Reply to Goldman Sachs: 40% of $400-500K and $500K+ households “live paycheck to paycheck”

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Reply to "Goldman Sachs: 40% of $400-500K and $500K+ households “live paycheck to paycheck”"

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[quote=Anonymous][quote=Anonymous]You can EASILY live paycheck to paycheck if you make 400K-500K a year in any  metropolitan area in the US like the DMV! and that's not even living a luxurious lifestyle or being irresponsible with your money, ESPECIALLY if you have 1-2 kids in private school. You're basically making about $300K after taxes, so $25K a month.

If you live in a 1.2M home (and that's a very basic home in many parts of DC, Tysons, McLean or Bethesda), you're probably paying $7.5K for mortgage, 2 kids in private school is also about $7.5K a month,  home upkeep, utilities and repairs are $1.5K, groceries and household supplies is $2.5K, gas/ car repairs/ tolls is another 0.5K, I am assuming your cars are paid off. Kids 529 is another 1K a month. If you and your spouse work outside the house, you will need some type of part time helper/sitter on some afternoons, so that's 1.5K a month.

So there, we are already at 22K a month. We have not even talked about clothing, eating out, travel, any out of pocket medical expenses,  any type of extra curriculars or sports for the kids . I am assuming you don't even have a pet and your company pays 100% of your health insurance.

See how easy it adds up? [/quote]

Of course a person of ANY income can live paycheck-to-paycheck, but that then makes the term meaningless. Paycheck-to-paycheck implies financial hardship and funding for things you need to live a basic lifestyle. A person who's entire paycheck is going to the mortgage on their house in Vail Village isn't living paycheck-to-paycheck. They're living stupid.[/quote]

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