Reply to PSA: $250K family of 4 in the DMV area is not middle class

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Reply to "PSA: $250K family of 4 in the DMV area is not middle class"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How exactly are you saving $ for retirement and down-payment on a home on that income? Even a townhouse in not such a great school district is half a million now. [/quote]

If you can't save on a $250k salary and a $500k home, I don't know what to tell you.[/quote]

It tells me that you are old and out of touch with reality or live in Oklahoma.  Let's say that a dual income family with 2 small kids are saving for a home. Their HHI is $250k. After paying their taxes, healthcare cost (average of 23k contribution for a family of 4), and contribute some to the 401k, they come home with around 10k/month. They have to pay rent while saving for a house, right? So that's 3.5k average for a 2 bedroom apartment in DC area (kids are sharing a room). They also have to put the kids someplace while working,  right? So that's another 3k at minimum, assuming one is in preschool.  They also have to eat, pay for transportation to work, buy clothes and laundry detergent ($20 right there, and there's so much laundry with kids), pay for utilities, car repairs  (assuming they drive old, paid cars).They probably have student loans, because you can't make 250k as a family and not go to college,  and these don't seem like the people with parents who paid for college. They probably want to see their families for Christmas and Thanksgiving,  have you checked the airplane prices recently? 
So how exactly are they saving $100k cash?  This is a family who doesn't take any vacations or saves $ for college for their kids. 
[/quote]

Not exactly… we make 250 and save alot with three kids.  But we bought in an exurb for sub 500 (before pandemic) with 40% down at a low interest rate.  We always had roommates when we were single.  Obviously housing costs now are a big barrier for people.  We managed to get one of the cheapest houses in a neighborhood with highly rated public schools.

We fully fund retirement and have a healthy emergency fund (six figs.). We need to ramp up college saving but will likely wait till youngest is in public elementary school (3 more years)

we have an au pair.  
We travel 1-2 times a year, including abroad but stay at places like Hampton inn.
We have student loans.  
Utility (bge) and grocery costs have doubled in about 5 years, unfortunately.  We do less wegmans and more Aldi.
We drive older cars that we pay cash for.  
Kids wear hand me downs including lots from cousins. 
We shop at Marshall’s.

So Yes, it’s do-able on 250, even at current housing interest rates.  In fact it’s actually a lot of money.  But you won’t be saving if you eat out every night and dress your kids in matching Hannah whatever, feel pressure to buy the $1000 stroller/wagon and/or crib, pay thousands for travel sports, shop exclusively at Whole Paycheck, and rip out perfectly usable kitchens or bathrooms from the 80’s because the wood is ‘too yellow.’

There’s a little too much doomsaying on here.  We feel very privileged.  We know we make a lot of money and feel a strong the responsibility to not waste it.  We know there are many people living on much less than us, and it’s an insult to them to claim we are middle class.  We hire cleaners and lawn mowers and in general have a ridiculously comfortable life.  [/quote]

This is the key. You bought at the right time with a low interest rate. We had our college and grad school paid by parents and they gifted us the down-payment on our 1st home.  This is why we are in a 4200 sf home in a great area, with less than 3k monthly morgage at 2.5%. We were lucky.  Most are not.
G*d forbid if one of your kids is special needs. We have great insurance and still spent 10k/year in therapies.  Insurance covers nothing and a session is at least $250/hour, if you are lucky to find a spot.[/quote]

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