Reply to Has wanting money discouraged you from public service?

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[quote=Anonymous][quote=Anonymous]We went from two private sector salaries/careers to two public sector. You can still live an extremely comfortable life as a family with a $300k HHI around here. Our HHI is around $275k and we max both TSPs, save $25k/year for kid college funds, and have plenty of money for a nice vacation 1-2 times/year, eating out, and really all that we want to do. Our tastes are normal upper middle class, not extravagant. We are both MUCH happier and have very flexible schedules and are almost always home for dinner with our kids.

[b]Before I'd make the move, I suggest that you use your savings/private sector money to 1) pay off any debt other than your mortgage (student loans, car loans, etc) and 2) buy or set aside a large-ish pot of money for a home downpayment. If you set yourself up with a reasonable monthly housing cost (I'd aim for $3,500 or less), you will be fine.[/b][/quote]

This. Use your current very high income to set the stage for your next move. Live at the lower salary now and use the extra money to lay the foundation for the move. Pay off debt. If you want a fancy house in a fancy neighborhood with your fancy friends, bring a very large down payment so that your monthly payments are manageable on the lower income. Or consider buying in a neighborhood that reflects the lower salary. Not only will it still be a lovely neighborhood, as your potentially lower salary is still generous, it may also help you not feel like you're struggling to keep up with much wealthier neighbors. Make sure you'll have sizeable emergency savings, and ramp up retirement savings. For stuff that you'll have for a very long time, like furniture or handbags, etc, buy high end now.[/quote]

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