Reply to Goldman Sachs: 40% of $400-500K and $500K+ households “live paycheck to paycheck”

Forum Index » Money and Finances

Reply to "Goldman Sachs: 40% of $400-500K and $500K+ households “live paycheck to paycheck”"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]For UMC families, "paycheck to paycheck" means that after retirement, 529 plans, mortgages, life insurance, etc., the net income is spent every month.  I don't think that's atypical, especially for young families who bought their homes after interest rates rose and are paying for childcare right now.  $400k in income doesn't leave a lot once it is net of 401k contributions, mortgages at today's rates, childcare, and 529 contributions.   Also, plenty of folks don't believe in keeping an emergency fund or much cash.  They rely on credit to cover emergencies, which some think are so remote that they don't need to plan for them. I suppose in extreme cases, there are folks making $400k who don't have 401ks, 529 plans, brokerage accounts, home equity, etc., but those folks are few and far between.  [/quote]

We used to make $400K (now at $800K due to job change) and had zero issue doing all of the above at $400K with lots of money to spare each month. And we also traveled lavishly and had daily Starbucks / takeout and bought in 2024 so our PITI for a $700K mortgage was close to $6K on 7% interest. In other words we weren’t being super frugal like some holier than thous on here.

The only thing that busts a $400K budget is top private school ($50-60K per kid) for multiple kids which another PP mentioned above. Which was never an UMC thing to begin with but DCUM is gonna DCUM. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics