Out of place with a $200K income? (Dallas, Richardson: for sale, real estate)

[busterkeaton]

If you ever feel like $200 grand isn't a lot of money just come hang out with me and you'll feel like Bill Gates.

[kazyn]

Originally Posted by busterkeaton

If you ever feel like $200 grand isn't a lot of money just come hang out with me and you'll feel like Bill Gates.

True that

[loves2read]

It is all relative...

[kazyn]

Originally Posted by loves2read

It is all relative...

But of course I was just talking about that yesterday with a friend of mine. Life scales

[Siggy20]

Originally Posted by lh_newbie

$200K isn't as much as one would think. I personally think that if you make that kind of money, you shouldn't be living in Preston Hollow, University Park, Highland Park, Southlake or Lakewood. My thought is that those areas are for people making $400K or more. If one doesn't spend all $200K, one doesn't have to worry if their friends will "fit in" with their lifestyle. Live in an area that has homes in the $300-400K range. Actually SAVE your money instead of spending it... and when I say save, I don't mean putting 10% into your 401K. Live like you made $125K. Max out your 401K, max out your IRA contributions, then open a personal trading account. Buy a rental unit. Do something other than spending, live a humble life and retire earlier. I'd personally rather retire at 50 having lived a "$125K lifestyle" than have to work until 65 and live a "$200K lifestyle".

Please don't take this as being on my soapbox - my wife and I both work, but we purposely bought a home we could have afforded on a single salary. We invest heavily into early retirement, accelerated mortgage payments, etc, etc. Since these things aren't seen externally as a "lifestyle" by spending and buying stuff, many of our friends aren't aware of what we make. I personally like this sort of lifestyle as compared to one in which we spend a lot more - having a very nice nest egg certainly takes many of the stresses in life away.

Brian

Well said indeed. If more folks took this advice, I think that we would have less financial messes. My husband and I have a similar philosophy to you and your wife. We are savers, not spenders. We live a comfortable life and are trying to impart similar values to our children.

In our NJ neighborhood (soon to be coming to Texas), $200k+ salaries are fairly common, especially in close proximity to NYC. So often, I watch folks drive the latest and greatest cars, give their kids expensive cars (a few of the kids have wrecked them or gotten themselves killed), expensive clothes, etc. The high school parking lot is filled with BMWs, Mercedes, etc. Woe to you if you time your shopping around the time HS lets out. You will be tailgated, flipped off, and generally enraged by some behavior you see. Just the other day, I watched one mom and her spoiled 12ish year old daughter in a store turning up her nose at all the luxury items her mom was offering. My daughter, 11, watched in amazement, as this spoiled, no gratitude kid was being a general brat. I took my daughter to this store as a special treat. Sadly, I see this attitude more and more around this area. Even folks who probably aren't making that big salary are still going out to buy the expensive luxury vehicles to keep up with the Jones. No wonder why people live pay check to pay check. The idea of savings is a foreign concept.

To the OP, I would buy a nice house in a good area with good schools. I would personally avoid the affluent areas and pick more in a normal price range. Be happy and have your kids happy.

Sorry to get on my soapbox too. Just have seen what money can do and people living outside their means. We are not even in a particulary affluent area either. I also don't intent to insult folks that are making the big bucks either. Many people do raise well grounded, responsible kids and kudos to you. Just have seen the opposite end of things in my area and it is somewhat disturbing.

[RandMcNally]

Thanks, everyone.

FWIW, we are in perfect agreement with you, Linmora and lh_newbie, and have lived/spent well within our means for years. And, we'll do the same when we move to Dallas. My point still is that even though we might easily be able to afford to live somewhere and have an income to match, it might not be to our liking. This thread has helped reassure me that parts of Richardson could possibly suit us well and potentially parts of Lakewood. I guess we'll see when we get there....

[purplerain112]

Seriously, if the gross household income is only 200K, I wouldn't live in a life style mentioned in the thread unless I want to be in debt or not having any savings.

[stan4]

$200k doesn't go as far as people would think.

You want the big house, the $70k car, the private school tuition...not on that salary.

[AllySmith]

Ummm......personal income is just that....PERSONAL

Unless you obvioulsy live below the poverty level, it doesnt matter, and is nobody's buisness anyways!

[Lakewooder]

Originally Posted by lh_newbie

$200K isn't as much as one would think. I personally think that if you make that kind of money, you shouldn't be living in Preston Hollow, University Park, Highland Park, Southlake or Lakewood. My thought is that those areas are for people making $400K or more. Brian

I cringe when I see Lakewood lumped in with those!

I don't think you need $400K or even $200K to live in Lakewood. Sure maybe if you want to buy one of the million-dollar + homes or estates..however there are a lot of folks living in those houses mortgage-free and they don't make that much money - as far as I know - growing up here I was taught that you try to hide it if you make that much!