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Not necessarily. There are still companies that pay very generous salaries and grant stock options. My spouse works for one of them, in flyover country no less.
I should point out however that this part of the country is decidedly less showy than the Bay Area, and anyone who shows up for work in an $80k car obviously bought with the proceeds from a stock sale would be derided as a fool.
You might be very surprised what the guy in the polo and khakis driving a Toyota is pulling down. My spouse broke the six-figure mark as a 28-year-old working in California telecom. We know quite a few start-up millionaires who retired to wine country in their early thirties. As for us, we earned our money. Nobody in our household is a trust fund baby.
Everyone and their brother was making 6 figures in California telecom and a whole host of industries. That doesn't mean anything and that's why the cost of living is so high in california and why other states salaries are much lower. I know a manager of an RV repair shop that pulls 6 figures. Doesn't mean anything. And sorry but start up millionaires retiring to wine country are few and far between. There are 300+ million people in America. We always "know someone". Sounds like you "married up" well lol.
To shed some light on this issue, here's a scenario for your consideration...
The average compensation for a khaki-clad, Toyota-driving line engineer at my spouses's company was $134k last year. Yes, those in the middle of the country, too!
Proceeds from the company's ESPP easily adds $50k, sometimes much more. This year, it was closer to $100k for those who partcipated.
Imagine combining two of those compensation packages in a marriage and setting it down in suburban flyover country. Now, imagine that this couple decides to live on one salary, and they invest the rest in a market that has been giving pretty impressive returns lately. *
Are you starting to get the picture? As I said, no inheritance required.
*Even if a family is living on only on of those salaries, there's quite a bit of room for savings and splurges.
Last edited by formercalifornian; 12-17-2010 at 08:35 AM..
"Don't judge men's wealth or godliness by their Sunday appearance" - Benjamin Franklin.
I have friends from one end of the spectrum to the other, ranging from dirt poor to ungodly wealthy. A few low-income ones drive leased Beemers and Mercedes and some of the wealthier ones drive plain Fords and Chevrolets. Some have earned their money by hard work while others have inherited it at a young age.
I've worked hard, went to college, and became an aeronautical engineer for a large defense firm in the Valley. I have a six figure salary but work hard to earn it. I, along with my siblings, get a yearly check from our parents for a fairly large sum for land rent on their farm. Dad decided a few years ago that it was better to start giving away some of his money to us now instead of having us pay a huge amount of capital gains later. He gets a tax write off and each of us 'kids' get a nice Christmas bonus.
Some are more fortunate than others, I've always been thankful for my blessings and counted myself as one of the fortunate ones. I firmly believe that because I have work-ethic and appreciation for money instilled in me at a young age, I was able to manage my finances successfully without going into the debt which I see my peers in. It's a vicious cycle, don't get caught up in it.
Socal, you seem a bit conflicted. In one post, you write that there aren't that many people earning six-figure salaries, while in another post you dismissively note that everyone and their brother in California makes six-figures, even the manager of the RV shop, so it doesn' mean anything.
Which is it?
BTW, I didn't "marry up." My spouse and I were both raised in lower middle-class families by parents who believed in education and a strong work ethic. We both attended college at average state universities and earned typical degrees. Our jobs have been professional, but not particularly prestigious. The combination of our salaries and consistent investments have provided a very comfortable living and a few luxuries, for which we are extremely grateful. We are the working affluent, and when we choose to indulge, we can afford our vacations and toys.
We have a neighbor who always seems to have the newest/latest/greatest. He likes to tell us about it all and brag about what everything costs. He and his wife make very good money ($80k each).
He came by earlier this week to chat about Christmas decorations - we decorate extensively and he's been trying to 'keep up' - buying new things, more LEDs, etc. We buy lots of decorations too, but little to none of it at full price and we've been buying for 10+ years, so we have a LOT.
The conversation went on and then turned to other things.
He told us that his house needs foundation repair - something minor that he knew about, but was waiting until next summer to fix. His daughter came home for Thanksgiving break (from an expensive college - paid for by student loans) and took a 3 hours bath while home alone. When she got out of the tub, she discovered that the entire house was flooded. The foundation problems led to plumbing issues. It's reached a critical stage. He left for work (he works 4 hours away, gone for 2 weeks, home for 5 days) and the next morning his daughter came over to get my dh's help because their garage door wouldn't open - no power to the garage. He helped them get the door up so they could leave, but he said the house smells like mold, and the wife told him about all the other problems with the house snowballing on them - electrical, plumbing, etc. It's going downhill fast. Due to this job he has, he's not around now long enough to get anything done by himself and they can't afford to have anything hired out. He's told us what they're buying each other and the kids (3 teens) for Christmas. The items he listed would pay our mortgage for 4+ months!
They started a small business earlier this year as a side line. Nice products, very popular. Just noticed Walmart has started stocking similar merchandise last week - why would I pay them $12 every four weeks when Walmart is selling the same item for $2? It's unfortunate.
But when they "have" money, they use it to buy the nicest phones, the biggest TVs, the best cars, great vacations, etc. In the meanwhile, they neglect home maintenance. And now they can't pay for it, but are blaming the economy and the feds for screwing the 'middle class'.
I know a lot of people in similar situations. They're having trouble keeping up with the basics, but still spend money on things we think of as 'luxuries'. And they're always looking for someone else to blame it on.
Originally Posted by formercalifornian;17039791BTW
, I didn't "marry up." My spouse and I were both raised in lower middle-class families by parents who believed in education and a strong work ethic. We both attended college at average state universities and earned typical degrees. Our jobs have been professional, but not particularly prestigious. The combination of our salaries and consistent investments have provided a very comfortable living and a few luxuries, for which we are extremely grateful. We are the working affluent, and when we choose to indulge, we can afford our vacations and toys.
You and your DH sound like the people profiled in the books "Millionaire Next Door" and "Stop Acting Rich".
What's particularly interesting is your comment that you're both professionals but neither of you are in "high prestige" professions. "Stop Acting Rich" noted that people in high prestige professions (like doctors and lawyers) tend to be the ones most likely to overspend. The people in low prestige professions actually tended to accumulate more wealth.
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