Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Hard to live on 100K per year ?
Old 12-03-2017, 08:35 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,012
Hard to live on 100K per year ?

Twice now I've heard stories on NPR about how tough it is to live on $100,000 income per year for a family.

Since this is almost twice the median family income, I wonder what poor folks are doing ?

We are struggling along on about $56,000 this year and could only afford:
  • one week in FL,
  • a week Caribbean cruise
  • two week European river cruise
  • a month long trip in Canada
I'm not sure if we would have the energy to spend another $44,000

https://www.cnbc.com/2017/12/01/livi...dle-class.html

How do folks go on the air/news to report they are suffering along on $100,000/yr
Sunset is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-03-2017, 08:38 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Haven't we had a couple of posters saying they were having problems making it on $250K per year? All depends on your perspective of what "making it" entails.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 12-03-2017, 08:44 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 13,202
$100K..less income and FICA taxes...less retirement and college savings...other costs associated with kids. Not as much as you might think. Not saying they aren't spending on things they shouldn't, but $100K working wage is not the same as $100K retirement withdrawals which may be lightly taxed.
RunningBum is offline   Reply With Quote
Old 12-03-2017, 08:46 AM   #4
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
What do you pay your housekeeper? Your lawn maintenance people? Your day care? Your TV service with all the channels? Your golf club membership?

What about the costs to maintain your boat? And your 3-cars for two people? And when you go out every night, how much do you spend?

What about costs of ...
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 12-03-2017, 08:47 AM   #5
Thinks s/he gets paid by the post
flintnational's Avatar
 
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 1,499
I think it is a "Millionaire Next Door" moment. Either you can LBYM (whatever that is) or you spend all that you make (whatever that is). Of course, this assumes you are above some base level income that allows you to save, if you choose.
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
flintnational is offline   Reply With Quote
Old 12-03-2017, 08:48 AM   #6
Full time employment: Posting here.
 
Join Date: Apr 2016
Location: warren
Posts: 935
My wife and I never made anywhere near $100K in any year yet we've managed to save close to a mil, and take nice vacations. No kids, though. Two nephews who don't make $100K and both have two kids seem to be doing fine. I know the one is saving well, the other no idea. We live in Mi, I'm sure it's much harder in NY or Cali
garyt is offline   Reply With Quote
Old 12-03-2017, 08:52 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Location: North TX
Posts: 1,800
Quote:
Originally Posted by Sunset View Post
Twice now I've heard stories on NPR about how tough it is to live on $100,000 income per year for a family.

Since this is almost twice the median family income, I wonder what poor folks are doing ?

We are struggling along on about $56,000 this year and could only afford:
  • one week in FL,
  • a week Caribbean cruise
  • two week European river cruise
  • a month long trip in Canada
I'm not sure if we would have the energy to spend another $44,000

https://www.cnbc.com/2017/12/01/livi...dle-class.html

How do folks go on the air/news to report they are suffering along on $100,000/yr
$100k in Cali is $71,435 after FICA, Federal and State...still a lot for me and DW (if we still lived there). One kid didn't cost us much additional since she attended county / state college and didn't gouge us on her wedding...

We live comfortably on about $43k (after tax) this year in a no-income tax state...taxed up I'm looking at needing about $50k pre-tax
Surewhitey is offline   Reply With Quote
Old 12-03-2017, 08:52 AM   #8
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 9,101
Of course the article is about working people and families. That changes the equation a bit. What bothers me most about the article is that while it does direct the reader to start saving, it says nothing about controlling spending. Unless you're in a high cost of living area and have a significant mortgage, $100,000 is still a lot of money. However, it can be spent just as easy as $50K or $500K. Saving is an important brake on spending (if you don't have it or see it you won't spend it), but the mentality to live below your means is critical. Right along with prioritizing spending (kind of the same thing). DW and I use the term "selectively broke" for many of these folks. Never money for savings or important things, but always money for entertainment, Starbucks, beer and a host of other things.
Jerry1 is offline   Reply With Quote
Old 12-03-2017, 09:01 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
When I see the shows on HGTV, I am amazed that the people only use their modern kitchens to reheat pizza unless they are holding a dinner party. One such person I know personally had a $750/mo communications budget for the family. He was paying for 5 cell phone plans, high end TV service, etc.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 12-03-2017, 09:06 AM   #10
Thinks s/he gets paid by the post
Sojourner's Avatar
 
Join Date: Jan 2012
Posts: 2,581
Quote:
Originally Posted by Sunset View Post
Twice now I've heard stories on NPR about how tough it is to live on $100,000 income per year for a family.

...

https://www.cnbc.com/2017/12/01/livi...dle-class.html
That article is so generic and shallow it reads like it was written by Capt. Obvious. Oh, some people who make a fair amount of money don't feel rich? Really?

If the reporter had done even a minimal amount of digging, there's no doubt the people quoted in the story would have been revealed to be classic spendthrifts, allocating every dime of current income to spending and placing near zero emphasis on saving or frugality. And, yes, having a couple of kids to support through their college years does cost a heck of a lot of money. Is that really a surprise to anyone?
Sojourner is offline   Reply With Quote
Old 12-03-2017, 09:10 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Oct 2014
Posts: 1,537
Quote:
Originally Posted by Jerry1 View Post
DW and I use the term "selectively broke" for many of these folks. Never money for savings or important things, but always money for entertainment, Starbucks, beer and a host of other things.
I choose to be selectively broke. I max 401K, back door ROTH IRA, 2K into taxable each month and pay extra on the mortgage. After all that I end up broke a day before the next check hits the account. Well, only if I forget about the couple grand stashed in the gun safe, the zero balance on the credit card and the "other" checking account that I rarely look at (emergency fund). I work with a few people who make 100K plus and they aren't really strugling but are pretty much pay check to pay check with little to no travel.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Old 12-03-2017, 09:10 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
My nephew, a pharmacist in NYC, last year bought a 1-BR, 1-BA condo in Queens and paid close to $600K. I have not visited him, but his parents have and said they could not see paying that much for such a place, but that is the going price. He was tired of having to move every couple of years. I learned that it cost him $7K once to hire a broker to find a tiny studio.

Now, imagine if you have kids in school. The sky is the limit for a budget to live in places like that, or in SF.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 12-03-2017, 09:13 AM   #13
gone traveling
 
Join Date: Mar 2015
Location: Greenville
Posts: 653
Quote:
Originally Posted by NW-Bound View Post
My nephew, a pharmacist in NYC, last year bought a 1-BR, 1-BA condo in Queens and paid close to $600K. I have not visited him, but his parents have and said they could not see paying that much for such a place, but that is the going price. He was tired of having to move every couple of years. I learned that it cost him $7K once to hire a broker to find a tiny studio.

Now, imagine if you have kids in school. The sky is the limit for a budget to live in places like that, or in SF.
That won't change, until people choose not to live there. I never have understood it myself.
Pilot2013 is offline   Reply With Quote
Old 12-03-2017, 09:13 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Nemo2's Avatar
 
Join Date: May 2011
Posts: 8,368
This year we anticipate our expenditures coming in at around $47k Canadian, (~$37k US), which is high for us and includes property tax but not income tax.

And...once in a while...we get to do a little traveling.
__________________
"Exit, pursued by a bear."

The Winter's Tale, William Shakespeare
Nemo2 is offline   Reply With Quote
Old 12-03-2017, 09:15 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,206
If you live in Wash DC or NYC like most of the NPR gang and guests, $100K is probably tough...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Old 12-03-2017, 09:15 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Oct 2014
Posts: 1,537
Quote:
Originally Posted by NW-Bound View Post
My nephew, a pharmacist in NYC, last year bought a 1-BR, 1-BA condo in Queens and paid close to $600K.
Too bad they only hire pharmacists in HCOL areas like NYC. Wouldn't it be nice if a pharmacist could get a job in a LCOL area maybe an hour or two from NYC? Imagine if we had freedom of choice like that.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Old 12-03-2017, 09:17 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 9,358
We used to spend too much without really living the high life and then stumbled across the Consumer Expenditure Survey. It was a real eye opener for us. We realized if we could get our spending down we already had enough to ER and live a nice life. It has been pretty cool. We used to be like the people in the articles and just woke up one day and revamped our spending. We live in the same house and actually bought nicer cars and go out more than we used to on a much lower run rate.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 12-03-2017, 09:18 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
Quote:
Originally Posted by Pilot2013 View Post
That won't change, until people choose not to live there. I never have understood it myself.
Many people like crowded cities, because they think it is fun. Not too many are like me, who has a main home in a Southwestern suburb, and still bought a 2nd place up in the high-country boonies.

My two homes together cost less than one tiny home in San Francisco, where I read that it is tough to get anything for less than $1M. Well, there are, but they are in less desirable neighborhoods, and are only 1BR, 1BA.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 12-03-2017, 09:21 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 12,598
They are loath to use anything for fear the kitchen will look "used," and will turn off future buyers! Kitchens must be pristine!

Quote:
Originally Posted by kcowan View Post
When I see the shows on HGTV, I am amazed that the people only use their modern kitchens to reheat pizza unless they are holding a dinner party.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 12-03-2017, 09:23 AM   #20
Thinks s/he gets paid by the post
Sojourner's Avatar
 
Join Date: Jan 2012
Posts: 2,581
Quote:
Originally Posted by Bigdawg View Post
Too bad they only hire pharmacists in HCOL areas like NYC. Wouldn't it be nice if a pharmacist could get a job in a LCOL area maybe an hour or two from NYC? Imagine if we had freedom of choice like that.
+1
Sojourner is offline   Reply With Quote
Reply

Tags
$100k, median income, npr, spending


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Uber Paid $100K Ransom and Hid 57-Million User Data Breach For Over a Year audreyh1 Other topics 11 11-23-2017 09:38 AM
Live Like You Make X per year Lagniappe FIRE and Money 17 07-05-2011 01:26 PM
18 year old with over $100k... right move? drooblez23 FIRE and Money 24 10-19-2010 07:14 PM
Insurance company decided our house was worth $100k more this year soupcxan FIRE and Money 11 12-24-2009 11:26 AM
What's life like with 100K/year or more? Sam FIRE and Money 173 10-16-2006 11:16 AM

» Quick Links

 
All times are GMT -6. The time now is 03:46 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.