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Yes, you can choose to be extra frugal, But most single professionals making 120K do not want to live in a violent community w/ no real amenities.
The below apt. complex is far from lavish... but the average rent for a 1 bedroom is 3k+/month (and this is considered by many to be a good rental price for the area).
I would like to see a breakdown of your expenses. I think that a single person who is unable to live on a 120K salary has a serious money management problem.
I've lived in Manhattan all of my life (born here) and have never had a problem managing my money, and living well. The only time I suffered a bit was when I divorced my husband and had to deal with my legal bills from the divorce case, along with our credit card debt, which was left to my name. But after a three year divorce, I was able to get back on my feet very well and today, I am not making 120K, but live well. I frequently travel to California, Australia, have my savings and go out with friends.
Seriously - you guys can't live on 120k?? No wonder you millennials are called the, "entitlement generation"
I'm not saying that it can't be done, my overall point is making 120K per year is far from upper income. After taxes, student loans, maxing out w/ 401K contributions, roth IRA contributions, (non retirement) savings, exorbitant rental costs, yearly vacations etc., there's not a lot of excess money left!
I'm not saying that it can't be done, my overall point is making 120K per year is far from upper income. After taxes, student loans, maxing out w/ 401K contributions, roth IRA contributions, (non retirement) savings, exorbitant rental costs, yearly vacations etc., there's not a lot of excess money left!
Not everyone has a student loan.
No one is forcing you to max out your 401k and Roth. No one is forcing you to pay $3k a month in rent. You get the idea. All discretionary.
This is true, but most young professionals (from working class/lower middle class backgrounds) who earn 120K+/year do, because more often than not, schooling was necessary to work in their respective professions (i.e. medical professionals, attorneys, CPAs, engineers, business consultants, professional analysts etc.)
I do not owe an excessive amount of money back in student loans, because I did receive scholarships, but I still have some student loan debt, that I'm actively paying off.
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no one is forcing you to pay $3k a month in rent. You get the idea. All discretionary.
This is not exactly true. If a single person earning a six figure salary, w/ no dependents doesn't max out their 401K, they will be handing over additional money to the fed, since their income will be higher, without the retirement deductions.
Also, most people do not want to pay 3K for a one bedroom, basic apartment, but that's the nature of living in NYC if you earn a six figure income. There are NO special programs for people in this income bracket, meaning you won't qualify for affordable housing. You can opt to live in queens, bronx, staten island and undesirable parts of Manhattan and BK, but at the end of the day, you may very well be putting your safety at risk (especially if you are a single woman).
This is true, but most young professionals who earn 120K+/year do, because more often than not, the schooling was necessary in their respective professions (i.e. medical professionals, attorneys, CPAs, business consultants, professional analysts etc.)
I do not owe an excessive amount of money back in student loans, because I did receive scholarships, but still I do have payments.
Loans are bills , everyone has bills regardless of income, it's part of life. They eventually get paid off.
This is true, but most young professionals (from working class/lower middle class backgrounds) who earn 120K+/year do, because more often than not, schooling was necessary to work in their respective professions (i.e. medical professionals, attorneys, CPAs, engineers, business consultants, professional analysts etc.)
I do not owe an excessive amount of money back in student loans, because I did receive scholarships, but I still have some student loan debt, that I'm actively paying off.
This is not exactly true. If a single person earning a six figure salary, w/ no dependents doesn't max out their 401K, they will be handing over additional money to the fed, since their income will be higher, without the retirement deductions.
Also, most people do not want to pay 3K for a one bedroom, basic apartment, but that's the nature of living in NYC if you earn a six figure income. There are NO special programs for people in this income bracket, meaning you won't qualify for affordable housing. You can opt to live in queens, bronx, staten island and undesirable parts of Manhattan and BK, but at the end of the day, you may very well be putting your safety at risk (especially if you are a single woman).
There are plenty of safe neighborhoods in my boro of Queens and I'm sure in SI and Bx as well. This is not the 970s. Manhattan really is not all that...too congested with people, cars, noise, garbage etc. can't breathe living in Manhattan imo. I grew up there for 20 years. As I stated, there a lot of 1 bedrooms in the $1600-2000 range in nice areas.
If you're concerned about saving on federal taxes by putting the max amount of money aside for retirement, you're obviously not struggling. If you were struggling you would be living check to check with zero vested in retirement.
This is not exactly true. If a single person earning a six figure salary, w/ no dependents doesn't max out their 401K, they will be handing over additional money to the fed, since their income will be higher, without the retirement deductions.
Also, most people do not want to pay 3K for a one bedroom, basic apartment, but that's the nature of living in NYC if you earn a six figure income. There are NO special programs for people in this income bracket, meaning you won't qualify for affordable housing. You can opt to live in queens, bronx, staten island and undesirable parts of Manhattan and BK, but at the end of the day, you may very well be putting your safety at risk (especially if you are a single woman).
You're obviously not from here and thus cannot form an educated opinion on this.
There are plenty of areas in this large city that are safe and *gasp* affordable, especially to someone earning 120K. Hell there are safe areas even people earning half that can obtain. So please don't try to tell us that it's not possible. Those of us from here know it's possible. Will it be in a hip and trendy area? No. But it will be a blue collar, middle class area that is safe to walk around at night. I've been doing it my entire life.
As for federal deductions, then you need a new accountant, because there are plenty of tax write offs that people do not take advantage of. If you need to max your 401K to avoid paying taxes, than change your withholding to single 0 instead of whatever you're claiming now. (Most people who follow the W-4 blindly, claim single 2, which is a mistake).
As for student loans, you are aware that with the new laws Obama passed, you can negotiate what you pay, right?
Stop trying to tell us living here on 120K can't be done. My husband and I are clearing slightly less than that combined and we manage just fine. And we have a car.
Parents helping their kids is not the norm. How are working class and poor families able to help their kids when they have to worry about paying their own bills and retirement? There are a lot more poor folk than wealthy. I have to help out my parents. They emigrated here with poor paying jobs and have little saved for retirement.
It is the norm. Many will not admit to it for whatever reason but it is prevalent because it's what any normal parent who is capable of doing so will do.
Thankfully, working class doesn't comprise the majority of the American population. Most US households are solidly middle class or above. Many Americans also own their own property weather they paid it off or inherited it. Let's remember that renting is not the norm in the US, although it may seem that way in NYC.
One reason for the cycle of poverty is that poor kids can't/don't receive help from their parents as they're entering adulthood. Middle class and wealthier children do and it's a HUGE leg-up. Things such inheriting a home or money creates a HUGE cushion.
As I stated earlier, many won't admit to receiving help and I encounter it even amongst my friends and acquaintances. I received help from my parents. They paid for my brother and I's education. Although we went to a state school and it was "only" 40K for 4 years each, it was a huge help not graduating with student debt.
When my brother went to grad school and I was already working, I helped him pay his way through. When he graduated and got a job, I gave him the money for 1st months and security. My grandparents also helped him at that point. I have no doubts that he would do the same for me if I asked.
I know plenty of people who had similar or much more help from their parents/grandparents/family/siblings/spouses/etc.
I've known people to receive 100k for a down payment on a home and they weren't from a wealthy family. I've know people who became nurses in NYC and their parents were still paying their student loans so that they could buy a home.
Don't expect them to just come out and tell you.
Last edited by wawaweewa; 05-27-2016 at 07:52 PM..
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