Ok can we stop saying $300k is "rich" in DC?
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Anonymous
Yeah, I'm really curious how one can manage to spend $35,000 a month (or whatever it is after tax) without feeling like the lap of luxury. |
Anonymous
That would be about 700k a year salary. Whole different ball game. |
Anonymous
Let me guess: Winter ski trip Spring break trip to a beach A beach house in the summer Country club Two nice cars $1.5+ million dollar house Private school Nanny Someone to run your errands It adds up quickly |
Anonymous
It's more like 26k after taxes. I'm not the PP but our gross is a little over 600 and that's what it boils down to. |
Anonymous
She said she makes more than double the $300k we're talking about, so that would out her at $700,000. |
Anonymous
Still....a very high amount, relative to the average. After my mortgage, I have $2,500 left for everything else, and it works out. (No kids.) i just can't imagine. |
Anonymous
Our net is 4600 a month. One kid. I cannot imagine brining home 26k a month!!! |
Anonymous
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Married with 1 kid, living in NWDC. HHI is about $275k gross. We feel pretty dang well-off. Here is where our money goes:
- Taxes: $65k (includes federal, DC, and FICA) - House: $40k (includes PITI plus HOA plus utilities) - Daycare: $22k - Student loans+kid's 529: $16k - Restaurants: $11k - Travel: $9k - Groceries: $8k - Insurance + Medical: $8k - Clothing: $6k - Cable and Cell phones: $5k - Discretionary/uncategorized/entertainment: $12k - Savings: $73k (includes 401k, IRA, brokerage, etc.) It's hard to feel anything other than "rich" when you're living well and still saving $70k per year. I don't know how the rest of you feel, but spending nearly $1k every month on restaurants is downright luxurious. (We like to cook generally, but when we go out to eat we usually go somewhere nice). This isn't to brag but rather aims to give a reality check to people who say $300k is "middle class" in NW DC. It isn't. It's extremely comfortable and privileged. |
Anonymous
WHICH IS A TON OF F*CKING MONEY |
Anonymous
Our HHI is about half that, and we don't save anywhere near what you do - and we still feel extremely comfortable and privileged. I guess maybe this just boils down to what you expect - I just feel (knock wood) incredibly lucky that we don't have to think twice about going to the movies or going out to eat, that our family - people and pets - can get whatever medical care we need, if I need new shoes I can just go buy them, etc etc etc. This is so much more than I expected to have in life. |
Anonymous
You are pretty broke assest wise as savings on 73k including 401ks is very small. The stock mkt is doing great and if you work for a company with a good 401k match 73k is like four years of savings. I am 12 years from retirement and have 1.3 million in my 401ks. And I know folks with two million dollar 401ks. I don't feel well off as I don't touch that money. I also have around 500k saved for kids college. 200k emergency fund, two million in real estate and a few hundred grand in muni bonds. I am firmly middle class. Drive a used car, eat fast food, shop at Kohls, use coupons, wife cuts kids hair, don't have maid, kids parties at home and wife makes food. Well off is over ten million assets and one million income or greater. |
Anonymous
How is 700K a whole different ball game from double 300K? Is 650K the magic number where you go from little league ball to the majors? |
Anonymous
You might live a middle-class lifestyle, but with a net worth of $4 million, you are in the top 2%. That's very well off. |
Anonymous
| ^ Once again, what matters here are the choices. It's now the car you drive - it is the money you have to spend or save (which you are wisely saving), and the wealth that builds over time the you using a good income to create wealth. |
Anonymous
You don't feel well off because you don't touch that money? You ARE well off because you HAVE that money. Which you will eventually touch. |