Reply to If you are middle class (<150k HHI), how would things be different if you were rich (>400k HHI)

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Reply to "If you are middle class (<150k HHI), how would things be different if you were rich (>400k HHI)"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm intentionally excluding the group in 150-400k here because I think that's the area where people often don't "feel" rich (at least in the DMV), but are definitely not truly middle class in that they have privileges and advantages from their income that middle class folks don't have).

But if you are under 150k HHI in this area (specifically if you have kids at all, even one) money is going to be somewhat to very tight because of housing costs. And if you are over 400k, you may not be able to stop working or be set for life, [b]but you can pretty much live wherever you want.[/b]

Just curious how people conceptualize that SES gap at this point, particularly in the DMV.[/quote]

It's a ridiculous assumption that at $400k, or with any increase in income, you are going to spend all of the marginal difference on housing. Not everyone pines over living in Chevy Chase or Bethesda in a completely remodeled house like on DCUM. We make $400K and live in a $750K house in a suburb near an end of line metro station. Our mortgage payment is $4000/month. We chose a 15-year mortgage over "living wherever we want" because paying off the house by our early 50s is a priority. Personally I would not want a mortgage payment higher than this because daycare, preschool, etc. are expensive. The house always needs something, a repair or saving for a big project, etc. Savings for retirement is a priority. Saving for college is a priority. So, yes, at $150K housing choices will be more impacted, but the idea that you can or would live anywhere you want as income increases is silly.
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At that income there is no reason not to have fully funded college funds, retirement savings and more.  We comfortably do it on under $150K but our house was under $400K and our mortgage payment is under $2K.  So, I don't get how you are complaining about things at $400K.  But, when we do have an increase in income some years, we put the money toward college or save to pay cash for things like cars.  The only difference for us if we had made that much early on and it was stable (or even $250K, we'd have a slightly bigger house).  I don't get your comments over a 15 year mortgage, as many of us have that.  We also pay in extra each month.[/quote]

I'm not complaining. I'm simply noting OP's assumption that increases in income will all go toward a house. Stuff is expensive and people have other priorities, like what you mentioned above. Not everyone needs or wants a super expensive house.

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