Life is Easy in NW DC on $300k, AMA

[Anonymous]

I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.

[Anonymous]

OP here to add, I realize this is a bit masturbatory. I know we have it easy, and I'm not looking for any positive feedback. I just get frustrated by the $300k "scraping by" posts and wanted to push back on it a bit.

[Anonymous]

I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

[Anonymous]

You are doing it right.

I think many people think they should be swimming in money Scrooge McDuck style and if they are not, well, they are poor.

Obviously you have a nice life. Good job.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

That didn't take long! Man. This place.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

I wasn't going to say it because I was sure someone else would. I think it's fine that OP is giving $5k, but I don't think OP should've mentioned that's a generous amount on $300k. It should've been stated without commentary.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

I did expect to receive some comments like this, and I chose to disclose our charitable contributions anyway. I applaud your generosity and aspire to do better. Thanks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

I wasn't going to say it because I was sure someone else would. I think it's fine that OP is giving $5k, but I don't think OP should've mentioned that's a generous amount on $300k. It should've been stated without commentary.

Stated without commentary: Thanks.

[Anonymous]

I think, OP, that you should do whatever you want with your income but if your financial life is really easy and cushy then maybe increasing charitable contributions would be a good place to focus.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

New poster. I wouldn't have said anything if you'd simply said "We give to charity about $5k per year usually." But you specifically added "an amount that I think is generous."

We're also at the same income, similar children ages, similar mortgage costs, etc., and have been gradually upping charitable giving to $15,000, which is still only about 5% of our gross income. One recommendation (https://www.thelifeyoucansave.org/take-the-pledge) is 7.5% at that income level.

[Anonymous]

Anonymous wrote:You are doing it right.

I think many people think they should be swimming in money Scrooge McDuck style and if they are not, well, they are poor.

Obviously you have a nice life. Good job.

Or even [shudders] middle class

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

New poster. I wouldn't have said anything if you'd simply said "We give to charity about $5k per year usually." But you specifically added "an amount that I think is generous."

We're also at the same income, similar children ages, similar mortgage costs, etc., and have been gradually upping charitable giving to $15,000, which is still only about 5% of our gross income. One recommendation (https://www.thelifeyoucansave.org/take-the-pledge) is 7.5% at that income level.

I do agree that we should do better. I aspire to do better. Thanks for your comment.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

Charity is a personal choice. Nobody should be judged by how much or how little they give to charity.

[Anonymous]

Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.

It helps that your student loans are paid off. Did DW have any?

Do you travel much?

Also curious what your monthly spend is. . .

Not disputing, just wondering what I can expect once my hefty law school loans are paid off (still have a ways to go).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

New poster. I wouldn't have said anything if you'd simply said "We give to charity about $5k per year usually." But you specifically added "an amount that I think is generous."

We're also at the same income, similar children ages, similar mortgage costs, etc., and have been gradually upping charitable giving to $15,000, which is still only about 5% of our gross income. One recommendation (https://www.thelifeyoucansave.org/take-the-pledge) is 7.5% at that income level.

The recommended percentage on this site is insane. It has mine at over 13% or around $130K - yeah OK

By the way, if PP thinks $5K is generous, then it is. Its a personal choice.