Boston cost of living (buying, salary, tax)

[timberline742]

Originally Posted by bigfatdude

How exactly would one feel "rich" making $75K/year when they would shell out well over $2K for apartment/utilities (two bedroom near T would cost at least that much) and close to $1K for car payments/insurance/parking/gas? Obviously, different story if you have roommates and/or no car, but OP would be flat-broke making $75K given their needs.

That is one person's income. If there is a two bedroom, one would presume there are at least two incomes involved. Loads of people don't want or need a car in the Boston area as well. When I did, my car expenses were no where near 1k a month.

[GeePee]

Originally Posted by timberline742

That is one person's income. If there is a two bedroom, one would presume there are at least two incomes involved. Loads of people don't want or need a car in the Boston area as well. When I did, my car expenses were no where near 1k a month.

Ding Ding...

Nobody "needs" a car. and nobody "needs" a car that cost $1k a month.

[charolastra00]

I spent most of my 20s paying for cancer debt/ongoing costs rather than building up an emergency fund, much less saving for retirement or a downpayment for a house. It seems like every day, the cost of housing goes up which makes me feel further and further behind so I feel like I need to save more and more.

I also had a 35% raise (split into two chunks) in the past year. The first raise was what got me away from living with roommates (which is why I moved to Marlborough - no fancy apartment here!), but rent ate the increase. This latest increase is all going to getting back on track with retirement and getting to 6 months of living expenses saved. Once I increased my retirement contribution a few percentage points, I really don't see much after taxes. Plus with an older car, repairs are starting to get pricey. I have a middle aged cat whose vet bills also are starting to add up.

If you had a more stable 20s or more steady salary increases, 80K might seem comfortable. But somehow, I still am pretty far behind where I expected I would be at 30. Until I have 6 months of expenses saved plus a little extra for expected car and vet expenses, vacations are not affordable. I treat paying myself first like a bill, and it's not one I'll miss.

[timberline742]

If you can save at all for retirement at 30, you're way ahead of the curve, as is earning 80k at that age, but I hear you.

[GeePee]

Making 80K at 30 is a really decent wage. I get you have some unforeseen expenses. But, by no means are you too old to start at all the retirement and savings for emergencies. Most people your age that make 80k have an expensive car in leu of the savings. You sound like you have your head in the right place. You are on the right track.

[bjimmy24]

Originally Posted by GeePee

Making 80K at 30 is a really decent wage. I get you have some unforeseen expenses. But, by no means are you too old to start at all the retirement and savings for emergencies. Most people your age that make 80k have an expensive car in leu of the savings. You sound like you have your head in the right place. You are on the right track.

If you have anything saved at all, you're doing better than a lot of people. The median savings amount is $11,700 for the entire US. 30% of people have under $1000 in the bank. The median millennial is at $2,340.

Source: https://www.cnbc.com/2018/08/28/how-...every-age.html

80k is a great salary, regardless of age. I wouldn't be surprised if I never make that much per year.

[bigfatdude]

Originally Posted by bjimmy24

If you have anything saved at all, you're doing better than a lot of people. The median savings amount is $11,700 for the entire US. 30% of people have under $1000 in the bank. The median millennial is at $2,340.

Source: https://www.cnbc.com/2018/08/28/how-...every-age.html

80k is a great salary, regardless of age. I wouldn't be surprised if I never make that much per year.

That doesn't paint the whole picture, many of those who appear to be flat-broke because they don't have much cash in their bank account might have six or seven figures sitting in their 401K or brokerage accounts. Net worth would be a much better estimate.

[bjimmy24]

Originally Posted by bigfatdude

That doesn't paint the whole picture, many of those who appear to be flat-broke because they don't have much cash in their bank account might have six or seven figures sitting in their 401K or brokerage accounts. Net worth would be a much better estimate.

Source of the source I gave: https://www.magnifymoney.com/blog/ne...rican-savings/

"The average American household has $175,510 worth of savings in bank accounts and retirement savings accounts as of June 2018.

The median American household currently holds about $11,700 across these same types of accounts."

[timberline742]

Originally Posted by bigfatdude

That doesn't paint the whole picture, many of those who appear to be flat-broke because they don't have much cash in their bank account might have six or seven figures sitting in their 401K or brokerage accounts. Net worth would be a much better estimate.

The 11k number includes retirement savings.

[redplum33]

Originally Posted by charolastra00

If you had a more stable 20s or more steady salary increases, 80K might seem comfortable. But somehow, I still am pretty far behind where I expected I would be at 30.

Whether you realize it or not, you're doing pretty good making 80k at age 30.