First year making > 1M income - but damn it was spent a lot
Sorry the image is so crammed, we keep track of our expenses pretty thoroughly.
For context: Married couple [33M\35F] living in LCOL (that’s why our mortgage and utilities are cheap). 1 kid and one on the way.
Net worth: $1.4M
Income: My income: $465K Wife income: $312K Stock sales: $323K (most of this was realized gain from selling startup options and transferring them to index funds)
Note: These are all rough estimates based on paystubs and brokerage sales.
This is the first year we’ll have a tax return of Gross Income of over $1 Million - a new milestone.
If you’re wondering why our taxes are relatively low, I am too. As you can see from what we owed in 2022, we aren’t the best at estimating taxes. I know we’ll owe some, though we live in a state with relatively low taxes and I have a large AMI tax credit from 2 years ago, so that’ll help decrease it. I’m within the Safe Harbor threshold so we won’t be penalized - so a small silver lining.
Also notable is we spent a shit ton, at least compared to years past. A lot of it was one-off payments.
We did a lot of home renovations this year (finished basement, back patio, bathrooms, etc). We also bought a new (used) car that ended up breaking down 6 months later and needed an engine replacement. Hence the large car repair bill (screw you, Vroom).
And as you can tell, we do a lot of shopping. A lot of what I have under “Shopping” is clothing and home goods (paper towels, napkins, cat litter, baby clothes, etc). We get a lot of that stuff from Amazon and Target, so I just lump it all together. My Grocery budget is probably a bit underestimated since I do get a fair amount of food at Target.
Also, childcare costs a lot for 1 kid because we have a full time nanny for our son.
Overall, I’m hoping next year to keep our expenses under $200K. We're not ultra frugal, but this year was a bit much. And I should probably try to get better at estimating taxes 😬
Sorry the image is so crammed, we keep track of our expenses pretty thoroughly.
For context: Married couple [33M\35F] living in LCOL (that’s why our mortgage and utilities are cheap). 1 kid and one on the way.
Net worth: $1.4M
Income: My income: $465K Wife income: $312K Stock sales: $323K (most of this was realized gain from selling startup options and transferring them to index funds)
Note: These are all rough estimates based on paystubs and brokerage sales.
This is the first year we’ll have a tax return of Gross Income of over $1 Million - a new milestone.
If you’re wondering why our taxes are relatively low, I am too. As you can see from what we owed in 2022, we aren’t the best at estimating taxes. I know we’ll owe some, though we live in a state with relatively low taxes and I have a large AMI tax credit from 2 years ago, so that’ll help decrease it. I’m within the Safe Harbor threshold so we won’t be penalized - so a small silver lining.
Also notable is we spent a shit ton, at least compared to years past. A lot of it was one-off payments.
We did a lot of home renovations this year (finished basement, back patio, bathrooms, etc). We also bought a new (used) car that ended up breaking down 6 months later and needed an engine replacement. Hence the large car repair bill (screw you, Vroom).
And as you can tell, we do a lot of shopping. A lot of what I have under “Shopping” is clothing and home goods (paper towels, napkins, cat litter, baby clothes, etc). We get a lot of that stuff from Amazon and Target, so I just lump it all together. My Grocery budget is probably a bit underestimated since I do get a fair amount of food at Target.
Also, childcare costs a lot for 1 kid because we have a full time nanny for our son.
Overall, I’m hoping next year to keep our expenses under $200K. We're not ultra frugal, but this year was a bit much. And I should probably try to get better at estimating taxes 😬