Anonymous wrote:There seems to be a large variance among folks on how much money one actually needs to earn. Basing your needs on how much your friends make doesn't seem like a good place to start. I don't know how much my friends make with the exception of the Feds since I know their gs level.

I just find it interesting. My husband and I combined make less than the guy who makes $190k. We max out one 401k and an IRA. We are doing a two year pre paid university plan for our two kids and we make extra mortgage payments every year. I feel like we eat out a lot. We do have fairly cheap vacations since we tend to crash at family and friends vacation houses, but I really don't feel like we are ever stressed for cash. Not even when our hot water heater broke.

What kinds of expenses do people have that they make such large amounts and can't achieve adequate savings and lifestyles? The only thing I can think of is if someone has an especially demanding job requiring a nanny and overtime pay. I just use a daycare center, but even we have a cleaning lady. Perspective people!

I am in exactly your boat. We make $127k combined and I feel like we are living on air. We are so flush, it's ridiculous.

BUT. Our housing costs are the same as they were when we made $70k combined. So I imagine that's a big difference - we kept our housing costs the same as our income rose, we weren't keeping up w/ the Joneses.

We have a similar story to OP, except we were in somewhat dire financial straits three years ago and due to job switches for both of us, are in a startlingly better position now. We started this process last fall with Morgan Stanley in Bethesda. Some things we've done:
- refinanced twice, once to get two loans into one and then to reduce the rate on that loan;
- got Maryland College Investment Plans with T. Rowe Price started for both kids - put a big chunk in for each and set up automatic monthly contributions;
- rolled over old 401Ks into IRAs;
- started new 401K at new firm;
- moved our brokerage account to them from my husband's college friend whose wife is divorcing him because he suddenly started smoking a lot of weed, daily;
- met with an estate planner to finally get wills in place

Still need to do - increase life insurance

I might be forgetting something but that is a good start. There is an initial consultation fee and they take a very small percentage of the assets under management, both if which we have felt were very, very well worth it.

Anonymous wrote:There seems to be a large variance among folks on how much money one actually needs to earn. Basing your needs on how much your friends make doesn't seem like a good place to start. I don't know how much my friends make with the exception of the Feds since I know their gs level.

I just find it interesting. My husband and I combined make less than the guy who makes $190k. We max out one 401k and an IRA. We are doing a two year pre paid university plan for our two kids and we make extra mortgage payments every year. I feel like we eat out a lot. We do have fairly cheap vacations since we tend to crash at family and friends vacation houses, but I really don't feel like we are ever stressed for cash. Not even when our hot water heater broke.

What kinds of expenses do people have that they make such large amounts and can't achieve adequate savings and lifestyles? The only thing I can think of is if someone has an especially demanding job requiring a nanny and overtime pay. I just use a daycare center, but even we have a cleaning lady. Perspective people!

Anonymous wrote:We have a similar story to OP, except we were in somewhat dire financial straits three years ago and due to job switches for both of us, are in a startlingly better position now. We started this process last fall with Morgan Stanley in Bethesda. Some things we've done:
- refinanced twice, once to get two loans into one and then to reduce the rate on that loan;
- got Maryland College Investment Plans with T. Rowe Price started for both kids - put a big chunk in for each and set up automatic monthly contributions;
- rolled over old 401Ks into IRAs;
- started new 401K at new firm;
- moved our brokerage account to them from my husband's college friend whose wife is divorcing him because he suddenly started smoking a lot of weed, daily;
- met with an estate planner to finally get wills in place

Still need to do - increase life insurance

I might be forgetting something but that is a good start. There is an initial consultation fee and they take a very small percentage of the assets under management, both if which we have felt were very, very well worth it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
1. Assuming they both work, you make essentially the same and are 10 years younger
2. Making 190k at 32 is ridiculous. I made essentially that when I was 32 and it was ridiculous then, and that was before we went through the biggest economic upheaval in 60 years.
3. It boggles the mind that you would be envious of anybody. You should be thanking your lucky stars, saving a crapload and being generous to everyone who crosses your path.

Yea but my wife doesnt make $200K. Not even close. And never will. And $190K isnt that much at 32. Most of my friends are north of that, $230, $240, $250 - and some are not even 30 yet.

I would get new friends. Maybe from a soup kitchen. Seriously, you sound like a narcissistic d-bag.

Anonymous wrote:

Anonymous wrote:
1. Assuming they both work, you make essentially the same and are 10 years younger
2. Making 190k at 32 is ridiculous. I made essentially that when I was 32 and it was ridiculous then, and that was before we went through the biggest economic upheaval in 60 years.
3. It boggles the mind that you would be envious of anybody. You should be thanking your lucky stars, saving a crapload and being generous to everyone who crosses your path.

Yea but my wife doesnt make $200K. Not even close. And never will. And $190K isnt that much at 32. Most of my friends are north of that, $230, $240, $250 - and some are not even 30 yet.

Anonymous wrote:
1. Assuming they both work, you make essentially the same and are 10 years younger
2. Making 190k at 32 is ridiculous. I made essentially that when I was 32 and it was ridiculous then, and that was before we went through the biggest economic upheaval in 60 years.
3. It boggles the mind that you would be envious of anybody. You should be thanking your lucky stars, saving a crapload and being generous to everyone who crosses your path.

Anonymous wrote:I'm envious. I make $190K at 32. I dream of $400K. [/quote

1. Assuming they both work, you make essentially the same and are 10 years younger
2. Making 190k at 32 is ridiculous. I made essentially that when I was 32 and it was ridiculous then, and that was before we went through the biggest economic upheaval in 60 years.
3. It boggles the mind that you would be envious of anybody. You should be thanking your lucky stars, saving a crapload and being generous to everyone who crosses your path.