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Post by busy on May 16, 2017 23:02:22 GMT
Why do they need two expensive cars in NYC? I'd love to see how often they actually drive the cars. That's one expense they could likely reduce. They're spending a little over $400/mo on gas, so it seems like they are using them a fair bit.
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Post by Merge on May 16, 2017 23:13:08 GMT
It sounds to me like they're doing a lot of "keeping up with the Jones" lifestyle stuff. I'm sure it's typical in their circle that you take multiple expensive vacations each year, have your preschoolers enrolled in lessons with the very best instructors, and drive top of the line cars, but they'd survive just fine without any of those things.
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Post by littlemama on May 16, 2017 23:24:58 GMT
They are not scraping by. They are living more than comfortably. Big, big eyeroll.
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AmeliaBloomer
Drama Llama
Posts: 6,842
Location: USA
Jun 26, 2014 5:01:45 GMT
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Post by AmeliaBloomer on May 16, 2017 23:26:24 GMT
A friend of mine once directed me to a forum where some very intense NYC moms were discussing getting their two year-olds prepared to ace the entrance exams for the gifted public magnet schools. None of them, understandably, wanted to pay private school tuition, and many claimed they couldn't afford it AND mentioned their household incomes ($350,000 and up twenty years ago).
Some of them at least had the self-awareness to acknowledge how their grousing would look to people in other areas of the country. When they discussed financial particulars (rent, mortgage, childcare, etc.), it did make more sense that they felt financially strained.
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Post by monklady123 on May 16, 2017 23:29:49 GMT
I haven't read the thread yet but I just have to say that I live in an expensive town just across the river from Washington DC and we do not make $500,000 per year! omg. We also managed to save for college so that both kids will graduate debt-free. We take at least one vacation every year, and usually a mini one some other time -- like to a cabin in the mountains or something like that. We bought a small house years ago (couldn't afford to buy here now) rather than buy a much bigger one in a far-out suburb. So dh has a very short commute which means his commuting expenses (gas, wear and tear on the car) are minimal. I don't shop a lot (I hate shopping in fact), and we don't go out to eat all the time. Now I'll go read the article and the thread.
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loco coco
Pearl Clutcher
Posts: 2,662
Jun 26, 2014 16:15:45 GMT
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Post by loco coco on May 16, 2017 23:42:57 GMT
I read an article once saying a plumber making 200k a year will have more saved than a lawyer making 200k a year. The lifestyle is different (bigger cities pay better but cost more, clothing) etc. I believe it. This couple is very lucky to be maxing out their 401ks and taking vacations every year. Many families don't get the chance to do either of those things
I would cut the cars and 2 vacations and start funding a college account
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Post by LavenderLayoutLady on May 16, 2017 23:43:38 GMT
I can't bring myself to read the story, it would be too depressing. Ditto.
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Post by myshelly on May 16, 2017 23:44:30 GMT
This is stupid.
These people are stupid.
The author of the article is stupid.
The whole thing makes me irate.
No, those people are not barely scraping by.
Those people choose to drive two luxury cars. They take 3 extravagant vacations a year. They spend more on food in a week than a lot of people do in a month. They give extravagant amount of money to charity by choice.
And then they have $7300 left over?
They can fuck off.
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Post by laureljean on May 16, 2017 23:47:31 GMT
I stopped at the 40% tax rate. The 40% is on an increment of their income, not on the whole of their income. Until they come clean about how much tax they are really paying and on the amount of their deductions, there is no way to tell what the $$ they really have are.
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Post by Merge on May 16, 2017 23:48:41 GMT
A friend of mine once directed me to a forum where some very intense NYC moms were discussing getting their two year-olds prepared to ace the entrance exams for the gifted public magnet schools. None of them, understandably, wanted to pay private school tuition, and many claimed they couldn't afford it AND mentioned their household incomes ($350,000 and up twenty years ago). Some of them at least had the self-awareness to acknowledge how their grousing would look to people in other areas of the country. When they discussed financial particulars (rent, mortgage, childcare, etc.), it did make more sense that they felt financially strained. Similar forums here in Houston. Some of us (!) actually can't afford private school tuition, and I'll admit to getting a little irritated when the moms from the multi-million dollar neighborhoods start talking about how they really can't can't manage private schools. This isn't NYC, and they could easily "slum it" in a respectable middle class neighborhood like mine - or give up their daily barre classes, fancy vacations, spa treatments or plastic surgery- to free up the money for tuition.
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Post by *KAS* on May 16, 2017 23:52:55 GMT
And 18K a year to charity when they still have 32K in student loan debt? They could pay the student loans off in one year if they skipped vacations and charity!!! They PAY 32K a year, that is not the total amount of debt. Yes, I found it interesting that it was $32k for 10-20 years. I have no idea what their amount owed or interest rate is, but seems odd that you're not sure if you'll pay it off in 1 or 2 decades. That's a pretty broad range. If you split the difference (15 years) and keep it consistent at $32k a year, that's almost 1/2 million in student loans. Possible for 2 people, but damn. ETA: My own words keep bugging me because I know the math doesn't make sense on how I worded that. So I'm adding '$32k a year consistent is 1/2 million without taking interest into account' to make myself feel better.
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peaname
Pearl Clutcher
Posts: 3,389
Aug 16, 2014 23:15:53 GMT
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Post by peaname on May 16, 2017 23:53:56 GMT
Looking at that family's food bill is pretty outrageous IMO, and I'm not one to scrimp on good quality food. The food bill is the one thing on their budget that I didn't think was outrageous. Especially considering where they live.
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Post by busy on May 17, 2017 0:04:45 GMT
They PAY 32K a year, that is not the total amount of debt. Yes, I found it interesting that it was $32k for 10-20 years. I have no idea what their amount owed or interest rate is, but seems odd that you're not sure if you'll pay it off in 1 or 2 decades. That's a pretty broad range. If you split the difference (15 years) and keep it consistent at $32k a year, that's almost 1/2 million in student loans. Possible for 2 people, but damn. For two attorneys, not at all surprising.
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Post by lisacharlotte on May 17, 2017 0:08:31 GMT
The author lost me when claiming "bringing food from home gets old". What the ever loving fuck? I agree these people are not living paycheck to paycheck. They're just miffed that they can't keep up with their friends that make $750k a year.
They have ridiculous discretionary spending that if they were even remotely financially literate would go toward paying off student loans and saving for their children's college. They also don't seem to understand that only saving the max in their 401k is not going to keep them in the style to which they have become accustomed when they get to retirement.
I'm playing world smallest violin for them.
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Post by Crack-a-lackin on May 17, 2017 0:12:24 GMT
Looking at that family's food bill is pretty outrageous IMO, and I'm not one to scrimp on good quality food. The food bill is the one thing on their budget that I didn't think was outrageous. Especially considering where they live. I thought $440+/week was excessive, that's over $60/day. But if you're not cost conscious, and they clearly are not, then yes you could easily spend that if you're eating out often. Most of this is ridiculous. It's not typical living paycheck to paycheck, it's showing how you can blow through your money when you don't make good choices. Like eliminating vacations until you pay off student loans.
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Post by peasapie on May 17, 2017 0:21:56 GMT
Having lived in an expensive city for 13 years (Manhattan), I don't think this is that unreasonable. I wouldn't say they are "scraping by," given that they are both investing in their 401k accounts and taking nice vacations and investing in their home.
Just wanted to say that while $60k seems like a lot for housing, it is about average for a house that accommodates a family of 4.
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Post by beaglemom on May 17, 2017 0:44:09 GMT
This would be over $1,000,000 if they have both been at their jobs for 8 years. Unless the engineer isn't very good and hasn't been promoted....after 8 years they would be probably be making close to $500,000 alone. Now add in a partner at Salesforce that has been there that long and they are probably making close to $500,000 too.
I don't think a lot of those costs are outrageous for Manhattan or the Bay Area. You can't buy a livable home in most of the Bay Area for less than a million. You want good schools, nice neighborhood, and a decent home....You are looking at +$2,000,000. And most people are taking out hefty mortgages to cover them. In the town we are closest to the homes range from $3,000,000 to $39,500,000
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Post by rebelyelle on May 17, 2017 0:46:52 GMT
Why do they need two expensive cars in NYC? I'd love to see how often they actually drive the cars. That's one expense they could likely reduce. That was my first thought too! Unless they both travel to surrounding areas a LOT for work. It's possible, given they are both attorneys, but doubtful.
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gottapeanow
Pearl Clutcher
Posts: 2,760
Jun 25, 2014 20:56:09 GMT
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Post by gottapeanow on May 17, 2017 0:58:54 GMT
I didn't read the article. But my first impression follows: #FirstWorldProblems That's all I've got. Lisa
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Post by pondrunner on May 17, 2017 1:02:51 GMT
This would be over $1,000,000 if they have both been at their jobs for 8 years. Unless the engineer isn't very good and hasn't been promoted....after 8 years they would be probably be making close to $500,000 alone. Now add in a partner at Salesforce that has been there that long and they are probably making close to $500,000 too. I don't think a lot of those costs are outrageous for Manhattan or the Bay Area. You can't buy a livable home in most of the Bay Area for less than a million. You want good schools, nice neighborhood, and a decent home....You are looking at +$2,000,000. And most people are taking out hefty mortgages to cover them. In the town we are closest to the homes range from $3,000,000 to $39,500,000 You don't have to live in Saratoga if you work at Google, you can live in Sunnyvale. This is bullshit and just another opportunity to tell everybody that your hubby works at Google and you drive his and hers Teslas. My Sunnyvale house just resold six months ago for $699k and has four bedrooms, a yard, and good schools.
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Post by anniefb on May 17, 2017 1:15:36 GMT
I would look to pay off the debt faster, so cut down on the number/type of vacations, sell one car, reduce the amount spent on kids' activities, food and clothing and also reduce the charitable giving. They're obviously trying to live the lifestyle that $500k can't buy in NYC. Want to have more left each month - spend less.
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Post by Zee on May 17, 2017 1:53:36 GMT
This would be over $1,000,000 if they have both been at their jobs for 8 years. Unless the engineer isn't very good and hasn't been promoted....after 8 years they would be probably be making close to $500,000 alone. Now add in a partner at Salesforce that has been there that long and they are probably making close to $500,000 too. I don't think a lot of those costs are outrageous for Manhattan or the Bay Area. You can't buy a livable home in most of the Bay Area for less than a million. You want good schools, nice neighborhood, and a decent home....You are looking at +$2,000,000. And most people are taking out hefty mortgages to cover them. In the town we are closest to the homes range from $3,000,000 to $39,500,000 You don't have to live in Saratoga if you work at Google, you can live in Sunnyvale. This is bullshit and just another opportunity to tell everybody that your hubby works at Google and you drive his and hers Teslas. My Sunnyvale house just resold six months ago for $699k and has four bedrooms, a yard, and good schools. 👌😌
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Post by sillyrabbit on May 17, 2017 2:05:07 GMT
In NYC, maybe that's reasonable (I think they can cut some things but I'll play along.) Here in Kentucky if we had an income like that, one of us would quit working! Seriously though, our house would be paid off, we'd take all the vacations we wanted, and have a weekend house at the lake. And that's just on one year of that income.
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Post by chaosisapony on May 17, 2017 2:08:31 GMT
This is stupid. These people are stupid. The author of the article is stupid. The whole thing makes me irate. No, those people are not barely scraping by. Those people choose to drive two luxury cars. They take 3 extravagant vacations a year. They spend more on food in a week than a lot of people do in a month. They give extravagant amount of money to charity by choice. And then they have $7300 left over? They can fuck off. This article is actually pretty insulting to people that really are barely making it.
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Post by ktdoesntscrap on May 17, 2017 2:11:20 GMT
They PAY 32K a year, that is not the total amount of debt. Yes, I found it interesting that it was $32k for 10-20 years. I have no idea what their amount owed or interest rate is, but seems odd that you're not sure if you'll pay it off in 1 or 2 decades. That's a pretty broad range. If you split the difference (15 years) and keep it consistent at $32k a year, that's almost 1/2 million in student loans. Possible for 2 people, but damn. I assume the duration of some of the loans is not 20 years. So some will be paid out in 10 years.. some up to 29 years.
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Post by mrsscrapdiva on May 17, 2017 21:41:08 GMT
Definitely not just scraping by. It seems like they are expecting to live a certain lifestyle but live in a crazy expensive city. I don't get having two car payments living in the city and also I get donating to charities but pay off those student loans. And the extra money on the kids for "lessons", they are only 3 and 5, is a bit much. I think they could take a few things down a couple of notches and feel more secure financially.
I can't help but feel like some of these people in their late 20s and early 30s want extravagant lifestyles right out of college when they are just starting their careers. They are still but young and they need to work at it a bit.
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Post by papersilly on May 17, 2017 21:57:48 GMT
I can't help but feel like some of these people in their late 20s and early 30s want extravagant lifestyles right out of college when they are just starting their careers. They are still but young and they need to work at it a bit. this generation doesn't strike me as a the work-up-to-it kind. it's all instant gratification. no saving up for the big items. just get it already. why begin with a small starter house and move up in a few years when you can be off and running with a million dollar house right off the bat? why drive beater cars when you can go luxury from the get go? big vacay once every couple of years? no, lets do 2 or 3. this is why they say this generation will have saved less for retirement than their parents.
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Post by bostonmama on May 17, 2017 22:02:33 GMT
Just putting this out there, their NET income is "only" $278,400. I can imagine that doesn't go nearly as far in NYC as one would think. My first thought, though: If they spend so much on cars and gas presumably traveling away from NYC frequently, why live IN the city??
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Post by mrssmith on May 17, 2017 22:20:00 GMT
Can we just email them this thread so they can get some solid financial advice??
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iowgirl
Pearl Clutcher
Posts: 4,145
Jun 25, 2014 22:52:46 GMT
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Post by iowgirl on May 17, 2017 22:25:11 GMT
We farm and ranch. Medium size family farm. Just DH and I. My expense totals last year for the farm (not personal stuff - just farm and livestock expense) was just under 1,040,000. That's one million forty thousand. Give or take a bit. That is how much we had to spend to keep farming and running cattle. Makes you kind of shit your britches. There is no guarantee of profit, but we did come out in the black.
So 500K wouldn't even get our crop in the ground.
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