Why is $275k hhi now so poor?

[Anonymous]

You can’t say you’re not thriving when you’re maxing your 401k. That’s a luxury most people in the US can’t do

You need a budget, OP.

[Anonymous]

Anonymous wrote:How old are you and how long have you been making that? You should be doing fine. When we were dinks making that, we had a subscription to the theater, went out for dinner a lot, bought a lot of clothes, visited friends in NYC, flew to visit parents a few times a year, did home renovations, etc. - plenty of money that didn’t need to be spent - unless you have backbreaking student loans. Then that’s the issue.

I thin OPs point is that when you were dunks making that, everything including the extras you mention cost a lot less. And you probably have a much lower mortgage rate.

[Anonymous]

I’m in Gen X and When I was a DINK out entire HHI was $75-150K gross, so there’s that too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SMBC—I make $300, 2 kids in public. I put 30k in my 401k including the catch up. My mortgage is $2800, car is paid off. Kids each have $150k in their 529s. They’re not going to BC on that but it will pay for state school.

I have enough for vacations, food, shopping. I have no idea how 2 adults can’t make it on $275..

+1 Last year our HHI was $275, some of which was self employment income, which means we pay an extra 12.5% in taxes. We are a family of 4 -- two teens, one in college.

PITI is about $2400
2 cars paid off

$80K 401k (some from self employment, both over 50.)
$13K 529
$43k taxes

Net Total $136k.

Our total expenses last year was around $125K, including two vacations.

Total $261K

If you are a DINK and are barely scraping by at $275K, you are definitely living beyond your means.

What would your PITI be if you had to buy your house today using today's interest rates and a 20% down payment?

BINGO

[Anonymous]

I’m a single parent making $240K with student loan payments (doing PSLF and SLRP) and a paid off car and still feel like it’s pretty tight. I do max my retirement but with home repairs /maintenance and summer activities & school year lessons for kids there’s not much leftover every month. I don’t get to put $15K/year in a 529. I don’t take vacations, seldom eat out or pay for any “entertainment” for myself, and am dreading buying a new car, mine is 7 years old.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SMBC—I make $300, 2 kids in public. I put 30k in my 401k including the catch up. My mortgage is $2800, car is paid off. Kids each have $150k in their 529s. They’re not going to BC on that but it will pay for state school.

I have enough for vacations, food, shopping. I have no idea how 2 adults can’t make it on $275..

+1 Last year our HHI was $275, some of which was self employment income, which means we pay an extra 12.5% in taxes. We are a family of 4 -- two teens, one in college.

PITI is about $2400
2 cars paid off

$80K 401k (some from self employment, both over 50.)
$13K 529
$43k taxes

Net Total $136k.

Our total expenses last year was around $125K, including two vacations.

Total $261K

If you are a DINK and are barely scraping by at $275K, you are definitely living beyond your means.

What would your PITI be if you had to buy your house today using today's interest rates and a 20% down payment?

BINGO

Many years ago, interest rates were 6%, and in the Bay Area where I lived, homes were still very very expensive (and still are).

[Anonymous]

Anonymous wrote:I’m a single parent making $240K with student loan payments (doing PSLF and SLRP) and a paid off car and still feel like it’s pretty tight. I do max my retirement but with home repairs /maintenance and summer activities & school year lessons for kids there’s not much leftover every month. I don’t get to put $15K/year in a 529. I don’t take vacations, seldom eat out or pay for any “entertainment” for myself, and am dreading buying a new car, mine is 7 years old.

Yes, but OP does not have any kids, and assume they don't have any student loans, otherwise, they would've said so.

Imagine if you did not have a child or any student loans, and how much money you would have leftover every month.

[Anonymous]

Anonymous wrote:I’m guessing you eat out all the time and constantly getting Starbucks and boba without even thinking. You have multiple streaming accounts and order from Amazon whenever you need or want something without thinking.
You get your hair and nails done every 6 weeks and buy expensive clothes. It doesnt matter how your house and car is, this
kind of spending adds up fast!

But if you're arguing that someone making 275K shouldn't be getting their hair done, then it does suggest that they are no longer middle class. Certainly in previous generations, middle class people got haircuts and didn't consider them a luxury.

[Anonymous]

Didn’t read all the comments but I get the sense that both of you max out your retirement and have an additional investment vehicle where you sock away money. Then most of your money goes to home, insurance, home repairs, food, takeout, and you mayyyybe get to save $1-2k after all that. That is pretty much thriving, OP. Just because your bank account balance is low (which it should be), doesn’t mean you aren’t rich. You just don’t have cash you can access right away.

[Anonymous]

Anonymous wrote:Stop blowing smoke up my arse trying to claim $275k hhi is just fine and dandy these days. It is not. We are friggin dinks with virtually no debt except our mortgage on a very modest $625k home. We rake in $275k and are super middle class, it’s insane. Right now driving an 8 year old cheap Mazda 3 bought for $20k snd is paid off. I dread the day we need a new car, because a new car payment will place huge strain on our finances. I think we can only afford a Toyota sedan next. You’d think dinks making almost $300k could afford an Audi these days, but nope. Car insurance, home insurance, taxes, groceries……all of it demolishes you. We only take 1 vacation too per year.

Ok, we might tread water, I’ll give you that. But we aren’t THRIVING. I feel like you’ll only thrive on a $500k income these days. And that’s only from a DINK perspective! I dunno how everyone else who is poorer AND has kids survives. You all survive on malk and beans? Who knew the American dream for family people meant a life of brittle bones and cutting coupons, lol. Prices are so outta control. It is bonkers.

Troll score: 5. Demerits for being too obvious and too combative in tone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m guessing you eat out all the time and constantly getting Starbucks and boba without even thinking. You have multiple streaming accounts and order from Amazon whenever you need or want something without thinking.
You get your hair and nails done every 6 weeks and buy expensive clothes. It doesnt matter how your house and car is, this
kind of spending adds up fast!

But if you're arguing that someone making 275K shouldn't be getting their hair done, then it does suggest that they are no longer middle class. Certainly in previous generations, middle class people got haircuts and didn't consider them a luxury.

dp.. you're nitpicking. All the things ^PP stated combined means they are spending a lot on discretionary stuff, especially if they are buying expensive cloths. Middle class people can't buy starbucks/boba everyday without sacrificing something else. Our HHI is about $275K, and we rarely get stuff from starbucks or boba, and we don't buy expensive clothes, or get my nails/hair done every six weeks.

We do buy stuff from Amazon, and have like 3 streaming services (and save for college, and lease a new car), but we don't complain about being "poor".

[Anonymous]

Anonymous wrote:Didn’t read all the comments but I get the sense that both of you max out your retirement and have an additional investment vehicle where you sock away money. Then most of your money goes to home, insurance, home repairs, food, takeout, and you mayyyybe get to save $1-2k after all that. That is pretty much thriving, OP. Just because your bank account balance is low (which it should be), doesn’t mean you aren’t rich. You just don’t have cash you can access right away.

Guys! OP can't afford an Audi!! Only poor people can't afford an Audi.

[Anonymous]

Anonymous wrote:I’m a single parent making $240K with student loan payments (doing PSLF and SLRP) and a paid off car and still feel like it’s pretty tight. I do max my retirement but with home repairs /maintenance and summer activities & school year lessons for kids there’s not much leftover every month. I don’t get to put $15K/year in a 529. I don’t take vacations, seldom eat out or pay for any “entertainment” for myself, and am dreading buying a new car, mine is 7 years old.

I’ve choices. We live well on much less.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m guessing you eat out all the time and constantly getting Starbucks and boba without even thinking. You have multiple streaming accounts and order from Amazon whenever you need or want something without thinking.
You get your hair and nails done every 6 weeks and buy expensive clothes. It doesnt matter how your house and car is, this
kind of spending adds up fast!

But if you're arguing that someone making 275K shouldn't be getting their hair done, then it does suggest that they are no longer middle class. Certainly in previous generations, middle class people got haircuts and didn't consider them a luxury.

dp.. you're nitpicking. All the things ^PP stated combined means they are spending a lot on discretionary stuff, especially if they are buying expensive cloths. Middle class people can't buy starbucks/boba everyday without sacrificing something else. Our HHI is about $275K, and we rarely get stuff from starbucks or boba, and we don't buy expensive clothes, or get my nails/hair done every six weeks.

We do buy stuff from Amazon, and have like 3 streaming services (and save for college, and lease a new car), but we don't complain about being "poor".

Middle class don’t earn what you do. We live comfortably on about half of what you make. But no nails or hair or Starbucks. Lifestyle choices.

[Anonymous]

op - you need to have a serious discussion with yourself - you are poor.