lifestyle for $500K HHI

[Anonymous]

other thread got me curious. what is the appropriate and sensible lifestyle for a normal family in this area with two kids. assume no student loans, parents in early 40s or late 30s. how expensive of a house? what kind of cars? what sorts of vacations or other extravagances are par for the course?

not talking about extreme savers, just a normal appropriate lifestyle where you max out your tax-free retirement, make other reasonable investments, but also enjoy the fruits of your hard work.

[Anonymous]

blah blah whatev=

[Anonymous]

Here is what I see:

$1-1.4m house
Nice but not extravagant cars (Acura or Lexus. No AMG or M class)
1 week of skiing in winter
2 weeks of summer vacation at the beach
A few expensive weekends away
Retirement and college funds are well funded
Private school for kids

[Anonymous]

I'm curious how this is for others too. We are closer to 400k but we can't seem to wrap our heads around the fact that this is what doing well in this economy in DC looks like. Our money goes to mortgage, one car payment, student loans, max out 401k, childcare so we can remain in our busy jobs, preschool, life insurance and other insurances (homeowner, car, etc). We don't worry about money day to day in terms of buying food out at lunchtime, family meals out a few times a month, babysitters here and there, but I can't remember the last time we had money to pay for a nice vacation or buy a new piece of furniture. Our house is a close-in townhouse so we can get to our jobs with modest commutes that is 3 bedrooms and we can't figure out how we will afford to move to anything bigger in a good school district. Private school is impossible to pay for long term, at least with current childcare costs.

[Anonymous]

Mo money mo problems!

[Anonymous]

A huge factor would be whether that's from one income or two, and also number and ages of children.

[Anonymous]

Anonymous wrote:I'm curious how this is for others too. We are closer to 400k but we can't seem to wrap our heads around the fact that this is what doing well in this economy in DC looks like. Our money goes to mortgage, one car payment, student loans, max out 401k, childcare so we can remain in our busy jobs, preschool, life insurance and other insurances (homeowner, car, etc). We don't worry about money day to day in terms of buying food out at lunchtime, family meals out a few times a month, babysitters here and there, but I can't remember the last time we had money to pay for a nice vacation or buy a new piece of furniture. Our house is a close-in townhouse so we can get to our jobs with modest commutes that is 3 bedrooms and we can't figure out how we will afford to move to anything bigger in a good school district. Private school is impossible to pay for long term, at least with current childcare costs.

Boo hoo hoo!

[Anonymous]

Anonymous wrote:I'm curious how this is for others too. We are closer to 400k but we can't seem to wrap our heads around the fact that this is what doing well in this economy in DC looks like. Our money goes to mortgage, one car payment, student loans, max out 401k, childcare so we can remain in our busy jobs, preschool, life insurance and other insurances (homeowner, car, etc). We don't worry about money day to day in terms of buying food out at lunchtime, family meals out a few times a month, babysitters here and there, but I can't remember the last time we had money to pay for a nice vacation or buy a new piece of furniture. Our house is a close-in townhouse so we can get to our jobs with modest commutes that is 3 bedrooms and we can't figure out how we will afford to move to anything bigger in a good school district. Private school is impossible to pay for long term, at least with current childcare costs.

We make half of what you make, pay for all the same things you do except for student loans, and put extra money in savings each month. Don't feel pinched, and realize how fortunate we are compared to many people. I realize student loans can be high-but I doubt you're spending an extra $200k of salary a year on them.

[Anonymous]

If also have 1 million cash for house downpayment, you can buy a 1.5-2 million $ house and have a very comfortable lifestyle.

[Anonymous]

You are not going to get a lot of love on this board. I find it very hard to believe that you can not afford to buy a piece of furniture or take a yearly vacation. What exactly is your student loan payment and mortgage?

[Anonymous]

Anonymous wrote:You are not going to get a lot of love on this board. I find it very hard to believe that you can not afford to buy a piece of furniture or take a yearly vacation. What exactly is your student loan payment and mortgage?

I have a similar HHI and this description is petty accurate for me. We do take an annual vacation but we also have one car. I think people out way too much focus in HHI and not enough on net worth. (I am not expecting sympathy, just saying PP's post doesn't sound insane to me).

[Anonymous]

Anonymous wrote:I'm curious how this is for others too. We are closer to 400k but we can't seem to wrap our heads around the fact that this is what doing well in this economy in DC looks like. Our money goes to mortgage, one car payment, student loans, max out 401k, childcare so we can remain in our busy jobs, preschool, life insurance and other insurances (homeowner, car, etc). We don't worry about money day to day in terms of buying food out at lunchtime, family meals out a few times a month, babysitters here and there, but I can't remember the last time we had money to pay for a nice vacation or buy a new piece of furniture. Our house is a close-in townhouse so we can get to our jobs with modest commutes that is 3 bedrooms and we can't figure out how we will afford to move to anything bigger in a good school district. Private school is impossible to pay for long term, at least with current childcare costs.

Get Quicken (or another tracking software) and start recording EVERYTHING you spend. Except for cash spending (you can estimate that), go back and record everything you have spent for the past year. Then you will get an idea of where you are leaking money. Going forward record your cash spending too (unless it is less than $200 per month).

Why do you have daycare and preschool costs? How many children/what ages?
How much do each of you spend each week for lunches out?
Starbuck's addiction?
Do you go out to shows, concerts.....?
Do you throw out uneaten food?
Housecleaner?
Dog walker?
Gym membership(s)?

What is your mortgage payment? Does it include escrow for taxes and/or insurance?
What did you save before you married? Before you had children?

[Anonymous]

It is getting increasingly expensive to live here. Upper middle class is what you are, and you must have big debts from school.

[Anonymous]

Anonymous wrote:Here is what I see:

$1-1.4m house
Nice but not extravagant cars (Acura or Lexus. No AMG or M class)
1 week of skiing in winter
2 weeks of summer vacation at the beach
A few expensive weekends away
Retirement and college funds are well funded
Private school for kids

Add Alimony, Child Support, Nanny, Housekeeper, Therapy, Detox for kids, Escort services, Cosmetic procedures and surgery, your drug dealer...

Many normal DC costs, my friend!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is what I see:

$1-1.4m house
Nice but not extravagant cars (Acura or Lexus. No AMG or M class)
1 week of skiing in winter
2 weeks of summer vacation at the beach
A few expensive weekends away
Retirement and college funds are well funded
Private school for kids

Add Alimony, Child Support, Nanny, Housekeeper, Therapy, Detox for kids, Escort services, Cosmetic procedures and surgery, your drug dealer...

Many normal DC costs, my friend!

Ha! No wonder everyone feels so poor around here.