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Everything is relative. Your expenses increase the more you make. It's just reality.
I make a very good living (not 1.5 million or even 1 million). But still an excellent living. But I try to live way below my means. Wife wants to send kids to private school. I am product of public school system. I win the argument every time. We live in a very good school discrict. Why pay $$ for private school when you live in a good school district.
We have friends back in the DC area (we currently live in Florida). But people live in McLean and Potomac (very affluent areas of Washington DC) yet send their kids to the "elite" private schools. And they complain they don't have enough money. It's a joke.
If you make good money (any thing over 200K in most parts of the country). If you make this money, live below your means.
I can easily afford a 1-2 million dollar home. But why? Electricity bills are high. Property taxes are high etc. More maintence cost. Unless I am paying close to all cash, I won't consider buying a 1-2 million dollar home. A 10000 a month mortgage will eat you alive very quickly if you stop making that 1 million a year. Even if you take a "pay cut" to 500K, that mortgage (and home maintenance) will take you down quickly.
Lastly, remember income doesn't not equal wealth. And it's not what you make but what you keep.
Funny you should bring up the private schools. I live in a town that gentrified so much that families could not move in and several public schools closed. It used to be one the best districts in the state, high school still is. Yet, the rich families who can afford to move here put there kids in private school. And I know some of them with $2000 mortgages and several kids in the private are scounging for public assistance. Some people have an unbelievable amount of nerve and selfishness.
I'd send my kid to private school if I could afford it. Probably Montessori. But I have really radical ideas about education so even the "best" traditional schools are not my thing. But yeah, if you're going with a traditional model and you live in a good school district, there is no reason to send your kids to a private school except for maybe networking. But that is some expensive networking!!
Understandable; although I don't have any children at the moment, I do want the best for them as any parent would. I went to private school up until third grade, and went to a public school in my district that wasn't diverse at all, and that changed my life for the most part. My mother didn't send me to Public school because of the lack of money, but more because I continued begging her to put me into Public school mind you I was in Baltimore.
Its a major change I must say, one stresses diversity in education rather its going to camps to learn about the woods or going to a national battle-scene to learn about a battle, while the other stresses over simplification, and watering down of education. I refuse to allow my children have a watered-down education, and for the most part I want to be involved with their school life especially at a young age. They will need to attend Private and Montessori schools at until 5th grade, and once they enter the Public system (only if they want to), it will be in a great district, not Baltimore but more like Fairfax, VA or Howard County, MD. I wish my mother was a bit more tough on me, and that's why I'm going to hold my children to the highest-standards, of course they'll have their ups and downs and I won't be able to shield them from everything but they will have great grades, and they will have a diverse education and once they turn 18 its on them how much they want utilize how much I've done for them.
But as said above, if they do decide to leave Private or Montessori based learning in 6th grade, I'll reallocate those funds towards their education or maybe even just general savings. I'm going to teach my children how to invest early on, if they want to go to Toys R Us, they need to earn the allowance to do so and a part of that allowance must go towards saving. I know all of this sounds strict or maybe even crazy, but I feel as if I''m working far too hard for my future children at the age I am now, to allow them to be slouches at life.
But as said above, if they do decide to leave Private or Montessori based learning in 6th grade, I'll reallocate those funds towards their education or maybe even just general savings. I'm going to teach my children how to invest early on, if they want to go to Toys R Us, they need to earn the allowance to do so and a part of that allowance must go towards saving. I know all of this sounds strict or maybe even crazy, but I feel as if I''m working far too hard for my future children at the age I am now, to allow them to be slouches at life.
Sounds good. I already make my son buy what he wants (other than birthday and xmas gifts) with his allowance, and he has to save 20% and give 10% to charity. I'm such a tyrant. lol
Sounds good. I already make my son buy what he wants (other than birthday and xmas gifts) with his allowance, and he has to save 20% and give 10% to charity. I'm such a tyrant. lol
LOL; I think that's a good tyrant. But I didn't even think of charity to be honest with you, that's a entirely different beast. I know when I was a child, I always wanted to be the type of child to give all my gifts away during Christmas time, but I was always too selfish for that considering I always received pretty good gifts. But I think I may have my child/children pick out a gift every time around Christmas to donate, of course it would probably be clothes. LOL
Only 200k and up would be considered "good money" in most parts of the country? Stop it...you know better.
50k a year for the super overwhelming majority of Americans would be considered "good money" in just about every corner of this country except very wealthy areas. Only a very tiny fraction of Americans make anything close to approaching 200k a year. A very tiny fraction.
Hell, a Pharmacist makes about 100k a year. How many pharmacists do you know?
And most Americans...like 90%, would never consider dropping a million on a home. Most Americans expect to pay somewhere between 150-250k for a house.
Well, I actually know a lot of pharmacists! My brother, my mother, my cousins, their spouses are all pharmacists! I know exactly what pharmacists make and $80-120K a year is around the average. But big coprorations like Walgreens and CVS have started decreasing their hours. It's tough to own your own pharmacy and compete with the big 2 these days. New grads aren't even offered 40 hours these days. They try to work them at 32 hours.
$50K a year is not good money in high cost areas. If you are in the DC area, LA, SF, NY...all the high cost area, you cannot find a 2 bedroom condo for $250K unless you want to face a 1 hour commute to work each day.
The average household income in the 4-6 county area surround DC and Baltimore all average close to 100K a year. I think people use percentages of what people make and scew them. Yes in Mississippi 50K can get you by comfortably. But in other parts, many families struggle with that income.
Well, I actually know a lot of pharmacists! My brother, my mother, my cousins, their spouses are all pharmacists! I know exactly what pharmacists make and $80-120K a year is around the average. But big coprorations like Walgreens and CVS have started decreasing their hours. It's tough to own your own pharmacy and compete with the big 2 these days. New grads aren't even offered 40 hours these days. They try to work them at 32 hours.
$50K a year is not good money in high cost areas. If you are in the DC area, LA, SF, NY...all the high cost area, you cannot find a 2 bedroom condo for $250K unless you want to face a 1 hour commute to work each day.
The average household income in the 4-6 county area surround DC and Baltimore all average close to 100K a year. I think people use percentages of what people make and scew them. Yes in Mississippi 50K can get you by comfortably. But in other parts, many families struggle with that income.
Most Americans live in areas in which 100K is plenty.
Too bad liberal politicians don't understand this concept.
Yeah, because no conservative/neoconservative/Republican has EVER run up any debt.
The hypocrisy and myopia is beyond words...
Being a partisan hack is such a dead end. You've been deluded into thinking one party is responsible for all our nation's woes and one party has all the solutions.
Everything is relative. Your expenses increase the more you make. It's just reality.
I make a very good living (not 1.5 million or even 1 million). But still an excellent living. But I try to live way below my means. Wife wants to send kids to private school. I am product of public school system. I win the argument every time. We live in a very good school discrict. Why pay $$ for private school when you live in a good school district.
We have friends back in the DC area (we currently live in Florida). But people live in McLean and Potomac (very affluent areas of Washington DC) yet send their kids to the "elite" private schools. And they complain they don't have enough money. It's a joke.
If you make good money (any thing over 200K in most parts of the country). If you make this money, live below your means.
I can easily afford a 1-2 million dollar home. But why? Electricity bills are high. Property taxes are high etc. More maintence cost. Unless I am paying close to all cash, I won't consider buying a 1-2 million dollar home. A 10000 a month mortgage will eat you alive very quickly if you stop making that 1 million a year. Even if you take a "pay cut" to 500K, that mortgage (and home maintenance) will take you down quickly.
Lastly, remember income doesn't not equal wealth. And it's not what you make but what you keep.
I also buy real estate with cash (have two pieces so far, about $500 000 in sum, but I have a lot of time ahead till retirement). And I don't like debt of any kind, especially CCs with their ridiculous annual % and fees). The only debt that I could agree with is student if it is absolutely unavoidable for person to get good education. But I would minimize it as low as possible and be very careful choosing the major.
If my income were close to million per year, I can just imagine how much more I could save. The only expenses I want to increase are travel-related, but I can't travel too often because of kids anyway.
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Can't live on $1 million per year?
But I didn't even think of charity to be honest with you, that's a entirely different beast. I know when I was a child, I always wanted to be the type of child to give all my gifts away during Christmas time, but I was always too selfish for that considering I always received pretty good gifts. 
But I think I may have my child/children pick out a gift every time around Christmas to donate, of course it would probably be clothes. LOL
