Reply to Life is Easy in NW DC on $300k, AMA

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Reply to "Life is Easy in NW DC on $300k, AMA"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I see so much confusion on here, and I thought I'd try to clear some stuff up.  My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area.  My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k.  People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans.  Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either.  The last car we bought was in 2012 and it cost about $30k.  
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account.  Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually. 
[/quote]

You are missing the point of those earlier threads.   Few, if any, said $300k is not a nice lifestyle in NWDC.  Rather, many correctly said that $300K does not automatically make you "rich" or "wealthy".  Because it does not.  You are dangerously dependent on your salary, which could disappear overnight (see 2008/2009). If we you lost your job, you'd be in dire financial straits.  Actually rich people can afford a great lifestyle independent of a salaried job.  That is not you, or most people in AU Park. You are upper middle class. If you don't understand the distinction, it's not surprising.  Most Americans are sadly financially illiterate and would not understand this either. [/quote]

I think we're talking about 2 different things. I have seen people on DCUM people say they are scraping by or living paycheck to paycheck on 300k.[b] Or that 300k is middle class. That's what I'm pushing against.[/b]

I definitely never used the terms rich or wealthy.  And I never tried to argue we're wealthy enough to not need a salary. In fact the whole point of the past was to show what lifestyle or salaries provide, not to argue that we don't need or salaries.

Of course we're still dependent on our salaries. But one day we won't be.  Also, we'd be fine if one of us lost our jobs. We'd only be in "dire straits" if we both lost our jobs. Which is frankly unlikely, bc I work for the federal government.[/quote]

Seems like a very middle class life to me.  You send your kids to public schools, drive average cars, save for kids' colleges, etc.  Doesn't seem like you do anything particularly luxurious except for dining at some nicer restaurant and some consumer goods.  Again, very middle class.  Your life isn't any fancier than someone middle class who lives in Kansas City.  Except the person in Kansas City probably isn't saving as much for college, but then again their child probably won't attend as expensive of a college.

If you earned another 100-150k you could add in some more UMC things like a lot of expensive travel, nicer home etc.  [/quote]

Exactly.[/quote]

I think you are both proving OP's point. If you don;t expect to live a "rich" lifestyle and don't have any extenuating circumstances (family to support, high health care costs) then living on $300K is pretty comfortable. If you expect more, you will either feel deprived or be unable to save as much. Sounds like OP isn't expecting to feel rich and is therefore very satisfied. And since once of their salaries is from the federal gov't, their income and health insurance is pretty secure. Bravo OP! [/quote]

It doesn't seem any different from living in 100k in a lower COL city.  I could easily own the same sized property, drive older cars and send my kids to public school in Minneapolis on 100k.  [/quote]

I'm sure that is true. What is your point? [/quote]

That 300k is middle class in dc  if you have kids and didn't buy your home 10 plus bears ago[/quote]

Isn't that what op is saying? That he has a comfortable middle class life and doesn't want for anything?[/quote]

No, OP repeatedly claimed that he is not middle class.[/quote]

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