other higher rate banks.

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I stopped using the other sites because it is obvious that they get some sort of kickback and don't show you the best rates.

 

[aneftp]

If your making 450k in household income, which is a lot, but avg for your field your spending is on the high side.
How long have you been out and making 450k?

Were the past 2 years anomalies where you spent 300k in 2022 and maybe more in 2021 due to house renovations?

How often do you eat out...more worried about general health with that much food not being made in your kitchen. Maybe its sushi and steaks and seafood galore at fine places but i doubt it with kids??

Of course maybe you plan to work into your 60s and then none of this matters and you may already have saved quite a bit so then no issues.

Let’s just say my kids think high end steakhouse is McDonald’s cause it’s down the street cause we got 2-3 x a month

But yes. I have plenty of money so just had to withdraw from taxable investments to cover the negatives. Due to home renovations.

It’s just the misc spending. We can easily cut 2k off the monthly budget with stupid spending.

We can cut the country club but the kids are 5/7th grades so just drive the golf cart over with their friends. They order off the menu (country club food isn’t expensive cause it’s the alcohol fees they make money off)

I’m already vested in one pension. Working on the second pension. In theory I should be set in 8 years and and retire before age 56 but life can throw curveballs all the time.

Kids prepaid college anccounts already fully paid but who knows if they want to stay in state or out of state. So that’s why trying to fund the 529 as well.

I’m not poor. Net worth between 4-5 million late 40s. But the older docs who are in late 50s I work with are worth between 10-15 million and they still work for health insurance especially the docs with younger spouses. They probably can retire.

 

[allantois]

Realistically kids are gonna need a lot of money AFTER they are 18 because, well, the economy is F ED

 

[finalpsychyear]

Surprisingly hard to answer but interesting to look at.

2022 total spending: $300,000 (ouch). Of those here are the major categories:
Horse purchase/associated expenses: $50,000
Mortgage/prop tax/homeowners: $47,000 (year 3 of 15 year mortgage)
Student loan: $42,000 (year 2 of 5 year refinance)
Home renovation projects: $40,000
Childcare: $22,000
Food, travel, insurance, etc: remaining $100,000

Investments (401k x2, CBP, Backdoor Roths, HSA, brokerage): $250,000

1. since there are 2 401k's you are dual income and maybe both in gas? Clarify so your post can have added value if possible.

2. likely won't have horse and same renovation costs so maybe closer to 350k saved going forward and maybe 400k after loans paid off.

 

[deleted875186]

3.91% with UFB Direct HYSA. Was at Ally before but they're sitting at 3.3%, so I moved my emergency fund.

I signed up with UFB but had a bad feeling, their website didn’t work, customer service wasn’t great on the phone, some crappy reviews online that money is held up and can’t transfer. I closed it.

I signed with Capitol one instead, more reputable, 3.5% at the moment which is good.

 

[pgg]

Kids (and designer pets (grooming/boarding etc) will kill any budget.

2-3 kids doubles anyone’s vacation budget with kids

2-3 pets easily can add up to $5-10k extra expanse a year for people who like to travel. My friend literally paid $3k in pet boarding fees last year cause they travel a lot.

I think my kids cost me a minimum 40k last year and they attend public schools. Between funding 529 (and I really cut back on that to only 12k cause stock market doing horrible last year) . School activity (cheer, baseball, music lessons, tennis, tutors)

I probably spent 300k last year and only made around 450k pretax (according to my w2 I just got). Which means I was negative around 30k! After taxes.

Had more home renovations 50-60k (spend 300k the last 2 years)
Mortgage is reasonable at $4500/month

No car payments

I just have a spouse who likes to spend.
Food eating out etc is $3000 a month
Vacation was 50k
Daughter had hospital bill 6k (high deductible) I pay cash cause I like to keep the HSA money growing.

Just write your pets and the cheer off on your taxes

 

[finalpsychyear]

Let’s just say my kids think high end steakhouse is McDonald’s cause it’s down the street cause we got 2-3 x a month

But yes. I have plenty of money so just had to withdraw from taxable investments to cover the negatives. Due to home renovations.

It’s just the misc spending. We can easily cut 2k off the monthly budget with stupid spending.

We can cut the country club but the kids are 5/7th grades so just drive the golf cart over with their friends. They order off the menu (country club food isn’t expensive cause it’s the alcohol fees they make money off)

I’m already vested in one pension. Working on the second pension. In theory I should be set in 8 years and and retire before age 56 but life can throw curveballs all the time.

Kids prepaid college anccounts already fully paid but who knows if they want to stay in state or out of state. So that’s why trying to fund the 529 as well.

I’m not poor. Net worth between 4-5 million late 40s. But the older docs who are in late 50s I work with are worth between 10-15 million and they still work for health insurance especially the docs with younger spouses. They probably can retire.

Makes sense as I figured for your situation so kudos on success. Also if you decide to work another 10 years your NW would be in the range of your colleagues since money doubles every 10 years.

For your colleagues who have touched 10m and beyond, they are nearing 30 years of FT work. Are most dual MD households or do anything special to reach that besides investing in index funds and avoiding divorces?

 

[narcotics999]

definitely can splurge on luxury stuff esp if in lower cost area.
its sad when i see nyc take 25k away from me each year... that would pay for so many fancy restaurant dinners... bags... some watches

Live in jersey city water front. The view is better.

 

[aneftp]

Makes sense as I figured for your situation so kudos on success. Also if you decide to work another 10 years your NW would be in the range of your colleagues since money doubles every 10 years.

For your colleagues who have touched 10m and beyond, they are nearing 30 years of FT work. Are most dual MD households or do anything special to reach that besides investing in index funds and avoiding divorces?

Most are single income families. Honestly. They can retire. But their health still pretty good. And I’m sure their stay at spouses prefer that they work and they do their own thing.

One is dual income and the wife MD is long retired. And male one works 0.5 now.

The other just covers surgery center prn. Late 50s.

Forgot another works 4 days a week no calls. She can retire. She’s 55. She quit and came back but no calls.

 

[finalpsychyear]

Most are single income families. Honestly. They can retire. But their health still pretty good. And I’m sure their stay at spouses prefer that they work and they do their own thing.

One is dual income and the wife MD is long retired. And male one works 0.5 now.

The other just covers surgery center prn. Late 50s.

Forgot another works 4 days a week no calls. She can retire. She’s 55. She quit and came back but no calls.

no divorces so seems like marrying smart is big time to reach this.

 

[okayplayer]

1. since there are 2 401k's you are dual income and maybe both in gas? Clarify so your post can have added value if possible.

2. likely won't have horse and same renovation costs so maybe closer to 350k saved going forward and maybe 400k after loans paid off.

2 physician incomes.

Correct.

 

[finalpsychyear]

I think more recently the recommended SWR is closer to 2.7-3.0%, especially if you’re planning to retire earlier and need the money for longer than 30 years.



All in on crypto with leverage.

14 years at 300/yr invested at 7% gets u there almost. Who knows if we get that rest of decade.

 

[Dr. Rude]

no divorces so seems like marrying smart is big time to reach this.

It is not only the most important financial choice that one is likely to make. It is the likely the most important life choice.

 

[Iso4ane]

Let’s just say my kids think high end steakhouse is McDonald’s cause it’s down the street cause we got 2-3 x a month

But yes. I have plenty of money so just had to withdraw from taxable investments to cover the negatives. Due to home renovations.

It’s just the misc spending. We can easily cut 2k off the monthly budget with stupid spending.

We can cut the country club but the kids are 5/7th grades so just drive the golf cart over with their friends. They order off the menu (country club food isn’t expensive cause it’s the alcohol fees they make money off)

I’m already vested in one pension. Working on the second pension. In theory I should be set in 8 years and and retire before age 56 but life can throw curveballs all the time.

Kids prepaid college anccounts already fully paid but who knows if they want to stay in state or out of state. So that’s why trying to fund the 529 as well.

I’m not poor. Net worth between 4-5 million late 40s. But the older docs who are in late 50s I work with are worth between 10-15 million and they still work for health insurance especially the docs with younger spouses. They probably can retire.

When I have kids, McDs is going to be a luxury since their father is a ‘janitor’ that cleans up other people **** at work all the time.

 

[ChiDO]

Surprisingly hard to answer but interesting to look at.

2022 total spending: $300,000 (ouch). Of those here are the major categories:
Horse purchase/associated expenses: $50,000
Mortgage/prop tax/homeowners: $47,000 (year 3 of 15 year mortgage)
Student loan: $42,000 (year 2 of 5 year refinance)
Home renovation projects: $40,000
Childcare: $22,000
Food, travel, insurance, etc: remaining $100,000

Investments (401k x2, CBP, Backdoor Roths, HSA, brokerage): $250,000

I think we're similar spending...this doesn't even include estimated taxes payments 😭

Big caterogies.. Ivf 50k, home reno $120k

 

[nimbus]

I think we're similar spending...this doesn't even include estimated taxes payments 😭

Big caterogies.. Ivf 50k, home reno $120k

$50k for IVF is just the beginning 😂

 

[luckybuck]

It is not only the most important financial choice that one is likely to make. It is the likely the most important life choice.

Or not marrying at all. That could be a good choice.

 

[caligas]

OP here, should have mentioned 140k for 2022 did not include any income taxes, just property tax on paid off house.

It seems like a lot of money, yet our lifestyle doesn’t feel extravagant. I think it would suck to live on 50-70k with a family.

 

[GonnaBeADoc2222]

My wife spends about $25k on luxury purses every year. She likes Hermes and Chanel the most.

i didn't say i like it when she spends money on this stuff.
it is a lot cheaper than a divorce

This is more expensive than my divorce was.

 

[finalpsychyear]

I think we're similar spending...this doesn't even include estimated taxes payments 😭

Big caterogies.. Ivf 50k, home reno $120k

I'm building my way up to higher spending. I did this live like a resident challenge from WCI from 2017-2020 since i was singe at that time. 2023 is the start of my 7th year. Roughly 400k running total thus far but most of it last 2 years since married.

 

[Gasworks]

Or not marrying at all. That could be a good choice.

Staying single into your 40s has been shown to be a long term wealth killer.

 

[coffeebythelake]

Staying single into your 40s has been shown to be a long term wealth killer.

Why

 

[luckybuck]

Staying single into your 40s has been shown to be a long term wealth killer.

Really? I don't understand

 

[GassYous]

Staying single into your 40s has been shown to be a long term wealth killer.

Yes I find that I earn more when I try to get away from my family by taking more call

 

[kidthor]

Why

Yeah why?

My divorced physician friends in their 40s really had their wealth killed. Same with my friends with non-working spouses (with no kids either), and spouses who expect a Teslas and private air travel.

 

[finalpsychyear]

Staying single into your 40s has been shown to be a long term wealth killer.

I think long term health is poorer for those that don't get married/partner. I would think wealth would increase the longer you stay single and thus becomes premarital assets. The other side is if your single your going to need less money and may not be motivated to pursue it.

 

[GonnaBeADoc2222]

Yeah why?

My divorced physician friends in their 40s really had their wealth killed. Same with my friends with non-working spouses (with no kids either), and spouses who expect a Teslas and private air travel.

I think long term health is poorer for those that don't get married/partner. I would think wealth would increase the longer you stay single and thus becomes premarital assets. The other side is if your single your going to need less money and may not be motivated to pursue it.

I divorced in my 30s, and my net worth went up.

My stress level went down as well. Also, started lifting. So my health is up too.

 

[finalpsychyear]

Yeah why?

My divorced physician friends in their 40s really had their wealth killed. Same with my friends with non-working spouses (with no kids either), and spouses who expect a Teslas and private air travel.

Makes perfect sense. Divorce is essentially a 50% deletion of your NW way worse than anything that could happen in the stock market if invested in index at least.

 

[ScarfTheVerb]

These threads are always interesting to read.

Here’s my approximate breakdown for 2022:

Income $650
Taxes $200
Savings $200
Spending $250

Probably $80k housing (HCOL area), $120k miscellaneous credit card spending (bills, 2 big trips with kids and a handful of other weekend travel, lots of eating out, plenty of frivolous spending on amazon et al). Rest on misc childcare (they’re all in school now thank god), a few projects around the house, life and unemployment insurance. Student loans paid off about 2 years ago.

I could definitely live more frugally, but I feel perfectly comfortable spending every last penny of that $250k as long as I hit my savings goals, which I have automated. Should be on track to retire comfortably in my mid 50’s.