This is an estimated yearly budget for a family of four that does not include education or retirement savings and only slightly calculates taxes. Also, I didn’t manually add up all the categories, I just assumed its addition was correct.
FROM CHAT GPT:
$21,600 (Housing and Utilities) +
$7,200 (Childcare) +
$9,600 (Food) +
$11,000 (Transportation) +
$3,600 (Healthcare) +
$1,800 (Insurance Policies) +
$1,200 (Vacations and Travel) +
$600 (Child Extracurricular Activities) +
$1,200 (Home Maintenance and Repairs) +
$1,200 (Transportation Upgrades) +
$1,200 (Long-Term Savings Goals) +
$600 (Charitable Donations) +
$1,200 (Unexpected Emergencies) +
$1,200 (Clothing and Personal Care) +
$800 (Home Furnishing and Appliances) +
$500 (Technology and Electronics) +
$300 (Subscriptions and Memberships) +
$500 (Pet Expenses) +
$2,000 (Travel and Commuting) +
$1,000 (Entertainment and Hobbies) +
$800 (Home Insurance) +
$2,000 (Property Taxes) +
$500 (Legal and Professional Services) +
$1,000 (Gifts and Celebrations) +
$600 (Household Cleaning and Maintenance) +
$1,000 (Saving for Big Purchases)
Total Estimated Annual Expenses (excluding child and parent education expenses) = $63,500
So, you would need to make approximately $81,410.26 in pre-tax income to achieve $63,500 after taxes, based on the 22% tax rate.
NOTE: This does not include education or retirement expenses which can be an extra $55k/yr for 2 children. I calculated 55k based on max 30k/yr for 2 children 529 plan, 6k for roth/ira, 19k for 401(k) for one person.
Please feel free to comment on if anything is forgotten or missing.. I have enabled approved comments.