How much money do we need to live comfortably?

[Anonymous]

To live here like the equivalent of the middle class of most other areas in the us you need to make at least 375 to 450k. Any less and you will have to compromise on house size (smaller than 3000sqrft), location, schools etc... This is if you didn't buy before 2004. Housing costs are the killer where a standard middle class sized home costs at least 1million.

Good grief, as we tell you in every frigging thread like this, the average home size in America is not 3,000 square feet!

But I actually have a somewhat evidence-based answer to OP's question. I have three close friends who formed a business together, which became successful enough so that they had to decide how much of revenue to distribute to themselves as salary instead of reinvesting it in the business. They all owned houses in close-in MoCo with wives who worked at the time, wives making at least $100K. Only one of them had kids. They settled in $250K apiece.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:PP, my husband makes $210K and only nets $8,000 a month. How can you have a mortgage, daycare and still save $3,000 a month on $200K gross?

Net after what? How is your effective tax rate 54%? This doesn't make any sense.

After 401(k) contributions and health, life and other types of insurance.

Yeah, new poster here, but it still doesn't add up. That is a lot of insurance. And even if that were the case, it is not really honest to say that you ONLY net $8k/month because you are choosing to put a disproportionately high % of your income toward insurance.

Another who agrees. My husband also makes $210k and nets about $10k per month. He maxes out his 401K every year but does not have to pay anything towards health insurance because we're on my plan.

[Anonymous]

^^^Agree with PP. 10K net on 210K sounds about right. Unless he's paying thousands per month (which means get a better insurance plan outside of work, if you can!) there's some money missing.

[Anonymous]

Anonymous wrote:I read on DC Urban Moms often that people say "when daycare/preschool is over..."...Just wait..your preschooler will go to elementary school and that money will be spent on soccer/piano/spanish/tutors/art/gymnastics/swimming/etc/etc/etc....

Not all of us plan on putting our kids in 4,000 activities a piece. There is NO WAY I will be spending $1,400/month per kid on activities once they are both in grade school, because I simply won't allow it. We don't all plan to sacrifice our financial stability for the overindulgence of our children. So speak for yourself.

[Anonymous]

Single mom with an income of $80,000/year. While I can certainly use more than that, it's not impossible to live on $80,000.

[Anonymous]

Anonymous wrote:PP, my husband makes $210K and only nets $8,000 a month. How can you have a mortgage, daycare and still save $3,000 a month on $200K gross?

If he nets only $8k per month than you have a ton being taken out in taxes and 401K! Our net is closer to $12K with that salary.
How many deductions are you claiming?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To live here like the equivalent of the middle class of most other areas in the us you need to make at least 375 to 450k. Any less and you will have to compromise on house size (smaller than 3000sqrft), location, schools etc... This is if you didn't buy before 2004. Housing costs are the killer where a standard middle class sized home costs at least 1million.

I have a standard middle class home, 5 br, 3 full bath, approx 2000sq ft upstairs with a 2000 sq ft walkout basement in SS, just outside the beltway for $460K. A standard middle class home does not costs $1M.

Do you mean Silver Spring? Then many would argue that you compromised on schools.

and compromise on location

[Anonymous]

Anonymous wrote:

To live here like the equivalent of the middle class of most other areas in the us you need to make at least 375 to 450k. Any less and you will have to compromise on house size (smaller than 3000sqrft), location, schools etc... This is if you didn't buy before 2004. Housing costs are the killer where a standard middle class sized home costs at least 1million.

Good grief, as we tell you in every frigging thread like this, the average home size in America is not 3,000 square feet!

But I actually have a somewhat evidence-based answer to OP's question. I have three close friends who formed a business together, which became successful enough so that they had to decide how much of revenue to distribute to themselves as salary instead of reinvesting it in the business. They all owned houses in close-in MoCo with wives who worked at the time, wives making at least $100K. Only one of them had kids. They settled in $250K apiece.

Grew up in this area during the 90s and we had a 3000sqrft house , stay at home mom and dad was a gs15 controller. This want that difficult 20 years a go.

[Anonymous]

The difference that you are all fighting about in take home pay may be state taxes. DC taxes for instance are higher. My combined tax rate is therefore higher then co-workers that live elsewhere. And that money doesn't come back at tax time b/c when you deduct the state taxes as a line item it is such a large deduction you are often hit with the alternative minimum tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To live here like the equivalent of the middle class of most other areas in the us you need to make at least 375 to 450k. Any less and you will have to compromise on house size (smaller than 3000sqrft), location, schools etc... This is if you didn't buy before 2004. Housing costs are the killer where a standard middle class sized home costs at least 1million.

I have a standard middle class home, 5 br, 3 full bath, approx 2000sq ft upstairs with a 2000 sq ft walkout basement in SS, just outside the beltway for $460K. A standard middle class home does not costs $1M.

Do you mean Silver Spring? Then many would argue that you compromised on schools.

and compromise on location

It is far, far easier to get downtown from Silver Spring than it is from Bethesda or Potomac.

[Anonymous]

Anonymous wrote:Single mom with an income of $80,000/year. While I can certainly use more than that, it's not impossible to live on $80,000.

Me, too

[Anonymous]

Anonymous wrote:PP, my husband makes $210K and only nets $8,000 a month. How can you have a mortgage, daycare and still save $3,000 a month on $200K gross?

Not pp but a single mom. I bring home 4,500 per month. My monthly expenses are 1,500 per month and I am able to save 3,000 per month. With smart financial planning it is possible.

[Anonymous]

What's with the Silver Spring hate? People are weirdly snobbish about it on here. I live in SS close to downtown SS in the Woodside Forest neighborhood. It's lovely and convenient... and Woodlin ES is great!