I feel like I’m behind
Sometimes it feels like you’re treading water. Between daycare, housing, transportation, and retirement savings, it can feel like nothings left. How do you keep up. A recent study I read from Pew Research highlighted for me that most of us make around 121K a year.
If you utilize the 50/30/20 budget on 121 K a year (net), you’re left with 60,500 for your needs. Needs constitute the things you must pay, groceries, utilities, daycare, mortgage/rent, debt payments, car note. That means you have 5,041 a month to pay your needs. I don’t know about you, but I have three dependents that need and utilize daycare, which means HALF of that needs budget goes to daycare. The other half goes to mortgage and utilities. This means for me, and the stage of life I’m at, the 50/30/20 budget isn’t going to work. In fact, it’s probably going to make me feel sad, like I’m doing something wrong. What I can do is realign myself with reality. Daycare is more than rent in every state as reported by Child Care Aware. The study notes
In most states, the price of child care for two children exceeded annual housing payments by 28% to over 100%.
The price of child care for an infant in a center exceeded annual in-state tuition at a public university in 34 states.
Child care for two children in a center would cost a child care workforce professional anywhere from 56% to over 100% of annual income.
Childcare centers and in home daycares aren’t necessarily raking it in either, thinking about the cost of their insurance, the food they feed kiddos, and the amount of hours they are there, it’s not lucrative. This all to say, there needs to be policy in place to assist families and quality child care centers.
So if you’re behind right now, take a deep breath. The average American family is paying what feels like two or three mortgages between the childcare/child expenses, and rent/mortgages. You’re doing your best. A few practical tips if you feel like you’re behind.
Feeling the pressure to keep up with others financially can be stressful, but there are ways to improve how you feel about your own financial situation without comparing yourself to others:
Focus on Your Own Goals: Define what financial success means to you personally. Set realistic goals that align with your values and priorities rather than what others might have or do.
Practice Gratitude: Cultivate a mindset of gratitude for what you do have rather than focusing on what you lack. Reflect on the things that money can't buy, such as relationships, health, and personal achievements.
Budget and Track Your Progress: Develop a budget that fits your income and priorities. Tracking your financial progress towards your own goals can provide a sense of accomplishment and control.
Avoid Unnecessary Comparisons: Remember that appearances can be deceiving. People often showcase their best moments and possessions, but everyone's financial situation is different and rarely as perfect as it might seem.
Celebrate Your Wins: Recognize and celebrate your financial achievements, whether big or small. This could be paying off a debt, saving a certain amount of money, or sticking to your budget consistently.
Invest in Personal Growth: Instead of focusing solely on material possessions, invest in experiences, education, or skills that bring you fulfillment and contribute to your long-term well-being.
Limit Social Media Exposure: Social media can amplify the pressure to compare yourself to others. Consider limiting your time on social platforms or curating your feed to include positive influences.
Seek Support and Perspective: Talk openly about your feelings with friends or family members you trust. Sharing concerns and hearing different perspectives can provide clarity and support.
Practice Self-Compassion: Be kind to yourself during financial challenges. Recognize that setbacks are a normal part of life, and focus on what you can do to move forward rather than dwelling on past mistakes.
Focus on Financial Security: Redirect your focus towards building financial security and resilience rather than keeping up appearances. This might include building an emergency fund, investing for the future, or securing insurance coverage.
By shifting your mindset away from comparisons with others and towards your own values and goals, you can cultivate a healthier and more positive relationship with your financial situation. Remember, everyone's journey is unique, and true financial well-being comes from aligning your resources with what matters most to you.