Denver on $115k?

[SheridanL]

So if one makes, lets say, only 110,00 a year as opposed to 115,00 a year..that's considered poor??? Really? Heck, at a 40 hour week, that's 57.50 an hour!!!!!!!! POOR???????
Come to Colorado!!!

[denverian]

Originally Posted by KCtoDenver

Sorry for the unkind responses. Some people don't realize the taxes (30% overall), retirement investment $16K for only you, investments for your children's college, perhaps a $500/month car payment depending on the kind of life you have to project to others, dry cleaning if you wear suits, life insurance to maintain the lifestyle for your family if you die, etc can hit an income. Not to mention your desire to have your wife stay home with the kids. Kudos to you!!!

To answer your question. You should be fine as long as you don't have a lot of expenses like 3 cars fully financed, huge cc bills, etc. If you don't mind an hour commute, there are lots of options for under 400k. If you are looking at close to town and a nice elementary school, figure at least 400K unless you want something you have to fix up. More like 600 - 800 if you want to maintain an upper middle class life style. We have found property taxes to be lower than many other major cities. Our 600K home property taxes are less than 4K.

115,000 - 16,500 tax deferred for retirement= 985000
98500 x 30% overall taxes = 69000
69000 - 5000 kids college = 64000
64000 - 6000 2 car lease and insurance = 58000
58000 - 7000 school loan = 51000
51000 - 30000 2500 house payment, insurance, taxes, utilities, upkeep, = 21000
21000 - 6000 food = 15000
15000 - 5000 health insurance = 10000
10000 - 5000 - entertainment/vacations = 5000
5000 - 1000 diapers and new baby stuff - 4K
4000 - 1000 Cell phones = 3K

So, about 3K a year for Christmas, birthdays, a new roof, emergency buying a newer used car, cash savings,(much more if no school loan and basic car loans [or none])

As a side note -- while anyone can live on less. The poster is a responsible, most likely educated, young man who I am sure isn't out wasting his money. He mentions saving for his kid's college and wanting a good school system for his children. Why the hate? His kids won't get income based scholarships and sadly he is probably an age where he won't see much of his SS contributions because people just getting by and who have little retirement savings will be first in line to get whatever is left.

On a side note: if you or you wife is in to coupons, there are three major grocery stores here and Whole Foods and Sunfresh, and Sprouts, which equals great competition. The deals can be amazing if you pay attention to sales and combine with coupons. I make plenty of money, but sales and coupons are my hobbies. I have yet to have a grocery receipt that doesn't say at least I saved 50% and generally it says 60-70%. My husband and I divide and conquer the stores. We get the Sunday paper and often go out and buy more when the inserts are particularly good. There are also online sites to print coupons. And, the local stores have electronic coupons that are automatic. Join the RiteAid wellness thing. You just have to pay attention and spend a few hours a week planning.

Your post is a nice dose of reality! Even though $115K is definitely in the higher income range, for a family of four and no other income, it's not going to provide a lifestye of the rich and famous. We have a combined income relatively higher than that plus two kids, and we cut coupons and watch our spending. The sad reality in the U.S. is that the "middle class dream" is dead, and a lifestyle that was considered middle class in the '70s or '80s (and earlier) now requires an upper class income. We live in Stapleton, which on the surface looks like a very middle class area overall. I feel like we're middle class, with a 3 bdr., 2.5 bath, two car garage house. But our neighbors are lawyers, doctors, small business owners, directors and VPs... I'm gussing the average household income on our block is at least $150K, if not higher. There are no pensions or cheap healthcare anymore. We have a $5K deductible on healthcare. Add in trying to catch up on retirement funds, college savings for two kids, and that alone sucks up a lot of money.