800k household income - does not feel rich

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1 year ago 09/09/2022 7:47pm EDT

re: poorkid1234

poorkid1234 wrote:
before you call me a whiny rich guy, understand that 800k is actually 500k after taxes, which is 60k / month. that money disappears quickly.
wife and I are professionals and work extremely hard. we also have six figures of debt each from grad school, so 10k of that goes to servicing debt (principle and interest).
15k goes to our kids education (private school + 529 for 3 kids, ouch).
that leaves 25k left. where does that go?
10k to our mortgage in expensive as$ California - $2 million shoebox house
5k to entertainment (eating out, going to zoo, movies, etc with kids is NOT cheap)
3k to cars (loan, gas, insurance, repairs, etc)
3k to groceries
4k leftover for savings / retirement / investing. lol. how can you live off of 4k/month.
we are poor.

You do not pay $300k in federal income taxes on an $800k annual income. You pay far less under current brackets and given deductions (see mortgage below)

$15k per month = $180k per year = $60k per kid for schools. R U nuts?

$ 2 million divided by 20 years say = $100k per year for principal. 30 years = $67k per year. Given you should have locked in an extremely low interest rate and I assume did not actually pay $2 million for the house and had to have put down a big chunk as a down payment, no chance your mortgage is $10k per month.

$3k per month for groceries when you are spending $5k per month for eating out etc.?

1 year ago 09/09/2022 7:53pm EDT

re: Harambe

Harambe wrote:
Igetit wrote:
I can relate to this post. AGI the last 4 years has averaged out to around 850k but is probably closer to 1m now. We also have 3 young kids and live in a VHCOL area. Here is how our budget breaks out from a monthly expense/cashflow standpoint.
* Daycare = $6500 + 1 in public school
* Car = $1k (1 car bought cash, minivan has a loan on it)
* Groceries = $3000 (easy to do with a big family and running moderately high mileage)
* Mortgage = $13800 (3.2m home)
* Entertainment = $3500 a month (averaged out/including vacations)
* Other miscellaneous = $1000
Basically this leaves us with 1-2k of extra monthly cashflow to save or invest.
The kicker though is that we are pulling in probably 200-500k a year in bonuses and stock vests which we completely bank and invest. Every couple of years we all seem to get some sort of weird liquidity event which seems pretty common with people at this income bracket.
I would say that your car expenses are hilariously over the top. I can't imagine spending 3k on cars. That is also a lot of money on schooling but if that is something you value then I get it. Entertainment looks bad on the surface but if it includes vacations then I get it too.
In short, you definitely aren't poor but a big family in a VHCOL area is tough and while I am sure finances aren't a stressor for you I can certainly understand why you don't feel rich. I don't know how old you are or what your asset level is but I will say that once our liquid asset level got up into the mid to high 7 figures we did start to feel a bit more affluent.
Your expenses sum to ~350k/yr. Unless you're voluntarily paying a 60% effective tax rate then this math doesn't check out. Looking more like 150-200k of FCF a year.
Unless you mean that 200-500k of your AGI is in bonus+RSUs that you immediately save in which case you are saving at a very impressive rate and have only yourself to 'blame' for such conservative financial choices.

I do in fact mean that we bank our bonus+RSUs so your interpretation in your second paragraph is correct. We take home 550-600k in base pay. I am not the one who started the thread nor am I complaining. We are uppers 30s and on track to retire with 8 figures by our mid 40s... which should allow us to maintain our current lifestyle + accumulate something on the lower end of HNW/generational wealth by the time we do (assuming we live long lives and the world doesn't end).

1 year ago 09/09/2022 7:57pm EDT

re: igetit

I live in Manhattan and can't imagine scraping by on 800K.

1 year ago 12/06/2022 7:52am EST

re: My name is Greta

My name is Greta wrote:
I live in Manhattan and can't imagine scraping by on 800K.

How much do you make?

1 year ago 12/06/2022 8:35am EST

re: poorkid1234

poorkid1234 wrote:
before you call me a whiny rich guy, understand that 800k is actually 500k after taxes, which is 60k / month. that money disappears quickly.
wife and I are professionals and work extremely hard. we also have six figures of debt each from grad school, so 10k of that goes to servicing debt (principle and interest).
15k goes to our kids education (private school + 529 for 3 kids, ouch).
that leaves 25k left. where does that go?
10k to our mortgage in expensive as$ California - $2 million shoebox house
5k to entertainment (eating out, going to zoo, movies, etc with kids is NOT cheap)
3k to cars (loan, gas, insurance, repairs, etc)
3k to groceries
4k leftover for savings / retirement / investing. lol. how can you live off of 4k/month.
we are poor.

This is why poor people shouldn't be allowed to have kids.

1 year ago 12/06/2022 9:23am EST

re: poorkid1234

I think we bring in over 100k. I feel like the richest man alive some days. Health is wealth.

1 year ago 12/06/2022 10:08am EST

re: My name is Greta

I live in NYC and would really prefer to make over $1 million a year. Anything less than that and it’s really hard to live like a human being.

1 year ago 12/06/2022 10:24am EST

re: Hi Greta

So i make 450k/year---after maxing 403b and HSA i take home 22k a home

mortgage/taxes---4500k/month

childcare--2-3k/month

eating out AND groceries for 3 is 1k/month

home maintenance(snow removal, weekly yard work etc)--1-2k month

monthly massage/golfing/hobbies etc---1k/month

no debt except house---dave ramsey style

that leaves about 100k/year in savings after 403b retirement contributions

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