4 people who earn six figures and still feel broke

[Atomic Playboy]

Whenever I read stories like these, I'm reminded of a quote: "Sure, it's an objectively large sum of money. But it is far smaller after I spend it." Granted, these people aren't "rich" in the 1% sense. But if you're earning more than double the median income and you still feel poor, it's because you're spending more than you should. Oh, you can't afford a $500,000 house with your $100,000 salary and loads of student debt? Good thing they make houses that don't cost that much!

 

[Genx87]

It is all how you manage you money. I make high 5 figures. But live like I am making far less. For starters I max my 401k. Then I plow the max into a Roth IRA. If I have left over cash I put that into a retirement fund. It is surprising once I got used to a lower income level it isnt so bad. I also keep myself relatively debt free. If I made 6 figures it would only mean more money invested instead of spent.

 

[dmcowen674]

Run while you can manimal!

I thought you told me you were on Georgetown Rd? Or is that where you work? At any rate, Zionsville/Carmel are wealthy suburbs. Are you "rich," Dave?

I am on Georgetown, all the way up at the top near the old Rock Island Refinery. Zionsville is on the other side if the Refinery property.

I also work off Georgetown.

 

[7window]

What a bunch of privileged clueless bourgeoisie pretending that all public schools can achieve the same results as long as the parents are involved.

Haha.

Do you have kids?

 

[ponyo]

First world problem. Usually caused by entitlement and narcissism.

 

[OCGuy]

Do you have kids?

If only there was another way somebody could have experience on this subject...hmmm....

 

[purbeast0]

I don't get the logic of making 6 figures but spending like you make 50k. Wtf is the point of making money if you aren't gonna use it? Too many people on this board are so black and white. They would rather live like a college student to put all there money into retirement savings so they can ha e all this money when they are 60+ years old.

Thankfully I'm in a spot I can put money into retirement savings and have a good time. I want to enjoy my youth traveling and having nice things, not penny pinching so I can have 20 million instead of 15 million when I'm retired.

 

[alpineranger]

I've only ever lived in high cost of living areas my entire life (SF bay area, and LA), grew up in an upper middle class family, and now have a household income in the aforementioned 5% range - well into 6 figures. We have a rather small mortgage for this area, and outside of a mortgage, have never had any debt (didn't have to take out any loans for school). So we run a steady surplus each month. However, I feel like our luck could change at any moment and we shouldn't take for granted our economic situation. It's not that I feel poor, but in no way do I feel secure. At any moment, the economy could tank, we could lose our jobs, etc, and I want to be in a solid position should that happen. This isn't to minimize the struggles of people who earn 30k and wonder where their groceries are going to come from next week - but rather to say that but for a bit of luck, I could easily be in that position as well, and could still end up there eventually.

As a result, we drive 15 year old cars, don't eat out, wear old clothes, are careful even about utility expenses (turn off lights, don't run the heater, capture water from the tap while waiting for hot water to come out), get groceries depending on what is on sale, etc. When we first got married, outside mortgage and property tax, we were probably living on $600/mo for two people. A lot of these are habits of people who grew up in poverty, but again, that does not reflect my background at all.

While not a majority, I feel there are others who are similarly situated, and feel the same. So while some may automatically think about people living beyond their means because they have achieved what to them seems like a "high" salary, this doesn't represent all the people who many might think of as objectively well off, but who absolutely do not feel that way.

 

[7window]

I don't get the logic of making 6 figures but spending like you make 50k. Wtf is the point of making money if you aren't gonna use it? Too many people on this board are so black and white. They would rather live like a college student to put all there money into retirement savings so they can ha e all this money when they are 60+ years old.

Thankfully I'm in a spot I can put money into retirement savings and have a good time. I want to enjoy my youth traveling and having nice things, not penny pinching so I can have 20 million instead of 15 million when I'm retired.

Sometimes people who saves are having a great time doing it. They find other ways to entertain themselves. Its not quite a hardship that you think. They might not travel to paris but they have been to china.

 

[purbeast0]

Sometimes people who saves are having a great time doing it. They find other ways to entertain themselves. Its not quite a hardship that you think. They might not travel to paris but they have been to china.

a plane ticket to china is going to cost you at least a grand for most people in the states. i'm not talking about those people. i'm talking about the people who think they have to max their 401k out, max roth ira, then put all of their extra money into another retirement fund, yet all they do is sit at home watching tv on a 27" CRT tube because they have no money to do anything else.

i'm just saying, live a little while you are young, you don't have to be so black/white about saving and spending. it's all about balance.

 

[sdifox]

Try Houston. Acre and a half, semi-secluded, 2 story, custom built for less than $350K. Houston area has some of the most affordable housing, particularly for a large city, in the country.

I can't buy a shack with 350k here.

 

[atotnine]

My income is in the 6 figures. Save a third, spend a third, a third to government.

 

[IndyColtsFan]

I am on Georgetown, all the way up at the top near the old Rock Island Refinery. Zionsville is on the other side if the Refinery property.

I also work off Georgetown.

Ah, yes, I worked in that area at one time. Compaq had a sales office at roughly 79th and Georgetown and a large configuration center a little south of that intersection, directly on Georgetown. The sales office is closed but the config center is still there; I'm not sure if HP still uses it. Lots of good memories of that area.

I also worked right off of Georgetown in the Speedway area too at one time, which is where I thought you might be.

 

[KeithTalent]

a plane ticket to china is going to cost you at least a grand for most people in the states. i'm not talking about those people. i'm talking about the people who think they have to max their 401k out, max roth ira, then put all of their extra money into another retirement fund, yet all they do is sit at home watching tv on a 27" CRT tube because they have no money to do anything else.

i'm just saying, live a little while you are young, you don't have to be so black/white about saving and spending. it's all about balance.

Yep.

KT

 

[7window]

a plane ticket to china is going to cost you at least a grand for most people in the states. i'm not talking about those people. i'm talking about the people who think they have to max their 401k out, max roth ira, then put all of their extra money into another retirement fund, yet all they do is sit at home watching tv on a 27" CRT tube because they have no money to do anything else.

i'm just saying, live a little while you are young, you don't have to be so black/white about saving and spending. it's all about balance.

Mindset , balance and creativity . I seriously doubt you see this people just watching TV or just sitting at home counting dollars. I am maybe the person that you talk about but I am not just sitting at home watching tv. I hate the tv. I watch just to unwind but I don't really pay attention to it sometimes maybe just for the noise. I am out all the time. Either with the kids or park. With kids there is really no time for anything else.

 

[manimal]

Run while you can manimal!

I think the wife would chase me with a knife ^^

Wow, triplets. Now that I moved to Indy I know where Carmel is. We are neighbors, I'm only a few blocks from Zionsville/Carmel border.

Heya Neighbors! How are you feeling since the accident? Healed up and fully mobile? Welcome to the area and welcome to low taxes and affordable property! We live near 146th and Carey. We almost lived in Zionsville just got a better deal on this place.

 

[OverVolt]

If only there was another way somebody could have experience on this subject...hmmm....

Like Ben Carson?

There are good public schools, usually in the middle income areas, not the high income areas where people pull $100k. Those areas usually have bad schools.

 

[Kaido]

Whenever I read stories like these, I'm reminded of a quote: "Sure, it's an objectively large sum of money. But it is far smaller after I spend it." Granted, these people aren't "rich" in the 1% sense. But if you're earning more than double the median income and you still feel poor, it's because you're spending more than you should. Oh, you can't afford a $500,000 house with your $100,000 salary and loads of student debt? Good thing they make houses that don't cost that much!

Haha, that's an awesome article :thumbsup:

 

[OCGuy]

There are good public schools, usually in the middle income areas, not the high income areas where people pull $100k. Those areas usually have bad schools.

Got any data to back that up? My public school in Yorba Linda's hills was a California "Distinguished" and "Blue Ribbon" school, which I guess means something in the State.

 

[OverVolt]

a plane ticket to china is going to cost you at least a grand for most people in the states. i'm not talking about those people. i'm talking about the people who think they have to max their 401k out, max roth ira, then put all of their extra money into another retirement fund, yet all they do is sit at home watching tv on a 27" CRT tube because they have no money to do anything else.

i'm just saying, live a little while you are young, you don't have to be so black/white about saving and spending. it's all about balance.

But whats the difference? I enjoy the small things in life. I'm just as happy in the morning sipping Folgers and watching TV as I would be waking up in Italy. I did the whole fancy restaurant scene with my family as they were blowing all their money. The food isn't even different/better. Its just a restaurant with an environment for people scared of other people. Anything I cook at home is still better than a restaurant.

 

[ponyo]

But whats the difference? I enjoy the small things in life. I'm just as happy in the morning sipping Folgers and watching TV as I would be waking up in Italy. I did the whole fancy restaurant scene with my family as they were blowing all their money. The food isn't even different/better. Its just a restaurant with an environment for people scared of other people. Anything I cook at home is still better than a restaurant.

And that's the answer.

 

[echo4747]

My income is in the 6 figures. Save a third, spend a third, a third to government.

Are you sure the gov't only gets 1/3 of your $$? You have have income tax (Fed + State), FICA, medicare, property,school, sales tax, various, gasoline, taxes of various utilities (i.e. phone,cable,electric,nat gas) probably others I forget to mention too. not to mention things called govt fees

 

[jiggyest]

....i'm just saying, live a little while you are young, you don't have to be so black/white about saving and spending. it's all about balance.

This. Sometimes it just feels like people go way overboard with their retirement.
I personally prefer spending that money on experiences as opposed to material things. So the way I see it, trips/adventures that I am able to do now in my 30's... I just can't see being able to physically do/enjoy when I'm 60+ (probably not even at 50+ years old either).

 

[purbeast0]

But whats the difference? I enjoy the small things in life. I'm just as happy in the morning sipping Folgers and watching TV as I would be waking up in Italy. I did the whole fancy restaurant scene with my family as they were blowing all their money. The food isn't even different/better. Its just a restaurant with an environment for people scared of other people. Anything I cook at home is still better than a restaurant.

again, i'm not talking about you. i'm talking about the people who save everything but don't do anything, because "they can't afford to".

 

[Mai72]

I live in New Jersey and we have the largest exodus of people leaving the state EVER! It's expensive to live here. I know a family that pays $12,000 in property tax. You also have to deal with the cops who want to only pull people over so they can generate revenue.

I just found out yesterday that although I have taught in Asia last year I still have to pay New Jersey taxes because I'm still considered a resident. I was in South Korea for the full year and I still have to pay NJ taxes!

Anyway, $100K seems like a lot of money, but it's not really that much today.