At what HHI did you stop feeling like more money = better life?

[Anonymous]

When we went from Big Law to government and in house. Not that $300K is a small amount but it was much less than we were used too, and we knew any more money would require us to have a worse life.

[Anonymous]

Anonymous wrote:150k. Now at 250k. We live such a nice life that I don't understand a lot of the posters whining about 400k+. I think they must really have a lot of lifestyle creep because we have a nice home and still take international vacations yearly. There's nothing I want that I don't have.

Is your house paid off, and college already fully invested?

[Anonymous]

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Anonymous wrote:$600k but with living in DC and three little kids and high childcare costs and piano/tennis/violin/tutoring/lacrosse/soccer we are not living a lavish life. But we are definitely comfortable.

Ummm affording childcare for 3 kids plus all those activities *is* a lavish lifestyle. Many of us are stopping at 2 kids because childcare is so expensive and activities = rec center soccer or gymnastics (only 1 per kid).

It is very easy to afford our 4 kids on wayyy less than 600k and do travel sports, and instruments, and have an AuPair and fully max out 2 401ks and a mega roth to the tune of 25k post tax income.

So 25k in retirement plans covers most of your yearly savings? That’s nothing in this day and age.

Huh?

Between 2 earners we save 39k in 401k, plus 18k employer match and then an additional 25k in mega roth. Out annual retirement savings is 82k/yr. This for not even include our taxable brokerage account. We have 4 kids, 2 incomes, six figures in annual investments, and our 4 kids play sports, get tutoring, and we travel. It's not exactly a hardship to have 4 kids and feed 7 mouths (aupair) lol!

The six figures in annual investments is outside of retirement? And you’re doing this on wayyy less than 600k? What’s your hhi? Mortgage?

HHI is variable. But 400k is a good average.

400k
-39k 401k
-6k HSA
-2400 insurance premiums
After all deductions and such our tax rate is approx 30%
Net income 246k
-25k mega roth
-45k annual brokerage
Total annual.savings (including employer match) 88k in retirement and 45k in brokerage.
-28k AuPair Expenses
-24k mortgage (recent refi, 5BR home in Ashburn purchased in 2010)
-24k kids sports and kids extras

Leaves us with 8,800/mo for food, utilities, travel, clothes, repairs, gas, gyms, and entertainment.

Now with covid we spend way less. We also never get in a plane. Traveling with 7, that's just not possible. We will be done with the AuPair after this year. We won't be investing that money. That will be added to disposable income. I did work for a company that went IPO and our taxable brokerage is very healthy. Out financial advisor thinks we are at the point where we Have over funded retirement as well (though we are 43&44). I disagree wince we have 4 kids I want to leave them something. We will probably have lots of grandkids too we will want to be generous with.

I did not mention we have 2 investment properties (both homes we brought into the marriage that we did not sell. Those are very cash flow positive, we do keep that money separate and with the balance at the end of the year we assess all needed repairs and then plow the remainder into the remaining mortgage balance we have on one of the properties (other is paid.off).

Flame away. I fully expect it lol!

DCUM Is crazy. Why would anyone want to flame this. Commendable. How old are you guys and what is your NW including house?

43 & 44.

Approximate real estate value minus mortgages 1.2M
Roth (remember I have a mega program) and 401ks ~2M (changes constantly)
Brokerage 1.2 (again crazy swings and an IPO windfall)
Bitcoin 77k
Cash savings 40k

Net worth 4.3

I'm not including 529. My DHs parents each funded 25k to each grandchild into the 529 invest and gifts 2k to each account each Christmas. We are not adding to this, but will fill in any gaps in funding out of wage or investment income if needed. However this generosity of my DHs parents is what motivates is to keep investing. I'd like to do the same for our grandkids to the best extent possible.

Our target retirement age is 59. We hope our NW doubles by then.

A simple calculator will tell you, you should have $13M even if your salary and expenses and savings remain the same. You know that’s not true. So you are potentially looking at much more.

I can take $13M and retire, heck can take half that and retire.

[Anonymous]

I have never felt like I needed more money at any point in my adult life post grad school. Our combined household income with our first job out of grad school was 130K (each making 65K), and our income the year we had our first kid was 183K. Our household income is now 230K. In between, we bought a home in PG County for 375K, so we have a reasonable mortgage given our income. Because we bought an affordable home, we can comfortably pay our student loans, daycare costs, max out our retirement savings, and build an emergency fund. When it comes to fun spending, we are able to prioritize our spending to have the things we value most. We have gym memberships, buy healthy/expensive food, I have a monthly massage (in non-COVID times), I spend a lot of money on clothes and skincare, we visit family every year, we vacation every year, I take an annual trip with grad school girlfriends, we go on big international trips every 2-3 years. If we decide the local schools aren't good enough, we'll be done with student loans the year before our child starts kindergarten, so we can take that expense and parlay it into a more expensive house without a problem. Basically, buying a more modest first home rather than stretching to buy, waiting to have a kid then also getting lucky on the timing, being intentional about our spending, and normal early career income growth has meant that we've never been stressed about money. Most of the people on DCUM with high salaries griping about how hard it is to live here are bad with money and live beyond their means/think they should be able to have anything and everything they want whenever they want it.

[Anonymous]

Anonymous wrote:I have never felt like I needed more money at any point in my adult life post grad school. Our combined household income with our first job out of grad school was 130K (each making 65K), and our income the year we had our first kid was 183K. Our household income is now 230K. In between, we bought a home in PG County for 375K, so we have a reasonable mortgage given our income. Because we bought an affordable home, we can comfortably pay our student loans, daycare costs, max out our retirement savings, and build an emergency fund. When it comes to fun spending, we are able to prioritize our spending to have the things we value most. We have gym memberships, buy healthy/expensive food, I have a monthly massage (in non-COVID times), I spend a lot of money on clothes and skincare, we visit family every year, we vacation every year, I take an annual trip with grad school girlfriends, we go on big international trips every 2-3 years. If we decide the local schools aren't good enough, we'll be done with student loans the year before our child starts kindergarten, so we can take that expense and parlay it into a more expensive house without a problem. Basically, buying a more modest first home rather than stretching to buy, waiting to have a kid then also getting lucky on the timing, being intentional about our spending, and normal early career income growth has meant that we've never been stressed about money. Most of the people on DCUM with high salaries griping about how hard it is to live here are bad with money and live beyond their means/think they should be able to have anything and everything they want whenever they want it.

Yes but the question is not about which HHI you need to have a good life, it’s at what point would more money stop = better life. Would you say no to more money, even if it’s to donate to causes you care about?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have never felt like I needed more money at any point in my adult life post grad school. Our combined household income with our first job out of grad school was 130K (each making 65K), and our income the year we had our first kid was 183K. Our household income is now 230K. In between, we bought a home in PG County for 375K, so we have a reasonable mortgage given our income. Because we bought an affordable home, we can comfortably pay our student loans, daycare costs, max out our retirement savings, and build an emergency fund. When it comes to fun spending, we are able to prioritize our spending to have the things we value most. We have gym memberships, buy healthy/expensive food, I have a monthly massage (in non-COVID times), I spend a lot of money on clothes and skincare, we visit family every year, we vacation every year, I take an annual trip with grad school girlfriends, we go on big international trips every 2-3 years. If we decide the local schools aren't good enough, we'll be done with student loans the year before our child starts kindergarten, so we can take that expense and parlay it into a more expensive house without a problem. Basically, buying a more modest first home rather than stretching to buy, waiting to have a kid then also getting lucky on the timing, being intentional about our spending, and normal early career income growth has meant that we've never been stressed about money. Most of the people on DCUM with high salaries griping about how hard it is to live here are bad with money and live beyond their means/think they should be able to have anything and everything they want whenever they want it.

Yes but the question is not about which HHI you need to have a good life, it’s at what point would more money stop = better life. Would you say no to more money, even if it’s to donate to causes you care about?

Lol, I wouldn’t say yes to more money if you told me I had to donate it. We donate 7-10K annually to causes we care about, which feels like a meaningful proportion of our net income. Charitable contributions don’t make my life any better - I give primarily out of moral obligation because I recognize our relatively advantaged position. The only thing I can think of that would give me joy with more money would be gifting nicer trips to my grad school girlfriends, but they wouldn’t accept it/it would introduce an uncomfortable dynamic into our friendship, so I don’t actually think it would make my life better. The other thing that would be great is if there was a cure for my daughter’s illness, but that’s the one thing that money can’t buy/can’t control (there’s already a ton of money going to research her illness already - a nominal amount of money more from me isn’t going to be the thing that makes or breaks this research, though it is one of many causes to which we contribute). So my answer really is that money has stopped meaning a better life for me, well before my current 230K HHI. I appreciate the income growth from 130K that has allowed us to buy a house, save for retirement, have an emergency fund, afford a kid, and spend on other priorities we have in life without financial stress. The absence of financial stress is the thing that most contributes to ma feeling like I have the best life, no spending on consumer items or having x,y, or z experience, even though I am also able to afford those things as well, at least from time to time.

[Anonymous]

Anonymous wrote:I have never felt like I needed more money at any point in my adult life post grad school. Our combined household income with our first job out of grad school was 130K (each making 65K), and our income the year we had our first kid was 183K. Our household income is now 230K. In between, we bought a home in PG County for 375K, so we have a reasonable mortgage given our income. Because we bought an affordable home, we can comfortably pay our student loans, daycare costs, max out our retirement savings, and build an emergency fund. When it comes to fun spending, we are able to prioritize our spending to have the things we value most. We have gym memberships, buy healthy/expensive food, I have a monthly massage (in non-COVID times), I spend a lot of money on clothes and skincare, we visit family every year, we vacation every year, I take an annual trip with grad school girlfriends, we go on big international trips every 2-3 years. If we decide the local schools aren't good enough, we'll be done with student loans the year before our child starts kindergarten, so we can take that expense and parlay it into a more expensive house without a problem. Basically, buying a more modest first home rather than stretching to buy, waiting to have a kid then also getting lucky on the timing, being intentional about our spending, and normal early career income growth has meant that we've never been stressed about money. Most of the people on DCUM with high salaries griping about how hard it is to live here are bad with money and live beyond their means/think they should be able to have anything and everything they want whenever they want it.

Exactly