How does your budget compare?

iVillage Member
Registered: 03-26-2003
How does your budget compare?
21
Wed, 04-21-2004 - 11:42am

AN AFFLUENT BABY BOOMER'S BUDGET

Charitable contributions

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iVillage Member
Registered: 03-26-2003
Wed, 04-21-2004 - 12:02pm

I am not great at percentages. Hopefully, both of the kids will be good at math so I won't need to assist them.


Budgetwise, we were not tithing the way we needed to. We tithed with time instead of money. Now, I try to tithe more and put it in my budget. I pay $16 a week for daycare for Zak and $87 a week for Alex. I will be paying $70 this summer for Zak.


I am saving for a Disney cruise in January. It is going to be 6,000 (round about) so I have been putting $100 out of every paycheck in a savings account. Clothes are usually consignment sale and Target. It is not that much of my total budget. Health insurance is free for a year through Devin's work but I still have copays.


When we got the house, I bought one I could afford on my salary. It is my biggest expense. I don't have any credit card bills, car payments or student loans. I paid them off.


I am concentrating on savings as soon as everything settles down and the will gets probated. I can't sell Devin's car because I

"I do not want to be a princess! I want to be myself"

Mallory (age 3)

      &nbs

iVillage Member
Registered: 12-03-2003
Wed, 04-21-2004 - 12:33pm
These are rough numbers, and the healthcare comes out pre-tax, so I'm not including it here, as I did the percentages based on post-tax take home pay. Obviously, this also doesn't cover my 401K contribution, since that is before take-home.

Roughly:

Charity: 3%

Vacation: 5%

Healthcare: negligible (comes out pretax)

Food/Clothes: 5%

Children: 17%

Savings: 17%

House: 17%

And they forgot two categories we have.

Student loans: 25%

Automobiles: 4%

iVillage Member
Registered: 03-26-2003
Wed, 04-21-2004 - 12:38pm

I wonder if entertainment is lumped in with vacation and travel?

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iVillage Member
Registered: 12-03-2003
Wed, 04-21-2004 - 12:44pm
I noticed the whole lack of debt category. And then all the daily life incidentals--toothbrushes, floormats, secretary's day lunches, spring flowers for the lawn, etc.

Of course, for us, if we had no student loans, I'd still want to keep housing under 20% and spend more on kids/travel.

Plus, we will have college tuition expenses starting in three years. (dh's youngest brother--we somehow inherited him along the way. Wonderful, wonderful kid, but I am too young for a teen and too broke for college tuition payments) Ughhh.

iVillage Member
Registered: 05-28-2003
Wed, 04-21-2004 - 12:50pm
Health care costs may be higher because these babyboomers are older?

We don't spend nearly that much. The biggest health care expense we have is our dd's eczema lotion which even with insurance costs $40/2 weeks. Child related expenses are lower than what we spend , but maybe that's because they averaged ones with little kids and kids in school (or did they include college tuition. If that's the case, then I would have expected the % to be even higher.)?

We probably spend about 20% on child related expenses, and like you, most of that goes to the nanny. We spend more like 30% on housing. Our food/clothing expense is way less than 13% and since our vacations have been flying to the grandparents couple of times a year, it's less than 8%.

What were the demographics for this group that they quoted?
iVillage Member
Registered: 03-27-2003
Wed, 04-21-2004 - 1:06pm
Hmmmmmm. I think I'm a Gen X-er:) But looking at my bills for this month and Quicken, that seems roughly reasonable. It'd be a long process for me to take it all out of quicken and break it down in exact percentages. Plus, our spending is so dynamic, we save, we splurge. No month is the same really. Dh maxes his 401(k), pays all the insurances (health, dental, disability, aflac, etc), and buys into the stock purchase plan before we get the direct deposit. After that, we stock some away in savings for months when bigger bills come, and pay the general bills: water, gas, electric. Our biggest check written each month is actually ds's tuition. We have other 'non necessary' bills each month, Directv, water delivery, dairy deliver, etc that are luxuries. Then we have money in the account when the non-monthly bills come in: homeowners insurance, car insurances, boat insurance, trailer insurance, registration for all those vehicles, viacord storage, property taxes, kiddie t-ball, charity balls where we buy stuff at silent auctions etc. Gas is expensive lately and with guzzlers that is a weekly expense these days. We take vacations, we buy this or that........ all that goes onthe Amex which gets paid each month. Dh daytrades. We decide we want a new suv, we go get one.... our 'budget' per se is all over the place. The big parish fundraiser is coming up in two weeks, last year we spent a few grand at the auction (dh gets an adrenaline rush bidding at those things), this year, I'm sure we'll do the same...... but I guess that's half charity/ half luxury, right?
iVillage Member
Registered: 06-27-1998
Wed, 04-21-2004 - 1:07pm

Some rough numbers but I will give it a whirl.

PumpkinAngel

iVillage Member
Registered: 03-26-2003
Wed, 04-21-2004 - 1:21pm
Perhaps child-related expenses seem low because (1) many boomers don't have children living at home any more, and (2) older children may be taking care of a significant proportion of their own expenses through their own accounts, established through work and/or gifts/investments from the parents and others earlier in their lives. (My DS's college $s will probably be paid mostly out of his own account.) Also, I don't know where you got these %s, but perhaps the kids' share of food/clothes/vacation expenses are under those categories instead of child related.
iVillage Member
Registered: 02-27-2004
Wed, 04-21-2004 - 1:48pm
Must be older parents with older children! Those of us with younger children have student loans and high daycare/school costs - we pay $200 a month in student loans and $241 a WEEK for daycare for 1 yo DD. We used to pay $400 a month in student loans (all DH's (original amount of ~$32K); mine (all $2,100) was paid off years ago), but DH recently refinanced. We also spend a lot on groceries (formula and diapers especially), but with DD turning 1, the need for formula is thankfully going away. I'm really not sure what our numbers would be; it's all I can do to just remember to pay everything each month, let alone figure out how much we pay!
iVillage Member
Registered: 03-26-2003
Wed, 04-21-2004 - 2:25pm
You're a wonderful SIL to do that.

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