Face it, you're living a more luxurious lifestyle than you should. You just don't see it, because you're privileged.
I am definitely privileged. I was born white and male, and I had parents that took an active role in my life and motivated me to get my engineering and law degrees.
That said, the $10k/month example truly is hypothetical. My wife and I bring home substantially more than that.
Hey dude, as long as your ego feels better we're all good here.I am definitely privileged. I was born white and male, and I had parents that took an active role in my life and motivated me to get my engineering and law degrees.
That said, the $10k/month example truly is hypothetical. My wife and I bring home substantially more than that.
LOL @ the notion of $10k per month, post-tax is nothing. Oh wait, forgot this is ATOT. $10k per month is just the tip money.
Good for you, at least you're not a burden on society.
However, a lot of the things you listed were grossly over estimated in price, and on top of that, are straight up luxuries if one is trying to be frugal. New cars? What's wrong with 3-4 years old with decent miles? $500 for cable, cell phones and utilities? That's insane. Ditch the cable completely, get pay as you go phones, and turn the heat/ac off more.
Lastly, (I didn't check Zillow because quite frankly I don't care enough, but ) according to a salary calculate I checked to find out that $10k a month here is equal to about $13k where you live, tells me $1600 for a 2 bedroom house is nuts. That calculator told me real estate in Dallas TX costs 41% less than it does here. I own a 2 bed room house and it cost me $156k to buy @ 4.75%. My payment with taxes AND insurance, is just a hair over $1200 a month. My house in TX would then likely only be costing you around $600-700 per month. It's not in a shitty area here either.
Again, you just need to see that the $10k you think doesn't get you anything, actually does.
So you are financing used vehicles. A new Honda Accord, over 5 years, would be over $400/month and the $100/month total insurance premium seems accurate in light of your premium.
No one has commented on my statement that those capable of earning such an income (household income derived from both husband and wife) are likely weighed down by student loan debt to the tune of $2,500/month over 10 years. They would not qualify for most debt relief plans, such as an extended payout schedule or income-sensitive payments.
$10k/month take home isn't nothing, but it isn't a life of wealth and luxury as others stated. It's a life of beige and normalcy.
Because $2500/month in student loan debt is ridiculous?
As of late last year, the average in TX was 25K for students graduating last year. Let's say you double that for each person, it only adds up to 100K total debt. Admittedly I consolidated my loans a couple years ago at 2.4%, but even at higher rates today you're talking about ~1k/month. For the more average couple, 500/month.
And yes, brand-new Accords are a luxury purchase. Buy them at half price with 2 years and maybe 30-40k on the odometer.
1600/month before taxes and homeowner's insurance supports a loan of 340K. A quick look around the market in Dallas at some of the top 10 suburbs on realtor.com shows 3/2 1800+ sq ft homes going in Frisco, Murray, Allen areas that were listed in the last 30 days for less than that. And not a few, over 130 properties for less than 300K listed in the past month. Hell, about 60 of those were under $250K.
So it seems like 1600/month + taxes and insurance for a modest 2 bed house is not accurate either.
As someone who has a family of 4 on 7K/month take home, I agree it's not wealthy, but even living in an area with 30 points higher cost of living index than Dallas, and a 2400/month mortgage/taxes/insurance bill, we still manage to contribute 700/month to retirement/savings.
1600/month before taxes and homeowner's insurance supports a loan of 340K. A quick look around the market in Dallas at some of the top 10 suburbs on realtor.com shows 3/2 1800+ sq ft homes going in Frisco, Murray, Allen areas that were listed in the last 30 days for less than that. And not a few, over 130 properties for less than 300K listed in the past month. Hell, about 60 of those were under $250K.
The neighborhoods that flank my neighborhood are going insane right now. $260k for an 1,100 square foot home built in the 1950s. $360k for a 1,600 square foot home that sold on the first day of the MLS listing for 15% over asking price ($420k). This is NOT one of the "nice" neighborhoods. It is a modest neighborhood.
^ Confirmed. A 625sq-ft apt in my complex (edge of Farmers Branch and Addison, just north of 635 near Valley View / Galleria) sold for $80K, built in the 1960sApartments are nearing $150 per square foot, and good luck finding a home in Dallas for under $200 per square foot. M-Streets is at $250, OLH is at $200, LH is at $200.
Safeway,
With all due respect to the work you've put in to get to where you are now, I think you really don't have an accurate perspective of what it's like for the majority of people out there. A lot of hard working and well educated people make sub 100K salaries regardless of where they live. A lot of your monthly costs estimates are very, very high. As Z1g pointed out, most of us can't help but wonder what the heck you're doing to spend that much.
$1,000/mo for food? My monthly food budget for just myself is $150. I shop sales at Sprouts or Target, cook most of my meals, and eat out less than once a week.
Buying two new cars at $30K each? My god, Man... Buy two 2-4yr old cars: a small 4-door for work/groceries and a minivan for hauling the kids. You'll spend no more than $40k for both and save on insurance to boot.
$500 for internet and util? I live in Austin, so I know how hot it gets in TX, but I keep my apt at 78* and run a dehumidifier to keep the room feeling comfy at 50% humidity. I spend maybe $68-$75/mo on electricity to cool a 750Sqft apt. My internet costs me $50/mo for 100/10 (Yay for Google forcing competition) and I don't bother with TV. Cellphone for work is free, and I pay $55/mo for my personal line with unlimited talk/text and 1GB data through AT&T.
I get the housing, I do. ATX is going nuts right now, so I'm dreading to see how much it's going to cost me to buy a home in a good(ish) area come next year. That being said, it's really up to each person to decide what home they are willing to pay for; but most of us have to look in the not so great areas because $250K is the max we can bite off.
Safeway, don't get me wrong, If you have that kind of money to buy luxuries then more power to ya. You should, however, realize that your standard of living is way higher than what 85% of the US actually thinks is normal.
I live in a nice neighborhood in Dallas, in a 2400sq/ft, 3 bed/2.5 bath, attached 2 car garage, on a lot and a half, and pay $1300/mo. His numbers are over inflated.
I think we just found a 1%er. GET HIM!
^ Confirmed. A 625sq-ft apt in my complex (edge of Farmers Branch and Addison, just north of 635 near Valley View / Galleria) sold for $80K, built in the 1960s
That said, a friend got lucky and got a new 3500sq-ft house in Murphy for $287K last year. Not a fancy builder like Toll Brothers, but still good.
that's considered insane?
:awe:
I did 6 years of grad school for my doctorate in EE (finished in 2010), I'm aware of the costs, at the same time if you're paying everything on loans, you're doing it wrong. Work a job/TA/RA on campus, apply for every fellowship imaginable, and make sure you're near the top of the GPA chart and grad school will be paid for. Ultimately though, if you take out those sort of loans, you spend 10 years with a reduced lifestyle in return for the 30+ years of increased earnings.That level of student loan debt likely wouldn't support wage earners capable of earning $10k/month. We are talking about professional school, masters, etc. This average is closer to $75k or $100k. I had (stupid) friends that graduated with $200k in loans, and I know a freshly minted oral surgeon with $580k in student loans. The latter will have a $7k/month minimum payment. Her program was long, expensive, and unpaid. She had to not only pay for tuition, but all living expenses. She was not very frugal.
Paying the off-the-lot depreciation on a new car is a luxury, let someone else soak that cost.A Lexus or BMW or Mercedes or Acura is a luxury purchase. A Honda is a reasonable purchase. Sure, go with a CPO to save some money.
I just ran the amortization on $250K at 3% - 1600 for a 15 year loan, but a more reasonable expectation is a 30 year at 3.9% - 1100/month before taxes/insurance. The 30 year makes a lot of sense if you're also paying down student loans, and it's a better plan long-term to take advantage of the ridiculously low rates now, and push out the payoff to times with more inflated currency.These places are not Dallas. Dallas is Dallas. There are very few safe neighborhoods in Dallas and, within those neighborhoods, there are very few homes available.
Also, $1,600/month before tax and insurance is a $250k home at 3%.
This part is too true, a lot of people think 130K/year somehow corresponds to Scrooge McDuck money pools...People are acting like you'd pull up to the dock in a 911 Turbo at this level of income. In reality, you pull up to Costco in a Honda Accord to do some bulk shopping.
I am definitely privileged. I was born white and male, and I had parents that took an active role in my life and motivated me to get my engineering and law degrees.
That said, the $10k/month example truly is hypothetical. My wife and I bring home substantially more than that.
This part is too true, a lot of people think 130K/year somehow corresponds to Scrooge McDuck money pools...
You remind me a little more of alky with every post
You remind me a little more of alky with every post
You live in a wealthy neighborhood.I live in a decent part of Dallas, Lakewood proper.
You live in a wealthy neighborhood.
Sorry but your grasp on reality is gone and probably wasn't there to begin with. You live in a nice hood and it sounds like your parents were well off.
My wife and I do well for ourselves and live in one of the top 5 nicest neighborhoods in Denver, we live a few blocks away from the Governors personal house and a few other Denver elites. Even with that we sock away way more money per month than we ever thought we would be making given our backgrounds and HS diploma educations. We live modestly and just never forgot where we came from (poor families). We saved up for a long time to feel comfortable with affording this neighborhood. Either one of us could lose their job and we could live off just one of our incomes. You are seriously living beyond the means of most people.
And don't give me the Dallas insane prices gig, Denver is only matched by San Fran in crazy price increases right now.
Again there is nothing wrong with any of that, but to tell us 10K is some kind of chump change per month is just not grounded in 90% of Americans reality is all.
While I think he may be out of touch with reality on this subject, it's not even close to being another Alky....not even close.