What's life like with 100K/year or more?

[retire@40]

I'd buy more seashells to add to my collection.

I already have the world's largest collection of seashells. I keep them scattered on beaches all over the world... perhaps you've seen some of them.

 

[Nords]

Well, when it comes to this know what you're doing. Do not spend your miles on First Class tickets and do not pay the $5000 First Class fare. Buy your usual vacation coach ticket and then use miles to upgrade it in the same phone call. The difference in price and miles burned is huge AND you earn more miles with the coach ticket. A lot of folks have trouble getting FC tix with miles, but that is because they are not retired. If you're retired you have date flexibility. You can find the award seat that is available.

People who don't travel that much don't have to worry about mileage upgrades. I'm on a plane once or twice a year so I doubt I even have 25K among all the airlines, let alone with one airline. I wonder what the airlines value their frequent flyer accounts-- a couple cents a mile?

Most of our travel these days is to family events or scheduled conventions, so date flexibility is out. If we travel on our own we'd book a good price/date around a discounted deal.

 

[Meadbh]

I earn >$100K but am so busy I can't spend it. I'm working as hard now as I did when I was an intern. So I sock it all away for ER. I do have to buy time, e.g. lawn care, because I'm never home to do the lawn. Of late, I am getting lots of travel opportunities at other people's expense (public speaking, consulting, etc) and am accumulating frequent flyer miles for use on vacation travel.

When I ER I will not have to pay hefty professional fees and will have time to mow the lawn (savings) but also time to play golf (spending) so I may well spend as much or more than I do now. But since that's <$50K Canadian and well below 4% SWR, I think I'll be fine.

Meadbh

 

[Alex]

It's nice.

 

[audreyh1]

I just don't feel compelled to spend that much. We live very comfortably on much less. Just because I may be able to withdraw that much doesn't mean I HAVE to spend it all. It's not some kind of spending race. I can "save up" for a big ticket item, or, if enough accumulates I can choose to play philanthropist in a way that makes a difference.

I never EVER considered flying first class all the time. It seems like such an outrageous price for a slightly bigger seat. You still have to go through all that security crap. I don't really fly anymore anyway - not a pleasant experience (mostly the airports). Traveling by RV is so much more enjoyable.

There are SO many ways to blow money, but it doesn't mean you enjoy yourself doing it. Travel is a good example where you can lay out the big bucks for a top flight cabin on a cruise, but get only a marginally better experience than someone in a low cost cabin. Same decks, same dining room, same views. I remember on one boat people in the fancy cabins on the top deck being seasick. Those of us just above water level didn't notice much boat movement. I bet the folks on the lower decks noticed even less. I observe a lot of parallels in different types of entertainment/travel experiences. There is definitely a law of diminishing returns.

It's nice to have enough to not worry about how often you eat out or other budget issues, and to be able to help out family members in emergencies. But beyond that - how much does anyone really need?

Audrey

 

[Texas Proud]

I will throw in my two cents....

I doubt if I would ever spend $100K a year even if I could... it is just not in me to do so...

About air travel.. I have done maybe a dozen to 20 overseas flights with 3 or 4 first class... I do not see much difference besides the space... I can't sleep well on the plane up front or in the back.. but yes, in the back you are struggling with where to put your arms etc... but I still do not think that the extra cost is worth the space.. I will try and get a seat that is next to an empty one... and it is for between 6 and 9 hours from where I fly.. now, maybe to OZ or NZ I would say FC is better.. but have not been there yet and do not know the extra costs..

I will be flying overseas in a little over a month.. I will see how easy it is to upgrade with miles as I do have a good amount..

 

[Nords]

I do not see much difference besides the space... I can't sleep well on the plane up front or in the back.. but yes, in the back you are struggling with where to put your arms etc... but I still do not think that the extra cost is worth the space.

I never EVER considered flying first class all the time. It seems like such an outrageous price for a slightly bigger seat. You still have to go through all that security crap. I don't really fly anymore anyway - not a pleasant experience (mostly the airports).

The extra space is definitely not worth the cost, but that space makes all the difference in my perspective of the flying "experience".

I could fly coach and donate the savings to charity, too, but this seems like an area where a little more spending drastically improves my quality of life. I even feel like I'm providing a valuable service to the coach passengers by not inflicting my presence on them.

There are SO many ways to blow money, but it doesn't mean you enjoy yourself doing it. Travel is a good example where you can lay out the big bucks for a top flight cabin on a cruise, but get only a marginally better experience than someone in a low cost cabin. Same decks, same dining room, same views. I remember on one boat people in the fancy cabins on the top deck being seasick.

Last year friends of our parents-in-law were on a cruise hit by the Norwalk virus. The outbreak clogged one of the toilet-flushing lines so they were upgraded to the suites apartments.

It was a dramatically different experience-- several decks higher, room service, and a high-rise view. No motion was detectable (not an engine vibration was noted, either). However PIL's friends (think of the Barone parents on "Everybody Loves Raymond") were so uncomfortable at all the high-touch amenities-- especially the butler-- that they found it hard to enjoy the luxury.

Our teenager, though, has watched enough Disney Channel to be able to not only settle right in but to offer a few helpful hints for improvement.

 

[Spanky]

First-class is definitely a wonderful experience. A few years ago, we did not confirm our flight from Hawaii to San Francisco. The airline said our seats were no longer available but gave us two first-class seats on a 747 (upper deck) . It was made a big difference, wider seat, more leg room, more quiet, better food, free drinks.

A nice cabin on a cruise is also great. We had a suite with a balcony. We loved to listen to the sound of the ocean and to watch the stars at the balcony.

 

[Outtahere]

I could easily spend the 100k+ I make but it wouldn't make me any happier than I am now, if it would I'd be spending it.

 

[audreyh1]

It's funny. I can afford the upgraded cabins/seats, etc. but I can't bring myself to pay for them. I guess the few times we did decide to go with higher grade facilities, I didn't feel like it contributed much to the enjoyment of the experience.

I don't enjoy being around a lot of other people (large cruises, tours, etc.), so that cuts out lots of expensive travel options right there!

On the other hand, I have to admit I expect to do some of the Zegrahm Expeditions http://www.zeco.com/about/travel_a.asp (pretty high class way to go) - one of these days when I'm older and will appreciate assistance in travel. These days I have too much fun doing things my way, not on someone else's schedule. I guess I prefer to upgrade by going on a more expensive small group trip, but booking mid-level or just under mid-level accommodations.

Audrey

P.S. I've had my eye on this one for a while: http://www.zeco.com/destinations/Kamchatka-Alaska-cruise.asp#

 

[kcowan]

... We have a weekend house on the water...

Our place is a penthouse overlooking Stanley Park in Vancouver with 180 degree views that include English Bay, Vancouver Island, and Cypress Mountain. Check out our web site at:
http://members.shaw.ca/beachis

Like I say, we do home swaps: 2000 sq.ft. indoors with a 1350 sq.ft. patio. From the patio there are views of the Lions Gate bridge and downtown skyline. We have friends in Ocean City and so are looking in that area.

 

[modlair]

Folks, you're a little bit out of date.

First Class and Business Elite class are not about extra seat size and legroom.

They have transitioned generally to flat bed seats in the very recent past. The transition is ongoing, but odds are you can get a seat now that reclines to nearly 180 degrees. That DOES make the difference for sleep. Sleeping sitting up in a big, old style, FC seat is not much easier than in coach, but laying down with a blanket over you puts you into your destination with a 2 day jump on jetlag recovery.

People, the US to Singapore is 23 hrs door to door. You need to lay down. It's worth the 25,000 miles tacked onto a coach fare to get that.

 

[Spanky]

Kcowan,

Very, very nice penthouse. We spent about 1 week in Vancouver at Quality Inn by the airport. We did not spend too much time at the motel. However, we had a great time visiting beautiful gardens (including the Butchart Gardens at Victoria Island) , museums, aquarium, and dinning at fine restauarants. I have been contemplating renting a condo with a view of the ocean in Victoria Island for our next visit.

Spanky

 

[haha]

Big houses mean paying a maid, lawn service/gardener, pool cleaner, etc. in addition to big property taxes and big heating/electric bills, even if you can swing the big mortage payments. I can see a McMansion sucking up $100k easy, all on its own..

The problem is that in many cities where one can earn a big income, you don't get a McMansion for your $100,000 pa occupancy expense. In Seattle, if you want to have a not intolerable but merely lousy commute, you have trouble finding any house that isn't a disaster that could contain a family for much if any less than $1mm. This is likely a house built in the '20s, and selling for at most $40,000 or so a generation ago.

I feel for young people today. They have huge taxes, huge childcare expenses, huge time demands at their jobs, giant traffic tie-ups everywhere they go, huge home-owing costs, Mom and Dad working themselves very hard.

By contrast, everything in my life seems very easy looking back.

Ha

 

[Alex]

Food for thought, about wealth and money, from my personal perspective:
spending money does not make me happy. Having, possessing, investing money makes me feel more secure and more in control. When I feel secure I am less anxious about the future and more focused on the present moment. Living more and spending more time "In the present moment"- is my ultimate goal.
happy sunday!

 

[Callie]

I could easily spend the money!

First class travel would be a must, a big house, nice cars, etc.

Right now we spend 75K per year net on child support and college. ugh

 

[Spanky]

Right now we spend 75K per year net on child support and college. ugh

I figure college cost next year will be about $50K. It's amasing that nearly 50% of the students recieve some financial aid (in grants) to cover most of the expenses. It's unfortunate or fortunate that we are not quilified for any financial aid.

 

[CybrMike]

I dunno about $100K, but with $500K income and $5+ million in savings:

- Fly private instead of commercial (~$3500/hr) - never done this, but want to
- Have a condo in caribbean - been looking
- Have a 'nanny' - wife won't let me ... yet
- Have multiple expensive cars - do have this, but I've collected over a few years
- House on the lake - do have this, mucho maintenance
- pool hottub - maintenance drain and you don't use as much as you think
- boat, jet skis - another maint drain and you use these even less than the pool

Be able to afford all of the 'little' things like:
- monthly dog grooming,
- eating out whenever and wherever you like
- house cleaning services
- specialty car products like radar detectors, window tint, expensive wax, etc.

All of the little things you don't really worry about. It is only the 'big' expenses like buying a second home or buying an expensive car that you have to see if you can/want to afford.

I will also attest to the fact that money does not make you happy, however it does mean that my wife and I never argue about it. She is a thrifty saver by nature so I don't have to worry about her splurging on anything stupid. She does keep me balanced so I don't go out and buy that lambo I've been wanting.

As everyone suggests, even with $5+ million I don't feel 'rich'. I am looking at starting another business and figuring out how to turn the $5M into $50M. To me, rich is $50M +. I'm sure when I get there it might be $500M+.

 

[ktupper]

Why is our first inclination so often to spend money on ourselves? With $100K+ in disposable income and being FIRE, why not look at how we can help others less fortunate?

Also, IMO, if our security is coming from a large bank account, it's an illusion too.

 

[audreyh1]

Be my guest.

Audrey

 

[MasterBlaster]

I dunno about $100K, but with $500K income and $5+ million in savings:

- Fly private instead of commercial (~$3500/hr) - never done this, but want to
- Have a condo in caribbean - been looking
- Have a 'nanny' - wife won't let me ... yet
- Have multiple expensive cars - do have this, but I've collected over a few years
- House on the lake - do have this, mucho maintenance
- pool hottub - maintenance drain and you don't use as much as you think
- boat, jet skis - another maint drain and you use these even less than the pool

Be able to afford all of the 'little' things like:
- monthly dog grooming,
- eating out whenever and wherever you like
- house cleaning services
- specialty car products like radar detectors, window tint, expensive wax, etc.

All of the little things you don't really worry about. It is only the 'big' expenses like buying a second home or buying an expensive car that you have to see if you can/want to afford.

I will also attest to the fact that money does not make you happy, however it does mean that my wife and I never argue about it. She is a thrifty saver by nature so I don't have to worry about her splurging on anything stupid. She does keep me balanced so I don't go out and buy that lambo I've been wanting.

As everyone suggests, even with $5+ million I don't feel 'rich'. I am looking at starting another business and figuring out how to turn the $5M into $50M. To me, rich is $50M +. I'm sure when I get there it might be $500M+.

To me the question isn't... How great would it be to spend $100k or $500k per year.

The real question is can I meet my needs and then some. If I were to go for the next brass ring what would I give up in my life to get there.

After thinking about this quite a bit it seems like I have enough now and that I just can't see getting on someone else's treadmill to get to the next level.

That extra $100k per year won't make you happy (or much more happy) but getting there will sure take it's toll.

Is it really worth it ? Now that's the more interesting question

 

[dm]

Ive gone over the 100k mark the last two years. New cars are what put us over the top. I bought myself a new truck last year and my wife got a Porsche this year. Hopefully we wont be buying any new vehicles for a few years. Other things that we splurged on are Country Club membership, Slip fees for the boat, invisible braces, college classes, vintage sports cars and parts, and we eat out alot.

We have no debt so no payments except insurance and taxes that have to be paid. We should be back to spending around 60k to 70k after my wife gets her doctorate and we stop buying cars for a few years.

We could get by with much less but we enjoy the sports cars and the country club. I golf 3 or 4 times a week and its just a lot nicer at the club, but it is expensive. The boat I could live without, it is for sale now.

 

[audreyh1]

You're retired, but your wife is getting her doctorate? Is she going to work after that?

Yeah, boats and slip fees can be a major cash drain. Only worth it if you use your boat a LOT.

Sounds like you're getting your money's worth out of the country club membership.

Audrey

 

[scrinch]

What...not many who spend $100K/yr in the LBYM crowd? Surprise, surprise! :

DW and I will end up making about $360K this year, but will spend only the usual $70K plus my daughter's college tuition. We own our home and drive a minivan and small pickup built in the previous century. Our two other kids attend public school, and we eat out only occasionally. I'm afraid that you'll need to go to the early-bankuptcy.org discussion forum to get much insight into what it's like to spend $100K or $200K/yr.

 

[Sam]

I'm afraid that you'll need to go to the early-bankuptcy.org discussion forum to get much insight into what it's like to spend $100K or $200K/yr.

That's so funny and so true.