Anonymous
Post 10/17/2017 11:54     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.


New poster. I wouldn't have said anything if you'd simply said "We give to charity about $5k per year usually." But you specifically added "an amount that I think is generous."

We're also at the same income, similar children ages, similar mortgage costs, etc., and have been gradually upping charitable giving to $15,000, which is still only about 5% of our gross income. One recommendation (https://www.thelifeyoucansave.org/take-the-pledge) is 7.5% at that income level.


The recommended percentage on this site is insane. It has mine at over 13% or around $130K - yeah OK

By the way, if PP thinks $5K is generous, then it is. Its a personal choice.



Agree. That calculator does not account for variables like, # of children and ages, years to retirement, sandwich generation issues, COL in your area, AMT and local taxes, whether or not you are in the donut hole of the tax/income/financial aid world, etc. But many of us who can't manage the big dollar donations do donate in time and kind.
Anonymous
Post 10/17/2017 11:41     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.


So OP, your take home is 230K out of 300?


Maybe I don't understand "take home." Doesn't that amount usually exclude all your other paycheck deductions like 401k, pension, healthcare, etc.? If you just mean after-tax income, then yes pretty close. We paid $74k in total income and payroll taxes and had an 2016 AGI of $297k.[/quote]

Now I'm confused. What is your income pre-taxes and 401k contributions, etc.?


Maybe I'm using terms wrong. Our total gross income was $297k in 2016. We paid total income and payroll taxes of 74k. Does that answer your question?
Anonymous
Post 10/17/2017 11:40     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.



Charity is a personal choice. Nobody should be judged by how much or how little they give to charity.


And this piece of OP's budget is neither here nor there. It won't break the bank if he gives more to charity. The larger point being - they are doing fine on 300k
Anonymous
Post 10/17/2017 11:38     Subject: Re:Life is Easy in NW DC on $300k, AMA
Anonymous wrote:Where do you grocery shop and how much do you spend weekly or monthly?


In 2016, we spent about $900/mo on groceries. We buy most groceries at Giant, but we get certain things at Whole foods.
Anonymous
Post 10/17/2017 11:35     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.


So OP, your take home is 230K out of 300?


Maybe I don't understand "take home." Doesn't that amount usually exclude all your other paycheck deductions like 401k, pension, healthcare, etc.? If you just mean after-tax income, then yes pretty close. We paid $74k in total income and payroll taxes and had an 2016 AGI of $297k.[/quote]

Now I'm confused. What is your income pre-taxes and 401k contributions, etc.?
Anonymous
Post 10/17/2017 11:32     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.


So OP, your take home is 230K out of 300?


Maybe I don't understand "take home." Doesn't that amount usually exclude all your other paycheck deductions like 401k, pension, healthcare, etc.? If you just mean after-tax income, then yes pretty close. We paid $74k in total income and payroll taxes and had an 2016 AGI of $297k.
Anonymous
Post 10/17/2017 11:29     Subject: Re:Life is Easy in NW DC on $300k, AMA
Where do you grocery shop and how much do you spend weekly or monthly?
Anonymous
Post 10/17/2017 11:23     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.


So OP, your take home is 230K out of 300?
Anonymous
Post 10/17/2017 11:22     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:We earn about $250k and donate $5k. I wouldn't describe it as particularly generous.


I think it's generous. It's $5,000 you could spend on yourself or your family. Could you do better? Yes. Is donating $5k generous? Also yes.
Anonymous
Post 10/17/2017 11:19     Subject: Life is Easy in NW DC on $300k, AMA
We earn about $250k and donate $5k. I wouldn't describe it as particularly generous.
Anonymous
Post 10/17/2017 11:18     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:Everyone who is criticizing OP's charitable contributions-- please post your own income and contributions. Genuinely curious.

Personally I work a low paid social services job and feel just about no qualms donating very little of our family's 300k HHI. Go ahead, flame me for it.


Same, PP.

~$330K, no kids. Donate very little. But when we die, almost everything will go to charity, probably related to animals and the environment, not people.
Anonymous
Post 10/17/2017 11:17     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.


It helps that your student loans are paid off. Did DW have any?

Do you travel much?

Also curious what your monthly spend is. . .

Not disputing, just wondering what I can expect once my hefty law school loans are paid off (still have a ways to go).


DW did not have any loans. My $150k was enough for both of us! Yes it was a long slog to pay those off, but we finally did it a couple years ago.

We travel a couple times a year. Usually one big trip and then a couple smaller ones. Last year it looks like we spent about $9k on travel, and this year it's at $14k already.

We spend about $125k per year after taxes
Anonymous
Post 10/17/2017 11:17     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.


I did expect to receive some comments like this, and I chose to disclose our charitable contributions anyway. I applaud your generosity and aspire to do better. Thanks.


Wow. NP here. Just wanted to say I like your tone, OP. You seem to be a decent fellow. Stay classy (meant sincerely, not in a Ron Burgundy way!).
Anonymous
Post 10/17/2017 11:16     Subject: Life is Easy in NW DC on $300k, AMA
Everyone who is criticizing OP's charitable contributions-- please post your own income and contributions. Genuinely curious.

Personally I work a low paid social services job and feel just about no qualms donating very little of our family's 300k HHI. Go ahead, flame me for it.
Anonymous
Post 10/17/2017 11:14     Subject: Life is Easy in NW DC on $300k, AMA
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.


New poster. I wouldn't have said anything if you'd simply said "We give to charity about $5k per year usually." But you specifically added "an amount that I think is generous."

We're also at the same income, similar children ages, similar mortgage costs, etc., and have been gradually upping charitable giving to $15,000, which is still only about 5% of our gross income. One recommendation (https://www.thelifeyoucansave.org/take-the-pledge) is 7.5% at that income level.


I do agree that we should do better. I aspire to do better. Thanks for your comment.


Eh, if you think so. If not, then don't.