New York Times: Six figures not enough!

[soupcxan]

Bad news folks...apparently the scamps at the new york times have declared that $100k/year is no longer enough to be affluent. It now takes at LEAST $200k to be able to afford a "decent" house (with a $20k parking space, no less), school for the kids, and maybe a cheap vacation (if you're lucky).

http://www.nytimes.com/2005/02/27/fashion/27200K.html?8dpc

 

[Bill Clinton]

Bad news folks...apparently the scamps at the new york times have declared that $100k/year is no longer enough to be affluent. It now takes at LEAST $200k to be able to afford a "decent" house (with a $20k parking space, no less), school for the kids, and maybe a cheap vacation (if you're lucky).

http://www.nytimes.com/2005/02/27/fashion/27200K.html?8dpc

The NY times definition of an affluent life style is bunk.

My definition of an affluent life style is one that no longer has to work and has enough money to do whatever one wants. It might take 200k/yr for some but might be as little as 20k/yr for others. Depends on where you live and what you want to do in life.

 

[Eagle43]

The simple answer for everyone is LBYM. Working or not, LBYM. Works everytime.

 

[Tadpole]

The NYT lives in NY City. They probably do need this much and don't think it's a lot.

 

[brewer12345]

I read that article today and to some extent I can understand the sentiment. I live in a county outside NYC where the median household income is #8 in the country. We don't live in one of the wealthier towns (couldn't afford the RE), but cost of living is pretty high. We have a modest 3BR/2Bath house in a pleasant, but not affluent neighborhood. We drive modest cars. We shop around a lot for groceries, etc. And, yes, we are (barely) into the six figure range. There is not a whole lot of fat left in the budget, enough so that with DW, el kiddo and I it is sometimes a bit tight.

Rarefied expensive areas may produce high salaries compared to the rest of the country, but it comes with a much higher cost of living.

 

[Jay_Gatsby]

Rarefied expensive areas may produce high salaries compared to the rest of the country, but it comes with a much higher cost of living.

This is very accurate. In fact, in areas where there are sky-high salaries (e.g., NYC, LA, SF, DC) the cost of living (including real estate) is higher by overall proportion than the rest of the country. You can live in a more rural setting around one of these areas where real estate is more affordable, but then you're adding a massive commute.

 

[GTM]

The NYT lives in NY City. They probably do need this much and don't think it's a lot.

Many people who live in NYC do not require alot of money to live. Some actually can get by easier than those in many other parts of the country.

The reasons for this are

A) Most people do not live in Manhattan. They live in Brooklyn. Queens, SI or the Bronx. Alot in Jersey as well. Many apartments are rent controlled or rent stabilized. That means one person can be paying a fraction of the rent as his neighbor. Some who have been in the same apartment for many years may be paying 40% of market value.

B) You do not need a car in the 5 boroughs. A monthly metro card for the subway or bus is $74 a month.

C) There are alot of free or inexpensive activities to attend. Museums, Central Park, Television studios, the NYSE etc etc.

D) Many outlet stores nearby where clothes and household items can be of purchased reasonably. Alot of sales in major department stores especially in January.

And what I see as the biggest factor is the salary one can earn in NYC as opposed the most of the country.
I don't have any stats but in my experiences NY'ers earn alot more in many fields than other cities.

The New York Times is referring to those who own coops in Midtown which they paid 750k in addition to a 1000 a month maintenance fee, own a car that costs them 300 a month just to park and have expensive habits.

That lifestyle requires 200k a year at least.

 

[Spanky]

Similar to what others have said, it really depends on your life style and where you want to live. If you live in the heart of Mahatton and enjoy the night life, you will probably need more $200K year.

 

[JOhn Galt]

Or, if way out in the boondocks and like fishing and poking
around the woods, under 20K will do

JG

 

[Spanky]

John,

I like in the rural area if only I can convince my wife. She likes the modern conveniences of the city.

Spanky

 

[JOhn Galt]

Well, Spanky, that was one of the attractions of my DW.
Besides being pretty, perky and blond, she is very outdoorsy just like your faithful correspondent. If she had been rich too, she would have had it all

JG

 

[Hyperborea]

Many people who live in NYC do not require alot of money to live. Some actually can get by easier than those in many other parts of the country.

This is something that we've discussed before. It's about adapting to your locale. It doesn't make a lot of sense to force some generalized living style on every location (which is what the cost of living calculators do). Nor does it make sense to move to a different location and try to continue living exactly like you did in the previous one. Unless you don't mind the extra costs.