Reply to Why is $275k hhi now so poor?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]SMBC—I make $300, 2 kids in public.  I put 30k in my 401k including the catch up.  My mortgage is $2800, car is paid off.  Kids each have $150k in their 529s.  They’re not going to  BC on that but it will pay for state school.

I have enough for vacations, food, shopping.  I have no idea how 2 adults can’t make it on $275..[/quote]
+1  Last year our HHI was $275, some of which was self employment income, which means we pay an extra 12.5% in taxes.  We are a family of 4 -- two teens, one in college.

[b]PITI is about $2400[/b]
2 cars paid off

$80K 401k (some from self employment, both over 50.)
$13K 529
$43k taxes

Net Total $136k.

Our total expenses last year was around $125K, including two vacations.

Total $261K

If you are a DINK and are barely scraping by at $275K, you are definitely living beyond your means.  [/quote]

First, if you're barely scraping by at any salary, you're not living beyond your means. It means you're right on the line.  Think about the definition of the word "beyond" and whether it applies here.  Given OP's criticisms about how a family making 90K a year can't save for retirement, OP probably maxes out his 401K, but finds that he's not rolling in dough afterwards.

Second, your PITI is 2.5K, which is pretty much the PITI for a 350k mortgage at today's interest rates.  OP was probably 5 years old when you bought your house.  So your mortgage just isn't relevant to his life situation.

You're acting like just because you have kids that somehow it means you would have higher expenses than OP, when in reality, you were able to buy your house 20 years ago, and a house is most people's biggest expense. I could live like a billionaire if I made $10 dollars an hour and buy a house using prices from the 1850s. [/quote]
uh, yea, having kids is expensive, especially if you are trying to save for college.

We could've retired already if we didn't have kids with that income.  You act like our interest rate was always low. It wasn't. Our first house was $750K 20 years ago with a rate of 6%, and we had two kids back then, paying for childcare.

Sorry, but $275K today for DINKs is quite a bit, and you can live pretty well. OP stated that they are "poor", as in "barely scraping by". That's ridiculous.  They are clearly living beyond their means if they are "poor".[/quote]

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