Reply to Study shows that 350k/year is barely scrapping by as middle class

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We live in NW DC and this article is basically about us. We are more like $310K a year and I can account for our budget differences in property taxes, childcare, and food. But otherwise it's not that far off from what we spend. Our mortgage payment plus taxes is about the same as the mortgage payment here.

That said, we are 40, keep a liquid cash savings cushion of about 40K, have just shy of 1M in 401k, are on a path to retire around 60 and have about 75% of kids college in the bank by the time they get there. So we're comfortable, but we're driving non-flashy cars, living in a 3 bedroom house, going to public school, and living what's otherwise a pretty non-rich person lifestyle.[/quote]

So what are you spending money on? Vacation, clothes, eating out, activities?

1M retirement savings is good but not where the majority of your money is going.[/quote]

Not PP but I’d assume

- college savings (is over $1k per month per kid)
- childcare (at least 3k per month for 2 kids)
- mortgage for a home where kids can attend public school.

I’m a little bit higher of an income and calculated that 85% of my 450k HHI goes towards [b]savings[/b], taxes, mortgage, [b]college savings[/b] and childcare.  
[/quote]

Savings are not expenses. You may have earmarked that money for a specific purpose, but you did not spend it. It is not gone. You still have that money. [/quote]

This is why it is hard to analyze without actual numbers.

Using similar rates to the source article you would have something like this:
310000 gross income
38000 401k
79360 taxes (based on 32% effective total)
192640 Net income (adding 4K child tax credit)
Expenses
12000 529 savings
65000 Mortgage PITI
5000 Utilities
24000 Childcare 
24000 food (groceries, buying lunch, coffee, dinner out)
10000 Healthcare
4800 Car payment(s)
3000 Gas
1800 Cell phones
6000 clothing
5000 Gifts for family (Christmas, birthdays)
1000 Charity
7000 vacations (2 weeklong trips)
5000 entertainment (social gatherings, Getaway, sports tickets, etc)
Total expenses 173600
Cash remaining after expenses 19040

The devil is in the details, how much are you saving for retirement? Investments? 529? Future house Reno? What else is not on the above list? Emergency trip to visit sick family member? Cost of hobbies? Other stuff that is not easy to categorize?

[/quote]

Sorry, but if you make $310,000 a year and only give $1,000 to charity (but spend six times that much on clothing), you are a bad person.[/quote]

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