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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

[Anonymous]

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Have a few kids. There will be plenty of places for that money to disappear to...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is how all these threads go:

"300k (two government lawyers) is not rich"

"what are you talking about? I get by just fine on 100k"

"you don't have kids"

"so? saving for college and paying for activities are not necessary"*

*Said even though most of these posters probably had such things given to them as kids.

/hit head on desk repeatedly


Sorry I don't want to provide just the bare minimum (food, clothing, shelter) for my kids! Providing the bare minimum doesn't make you a good parent, it just means CPS won't get involved.

Other than the kids/no kids dichotomy, the biggest beef I have with those posters who get by just fine on $70K or $100K is the amount they can save annually. No, I can't fund what for me will be a comfortable retirement if the sum total of my annual savings is $15K.

But that's very different from being "poor" or "middle class".

Agree, but "comfortable" doesn't tell me a thing about whether someone is working, middle or upper class. It's a useless descriptor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

Presumably, they either (1) bought a long time ago, or (2) put down well more than 20% down payment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

Thank you for the detailed explanation. I live in Oakton, VA and my property taxes on my $825,000 house are just under $10,000 a year. Your fixed costs are just much lower than mine. I am amazed you and your spouse didn't need supplemental before or after school care starting at age 3.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

You do understand that a million dollar house does not mean a million dollar mortgage? On my block of houses in the $900k to $1.1 million range I can count on one hand the houses that have sold at that price. Even the people who moved in 2-5 years ago have a couple of hundred thousand in equity at this point.

But to answer your question more directly - I bought a run down fixer upper that wasn't fit to live in, in a "dangerous" part of town that no-one wanted to live in, with schools no-one wanted to send their kids to and the sound of gunshots every weekend. But you know what, there was a great sense of community, and beautiful homes. I worked on the house for more than 15 years. The neighborhood changed around me. There was once a Chinese takeout, some liquor stores and a barber's shop. Now there is doggy daycare, yoga studios, coffee shops, top rated restaurants and an influx of unfriendly hipsters.

You can still do this. There are still plenty of parts of the city or the broader area with low house prices. If you're not snobby about living in an area that is still clearly poor you can make do on much less. And like me, you buy what you can afford at the time -- to live there -- not to make out on real estate increases (that was just a nice bonus) or to anticipate major changes.

[Anonymous]

Try doing this with two adults and one kid.

This is what we did, COMFORTABLY.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

Thank you for the detailed explanation. I live in Oakton, VA and my property taxes on my $825,000 house are just under $10,000 a year. Your fixed costs are just much lower than mine. I am amazed you and your spouse didn't need supplemental before or after school care starting at age 3.

Wow, those are crazy high property taxes. I guess that's a reason not to cash out on our house and buy somewhere else. We benefit from the homestead deduction so taxes are based on only a small proportion of our assessed value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

You do understand that a million dollar house does not mean a million dollar mortgage? On my block of houses in the $900k to $1.1 million range I can count on one hand the houses that have sold at that price. Even the people who moved in 2-5 years ago have a couple of hundred thousand in equity at this point.

But to answer your question more directly - I bought a run down fixer upper that wasn't fit to live in, in a "dangerous" part of town that no-one wanted to live in, with schools no-one wanted to send their kids to and the sound of gunshots every weekend. But you know what, there was a great sense of community, and beautiful homes. I worked on the house for more than 15 years. The neighborhood changed around me. There was once a Chinese takeout, some liquor stores and a barber's shop. Now there is doggy daycare, yoga studios, coffee shops, top rated restaurants and an influx of unfriendly hipsters.

You can still do this. There are still plenty of parts of the city or the broader area with low house prices. If you're not snobby about living in an area that is still clearly poor you can make do on much less. And like me, you buy what you can afford at the time -- to live there -- not to make out on real estate increases (that was just a nice bonus) or to anticipate major changes.

I can do that with a time machine. You're in a unique situation there, I assume you realize that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

Presumably, they either (1) bought a long time ago, or (2) put down well more than 20% down payment.

DP. But how is the property tax only $2200? My house is worth half theirs, and my property tax is triple that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

You do understand that a million dollar house does not mean a million dollar mortgage? On my block of houses in the $900k to $1.1 million range I can count on one hand the houses that have sold at that price. Even the people who moved in 2-5 years ago have a couple of hundred thousand in equity at this point.

But to answer your question more directly - I bought a run down fixer upper that wasn't fit to live in, in a "dangerous" part of town that no-one wanted to live in, with schools no-one wanted to send their kids to and the sound of gunshots every weekend. But you know what, there was a great sense of community, and beautiful homes. I worked on the house for more than 15 years. The neighborhood changed around me. There was once a Chinese takeout, some liquor stores and a barber's shop. Now there is doggy daycare, yoga studios, coffee shops, top rated restaurants and an influx of unfriendly hipsters.

You can still do this. There are still plenty of parts of the city or the broader area with low house prices. If you're not snobby about living in an area that is still clearly poor you can make do on much less. And like me, you buy what you can afford at the time -- to live there -- not to make out on real estate increases (that was just a nice bonus) or to anticipate major changes.

I can do that with a time machine. You're in a unique situation there, I assume you realize that.

Did you read the bolded part above?

Here are some examples - these are all directly comparable to what I bought 15 years ago. And about the same price too:

https://www.zillow.com/homedetails/3523-Minnesota-Ave-SE-Washington-DC-20019/518538_zpid/
https://www.zillow.com/homedetails/708-Faraday-Pl-NE-Washington-DC-20017/495078_zpid/
https://www.zillow.com/homedetails/2522-West-St-SE-Washington-DC-20020/525686_zpid/
https://www.zillow.com/homedetails/4220-Clay-St-NE-Washington-DC-20019/510380_zpid/
https://www.zillow.com/homedetails/307-56th-St-NE-Washington-DC-20019/514218_zpid/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've never understood it either OP. We make $200K and have more money than we know what do with.

Is this from two people working and do you have kids? Most people are strapped because of childcare and housing costs.

And having kids may lead to pressure to live in expensive areas with better schools, and to spend on good experiences for the child.

Parents also may want to think about paying for college.

We make 100k and have two kids and also have more money than we need.. It's all perspective.

That's about $8600 a month, gross. I would love to see what your budget is. Are you saving at all for those two kids to go to college? How much are you saving annually for retirement? My property taxes alone are $10,000 and I live in a DC suburb in a 25 year old house. I don't see how you have more money than you need unless you don't own a home, plan to work until you die and don't plan to fund college for your kids.

Well, my property taxes are $2200 a year (and that's a deduction on my schedule A). We have about $50k saved at this point in college savings for 5 and 8 year olds, however expect our kids to get scholarships for some or all of college. Our child care bill is zero, our kids both started school at age three here in DC - we paid only for one year of preschool at $200 a week. Mortgage, PITI is $1400 a month (house is worth just shy of a million in downtown DC), we spend about $4k a year on vacations, about $1000 a month on food (split between eating out and groceries), car is paid for and we don't drive much, so perhaps $50 a month on gas, $500 a year on insurance and very little on maintenance, utilities are maybe $200 a month total? We do a lot of free activities in the DC area -- because there are tons of them. Our local pool is free. Don't spend a lot on clothes -- maybe $400 a year for all of us (outlets are our friends). Max out retirement for one (spouse does not have 401k) plus company match, plus two max Roth IRAs - we have very healthy retirement balances at this point, and if it weren't for health insurance costs I'd consider retiring in the next five years. We also donate at least $2k a year to charities we support. We have a networth of $1.7m so we have a safety net if we need it, but we live off my salary and our savings/investments just grow each year.

How do you have a PITI of $1400 on a million dollar house in DC?

Presumably, they either (1) bought a long time ago, or (2) put down well more than 20% down payment.

DP. But how is the property tax only $2200? My house is worth half theirs, and my property tax is triple that.

DC. Homestead deduction.