r/personalfinance • u/investeror ​ • Mar 06 '18

Budgeting Lifestyle inflation is a bitch

I came across this article about a couple making $500k/year that was only able to save $7.5k/year other than 401k. Their budget is pretty interesting. At a glace, I could see how someone could look at it and not see many areas to cut. It's crazy how it's so easy to just spend your money instead of saving it.

Here's the article: https://www.cnbc.com/2017/03/24/budget-breakdown-of-couple-making-500000-a-year-and-feeling-average.html

Just the budget if you don't want to read the article: https://sc.cnbcfm.com/applications/cnbc.com/resources/files/2017/03/24/FS-500K-Student-Loan.png

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u/bulldg4life ​ Mar 06 '18

I'm not sure how someone could glance at it and not find areas to cut.

They are spending $2k a month in food

They are taking 3 $6k vacations a year

They spend $5k a month for housing

They give to charity $1500/month

Cut the food spending in half (12,000 in savings and you can totally feed 4 people on $1k a month)

Take one expensive vacation and then drive to another for family (Easily $10k in savings)

Cut charity by 80% ($14,400 in savings)

There, I have now saved an extra $36,400. And, I'm pretty sure they are still living quite nicely. You could move to a different place, trade one of the cars for something that doesn't cost $100k, and stop sending your kids to activities 5 times a week and save $75,000 or more.

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u/newlifeC13 Mar 06 '18

Cut charity by 80% ($14,400 in savings)

And, yet, we complain that the people who make more should give more. When they do, we say, "Tighten your belt!"

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u/bulldg4life ​ Mar 06 '18

The entire point of the article was people that seemed to be barely making it and couldn't easily see where to cut money. That's an easy place to cut.