130k supporting a spouse and living in manhattan, and even eating out constantly, is more than enough to save a ton of money per month. 500k and struggling is ridiculous.
$500k a Year yet Struggling? Let's Do a Double Take
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Re: $500k a Year yet Struggling? Let's Do a Double Take
#12If you're making $500,000 a year anywhere on the planet and struggling you've most likely let your lifestyle get the best of you. Sure, maybe there are a few circumstances where that's not the case: a major medical bill that you're paying off, caring for your parents or other loved ones. But otherwise, there would be lots of places to cut back without a notable change in quality of life.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#13Mortgage payments: $60,000 $60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.
Sure it will. That's a $1.2M house with 20% down. There are plenty of 2-3 bedroom 1200-1500sq ft houses around here in that range. Sure, it would be an average school district and maybe have a bit of a commute, but you can find stuff in that range for sure.
How many folks actually have $250k they can just drop on a mortgage downpayment?
Re: $500k a Year yet Struggling? Let's Do a Double Take
#14"Some of these payments are applied to the principal on their loans, which increases the couple’s net worth by either building their home equity or by reducing their student debt. So that’s also savings."
I don't count paying down a debt as "savings". It might be an increase in net worth but not savings.
If paying down debt is considered "savings" now, then the entire USA is "saving money". But I think that not only goes against the definition, but the spirit of the idea.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#15103,500/year on unexplained "other expenses??" Over $8,500/month?!! Which is almost double their mortgage payments Um....
What the hell?
Their biggest line item is completely unexplained yet they are trying to explain where their money goes?
I live a fairly indulgent life and I spend less than that on everything in a year. I can't imagine spending six figures on "misc" unless there's a lot of hookers and blow involved.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#16Mortgage payments: $60,000 $60K / year isn't going to pay for the mortgage on even a small house in Silicon Valley.
Depending on the down payment that is 1.25M home +/- 250K.
SV is huge. You can definitely get a home for that.
Note: property tax is extra.
I'm in San Jose, with pretty good school district. In this area ~1400 sq.ft. townhomes are about $1.0xM.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#17When my wife and I had our first child, we lived in SF. The neighborhood daycare in the Excelsior charged $1600/mo. This is five years ago. We're about to have our fourth child. With the upcoming summer, if we still lived in SF, we'd have four children in daycare. $6,400/mo.
With four kids is it cheaper to just hire a nanny?
Re: $500k a Year yet Struggling? Let's Do a Double Take
#18Try raising a few kids in a major city and paying private school tuition and child care fees. It easily eats up most of $500K of income.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#19When my wife and I had our first child, we lived in SF. The neighborhood daycare in the Excelsior charged $1600/mo. This is five years ago. We're about to have our fourth child. With the upcoming summer, if we still lived in SF, we'd have four children in daycare. $6,400/mo.
> my wife and I
One of you stay home and raise your kids; that's rather the point of getting married.
> With the upcoming summer, if we still lived in SF, we'd have four children in daycare. $6,400/mo.
If paying other people to raise your kids is even on the table, you're doing it wrong.
Re: $500k a Year yet Struggling? Let's Do a Double Take
#20When my wife and I had our first child, we lived in SF. The neighborhood daycare in the Excelsior charged $1600/mo. This is five years ago. We're about to have our fourth child. With the upcoming summer, if we still lived in SF, we'd have four children in daycare. $6,400/mo.
That's your choice isn't it?