I Live Comfortably on Less than $70K After-Tax in DC Area

[Anonymous]

Anonymous wrote:Why did everyone assume OP is a woman? I'm guessing man.

07/27/2017 12:41

[Anonymous]

And if DC is soooooooooooooooooo expensive then move. Stop complaining.

[Anonymous]

Anonymous wrote:OP spends $250 a year, YEAR!, on vacations.
Sad life. That's not even a hotel room for one night.

Those are monthly expenses. Idiot.

[Anonymous]

We're a family of four doing very well on a little under $90k.

We live close to downtown, go on European vacations every other year, travel frequently and eat out often. We are also frugal in all other areas and have plenty of money.

It blows my mind that people complain that $300k is poor. It's about the choices you make. You dont have to send your kids to the $2k a month downtown day care, or to $500 a week camps, or live in a macmansion.

[Anonymous]

^^^ Exactly

[Anonymous]

Anonymous wrote:I agree with OP even though other posters got mad at me and said I missed the point of the thread. How interesting.

OP here. Thank you.

[Anonymous]

Anonymous wrote:We're a family of four doing very well on a little under $90k.

We live close to downtown, go on European vacations every other year, travel frequently and eat out often. We are also frugal in all other areas and have plenty of money.

It blows my mind that people complain that $300k is poor. It's about the choices you make. You dont have to send your kids to the $2k a month downtown day care, or to $500 a week camps, or live in a macmansion.

OP here. Thank you. You're making the very point I've been trying to make. The people complaining that they can barely make ends meet on $200k make disparaging, snobby remarks about those of us who choose to live in Fairfax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're a family of four doing very well on a little under $90k.

We live close to downtown, go on European vacations every other year, travel frequently and eat out often. We are also frugal in all other areas and have plenty of money.

It blows my mind that people complain that $300k is poor. It's about the choices you make. You dont have to send your kids to the $2k a month downtown day care, or to $500 a week camps, or live in a macmansion.

OP here. Thank you. You're making the very point I've been trying to make. The people complaining that they can barely make ends meet on $200k make disparaging, snobby remarks about those of us who choose to live in Fairfax.

I'm pp. not sure why I wrote a little under $90k. Our HHI is currently in the $90s, closer to 100k. But we also did fine on $89k when the kids were younger.

[Anonymous]

Anonymous wrote:In your position you are absolutely not saving enough for retirement. You may be living fine, but you are shorting your retirement. Also, you should assume 4% for long term growth. At your age I wouldn't include SS either.

OP here. I am saving 18% of my income, which is more than the 15% that advisors recommend. And once I increase my contribution, I will be putting away 20%. I've been doing that since the first year after college, and I'm sure I'll be fine. The main thing is that I started early.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're a family of four doing very well on a little under $90k.

We live close to downtown, go on European vacations every other year, travel frequently and eat out often. We are also frugal in all other areas and have plenty of money.

It blows my mind that people complain that $300k is poor. It's about the choices you make. You dont have to send your kids to the $2k a month downtown day care, or to $500 a week camps, or live in a macmansion.

OP here. Thank you. You're making the very point I've been trying to make. The people complaining that they can barely make ends meet on $200k make disparaging, snobby remarks about those of us who choose to live in Fairfax.

I'm pp. not sure why I wrote a little under $90k. Our HHI is currently in the $90s, closer to 100k. But we also did fine on $89k when the kids were younger.

OP, and thanks again. It's nice to hear from people who have a "reality-based" sense what middle-class people earn, and that they can live on that just fine. I just don't get these DCUMers who complain about $250k+ as being such a stretch. (And did you see that guy from yesterday, who said you need $1 million in income before he considers them well-off? Unreal.)

[Anonymous]

After taxes DH and I live on twice what you earn, hence 140K, with two teen kids, both eating a ton, doing several sports, having a nice house we bought with a huge down payment. One kid just finished private school, no not the 40K per year one, but still a private, the other wanted public. With vacations to Europe every year, paid off condo in CO, unrented, fully furnished for our pleasure. And DS who traveled around the US for a sport competitions and even around the world. I assume you are younger, hence we saved more over time for these other things. Quite frankly, I have no idea what are you so smug about. We seem to be doing way better with comparably way less money per person per year. Three cars too, and car insurance for a teen. The question is not how are you managing well enough on your salary, the question is why aren't you doing better?

[Anonymous]

Anonymous wrote:After taxes DH and I live on twice what you earn, hence 140K, with two teen kids, both eating a ton, doing several sports, having a nice house we bought with a huge down payment. One kid just finished private school, no not the 40K per year one, but still a private, the other wanted public. With vacations to Europe every year, paid off condo in CO, unrented, fully furnished for our pleasure. And DS who traveled around the US for a sport competitions and even around the world. I assume you are younger, hence we saved more over time for these other things. Quite frankly, I have no idea what are you so smug about. We seem to be doing way better with comparably way less money per person per year. Three cars too, and car insurance for a teen. The question is not how are you managing well enough on your salary, the question is why aren't you doing better?

I'm not bing smug. You aren't getting the point. (And it isn't necessary to put me down.)

[Anonymous]

Anonymous wrote:

Anonymous wrote:After taxes DH and I live on twice what you earn, hence 140K, with two teen kids, both eating a ton, doing several sports, having a nice house we bought with a huge down payment. One kid just finished private school, no not the 40K per year one, but still a private, the other wanted public. With vacations to Europe every year, paid off condo in CO, unrented, fully furnished for our pleasure. And DS who traveled around the US for a sport competitions and even around the world. I assume you are younger, hence we saved more over time for these other things. Quite frankly, I have no idea what are you so smug about. We seem to be doing way better with comparably way less money per person per year. Three cars too, and car insurance for a teen. The question is not how are you managing well enough on your salary, the question is why aren't you doing better?

I'm not bing smug. You aren't getting the point. (And it isn't necessary to put me down.)

Nobody was putting you down, my comment on doing better has to do with your discretionary expenses, what exactly is that much money per month for?

[Anonymous]

Anonymous wrote:

Anonymous wrote:In your position you are absolutely not saving enough for retirement. You may be living fine, but you are shorting your retirement. Also, you should assume 4% for long term growth. At your age I wouldn't include SS either.

OP here. I am saving 18% of my income, which is more than the 15% that advisors recommend. And once I increase my contribution, I will be putting away 20%. I've been doing that since the first year after college, and I'm sure I'll be fine. The main thing is that I started early.

Don't count your employer match toward your retirement goal. I made $18k when I started out at 21 and because I saved as much as I could I am at about $1 million at 44. My DH did the same. $2 million in our mid 40s gives us a tremendous amount of flexibility for our future. What is your financial goal to retire with and at what age? An arbitrary percentage may or may not get you there.

When you are young with no family iit is also the time to establish a healthy emergency fund and create a taxable savings account for a down payment or other life priorities. You're right, &90k is a lot for a single person so use the money wisely. The Bogleheads forum is a good place to get feedback.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:After taxes DH and I live on twice what you earn, hence 140K, with two teen kids, both eating a ton, doing several sports, having a nice house we bought with a huge down payment. One kid just finished private school, no not the 40K per year one, but still a private, the other wanted public. With vacations to Europe every year, paid off condo in CO, unrented, fully furnished for our pleasure. And DS who traveled around the US for a sport competitions and even around the world. I assume you are younger, hence we saved more over time for these other things. Quite frankly, I have no idea what are you so smug about. We seem to be doing way better with comparably way less money per person per year. Three cars too, and car insurance for a teen. The question is not how are you managing well enough on your salary, the question is why aren't you doing better?

I'm not bing smug. You aren't getting the point. (And it isn't necessary to put me down.)

Nobody was putting you down, my comment on doing better has to do with your discretionary expenses, what exactly is that much money per month for?

OP here. First, you are actually proving the point of my thread - that it doesn't take $250k to manage even an ordinary,middle-class life, and anything less is a struggle. You are living an affluent life.

Second, about my discretionary expenses - I assume you mean $600/month. That's $150 a week, and that lunches at work, going out with friends for dinner once a week or so, ticket prices for different social events, a movie once or twice a month, gifts for parties (and family birthdays), stuff like that.