To those who can't make ends meet on $250K, take note:

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
In my age bracket 30-35, I know 4-5 other people in the same position each owning 4 houses or condos. I even know someone who has 6. We are getting by because the DC economy is pretty good but think about it, what would happen if we all went bankrupt?

This was common in 2005 because there was no way any of us could get to where the older generation's equity position was without taking on more homes. This isn't a pitty call or a bitching it's a truth of the situation a lot of us are in. We make good incomes and would like to start a family in a decent size home and saw the only way towards this goal was to buy multiple properties or to hold on to a previous one while we moved to a larger one. This isn't greed this is the reality of the situation. Back before the bubble you could save up for 20% down on a decent sized (2500 SQRFT+) newer home on the average salary without any issues, now a days it is very difficult if not impossible.

So, wait, I am supposed to feel bad because you made bad financial decisions? Your friends were all greedy. And you are making excuses.

You would be suprised of how many people around here do own multiple places and are underwater. If they all decided to stop paying or another housing collapse happened it would be a nightmare.

I am not disagreeing that it would be a nightmare. But that being said, I don't think I need to sit here patting the hands of people who were willing participants in creating the nightmare.

We aren't talking about people who bought what they could afford, and then had a catastrophic illness or injury destroy their finances. We are talking about people who wanted to leverage properties on which they had very little equity to be able to buy more, so they could have a nicer home.

And for the people saying that it's unfair that they work so hard but live like they are in a third world country -have you ever actually traveled to a third world country (or if you have, have you actually ever left the resort) to see how people really live in those places?

Property in urban areas is almost always more expensive. So, you will get less with more. It sucks. But that's life. Get over it. Or move to another part of the country. And if you are now going to whine about the job markets not being good elsewhere, well, that's more costly real estate is part of living somewhere that does have jobs.

I have lived in 3rd world county's all my life until high school. All of the people I know with multiple properties can afford them.

[Anonymous]

"Not sure what you do- but you could certainly 'afford' any number of luxuries at $400k a year."

It really depends on your net worth and how to close to retirement you are, plus how many college educations you are going to have to fund.

[Anonymous]

This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

[Anonymous]

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

Cocaine and pilates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

Cocaine and pilates.

And Starbucks. Don't forget the Starbucks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

Cocaine and pilates.

And Starbucks. Don't forget the Starbucks!

And the botox.

[Anonymous]

To pp 14:27 - college (and private school beforehand) is a LOT more expensive now . . . can't do it (comfortably in a 3000 square foot house) now on 130K a year.

[Anonymous]

Anonymous wrote:To pp 14:27 - college (and private school beforehand) is a LOT more expensive now . . . can't do it (comfortably in a 3000 square foot house) now on 130K a year.

Uh, I think that poster lives in Mississippi.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

Cocaine and pilates.

And Starbucks. Don't forget the Starbucks!

And the botox.

PLEASE get a life.

[Anonymous]

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

First of all, you had a tiny mortgage payment, I'm sure. College was cheap. Your wife probably stayed at home with the kids, so no childcare costs. Those three cost items - mortgage, daycare and college savings - account for 60% of our budget. Oh, and your employer probably paid 100% of your health insurance premium. And might still pay for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This thread is absolutely amazing. I am 60, have been retired for 5 years, and maxed out on my annual compensation in 2006 when I made $130K. In retirement, I now have the easiest job of my life, but make only $75K. Never in my wildest imagination did I ever think I would ever make $200K, much less $400K. What in heavens name do you guys do???

In spite of having apparently lived my entire life in the "slow lane", I consider myself truly blessed. I live in a 3,000 square foot house with an inground swimming pool, put two kids through college and this year took 4 decent vacations (Orlando, Las Vegas, Hilton Head, and Punta Cana)

Where does all of your money go??

Cocaine and pilates.

Mortgage and daycare alone cost us $7500 a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am stunned by the number of posters who've come out of the woodwork to lament that they make $250,000 but are not rich. No one here said you were rich. But you are very comfortable. The bellyaching about not being more comfortable is just plain bizarre. Do you expect folks who make much less than you to empathize?

No but we don't except to hear you bitch about us. What is comfortable? I work 50-60 hours weeks, my wife works 40-50 hour weeks, and its not like we are RICH or comfortable we do what we need to make that amount of money and it doesnt buy you much in this area.

Words fail. Hug your family and please start feeling grateful for all that you have.

You are right, $250 is not rich in this area, but it beats the hell out of my current scenario. I've posted before and I'll do it again. Two educated parents (expensive grad degrees to boot) from educated families. We have three kids. Bought a house we could afford when we had a HHI of $160+. Two older cars (paid for), one week at the beach a year for our vacation, the occasional dinner out. No shopping as a recreation, just clothes and household items as we needed them. Had a bi-weekly cleaning person, a monthly lawn guy, piano lessons for the kids. Nothing extravagant, but all the normal trappings of a middle class life. Fast forward three years and DH is unemployed and I am working part time in retail. Savings gone. Poof. We currently bring in $1,600 per month. That's it. Our credit is shot, we are on food stamps, have no health insurance, and are desperately trying to keep our house. Is this our fault? Bad luck? We thought we were being prudent, thoughtful, and tried to make sound fiscal decisions. We have been knocked down to a level we couldn't fathom before.

Did I ever in a million years think this would be my life? NEVER. I would love for my DH or myself to be able to work a 50 hour work week again so that we could get back on our feet. We are the 99%. And for those of you who think you aren't - you could be. So you may not be able to buy as much as you would like with your current salary of $250 per year, but trust me, things are much much worse for many people.

Totally feel sorry for this pp. What a terrible situation. BUT, having a cleaning lady and lawn guy is NOT middle class. In DC, there is so much money that it is really easy to think that that kind of lifestyle is normal! Someone who can afford to outsource most household work is not middle class. It is not filthy rich, but, in most parts of the country, would not be considered middle class.

Agreed. Like everything else in this area, what is considered middle class/rich is inflated. I grew up in the MW and in the PacNW in areas where it definitely was not the norm to have nannies/cleaning ladies/lawn or pool guys. I guess it is all relative and a matter of perspective, but I have a hard time understanding how people in this area with HHIs of $250K (1) don't believe that they are, indeed, quite fortunate and wealthy and (2) feel entitled, in any event, to live what they consider a "rich" lifestyle where money is no object. I am, BTW, one of those people with an $250 HHI, and feel incredibly fortunate and, yes, "rich". And yes, I have debt (student loans, mortgage, car loan). And no, I haven't gotten handouts/inheritances from family (grew up at the poverty line and my family even received public assistance when I was a child). While we do have to budget and can't afford designer everything and multiple extravagant vacations each year, we don't want for anything, we have a nice home and a car, we always have enough money to put good, healthy food on the table and we are even able to put a little money away for retirement and a rainy day. That all adds up to pretty rich to me, but I my definition clearly differs from many others on this board.

[Anonymous]

PP, you're not rich unless you're putting A LOT away in investments.

[Anonymous]

Anonymous wrote:PP, you're not rich unless you're putting A LOT away in investments.

again, semantics.

but someone making $250K+ is far from the poverty line no matter which way you slice it. What you are spending your money on and whether you live in a High COL area doesn't matter.

Now, our generation is getting screwed by how much more expensive everything is nowadays. Retirement and Health Care and College Costs - oh my. But, sadly, yes, being able to pay for these things, even if it is a struggle, IS a luxury these days. I honestly consider myself blessed to have ANY money in savings, retirement and a little set aside for our child's college. We're still at a point where we don't have to dig into these accounts to make our bills monthly - THAT is a blessing. It may seem the norm around here for everyone to be able to afford to max their 401Ks and have a nanny and a housekeeper, but it is NOT the norm for the nation. Not by a longshot.

[Anonymous]

Anonymous wrote:
Mortgage and daycare alone cost us $7500 a month.

So you're buying a huge house and putting your kids in luxo daycare.

I could spend $1000 every night on a gold-flaked chocolate dessert. I choose not to.