Making $500k and not feeling wealthy in NW

[Anonymous]

Anonymous wrote:OP here. Everyone from politicians on down wants to pile on and they don't understand. They fail to realize that with our income level we have have an obligation to save more. And it's not just retirement at work, but it's also investment accounts etc. It's hard to explain to people who will never experience this sort of income.

What the hell does this even mean? To whom are you obliged?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People are stupid as shit.

If someone makes more than you, you automatically think it's like billions.

Newflash 500k a year vs 1 million vs 5 million are different.

People tend to lump 300k through 5 billion into the same class of people, being rich and telling them to shutup.

We've made $500k/year. I didn't feel like crazy OP.

Do you live in DC, paying for private schools, in a normal sized 3000 SF house?

Yes. We make more now and I feel positively wealthy. But right around the time we hit $500k is when I felt really comfortable. Other than really big purchases, I really never had to think about money/a budget. That is a huge luxury that most people never get. Of course, it helps that I am not an idiot and didn't think my toilet would be gold plated, too.

Did you have a large downpayment on your home? That's the main issue around here, housing is very expensive. We had to start from scratch and did very little down on a 1 million. It has grown 20% over the last few years but again it sucks down a lot of income. We are only at 300-360k

Yes we did. Because we saved for it over the course of many years. Rich doesn't mean you get to go on a drunken spending spree and buy whatever you want. But, if you can afford an expensive house, nice cars, retirement and college savings, childcare and other things like that around here, you don't really have room to complain. It is very tone deaf and insulting to actual people who often have to choose between living in a safe place/good school district or having a child. Or paying for a pricey daycare and ever buying a home.

FYI, I am not OP I am just explaining as to why some people feel that they aren't in that "wealth" category despite making a sizable income. Many of us didn't have large salaries until we had kids and then a immediately are thrown into a situation where we don't have time to save.

If you can't save on $360k/year, you are doing something wrong. Something very wrong.

Exactly

Let's say you made very little like 40k a year.

Then at age 32 you started making 350k a year, have two kids and need to buy a house.

You don't have time to save, if we tried to save for a downpayment on a decent house we wouldn't have it until the kids are moved out.

What don't you get.

This ain't detroit a house costs at least 1.5 million.

But if you were living at 40k a year, and suddenly started making 360k, you'd save a lot in the few months you had left on the lease for your tiny little apt and the few months left in the school year before switching over to private. Your sense of what's a "nice home" would be relatively modest - an upgrade from what you currently have, an extra bedroom or two - but most normal people aren't going to suddenly feel they *need* mansion just before they can afford one.

I really don't get what you're talking about. Our income doubled when my husband got his new job and the only thing that's increased is our food budget - we now don't hesitate to order take out if we're in the mood for it. You don't go from consuming <100k a year to >300k a year over night, even if your income allows it - there's a certain pattern to life, certain financial commitments. I get how consumption increases gradually over time but if you're preferences do a 180 as soon as you get a raise, then something doesn't make sense.

[Anonymous]

It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning


etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.

[Anonymous]

This is trolling at its finest.

[Anonymous]

Get a financial planner. They can figure out how to cut your expenses. We make about the same as you and our burn is about $15k/month total and bank a huge amount in savings. We also do public schools (Bethesda).

[Anonymous]

Anonymous wrote:It's human nature to want to move your family into the most expensive and safest neighborhoods. When your income rises you keep raising the bar. It's a personal struggle I have.

It is human nature to want a safe neighborhood. It isn't necessarily human nature to want the most expensive neighborhood. There are plenty of safe neighborhoods.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's human nature to want to move your family into the most expensive and safest neighborhoods. When your income rises you keep raising the bar. It's a personal struggle I have.

That's just it - it is a personal struggle you and op have. There are MANY safe neighborhoods in the DCMA that are not the most expensive, but people have the same income as OP. those families go on the multiple vacations that the OP wants. It is simply about priorities.

It's also my opinion that by paying down a house in an expensive neighborhood that it becomes a very good financial investment for the future. Vacations don't make you any money, they are expenses.

[Anonymous]

Anonymous wrote:It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning


etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.

Is this a joke? And who said anything about people making 300k being lazy? No one said that.

[Anonymous]

Anonymous wrote:It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning


etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Everyone from politicians on down wants to pile on and they don't understand. They fail to realize that with our income level we have have an obligation to save more. And it's not just retirement at work, but it's also investment accounts etc. It's hard to explain to people who will never experience this sort of income.

What the hell does this even mean? To whom are you obliged?

The voices in her head

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's human nature to want to move your family into the most expensive and safest neighborhoods. When your income rises you keep raising the bar. It's a personal struggle I have.

Maybe for you, I never think about "the most expensive neighborhoods", just the neighborhhood I like for various reasons.

I agree - safety is one thing but I don't think it has to be the "most expensive" neighborhood.

Me too. I absolutely have no desire to live in the most expensive neighborhoods. I wouldn't want to raise my children surrounded by unchecked privilege, and I would feel uncomfortable having a multimillion dollar mansion knowing how many homeless people are in our area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's human nature to want to move your family into the most expensive and safest neighborhoods. When your income rises you keep raising the bar. It's a personal struggle I have.

That's just it - it is a personal struggle you and op have. There are MANY safe neighborhoods in the DCMA that are not the most expensive, but people have the same income as OP. those families go on the multiple vacations that the OP wants. It is simply about priorities.

It's also my opinion that by paying down a house in an expensive neighborhood that it becomes a very good financial investment for the future. Vacations don't make you any money, they are expenses.

OP (I'm guessing you aren't op) was lamenting that her family couldn't go on multiple vacations like her sibling. Your response is off topic.

[Anonymous]

Anonymous wrote:It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning


etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.

What the fuck? You think people making 50K a year are lazing around and don't need all the same things done? The fact is you get to pay for the LUXURY of outsourcing with your disposable income. Yes. Disposable.

[Anonymous]

Anonymous wrote:It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning


etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.

You are making yourself sound like more and more of an idiot. For example, childcare and nanny are the same thing. Your nanny costs are not any higher than the rest of us peons, unless your children require fulltime medical care. If you are not able to live comfortably on $500K, then you are doing it wrong. Period.

[Anonymous]

this has to be a troll