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

[Anonymous]

Anonymous wrote:

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.

That is too small to account for the difference.

[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.

I'd love to know what you net out of that 100K, and what your fixed expenses are. If you net $80K and your annual fixed expenses are like $40K, well, sure, but most of us have mortgages, cars, child related expenses.

[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.

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.

We get what we pay for in terms of quality schools, low crime and maintaining property values.

[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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

[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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

[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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

But frankly pp's explanation didn't change anything. They landed in a gentrifying neighborhood many years ago. Yes, I'm sure they did a lot of hard work and gained plenty of sweat equity, but this is not realistic for everyone, and hardly means it's easy to live in the DC area on 100k with 2 kids and have plenty of money leftover.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

That is too small to account for the difference.

No it is not. It's exactly why my tax bill is that low. Look it up.

[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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

But frankly pp's explanation didn't change anything. They landed in a gentrifying neighborhood many years ago. Yes, I'm sure they did a lot of hard work and gained plenty of sweat equity, but this is not realistic for everyone, and hardly means it's easy to live in the DC area on 100k with 2 kids and have plenty of money leftover.

You are conveniently ignoring the several links to houses you could by TODAY in DC that would put you in the same position as me. I know it's because you are too much of a snob to live in an area that is not already affluent. That's the problem you want everything and you want it immediately. (Remember I worked hard for 15 years after buying my house). That's fine, but you don't also get to turn around and say that it's not possible to live on $100k in DC. It is.

[Anonymous]

Anonymous wrote:

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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

But frankly pp's explanation didn't change anything. They landed in a gentrifying neighborhood many years ago. Yes, I'm sure they did a lot of hard work and gained plenty of sweat equity, but this is not realistic for everyone, and hardly means it's easy to live in the DC area on 100k with 2 kids and have plenty of money leftover.

You are conveniently ignoring the several links to houses you could by TODAY in DC that would put you in the same position as me. I know it's because you are too much of a snob to live in an area that is not already affluent. That's the problem you want everything and you want it immediately. (Remember I worked hard for 15 years after buying my house). That's fine, but you don't also get to turn around and say that it's not possible to live on $100k in DC. It is.

I'm not a snob because I don't want to move into a 2bd 1ba house with 2 kids. I'm not a snob because I didn't move to this area until I was already married with two kids. I'm all for living below your means and making do with what you can afford, and I credit you for making the sacrifices you did, but no, sorry, your path to successful home ownership for a family on 100k is not realistic for most people not is it easily duplicated.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

But frankly pp's explanation didn't change anything. They landed in a gentrifying neighborhood many years ago. Yes, I'm sure they did a lot of hard work and gained plenty of sweat equity, but this is not realistic for everyone, and hardly means it's easy to live in the DC area on 100k with 2 kids and have plenty of money leftover.

You are conveniently ignoring the several links to houses you could by TODAY in DC that would put you in the same position as me. I know it's because you are too much of a snob to live in an area that is not already affluent. That's the problem you want everything and you want it immediately. (Remember I worked hard for 15 years after buying my house). That's fine, but you don't also get to turn around and say that it's not possible to live on $100k in DC. It is.

I'm not a snob because I don't want to move into a 2bd 1ba house with 2 kids. I'm not a snob because I didn't move to this area until I was already married with two kids. I'm all for living below your means and making do with what you can afford, and I credit you for making the sacrifices you did, but no, sorry, your path to successful home ownership for a family on 100k is not realistic for most people not is it easily duplicated.

NP -- our HHI is around 100k and we are doing fine -- of course we live in a townhouse which some folks are unwilling to do. You can make it here on less - but you'd have to make choices you probably wouldn't want to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

I didn't read it that way at all. PP was defending themselves from a poster who indicated that they couldn't possibly live well on 8600 gross monthly.

But frankly pp's explanation didn't change anything. They landed in a gentrifying neighborhood many years ago. Yes, I'm sure they did a lot of hard work and gained plenty of sweat equity, but this is not realistic for everyone, and hardly means it's easy to live in the DC area on 100k with 2 kids and have plenty of money leftover.

You are conveniently ignoring the several links to houses you could by TODAY in DC that would put you in the same position as me. I know it's because you are too much of a snob to live in an area that is not already affluent. That's the problem you want everything and you want it immediately. (Remember I worked hard for 15 years after buying my house). That's fine, but you don't also get to turn around and say that it's not possible to live on $100k in DC. It is.

I'm not a snob because I don't want to move into a 2bd 1ba house with 2 kids. I'm not a snob because I didn't move to this area until I was already married with two kids. I'm all for living below your means and making do with what you can afford, and I credit you for making the sacrifices you did, but no, sorry, your path to successful home ownership for a family on 100k is not realistic for most people not is it easily duplicated.

Did you look at the links I sent? There were three and four bedroom houses there. Yes, you can do what I did today. No you can not magically live in a house that is today worth nearly a million without working for it. You need to work for it for fifteen years like I did.

And if you don't like any of the options I shared that are directly comparable to my home then find something in MD or VA that's further out. They exist. And stop sending you infant to a downtown daycare that charges $2400 a month then complain g about the cost of daycare.

[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.

You sound really pleased with yourself. Good for you for living frugally but this whole message was just patting yourself on the back, filled with unnecessary detail just to brag anonymously.

Typical DCUM. Ask someone to explain some thing in detail and then when they do slam them for doing so.

[Anonymous]

Anonymous wrote:

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

This is so true. We have one kid and net annual salary is about $135,000 (this does not include about $35k a year in automatic retirement withholdings), so about $11,300 a month. This is so much more then we need to live comfortably that I don't bother budgeting for individual expenses, but as a general breakdown:

1. $3,300 a month mortgage/PITI.
2. $600 a month childcare.
3. $3,000 a month for everything else. Basically, pretty much everything goes on the credit card, and the monthly bill averages to around $3,000 a month.

So that's $6,900 a month in expenses, I'll round that up to $7,000. That gives us about $4,300 a month extra, which I add to "the pile".

You make more than $240k. That’s a lot. Your childcare is nothing.

[Anonymous]

We make $250k, family of 3, and live very comfortably. Monthly expenses:

1. $2,650 mortgage ($500k townhouse in FFX walkable to metro in a great pyramid with $100/month HOA)
2. $350 aftercare
3. $600 groceries ($150/week)
4. $470 car payment (only 1 car)
5. $800 utilities, gas, internet, personal property tax, insurance, pest services, etc
6. $140 gym membership
7. $1400 savings
8. $1400 home remodeling (once we're done this will be divided between savings and vacation)

And the rest into various accounts (gifts, vacation, personal spending, clothing, classes, etc). We net just under $10k per month after insurance (HSA, we throw a lot into here), retirement, and smart trip benefits.

[Anonymous]

I used to live in Manhatan in a studio apt on 40k a year.
795 a month rent controlled super tiny walk up studio
40 a month utilities (heat, water, gas included)
No cell phone, internet, cable or AC in apt
No car
$100 a month groceries. Subsidized cafeteria at work ate breakfast and lunch so only dinner a few nights a week. Mostly cereal
And I had lots of money to go out on va actions and to bars

Big deal easy to live cheap no kids or wife