$600K-$800K HHI

[Anonymous]

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

Their numbers are not believable.

[Anonymous]

38 and 39 yo, 2 kids in elementary. Last year we made $700k and we saved $230k. I feel pretty good about the split, it's almost exactly 33/33/33 taxes/spending/saving.

Lord knows we could save more if we tried but we have a lot of fun with our money. We travel a lot, go to a lot of concerts, send the kids to fun camps, etc. And my H and I don't mind our jobs so it's not like we're racing toward retirement. I feel pretty good about our balance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

700k of that income is from DH’s consulting company, he can contribute 200k to a defined benefit plan from gross income to save taxes and we save 150k on top of those savings.

Also, I save 85k in my 150k job, 60k in 403b and 457( we have two plans available) and a 25k retirement contribution from my employer to my state pension. We live as if we are making 300k, which is plenty for us as our housing expenses are relatively modest as we bought in 2018.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

700k of that income is from DH’s consulting company, he can contribute 200k to a defined benefit plan from gross income to save taxes and we save 150k on top of those savings.

Also, I save 85k in my 150k job, 60k in 403b and 457( we have two plans available) and a 25k retirement contribution from my employer to my state pension. We live as if we are making 300k, which is plenty for us as our housing expenses are relatively modest as we bought in 2018.

These numbers don't seem legal to me. What is the code for the 200k in savings from your husband's consulting company? How can you participate in multiple retirement plans at the same time?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

700k of that income is from DH’s consulting company, he can contribute 200k to a defined benefit plan from gross income to save taxes and we save 150k on top of those savings.

Also, I save 85k in my 150k job, 60k in 403b and 457( we have two plans available) and a 25k retirement contribution from my employer to my state pension. We live as if we are making 300k, which is plenty for us as our housing expenses are relatively modest as we bought in 2018.

These numbers don't seem legal to me. What is the code for the 200k in savings from your husband's consulting company? How can you participate in multiple retirement plans at the same time?

School districts offer multiple retirement plans, 403b as well as 457, their employees can contribute 60k if they are above 50. As for defined benefits plan for DH, that is all managed by his CPA, it is of course legal because we don’t want to save at the expense of getting into trouble with the IRS. You can choose to believe or not.

[Anonymous]

This thread is comical at best! Folks BS'ing left and right!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’d love to know the monthly budget in this income range.

We are at 750k HHI and don't budget..we just come to a number to save, let's say it's 200k. We pay ourselves first and save the 200k. After that we live however we want and if the checking account stays above a certain #, then we will either save the rest, do a home project or go on a vacation.

My only target is the savings number. If I can save 200k, and that meets my long term goals, i don't care where the rest of the money goes.

Wow, this is kind of crazy. I make $180K per year and technically I save more money than you guys. (I say “technically” because I only ascribe a 50% ownership stake of all assets within a marriage to each partner. In other words, I look at it as if you each saved $100K.)

I’m single and live with my parents. I make $180K, pay $40K in taxes, spend $10K and save $130K per year. Obviously, I live a rather unglamorous life based on the above, but I am still obsessed with getting rich quickly even though I don’t have the skills to make those super-high incomes.

Still, it’s a testament to the “brute force” method of getting rich by saving >90% of your after-tax income.

go get a girlfriend dude - very sad.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’d love to know the monthly budget in this income range.

We are at 750k HHI and don't budget..we just come to a number to save, let's say it's 200k. We pay ourselves first and save the 200k. After that we live however we want and if the checking account stays above a certain #, then we will either save the rest, do a home project or go on a vacation.

My only target is the savings number. If I can save 200k, and that meets my long term goals, i don't care where the rest of the money goes.

Wow, this is kind of crazy. I make $180K per year and technically I save more money than you guys. (I say “technically” because I only ascribe a 50% ownership stake of all assets within a marriage to each partner. In other words, I look at it as if you each saved $100K.)

I’m single and live with my parents. I make $180K, pay $40K in taxes, spend $10K and save $130K per year. Obviously, I live a rather unglamorous life based on the above, but I am still obsessed with getting rich quickly even though I don’t have the skills to make those super-high incomes.

Still, it’s a testament to the “brute force” method of getting rich by saving >90% of your after-tax income.

Your parents are taking care of you - that's why you can save all of your income. The posters you're replying are taking care of their kids - that's why they spend their income.

Is your next post going to be how you're better than your parents because they're not mooching off of your grandparents?

[Anonymous]

Anonymous wrote:This thread is comical at best! Folks BS'ing left and right!

What is BS about this ?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’d love to know the monthly budget in this income range.

We are at 750k HHI and don't budget..we just come to a number to save, let's say it's 200k. We pay ourselves first and save the 200k. After that we live however we want and if the checking account stays above a certain #, then we will either save the rest, do a home project or go on a vacation.

My only target is the savings number. If I can save 200k, and that meets my long term goals, i don't care where the rest of the money goes.

Unlike you, we budget meticulously, similar HHI, similar savings. Annual savings 250k (some pretax, some post). Essentials, including private school ~320k. Lifestyle, including travel $100. The rest is tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’d love to know the monthly budget in this income range.

We are at 750k HHI and don't budget..we just come to a number to save, let's say it's 200k. We pay ourselves first and save the 200k. After that we live however we want and if the checking account stays above a certain #, then we will either save the rest, do a home project or go on a vacation.

My only target is the savings number. If I can save 200k, and that meets my long term goals, i don't care where the rest of the money goes.

Wow, this is kind of crazy. I make $180K per year and technically I save more money than you guys. (I say “technically” because I only ascribe a 50% ownership stake of all assets within a marriage to each partner. In other words, I look at it as if you each saved $100K.)

I’m single and live with my parents. I make $180K, pay $40K in taxes, spend $10K and save $130K per year. Obviously, I live a rather unglamorous life based on the above, but I am still obsessed with getting rich quickly even though I don’t have the skills to make those super-high incomes.

Still, it’s a testament to the “brute force” method of getting rich by saving >90% of your after-tax income.

How old are you?

This is an insane way to lead your life. Sacrificing all consumption now so that you can be rich when you’re old is not wise.

I’m 32 and only started making $180K in the last two years. I plan to keep on the same savings path for another 5 years and then lighten WAY up — I don’t think that’s too old? The first million dollars have always seemed magical to me, and I’m willing to sacrifice a lot to get there.

There is this thing called life. It's fun to live. When you live it to the fullest it includes things like a family of your own, freedom, your own home, vacations with people you love. I highly recommend it. I highly doubt you can get this living with your parents. It's a serious red flag for most people to be in their parents home beyond 25. Well, I wouldn't have dated anyone living with their parents beyond college/grad school. It literally means they haven't launched.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Did it occur to you that most of the posters in the thread are older than you, perhaps they already gave their "5 years" and are now "lightening WAY up"

I am one of the previous posters and I never gave five years and then lightened up.

I always saved reasonably responsibly, but my savings rate has gone up from c.10 percent when I was young to probably 25 percent now. I work in finance/economics so I understand all about compounding. But I also know that an extra dollar of consumption buys me a lot less fun, experience, and happiness now that I am 50 than it did when I was 22.

I spent my 20s and early 30s traveling, making friends, moving countries, doing different jobs, eating out, dancing, doing stupid things and fun things and different things. By all means save some money. But don't sacrifice your life to do it, it isn't worth it. Money is just a tool, not an end in itself.

+1
Now late 40s and I wouldn't do anything differently. Had first kid when I was 31. Before that I traveled a lot! I had so many adventures and was very ready to "settle down". My life and been so rich and full. No one wants to be the parent that looks like a grandparent. Or on the flip side the rich parent who longs to have the stories and photos of the most exotic things, basically just an exciting life experience.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

Their numbers are not believable.

DP

Believable if not all their income is W2. The better question is what is their effective tax rate?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We make 850k, DH 54 and me 50 yrs old. We started making this kinda money only 6yrs back, before that we made around 350k. We have a NW of 5 million, we save around 350k/year, as I noted that we started making this sort of money late in life so our priority is savings. We do spend 20k/year on vacations, kids go to public school, we bought our house in 2018 and our mortgage is 5200/month.

No budget as such, we have a savings number and after that we spend the rest.

How's this possible? What's your take home pay?

Their numbers are not believable.

DP

Believable if not all their income is W2. The better question is what is their effective tax rate?

+1. It sounds like they are taxed on $590K less health insurance costs, mortgage, child tax credit, etc. As opposed to that amount being $804K. I’m not sure how the catch up contributions work in OP’s case. I’m in my 30s, so I don’t pay much attention, but I thought that if you were over a certain income you couldn’t take advantage of catch up contributions. It would seem that $850K would be over any sort of reasonable catch up contribution limit, but maybe it is different for state savings plans.