Excluding expenses incurred because I w*rk and maintain a city residence, my wife and I live on less than 10% of our earned income. Proud of that. But let me show you how easy it can be to spend $300K a year:
$300K gross income
(100K) federal and state income taxes on gross income actually about 72k considering the itemized deductions and exemptions
200K subtotal -- feeling rich at this point? 228k
(50K) one child in elite private university this is the fastest way to try and make your point but i find this very unrealistic. even if it is realistic it is only for 4 years
(50K) second child in elite private university -- can't "cheat" the younger child same comment as above plus, unless they are twins, these two expenses wont always happen in the same years
100K subtotal -- still feeling rich? 128k - 228k
(36K) housing expense, including debt service, on one upper-middle class house
(20K) auto expense, including depreciation, for two luxury cars (not Ferraris)
(12K) groceries and other routine household purchases
(12K) healthcare ins. premiums per group plan, plus co-pays and uninsured costs
(10K) vacations and entertainment
(5K) utilities, including cell-phone plans and home office electronics
(3K) charity (Nota Bene: a mere 1% of gross income)
(2K) unbudgeted expenses
-0- savings and investments 28k-128k or
-0- total -- still feeling rich? 28k-128k or some combination