What is the lifestyle difference of 400-500k/yr and 800-1M/yr

[Anonymous]

How does your life change going from half a mil to a mil a year?

[Anonymous]

You can do whatever you want with the extra ~$200-300K in take home each year.

[Anonymous]

In most cases, probably a second house. And big costs like private school don't pinch anymore.

[Anonymous]

For us, probably fanicer travel and earlier retirement.

Or just a lot of dogs. SO MANY dogs. (Look, we all have our luxuries.)

[Anonymous]

More taxes to pay?

[Anonymous]

We bought a second home
We send our kids to private school and don't worry about the price tag

Those are the two major differences. That, and we just have the freedom to not worry that much about your every day purchases. We also are now closer to 1.3-1.4, but most of the above occurred when we were right at $1M.

[Anonymous]

No longer having to worry about educational or housing expenses. Knowing that you will be able to put enough aside that your grand kids will have their educations' fully funded. Being able to retire where and when you choose

[Anonymous]

That would be significant. We are in $400-$500k and have to be quite careful. $800k would be a different beast. That’s double!

[Anonymous]

Save more and take better vacations. The difference will only net about $200k more, so really you should be using this to save aggressively. 4 years of this with returns will be $1m.

[Anonymous]

Anonymous wrote:That would be significant. We are in $400-$500k and have to be quite careful. $800k would be a different beast. That’s double!

Private school?

[Anonymous]

Anonymous wrote:You can do whatever you want with the extra ~$200-300K in take home each year.

It will be gone with 1 good vacation and 3 kids in private school.

[Anonymous]

We make ~$500k, and if that went up to, say, ~$900k, it wouldn't change that much. Vacations would get a little more lavish, and we'd probably go on another big one each year. But the biggest impacts would be (i) it would advance our retirement dates, and (ii) we'd start looking in earnest for our second home for retirement, and (iii) we'd reevaluate our housing options for our primary place in retirement.

I imagine for larger families (we have 1 kid), and younger families (we are 52 and 55, kid is a junior in HS, and college is fully funded), this would look different, and there would be a much greater immediate impact.

[Anonymous]

A when our hhi was 480k, we didn’t think we could comfortably afford private school (for 3) but at 1m+, it’s a non-issue.

[Anonymous]

We are at 450k and very comfortable because we are still in out first home and we like it well enough. Probably would buy a nicer house if it doubled, but college years for kids are approaching so might stay where we are. We do place a premium on not having any money struggles and being able to save at least half of the income because it can all just go away pretty fast.

[Anonymous]

Anonymous wrote:We bought a second home
We send our kids to private school and don't worry about the price tag

Those are the two major differences. That, and we just have the freedom to not worry that much about your every day purchases. We also are now closer to 1.3-1.4, but most of the above occurred when we were right at $1M.

Totally agree with this. At $1.8M we did the fabulous vacations and stopped worrying completely about spending.