Anonymous
Post 03/27/2017 11:22     Subject: Scraping by on $500k
Anonymous wrote:We don't feel stretched on $275k gross with 2 young kids (toddler and infant). In fact we feel quite comfortable. Live in nice NW DC neighborhood (small-ish condo of 11 sq. ft), saving $75-80k per year, plus $4-5k per 529, and we have room for what we consider to be nice luxuries like restaurants (about $12k per year) and travel (about $10k per year) and donating to charities we support (about $3k per year). One kid is in daycare ($20k per year) and the other is in free public preK.

I honestly can't imagine how anyone would feel "stretched" on $500k. You're only "stretched" if you can't see how a lot of your spending (fancy houses, cars, private schools, nannies, etc.) is a luxury, not a necessity.


What do you net per month out of that $275K?

You save $80-90K per year. What's your mortgage/PITI?
Anonymous
Post 03/27/2017 11:17     Subject: Scraping by on $500k
Anonymous wrote:We don't feel stretched on $275k gross with 2 young kids (toddler and infant). In fact we feel quite comfortable. Live in nice NW DC neighborhood (small-ish condo of 11 sq. ft), saving $75-80k per year, plus $4-5k per 529, and we have room for what we consider to be nice luxuries like restaurants (about $12k per year) and travel (about $10k per year) and donating to charities we support (about $3k per year). One kid is in daycare ($20k per year) and the other is in free public preK.

I honestly can't imagine how anyone would feel "stretched" on $500k. You're only "stretched" if you can't see how a lot of your spending (fancy houses, cars, private schools, nannies, etc.) is a luxury, not a necessity.


Ha, that's supposed to say 1100 square feet!
Anonymous
Post 03/27/2017 11:16     Subject: Scraping by on $500k
We don't feel stretched on $275k gross with 2 young kids (toddler and infant). In fact we feel quite comfortable. Live in nice NW DC neighborhood (small-ish condo of 11 sq. ft), saving $75-80k per year, plus $4-5k per 529, and we have room for what we consider to be nice luxuries like restaurants (about $12k per year) and travel (about $10k per year) and donating to charities we support (about $3k per year). One kid is in daycare ($20k per year) and the other is in free public preK.

I honestly can't imagine how anyone would feel "stretched" on $500k. You're only "stretched" if you can't see how a lot of your spending (fancy houses, cars, private schools, nannies, etc.) is a luxury, not a necessity.
Anonymous
Post 03/27/2017 11:10     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:18K for three vacations a year? Cry me a river.
No one is "scraping by" with that budget.


That is fairly modest with 500 K HHI, most people in that range who I know spend more (we spend more with ~300 K HHI).
Their problem is not vacation - they reportedly spend same on charity (hard to believe, for lawyers especially).
Their main problem is a 1.5 M house with corresponding mortgage and prop. taxes, apparently bought with little down.



We grossed $532,000 in 2016. We spent $5,000 on vacations. And we have no mortgage.


I should say that we do have a small house, and two cars which are 7 and 8 years old. But we have no debt and our net worth is around $5 million.
Anonymous
Post 03/27/2017 10:59     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:18K for three vacations a year? Cry me a river.
No one is "scraping by" with that budget.


That is fairly modest with 500 K HHI, most people in that range who I know spend more (we spend more with ~300 K HHI).
Their problem is not vacation - they reportedly spend same on charity (hard to believe, for lawyers especially).
Their main problem is a 1.5 M house with corresponding mortgage and prop. taxes, apparently bought with little down.



We grossed $532,000 in 2016. We spent $5,000 on vacations. And we have no mortgage.
Anonymous
Post 03/27/2017 10:45     Subject: Re:Scraping by on $500k
I don't feel stretched. We always have more than enough. Our house is paid off. Our kids' colleges will be fully funded by the time they get there. We've been maxing out our 401k for almost 20 years. Our HHI is around 250k. The only secret is that we live in a small house in what many people would consider a neighborhood that is beneath them (great schools score around 6, more minorities than white people). Make your own choices and live with them.
Anonymous
Post 03/27/2017 10:34     Subject: Re:Scraping by on $500k
Anonymous wrote:
They don't need two vehicles in NYC.


THIS!


Honestly I would just move. Reading that reminds me why I left NYC after my 20s.
Anonymous
Post 03/27/2017 10:17     Subject: Re:Scraping by on $500k
Anonymous wrote:Serious Question

Aren't all those mortgages on those 1-1.2 million houses all over the place now 6,000k+ at least after taxes

Shows you why we should cap the mortgage deduction but that's a whole other issue

No. Around $5k including taxes.
Anonymous
Post 03/27/2017 10:17     Subject: Scraping by on $500k
Anonymous wrote:3kids+750k HHI in DV= stretched


You too are an embarrassment.
Anonymous
Post 03/27/2017 10:13     Subject: Re:Scraping by on $500k
I read that hoping to understand/sympathize with my boss better when he complains about being broke and stressing when his expense reimbursements will be credited (he makes about 2.2 Million/year).

I still don't understand how he's "broke" and scraping by....I still cannot relate...
Anonymous
Post 03/27/2017 10:09     Subject: Re:Scraping by on $500k
Serious Question

Aren't all those mortgages on those 1-1.2 million houses all over the place now 6,000k+ at least after taxes

Shows you why we should cap the mortgage deduction but that's a whole other issue
Anonymous
Post 03/27/2017 10:01     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.


Then you're doing something wrong. Or living way above your means.


A "modest" vacation home and several vacations a year? Cry me a river of Amazonian proportions.


The vacation home is for weekends, the vacations are for leaving the country. There is nothing ridiculous about this. We drive to the vacation home so the costs to get there are modest. The real money pit is the swimming pool, which in hindsight we shouldn't have put in because the house is on a lake and has access to a community pool. But what's done is done.


Of course you feel stretched. But that is a whole pile of expensive decisions. Fire the house cleaner. Either cancel the overseas vacations or sell the vacation house. Invest every penny. Come back in 30 years. Make one of the SUVs a compact car.

Viola, money. And you still have organic oranges, vanilla lattees, nice cars ... and the money pit swimming pool. Like me and my stupid old boat, you are probably stuck with the pool.
Anonymous
Post 03/27/2017 05:10     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.


Poor you.


You people are so gullible. It's great!




This PP should read up on the Vanderbilts. The commodore put together one of the biggest fortunes in the world. Within three generations the money was gone.


Why should i rrad up on that? What does that have to do with you getting your chain jerked?
Anonymous
Post 03/27/2017 00:53     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.


Poor you.


You people are so gullible. It's great!




This PP should read up on the Vanderbilts. The commodore put together one of the biggest fortunes in the world. Within three generations the money was gone.


Shirtsleeves to shirtsleeves in 3 generations. But in pp's case, it will be .3 generations when the Mercedes transmission blows and they have to ditch it on the side of the road because their AAA hasn't been paid due to NSF.
Anonymous
Post 03/27/2017 00:43     Subject: Re:Scraping by on $500k
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We feel stretched on 750k. Three kids in daycare, two SUVs, a couple vacations a year, housecleaner, $8k mortgage, home maintenance and landscaping, and a modest vacation home...it adds up a lot faster than it seems.


Poor you.


You people are so gullible. It's great!




This PP should read up on the Vanderbilts. The commodore put together one of the biggest fortunes in the world. Within three generations the money was gone.