Scraping by on $500k

[Anonymous]

Saw this via Twitter and it reminded me of debates here about people with high salaries feeling poor or average.

http://www.financialsamurai.com/scraping-by-on-500000-a-year-high-income-earners-struggling/

Before you flame me, please note I'm not endorsing the idea that a family with HHI of $500k has a right to feel stretched. But I'd never seen a breakdown like this and it does help explain those periodic posts here.

For a powerful reality check, here's a link to a good Twitter thread about what a $30k income feels like: https://twitter.com/absurdistwords/status/845347868756099072

[Anonymous]

Interesting article, OP.

Our HHI is 550 and we've made serious changes in the last year so we didn't feel stretched so thin. Namely, move to a lower COL area outside the beltway - now we're not quite so house poor.

[Anonymous]

It's not how much you earn, it's how much you spend. Plenty of millionaires have gone bankrupt from mismanaging $$.

[Anonymous]

In the book the Millionaires Next Door, it states that the majority of millionaires have an annual income of $131K. They don't exhibit their wealth for all to see, bling isn't their thing. I know several millionaires who are quite wealthy and no college education, but they are smart about business and money.

http://www.nytimes.com/books/first/s/stanley-millionaire.html

[Anonymous]

Thanks, OP - eye-opening indeed.

[Anonymous]

So many things in that budget are unnecessary. They are choosing the best (or a really good version) of everything. Really, a 3 year old needs weekly lessons in addition to the zillion dollar a week daycare? And has to get driven there in a leased BMW?

No pity from me.

[Anonymous]

Way too much for charity and cars. Put that towards school debt and worry about nice cars and charity in 20 years.

[Anonymous]

Saw that yesterday on another board. A BMW and a Land Cruiser in Manhattan?? Obviously they lack judgment so I can't feel all that bad for them.

[Anonymous]

18K for three vacations a year? Cry me a river.
No one is "scraping by" with that budget.

[Anonymous]

They're not saving for college??? What the hell???

[Anonymous]

Surprise! If you spend all of your money, you will have none.

[Anonymous]

Anonymous wrote:Way too much for charity and cars. Put that towards school debt and worry about nice cars and charity in 20 years.

You can still do charity.

[Anonymous]

We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.

[Anonymous]

They haven't learned "no". Each kid in Pre-k can have one lesson. They don't need two cars, one of which is a BMW. They live in NYC, so one nice "away" vacation a year - do stuff n ear home. Take all that money and throw it at the loans.

Not. That. Difficult.

[Anonymous]

Anonymous wrote:We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.

Then you're doing something wrong. Or living way above your means.