200k HHI is just getting by Six-Figure Salary No Longer Means You're Rich 5k leftover see this chart

[Anonymous]

Rich means you never have to work again.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Just Getting By" is a BIG stretch to describe this budget. I don't think anyone will argue that high COL areas take a huge chunk of change out of one's salary, but this budget shows a sizable amount for vacations and $2k for charities and $5k for children's lessons. That is HARDLY "barely scraping by." True, it's not the budget of a truly wealthy person, but it is orders of magnitude more comfortable and full of little luxuries than everyone making...say...LESS than $200k. This is about our HHI and while we sure don't feel rich, we are able to save quite a bit and have a nice middle-class life. We've had to start paying attention to our budget, for sure, but we have no debt, which is huge.

The fallacy of this article, and overall mindset around here, is that things like being able to save for retirement and give your kids nice lessons and even TAKE vacations (let alone nice ones) ARE ALL LUXURIES! Not entitlements!

most people would define that the minimum lifestyle for the middle class

Nice lessons and vacations (plural) are not part of the middle-class lifestyle.

Then define what a "middle class" lifestyle is these days.

[Anonymous]

OK, I'll jump in. I make 200K per year. I just did a back of the envelope calculation on just the following expenses:

401K
Non-optional Profit Sharing at my firm
childcare for two kids (one in preschool and aftercare instead of full time child care)
mortgage, tax escrow included
taxes (ball parked at about 30% including state and local)
food for four at $800/month

The calculation does not include utilities, gas, car payments (cars are 10 and 15 yrs old), insurance, clothes for anyone, any college savings, commuting costs, children's activities not associated with childcare, charity, vacations or eating out and I had $7400 left at the bottom line. Having to fix our basement after a flood last year wiped that out. The year before, it was a new furnace.

Granted, I do get that forced profit sharing for retirement, but that means I don't get to touch it until retirement. I am hopefully building some equity in our house, but I don't think much in the way of profit, since the house next door has not sold in the four months on the market for just above what we paid for ours 13 years ago.

I am also luckily married to an elementary school teacher, who manages to clear, after taxes, health insurance and retirement, about $24K per year to cover that other stuff (20 paychecks at $1200). We don't have child care expenses during the summer except for when the school system schedules between PGCPS and MCPS don't overlap. Last year, because PGCPS extended a week longer than MCPS and started a week earlier and teacher work days, we had to pay for 2-4 weeks of childcare during the summer for a preschooler and school aged child (last year, about $1000).

Please, tell me how we are rich again,? Is it because I might have a modest retirement when it comes?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Just Getting By" is a BIG stretch to describe this budget. I don't think anyone will argue that high COL areas take a huge chunk of change out of one's salary, but this budget shows a sizable amount for vacations and $2k for charities and $5k for children's lessons. That is HARDLY "barely scraping by." True, it's not the budget of a truly wealthy person, but it is orders of magnitude more comfortable and full of little luxuries than everyone making...say...LESS than $200k. This is about our HHI and while we sure don't feel rich, we are able to save quite a bit and have a nice middle-class life. We've had to start paying attention to our budget, for sure, but we have no debt, which is huge.

The fallacy of this article, and overall mindset around here, is that things like being able to save for retirement and give your kids nice lessons and even TAKE vacations (let alone nice ones) ARE ALL LUXURIES! Not entitlements!

most people would define that the minimum lifestyle for the middle class

Nice lessons and vacations (plural) are not part of the middle-class lifestyle.

Then define what a "middle class" lifestyle is these days.

not living in a hcol city. In most cities or towns in this country a 700k house is huge. It would be harder to spend that on childcare and children's activities. On that budget you could keep your one for maybe even two) children in private school.

[Anonymous]

Median HHI for SF bay area in 2014 was $83,222 - http://www.deptofnumbers.com/income/california/san-francisco

Over two times the median seems pretty well off to me. Certainly not "just getting by".

[Anonymous]

Anonymous wrote:A Six-Figure Salary No Longer Means You're Rich

This is basically true and in the DC area a 700k house isn't much but that could mean a 700k mortgage!

the lesson is to stop labeling people as rich, by looking at this budget many people are in fact a pay check away from insolvency until they reach a much higher income.

The federal government doesn't consider you rich until past 400k when they take away all your deductions. If the government still allows personal deductions then you are considered in need of help therefore not rich.

[Anonymous]

Anonymous wrote:OK, I'll jump in. I make 200K per year. I just did a back of the envelope calculation on just the following expenses:

401K
Non-optional Profit Sharing at my firm
childcare for two kids (one in preschool and aftercare instead of full time child care)
mortgage, tax escrow included
taxes (ball parked at about 30% including state and local)
food for four at $800/month

The calculation does not include utilities, gas, car payments (cars are 10 and 15 yrs old), insurance, clothes for anyone, any college savings, commuting costs, children's activities not associated with childcare, charity, vacations or eating out and I had $7400 left at the bottom line. Having to fix our basement after a flood last year wiped that out. The year before, it was a new furnace.

Granted, I do get that forced profit sharing for retirement, but that means I don't get to touch it until retirement. I am hopefully building some equity in our house, but I don't think much in the way of profit, since the house next door has not sold in the four months on the market for just above what we paid for ours 13 years ago.

I am also luckily married to an elementary school teacher, who manages to clear, after taxes, health insurance and retirement, about $24K per year to cover that other stuff (20 paychecks at $1200). We don't have child care expenses during the summer except for when the school system schedules between PGCPS and MCPS don't overlap. Last year, because PGCPS extended a week longer than MCPS and started a week earlier and teacher work days, we had to pay for 2-4 weeks of childcare during the summer for a preschooler and school aged child (last year, about $1000).

Please, tell me how we are rich again,? Is it because I might have a modest retirement when it comes?

Who are you comparing yourself to when determining your richness value? Donald Trump? Family of four living in your area earning a median HHI? Family of four living in your area earning only half the median HHI? Family of four living in your area earning twice the median HHI? Family of four living in your area earning four times the median HHI?

Who you compare to makes all the difference in determining how rich you are.

[Anonymous]

This budget is $28k more than my mortgage payment and $22k more than my childcare payments, it's $6k more than my car payment, $5k more than my "children's lessons" and $3k more than my consumer debt payments. Property taxes are $6k higher than mine. Gas is $4k higher than we pay and car insurance is $500.

And we pay about $48k less tax. So, we're better off than this fictitious family to the tune of $122k.

But, whatever, you "need" $200k to "get by".

[Anonymous]

Anonymous wrote:

Anonymous wrote:OK, I'll jump in. I make 200K per year. I just did a back of the envelope calculation on just the following expenses:

401K
Non-optional Profit Sharing at my firm
childcare for two kids (one in preschool and aftercare instead of full time child care)
mortgage, tax escrow included
taxes (ball parked at about 30% including state and local)
food for four at $800/month

The calculation does not include utilities, gas, car payments (cars are 10 and 15 yrs old), insurance, clothes for anyone, any college savings, commuting costs, children's activities not associated with childcare, charity, vacations or eating out and I had $7400 left at the bottom line. Having to fix our basement after a flood last year wiped that out. The year before, it was a new furnace.

Granted, I do get that forced profit sharing for retirement, but that means I don't get to touch it until retirement. I am hopefully building some equity in our house, but I don't think much in the way of profit, since the house next door has not sold in the four months on the market for just above what we paid for ours 13 years ago.

I am also luckily married to an elementary school teacher, who manages to clear, after taxes, health insurance and retirement, about $24K per year to cover that other stuff (20 paychecks at $1200). We don't have child care expenses during the summer except for when the school system schedules between PGCPS and MCPS don't overlap. Last year, because PGCPS extended a week longer than MCPS and started a week earlier and teacher work days, we had to pay for 2-4 weeks of childcare during the summer for a preschooler and school aged child (last year, about $1000).

Please, tell me how we are rich again,? Is it because I might have a modest retirement when it comes?

Who are you comparing yourself to when determining your richness value? Donald Trump? Family of four living in your area earning a median HHI? Family of four living in your area earning only half the median HHI? Family of four living in your area earning twice the median HHI? Family of four living in your area earning four times the median HHI?

Who you compare to makes all the difference in determining how rich you are.

Stop using the word rich,
http://www.financialsamurai.com/how-much-income-do-you-consider-to-be-rich/
http://www.cnbc.com/id/100904381

[Anonymous]

Anonymous wrote:
Stop using the word rich,
http://www.financialsamurai.com/how-much-income-do-you-consider-to-be-rich/
http://www.cnbc.com/id/100904381

Stop cherry picking your definition of rich to support your own personal values and start realizing the term rich is fluid.

The real world definition of rich:
"(noun) Someone with a lot more money than you. As such, the definition is elastic depending on one's economic status. Usually a term applied to others rather than to oneself. "
http://www.urbandictionary.com/define.php?term=rich

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Just Getting By" is a BIG stretch to describe this budget. I don't think anyone will argue that high COL areas take a huge chunk of change out of one's salary, but this budget shows a sizable amount for vacations and $2k for charities and $5k for children's lessons. That is HARDLY "barely scraping by." True, it's not the budget of a truly wealthy person, but it is orders of magnitude more comfortable and full of little luxuries than everyone making...say...LESS than $200k. This is about our HHI and while we sure don't feel rich, we are able to save quite a bit and have a nice middle-class life. We've had to start paying attention to our budget, for sure, but we have no debt, which is huge.

The fallacy of this article, and overall mindset around here, is that things like being able to save for retirement and give your kids nice lessons and even TAKE vacations (let alone nice ones) ARE ALL LUXURIES! Not entitlements!

most people would define that the minimum lifestyle for the middle class

Nice lessons and vacations (plural) are not part of the middle-class lifestyle.

Then define what a "middle class" lifestyle is these days.

not living in a hcol city. In most cities or towns in this country a 700k house is huge. It would be harder to spend that on childcare and children's activities. On that budget you could keep your one for maybe even two) children in private school.

What you are saying is that in hcol, there is no middle class. I don't think it works that way. "Middle class" defined locally is "median or average". "Middle class" as defined in the US could be considered "upper class" in other parts of the world

So, again this is all relative to where you live. Sometimes, you can't help but live in a hcol because of the kind of job you have or for some other reason.

[Anonymous]

People, people, people.
Each post from above is indeed a post by a person whom is NOT rich. It is the situation we live in, where there is no real wage growth. Sure, I agree, $200K looks great on paper. But it is in no way rich. I make about $350K and I am by no means rich.
However, take note, voters:
if you make $250K or more, Obama and his pals consider you part of the 1%, and, somehow, the govt is trying to tax you more. Pay attention. You aren't rich, but, if the govt feels you are rich, then the PC wage gap people will do something about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Just Getting By" is a BIG stretch to describe this budget. I don't think anyone will argue that high COL areas take a huge chunk of change out of one's salary, but this budget shows a sizable amount for vacations and $2k for charities and $5k for children's lessons. That is HARDLY "barely scraping by." True, it's not the budget of a truly wealthy person, but it is orders of magnitude more comfortable and full of little luxuries than everyone making...say...LESS than $200k. This is about our HHI and while we sure don't feel rich, we are able to save quite a bit and have a nice middle-class life. We've had to start paying attention to our budget, for sure, but we have no debt, which is huge.

The fallacy of this article, and overall mindset around here, is that things like being able to save for retirement and give your kids nice lessons and even TAKE vacations (let alone nice ones) ARE ALL LUXURIES! Not entitlements!

most people would define that the minimum lifestyle for the middle class

Nice lessons and vacations (plural) are not part of the middle-class lifestyle.

Then define what a "middle class" lifestyle is these days.

not living in a hcol city. In most cities or towns in this country a 700k house is huge. It would be harder to spend that on childcare and children's activities. On that budget you could keep your one for maybe even two) children in private school.

What you are saying is that in hcol, there is no middle class. I don't think it works that way. "Middle class" defined locally is "median or average". "Middle class" as defined in the US could be considered "upper class" in other parts of the world

So, again this is all relative to where you live. Sometimes, you can't help but live in a hcol because of the kind of job you have or for some other reason.

I'm not saying that's how it *should* be. I'm saying that if you want to live a middle class lifestyle on less than 200k you probably should stay clear of nyc, sf etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Just Getting By" is a BIG stretch to describe this budget. I don't think anyone will argue that high COL areas take a huge chunk of change out of one's salary, but this budget shows a sizable amount for vacations and $2k for charities and $5k for children's lessons. That is HARDLY "barely scraping by." True, it's not the budget of a truly wealthy person, but it is orders of magnitude more comfortable and full of little luxuries than everyone making...say...LESS than $200k. This is about our HHI and while we sure don't feel rich, we are able to save quite a bit and have a nice middle-class life. We've had to start paying attention to our budget, for sure, but we have no debt, which is huge.

The fallacy of this article, and overall mindset around here, is that things like being able to save for retirement and give your kids nice lessons and even TAKE vacations (let alone nice ones) ARE ALL LUXURIES! Not entitlements!

most people would define that the minimum lifestyle for the middle class

Nice lessons and vacations (plural) are not part of the middle-class lifestyle.

Then define what a "middle class" lifestyle is these days.

not living in a hcol city. In most cities or towns in this country a 700k house is huge. It would be harder to spend that on childcare and children's activities. On that budget you could keep your one for maybe even two) children in private school.

What you are saying is that in hcol, there is no middle class. I don't think it works that way. "Middle class" defined locally is "median or average". "Middle class" as defined in the US could be considered "upper class" in other parts of the world

So, again this is all relative to where you live. Sometimes, you can't help but live in a hcol because of the kind of job you have or for some other reason.

I'm not saying that's how it *should* be. I'm saying that if you want to live a middle class lifestyle on less than 200k you probably should stay clear of nyc, sf etc.

That's exactly the point. $200K in these hcol areas is not considered rich. $200 in a lcol area would be considered rich.

[Anonymous]

Anonymous wrote:People, people, people.
Each post from above is indeed a post by a person whom is NOT rich. It is the situation we live in, where there is no real wage growth. Sure, I agree, $200K looks great on paper. But it is in no way rich. I make about $350K and I am by no means rich.
However, take note, voters:
if you make $250K or more, Obama and his pals consider you part of the 1%, and, somehow, the govt is trying to tax you more. Pay attention. You aren't rich, but, if the govt feels you are rich, then the PC wage gap people will do something about it.

You're nuts. Unless you have three kids or bought an overly expensive home then you're doing something wrong. We make over 350k and save over 140k in a bad year. We weren't able to save this much in a higher col city than DC because housing costs were much higher and so were taxes.

Also taxes really haven't increased much over Obama. There's the Medicare surcharge and that's really it. Also check out trump's platform because he also thinks you're rich at 250k.