Down and Out on $250K/year....

[Anonymous]

Anonymous wrote:$250k probably puts you in the top 10% in just about any hood, except maybe parts of Georgetown and Great Falls. But even there, I suspect you're above the median.

Or is this another, "poor suffering rich people" thread, so we can justify squashing the workplace rights of teachers making $60k a year?

Eh, I don't know. People who make less than that in those neighborhoods are either at least middle-aged and bought a long time ago, or they have some family money. We make 250k, and we don't have any loans, but it would be tough to afford a nice home in Georgetown/Great Falls. We can buy a 700k house in a perfectly good school district (Vienna, Fairfax, Falls Church), but it won't be a mansion, and it won't be in North Arlington or someplace like that.

[Anonymous]

Why was this thread revived?

[Anonymous]

Anonymous wrote:if you want the generic "american dream" in the DC area 250K isn't enough let alone be "rich". Rich in IMO is exceeding the american dream and having money to spend on extra things like a vacation house, extravagent international family vacations, first class airplane tickets for your whole family and still exceed the "american dream" standard.

The generic american dream IMO is the following:

3000 SQRFT Newer House (less than 10 years old) In a Good neighborhood (Mclean, Vienna, Bethesda etc...), WITHOUT previous housing appreciation as a downpayment (starting fresh)

NOT private school (because you are in the above neighborhood)

Pay for Health Insurance, Utilities / Gas / Food, going out to eat on the weekends, weekend activities

Save and later pay for your 2.5 kid's 4 year colleges

2 $40K cars (payment meaning 2-3 years old)

Someone to cut lawn

Someone to clean your house

If you are younger, childcare for your 2.5 kids

After school activities

Car for your teenagers

Retain your same lifestyle in retirement minus a house payment (assuming you pay your house off)

That is is the American fantasy not the American dream.

[Anonymous]

I can relate to this.

We are are a two income family and combined make about 300k. Between Pre-school, the au pair, the mortgage, the car payments, the child support to my husbands ex, we net very little for savings or extravagant vacations....we are lucky to just pay our month to month expenses.

I'm sure some will gawk at how a HHI income of 300k barely makes it.

[Anonymous]

If you earn $250k you couldn't even sniff kalorama. Sad.

[Anonymous]

Anonymous wrote:I can relate to this.

We are are a two income family and combined make about 300k. Between Pre-school, the au pair, the mortgage, the car payments, the child support to my husbands ex, we net very little for savings or extravagant vacations....we are lucky to just pay our month to month expenses.

I'm sure some will gawk at how a HHI income of 300k barely makes it.

No gawking, just thinking you and your husband are poor financial planners.

[Anonymous]

I thougt middle class was:

Anonymous wrote:
3000 SQRFT Newer House (less than 10 years old) In a Good neighborhood (Mclean, Vienna, Bethesda etc...), WITHOUT previous housing appreciation as a downpayment (starting fresh)
NOT private school (because you are in the above neighborhood)
Pay for Health Insurance, Utilities / Gas / Food, going out to eat on the weekends, weekend activities
Save and later pay for your 2.5 kid's 4 year colleges
2 $40K cars (payment meaning 2-3 years old)
Someone to cut lawn
Someone to clean your house
If you are younger, childcare for your 2.5 kids
After school activities
Car for your teenagers
Retain your same lifestyle in retirement minus a house payment (assuming you pay your house off)

Upper middle class would be:
exceeding the middle class and having money to spend on extra things like a vacation house, extravagent international family vacations, first class airplane tickets for your whole family and still exceed the middle class standard.
And rich would be everyone else
But this would make the majority of Americans poor

[Anonymous]

Anonymous wrote:If you can't "make ends meet" on $250K, you're doing something wrong. I don't care where you live.

Seriously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you can't "make ends meet" on $250K, you're doing something wrong. I don't care where you live.

Seriously.

Not true. In most cases, these people are saving money, which makes it feel tight on a day to day basis. Sure, saving for retirement, college, emergencies, etc. Is a luxury. But the end result is that 250k doesn't mean you're living a luxurious life, just hopefully that you have the luxury of some financial security. I know that's nothing to complain about, but it's not Gucci bags and summering in the Hamptons (or even living in some of the tonier neighborhoods around here).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:After the bugaboo, 7 jeans, coach diaper bag, lexus SUV, folks are a hurtin'- these things are all bona fide necessities for the 250ker. Social ostracism is inevitable without them.

You really need to get a reality check. We make $300,000 and we don't have any of these things. That was the point of the article, if you bothered to read it. We don't spend our money on crap, we save.

Call on the BS- I've met very few 300k folks who don't spend on indulgences of some kind- might not be the things on this list, but the majority certainly do...if you don't, you are most certainly the exception to the rule and unusually frugal...

We make $400K and don't spend on any of that. Then again, we had our first million before our youngest was out of diapers in our late 30s, and we're self made.

I wonder what she gave the nanny for a bonus.

[Anonymous]

The thing is...for most "middle class" people in the country (considering the median income in the US is about 50K), regardless of cost of living of the area, being able to do things like:

a) take vacations that involve flying the whole family
b) save for retirement (yes, I know, DCUMers think it is necessary, but there are a whole lot of people who will work until they are unable and then live off of 20K on social security)
c) sometimes even purchase health insurance, if not covered by the employer
d) save for your kid's college education, or even have anything but the cheapest in-state college with scholarships, grants, and loans be an option at all for higher education
e) live in a house larger than 1500-2000 square feet
f) afford to live in a performing school district
g) send your kid to become socialized and school ready in a nice preschool program, rather than watching TV with grandma all day while mom's at work

makes you rich.

Being rich isn't never needing to worry about money--it is to many, being in a position where you can take care of the future rather than just the day to day. Affluence also changes people's standards of what is considered necessary and what "just covering the bills" includes. Regardless of how you "feel" earning in the top 2% of earners in the country makes you rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Breaking news - "You're not rich if you spend all your money!!"

But you might still be WINNING!

[Anonymous]

Anonymous wrote:The thing is...for most "middle class" people in the country (considering the median income in the US is about 50K), regardless of cost of living of the area, being able to do things like:

a) take vacations that involve flying the whole family
b) save for retirement (yes, I know, DCUMers think it is necessary, but there are a whole lot of people who will work until they are unable and then live off of 20K on social security)
c) sometimes even purchase health insurance, if not covered by the employer
d) save for your kid's college education, or even have anything but the cheapest in-state college with scholarships, grants, and loans be an option at all for higher education
e) live in a house larger than 1500-2000 square feet
f) afford to live in a performing school district
g) send your kid to become socialized and school ready in a nice preschool program, rather than watching TV with grandma all day while mom's at work

makes you rich.

Being rich isn't never needing to worry about money--it is to many, being in a position where you can take care of the future rather than just the day to day. Affluence also changes people's standards of what is considered necessary and what "just covering the bills" includes. Regardless of how you "feel" earning in the top 2% of earners in the country makes you rich.

you mean not everyone lives life like the little privileged bubble that we live in?

FWIW, I completely agree with you. We don't really get to have nice vacations or a ton of extras - but that is because we are putting money into retirement and college funds and a little into savings.

[Anonymous]

We are a HH of 270k and we certainly make ends meet but we live by the same middle class standards of my parents. I don't feel rich at all. We can't afford to buy in the best school districts ( west of the park) ..or we move so far out of DC that we have hour long commutes. We pay 1800/month for child care for one kid. Mortgage is $ 2300 but close to a metro in a trnasitioning neighborhood. Socking away money for retirement, college and repairs to our 100 year old house. We do fine but we aren't rich by DC standards. In a few years we will have to make some move if we don't get lucky in school lottery.

[Anonymous]

People forget that this generation doesn't have pensions so a lot of money must go to 401k and retirement. That cuts out at least 50 k right there, couple that with college savings and childcare it eats a ton of your money.