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Old 05-20-2013, 01:41 PM
 
Location: Vallejo
16,376 posts, read 18,371,505 times
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Quote:
Originally Posted by mathjak107 View Post
really? can you live NICELY on 35- 40k of pretax income? i know we can't.

because that is all 1 million represents if you are trying to live off it.
You get used to the standard of living you're used to. My first couple jobs yeah, I was comfortable on that. I mean, I didn't have much. In Sacramento, I had room mates and an old Honda that was paid for. In Seattle, I had an inexpensive studio and used Zipcars/Enterprise on the rare occasions I needed a car. I did have medical insurance through work, but at $35k I was definitely comfortable. My only bills were rent/utilities ($900/month) and student loans ($300). Throw in $400 for food and misc. expenses and I had $800/month to play with.

Now I have a lot more expenses that have snuck in. I'd be very much month-to-month on $40k.
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Old 05-20-2013, 04:28 PM
 
Location: Ridgefield, NJ
39 posts, read 48,742 times
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Quote:
Originally Posted by Eric Fred Norris View Post
I mean of course its a big deal since it means you can live comfortably in most places in the world, but is it anywhere near the life changing benchmark that it used to be?

I'm about to cross that mark this year and I still feel pretty poor. Am in my 30s, no debt, no inheritance, no kids or wife. Still pinch pennies and clip coupons. I don't think I'll feel secure ever no matter how much I have socked away, which sounds terrible. Then again, I'm Asian and am expected to care for my parents, who have no retirement saved away whatsoever.
First of all with regards to your current financial achievement you are 'about to cross this yr', congrats.

With regards to the financial money mark(million), i made more money than i ever have last yr and the yr before(considerably less than you my friend,lol) and couldn't care less about it. I dont mean to be an idealist but as long as my wife and kids are healthy than i am set.

It continues to be more important to live a relatively comfortable life(making your bill and keeping a roof over your head), whatever money mark allows one to do that than that is the number that still matters to attain.
Another words if a yearly income of $40-60grand does that for you than that is our mark that is still a big deal to reach.
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Old 05-24-2013, 12:58 PM
 
Location: Living on the Coast in Oxnard CA
16,276 posts, read 28,854,031 times
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Middle class now reaches into Millionaire status.
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Old 05-24-2013, 01:14 PM
 
134 posts, read 281,754 times
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This thread is amusing to me. I do believe there has been a middle class squeeze, but i also believe the magnitude of the squeeze is drastically overstated. It's quite easy to live on 40k per year in most locations - if you think you can't live on that amount of income you probably need to examine what you're currently spending your money on. Many middle classers bemoan the pinch they feel, all the while leading a life of excesses.
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Old 05-24-2013, 01:19 PM
 
86,415 posts, read 83,877,589 times
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The wild card is medical insurance. With 15k for just husband and wife you better be prepared to dumpster dive in most city areas . 40k and paid medical is more akin to 65k and paying your own.

living in queens ny our basic non descretionary spending without food ,gas and any other descretionary spending, just our basic bills is 45k in after tax dollars with 15k of that medical insurance.
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Old 05-24-2013, 02:15 PM
 
Location: Living on the Coast in Oxnard CA
16,276 posts, read 28,854,031 times
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One of the fastest growing segments of the middle class is the middle class millionaire. Not that I like how they figure that assesment out. I would not include the wealth of my home. I have to live somewhere. Still I am living in a home that could have been purchased new for less than $20,000 when it was built. I am thinking that someone in the 1960's who was a millionaire could have bought all 20 homes on my street and still had $600,000 left over. Last month a home sold on my street for $380,000. A Million would purchase 2 and you would have $240,000 left over. To make this simple lets just devide $1million by $20,000 = 50 homes x 380,000= $19,000,000. Now I am not exactly sure that home prices were in 1962 but I do know that my parents paid $13,000 in 1965 for a smaller home than I live in now. My home was built in 1962. Still it should be somewhat of a good reference point. My thought being is that you would need to multiply $1million by 19 to come out in a similar range.
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Old 05-24-2013, 06:47 PM
 
Location: East Coast of the United States
21,027 posts, read 22,293,431 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
One of the fastest growing segments of the middle class is the middle class millionaire. Not that I like how they figure that assesment out. I would not include the wealth of my home. I have to live somewhere. Still I am living in a home that could have been purchased new for less than $20,000 when it was built. I am thinking that someone in the 1960's who was a millionaire could have bought all 20 homes on my street and still had $600,000 left over. Last month a home sold on my street for $380,000. A Million would purchase 2 and you would have $240,000 left over. To make this simple lets just devide $1million by $20,000 = 50 homes x 380,000= $19,000,000. Now I am not exactly sure that home prices were in 1962 but I do know that my parents paid $13,000 in 1965 for a smaller home than I live in now. My home was built in 1962. Still it should be somewhat of a good reference point. My thought being is that you would need to multiply $1million by 19 to come out in a similar range.
But that's in California where home prices are very high now. Go to the Midwest and you can get the same for probably less than $100,000.
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Old 05-25-2013, 03:21 AM
 
6,335 posts, read 5,989,904 times
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Quote:
Originally Posted by mathjak107 View Post
living in queens ny... .
Well, there you have that. Way too expensive to live in the NYC metro, IMHO, and Queens not even the nice part. You could move to a very nice home in a very nice part of 2/3 of the rest of the country and do much better re health care costs, housing, insurance, taxes, etc. etc. etc. And depends on your profession whether or not there's that much difference in income. And interest income rates on investments are the same wherever you actually physically live, aren't they?

I'll never understand why people choose to remain in crazy expensive parts of the country when there's so much more wonderfulness out here which can provide an easier, better quality of life!

But each to his or her own.
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Old 05-25-2013, 03:27 AM
 
86,415 posts, read 83,877,589 times
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why ? kids and grandchildren live here and being near them and in their lives is priceless.

both my wife and myself had our parents move to florida where they missed their grand childrens daily lives.

many low cost areas are not really that low cost when translated to local pay.

we had a house in the pocono mountains in pa. we figured out we could make do on 20% less income. salarys were 1/2 of what they are here so we decided not to move.


many times you are fooled by what you think is lower cost too.

while we have a 2 bedroom apartment here in nyc and none of the kids are with us ,we had to buy a 3 bedroom house with a finished basement in pa because now everyone that comes has to stay over. cost saving on housing here would be zero.

what our apartment is worth was what the house cost us. taxes would be cheaper but not much else in the big numbers .

medical insurance , cost of colleges, cost of cars , repairs ,clothing , all about the same as here. all the big expenses were in the same ball park.

we figured cost of food ,auto insurance and some utility bills would let us get by on 20% less income, but not a 50% pay cut .

many low cost areas suck for retiring to as well . being home every day there is nothing like having endless things to do no matter what the weather.

where we were going to retire to lacked much of what became important to us as we thought about retirement, lack of public transportation if we couldn't drive , wide choices in medical care , things to do daily other than the local football games and a movie.

all these things showed us why we want to be where we are.

it is all about lifestyle and what you want.

our friends retired and moved to florida a few months ago because they planned badely for retirement and could not afford to live here.

they are very unhappy even though its a great area. they just miss all the things we have here as well as family and friends.


now you know why people stay .

Last edited by mathjak107; 05-25-2013 at 04:10 AM..
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Old 05-25-2013, 04:27 AM
 
Location: Texas
843 posts, read 1,466,638 times
Reputation: 494
Due to inflation,1 million asset isn't a big deal anymore.
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