Anonymous
07/27/2017 15:20
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
You all should go check out the relationship thread where a woman is being excoriated for not spending money on a vacation w/ friends. She's prioritizing her mortgage, childcare, and family ahead of an expensive island vacation and people are reaming her.
People just love to sling stones OP. You won't win - just go home and sleep well knowing you're spared of the financial nightmares plaguing others.
People just love to sling stones OP. You won't win - just go home and sleep well knowing you're spared of the financial nightmares plaguing others.
Anonymous
07/27/2017 15:19
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:"You make it sound as if living in Fairfax County is a punishment."
Cuz if you have kids and are commuting into the city everyday for work, you ain't gonna see your kids.
What do they turn indivisible or something?
with liberty and justice for all.
And with that, DCUM is lovable once again
Anonymous
07/27/2017 15:15
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:"You make it sound as if living in Fairfax County is a punishment."
Cuz if you have kids and are commuting into the city everyday for work, you ain't gonna see your kids.
What do they turn indivisible or something?
with liberty and justice for all.
Anonymous
07/27/2017 15:09
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:"You make it sound as if living in Fairfax County is a punishment."
Cuz if you have kids and are commuting into the city everyday for work, you ain't gonna see your kids.
What do they turn indivisible or something?
Anonymous
07/27/2017 14:50
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Because it colors the argument in her favor. This whole thread is annoying and pointless.
Because my actual earning level is irrelevant. The point is that I'm living on just $70k, which would be "as if" I were earning $85k.
But because you want to know, it was $94,000 last year. But I now need to concentrate on work, or it will be $0. (But I will be back later.)
Of course it's relevant!! And no, someone making $85k isn't taking home $70k. When we talk hhi around here, it's gross, not net, and certainly not imagined net.
Anonymous
07/27/2017 14:37
Subject: Re:I Live Comfortably on Less than $70K After-Tax in DC Area
Well, duh. Everyone lives comfortably as a single person on less than $100K/year. Easy-peasy. So what?
(FYI, when people on DCUM talk about HHI, they are talking about GROSS HHI. So your "less than $70" description is misleading and inaccurate.)
(FYI, when people on DCUM talk about HHI, they are talking about GROSS HHI. So your "less than $70" description is misleading and inaccurate.)
Anonymous
07/27/2017 14:34
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
"You make it sound as if living in Fairfax County is a punishment."
Cuz if you have kids and are commuting into the city everyday for work, you ain't gonna see your kids.
Cuz if you have kids and are commuting into the city everyday for work, you ain't gonna see your kids.
Anonymous
07/27/2017 14:31
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Spill the beans, OP.
I believe upthread she said her salary is in the 90's. So basically she makes nearly $100k/yr as a single person, is comfortable, but can't manage to max out her retirement. She's in for a rude awakening once she has a family.
Pffff....I'm saving close to $20,000 a year, with the employer match. Save your criticism for the majority of Americans, including those earning $100k, who save next to nothing. OK, really have to get back to work.
Anonymous
07/27/2017 14:29
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Because it colors the argument in her favor. This whole thread is annoying and pointless.
Because my actual earning level is irrelevant. The point is that I'm living on just $70k, which would be "as if" I were earning $85k.
But because you want to know, it was $94,000 last year. But I now need to concentrate on work, or it will be $0. (But I will be back later.)
Anonymous
07/27/2017 14:27
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Spill the beans, OP.
I believe upthread she said her salary is in the 90's. So basically she makes nearly $100k/yr as a single person, is comfortable, but can't manage to max out her retirement. She's in for a rude awakening once she has a family.
Anonymous
07/27/2017 14:21
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Because it colors the argument in her favor. This whole thread is annoying and pointless.
Anonymous
07/27/2017 14:19
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
Spill the beans, OP.
Anonymous
07/27/2017 14:16
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:I don't understand what's going on here. OP is living comfortably, happily and healthily on less than 100k a year in the DMV area.
Good for her!
What's with the bitching at her? If we all were equally disciplined about living within our means many of us would sleep better at night.
I commend her.
OP here, and thank you!
Anonymous
07/27/2017 14:15
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I lived comfortably on 30K a year when I was single. Now I earn a LOT more, but money is a lot tighter, because I have to pay childcare for 3 kids, student loans, non-subsidized health insurance, preschool, a safe and large enough car (3 kids in carseats won't fit in a cheap two-door like I had back then), health care, the list goes on and on.
Now back when I was earning 30k, single and had enough left over to travel internationally, I could have been super-smug and claimed that I didn't understand how families making twice or three times my salary weren't rich. But I wasn't a jerk, and wasn't so arrogant as to assume that I knew other people's situations, or that I had a right to judge.
OP here. I wasn't being smug. My comment was in response to DCUMers who keep saying that $80k is poor, even for a single w/o kids. I was showing how that isn't true, and how $70k after tax (which is around $85k gross) is a nice standard of living (if one doesn't insist on living in DC.)
If $70k after tax is $85k gross, I want to speak with you accountant. I'm getting screwed.
OP here. It all depends on your deductions. Do you deduct mortgage interest and property tax? (That was accounted for in my PITI.) But also, remember, I'm not earning $85,000 - that's the amount I estimated would yield $70k net. That's almost 20% in taxes, which is actually more than would be expected. (People confuse their marginal tax rate with the percent of income going to taxes.)
Do you live somewhere that you don't pay state taxes?
No....state taxes are included in the $15,000. But let's even say I'm wrong, and it takes $90k gross to net $70k. That still should show people who are saying $90k is poor - I've seen people calling even $100k poor on this forum - that they are wrong, and a single can live nicely on that income. So, if a single earning $90k is comfortable, I just don't het how families earning $250k - triple, almost! - are struggling.
Why don't you just say how much you are earning gross?
FYI - for context, MY net is $78K a year.
$78K is $136K - (taxes + 401K contributions + company stock purchase + FSA contributions).
I'm certainly not poor, I wouldn't say I live comfortably. I live in DC in a rowhouse that requires a lot of maintenance, no parking. I do spend a lot on travel, so I feel pinched between travel + home maintenance.
Anonymous
07/27/2017 14:15
Subject: I Live Comfortably on Less than $70K After-Tax in DC Area
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I'm surprised that no one has called out only saving $8400 / year for retirement.
Maybe you're comfortable now...
I get 100% match, so it's double. More than 20% of my income! which is more than the recommended 15%. I think I'm doing well in that area.
Me again....I just did a calculation. Saving $19,000 a year earning 8% (stock average is more than 10%) would be more than $1,200,000 in 25 years. And that's assuming that I don't start increasing the amount of contributions, and it doesn't account for what I've already saved. I'll probably have $2 million at this rate, and that's just on my own.
Goes to show that one can earn around $85,000 or $90,000 (single, no kids), live comfortably, and save for a nice retirement.
You use some fuzzy math, OP. $8400 * 2 = $16,800, not $19,000, and since you're earning in the mid 90k's, that's not more than 20% of your income.
8% is a pretty aggressive assumption for gains.
I'm not saying you won't be fine, but it seems as though the assumptions you make are always skewed towards making your picture rosier than it is. It doesn't strengthen your argument.
Same fuzzy math that says an $85k income only pays $15k in taxes.
Op, you're a high earner with minimal expenses. You should be maxing out your retirement accounts now - it won't be any easier later.
OP here, and we are really getting to the crux of the disconnect. You are saying that a single earning $90s is a high earner, yet other people are saying $90s is poor.
So, let's come to an agreement. An individual earning $85k, $90k, $95k, is a high earner (I'd call it "comfortable'), but that amount for a family would be a bit of a struggle.