Anonymous wrote:

Anonymous wrote:Sounds like a lot of you try to live a lifestyle fit for the rich and famous. A lot of your expenses are because you want the best of everything. Kind of hard to have sympathy or compassion for folks that live in the DC bubble of overpriced shit shacks, house and child help, basically a life of luxury yet you seem so fucking unhappy working like dogs and having a shitty family life.

Rather pathetic.

Agreed. That's why I quit my job when I had kids.
So much simpler.

And that's why I left DC. Woooo! Still love coming here for the entertainment value, though.

pp: And we save the rest. We take 1 vacation every couple of years (usually out of the country).

We don't make nearly that much (270k, monthly pay is 13000 after 401k, health insurance etc.), but we have a fairly comfortable lifestyle. No kids yet, but I am pregnant. However, my mom is providing childcare for free. Here is our spending habbits:

1) 1 Mil house (with almost 50% in equity): 5000 Mortgage (15 year loan: includes insurance, taxes)
2) Food/eating out: 1000
3) Utility: 350
4) Lawn care (every other week in summer): 80
5) Cars paid for
6) no student loans
7) Gas: 200 (we share a car and carpool)
8) Clothing: 1000 every year

Anonymous wrote:

Anonymous wrote:the problem is you work so hard to get up to that sort of income, only to realize that is buys you jack shit. same dumpy house, same dumpy cars, maybe you eat out a bit more or take a nicer vacation, but quality of life stays the same.

Apart from the house, I think a lot of what people spend their money on is stuff you can't see. Being able to retire at 57, being able to pay for your kid's college, nice vacations, private school for the kids, expensive summer camps or hobbies for the kids, giving more to charity etc. They are also outsourcing things like lawn services and cleaning service. I think you can still do something similar on less than 500K but maybe not all those things or on a different scale, like maybe you retire later or your quality of life when you retire doesn't allow for lots of travel, or you can pay for public college not private college for your kids.

What were you hoping would happen when you made more money? If I made 500K (coming from 200K) it would basically change private school and college savings for the kids and maybe getting a vacation home. We wouldn't want to move at this point since we are established in the neighborhood. I would have to make enough to retire early and maintain the same lifestyle for more money to be a game changer and I'm not sure that would happen at 500K.

vacation home is on my list. need to decide where. I expect to work into my 70s, which is ok with me, so savings is not as critical.

We make $300k a year and save about $75k of it. There are a few things if get if I made more (housekeeper, maybe going out more) but those are things that cost a relatively modest amount (say $1,000 more a month). I've prioritized savings over this for now - and if I were to jump to $500 I'd likely be banking 90% of it. It wouldn't surprise me if a lot of people in the $500k bracket are saving $100 or even $200 a year. Guess my point is that more than stuff I suspect tht income affords you earlier retirement and security.

Anonymous wrote:the problem is you work so hard to get up to that sort of income, only to realize that is buys you jack shit. same dumpy house, same dumpy cars, maybe you eat out a bit more or take a nicer vacation, but quality of life stays the same.

Apart from the house, I think a lot of what people spend their money on is stuff you can't see. Being able to retire at 57, being able to pay for your kid's college, nice vacations, private school for the kids, expensive summer camps or hobbies for the kids, giving more to charity etc. They are also outsourcing things like lawn services and cleaning service. I think you can still do something similar on less than 500K but maybe not all those things or on a different scale, like maybe you retire later or your quality of life when you retire doesn't allow for lots of travel, or you can pay for public college not private college for your kids.

What were you hoping would happen when you made more money? If I made 500K (coming from 200K) it would basically change private school and college savings for the kids and maybe getting a vacation home. We wouldn't want to move at this point since we are established in the neighborhood. I would have to make enough to retire early and maintain the same lifestyle for more money to be a game changer and I'm not sure that would happen at 500K.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm curious how this is for others too. We are closer to 400k but we can't seem to wrap our heads around the fact that this is what doing well in this economy in DC looks like. Our money goes to mortgage, one car payment, student loans, max out 401k, childcare so we can remain in our busy jobs, preschool, life insurance and other insurances (homeowner, car, etc). We don't worry about money day to day in terms of buying food out at lunchtime, family meals out a few times a month, babysitters here and there, but I can't remember the last time we had money to pay for a nice vacation or buy a new piece of furniture. Our house is a close-in townhouse so we can get to our jobs with modest commutes that is 3 bedrooms and we can't figure out how we will afford to move to anything bigger in a good school district. Private school is impossible to pay for long term, at least with current childcare costs.

We make half of what you make, pay for all the same things you do except for student loans, and put extra money in savings each month. Don't feel pinched, and realize how fortunate we are compared to many people. I realize student loans can be high-but I doubt you're spending an extra $200k of salary a year on them.

Not PP, but our HHI is 200k and we spend $24,000 on student loans a year. It can be a big number if you are trying to pay them off.

NP. Our HHI was about 330 last year and we paid our student loans down by 100k. It felt tight. I know I know, first world problems.

$15000 on clothes?? Where do you shop? Neimans? That's soooo much money!

I just feel like my lifestyle sucks for my income. Where are my luxury goods!

Anonymous wrote:

Anonymous wrote:Here is what I see:

$1-1.4m house
Nice but not extravagant cars (Acura or Lexus. No AMG or M class)
1 week of skiing in winter
2 weeks of summer vacation at the beach
A few expensive weekends away
Retirement and college funds are well funded
Private school for kids

This pretty spot on. You can also afford a maid once or maybe twice a week. And you can do $100 dinners with friends without thinking. ($100 for you and spouse). You can on special occasions afford very expensive dinners ( ie city zen, kinkeads, inn at little washington). You can every few years afford a very high end vacation (Ie African Safari), but definitely fly coach.

This is about right for us. House on the high end of the range but we bought it a long time ago. We make more which gets us a vacation house ($1m but with a mortgage). We also ski 2-3 weeks a year -but we always have. It's what we love to do. Now we stay at much nicer places than we used to but it's a priority.

Anonymous wrote:

Anonymous wrote:At risk of stating the obvious, *nobody* has significant assets only a few years into the workforce (without inheritance or other non-earned money). Making $300k, $400k, or more will allow you to build up wealth incredibly quickly as long as you don't succumb to living the $300k, etc, lifestyle.

+1

We will hit 500k for the first time this year. Mid 400s before.

Housing - $5,000 or so monthly
Nanny - $40,000 annual
Clothing - maybe $15,000 annual
Paid for car - minimal student loan payment $400 a month
Whole Foods for groceries

Couple nice domestic vacations. We spend on furniture and art. Save the max in retirement accounts & quite a bit in regular accounts as well. We plan on public school.

Forgot to add paid for cheap car & bi-weekly maid service.

Anonymous wrote:At risk of stating the obvious, *nobody* has significant assets only a few years into the workforce (without inheritance or other non-earned money). Making $300k, $400k, or more will allow you to build up wealth incredibly quickly as long as you don't succumb to living the $300k, etc, lifestyle.

+1

We will hit 500k for the first time this year. Mid 400s before.

Housing - $5,000 or so monthly
Nanny - $40,000 annual
Clothing - maybe $15,000 annual
Paid for car - minimal student loan payment $400 a month
Whole Foods for groceries

Couple nice domestic vacations. We spend on furniture and art. Save the max in retirement accounts & quite a bit in regular accounts as well. We plan on public school.

Anonymous wrote:how much HHI would you need before you felt comfortable buying a $40K car?

That question probably needs its own thread, since I'm fairly sure anyone with HHI of $500K would have no problem with that. We've done that three times with cash, but we always keep our cars for at least 10 years. First time we spent that much was a 2001 3-series with everything on it, I think our HHI was $250K.

You are going to hear a lot from the 10-year-old Camry owners on that thread, though. They just don't like driving.

how much HHI would you need before you felt comfortable buying a $40K car?

We earn 550k + bonus. We used to only earn about 300-400k until 2013 so our spending basically reflects what we spent previously.

We net about 30k per month after taxes. I think we netted around 20k when we earned 300-400k in 2012.

Monthly Expenses
$4500 mortgage ($1 million house)
$3000 preschool tuition for 2 kids plus aftercare
$2000 housekeeper and PT nanny
$1500 bills (insurance, cable, cell phone, electricity, gas, etc)
$1000 groceries
$1000 meals (work lunch, take out, delivery, eat in)
$700 car lease payment (DH's car is paid for)
$500 cash
$4000 to elderly parents (used to be about $2500 per month but we increased this when we started earning more)

We take about three 1-week vacations per year and a lot of driving weekend trips. I love to travel and enjoy staying at nice resorts. This has been the same since I was young. We probably spend $20-30k per year on vacations. We probably spend a total of $10,000 on clothing for our family per year. I splurge on about one luxury bag per year. DH buys a few electronic gadgets.

We paid off all our grad school loans in 2012-2013. I think we were able to save around $200k in 2013. Hoping to build our wealth.