200k-37k > 50k-anything. Equalizer?
If a family makes 200k and isn't wealthy then they wouldn't be wealthy no matter what they made.
What salary makes one wealthy in Iowa?
- Thread starter Chipper
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200k-37k > 50k-anything. Equalizer?
If a family makes 200k and isn't wealthy then they wouldn't be wealthy no matter what they made.
This is a true statement, but it certainly doesn't define "wealthy"....especially in 25- 30 years.
25 - 30 years a person is going to need multiple millions banked just to maintain their standard of living during retirement years.
I agree with this. I just wish I had a little extra coin to spoil my family with a vacation now and then.
I would argue that this isn't wealthy, (less the skybox), this is how middle class individuals who saved for retirement live once they retire. You've just described my parents and my wife's parents (post- retirement)
I think there are a lot of bits of good advice but those who think they have it figured out and that everyone can do the same have oversimplified. Yes, avoiding car loans would save money but when you have to tote kids around, travel a lot, etc, it may be worth it (at least to some) to have a nicer vehicle. (I would not trust most vans that I could have bought with cash to get my wife and kids back and forth on 12 hour raod trips for instance). If it works for you, great, just don't insult those who have different priorities.
Also, I love that $1.3B = $1400M. Must be the exchange rate? :wink:
Also, I love that $1.3B = $1400M. Must be the exchange rate? :wink:
I was pointing out that if you make more money you end up paying more out from a percentage of income standpoint.
With less money you have a progressive tax system that does help out to get by with less income.
One thing that I find surprising is some states tax food and others do nto. I do not believe food should be taxed.
I think we are talking well off for $200k and wealthy for the JTS skybox fellow.
That's not a bad way to look at things. My goals are pretty similar however don't feel the need to own that many nice houses or to have a sky box.
Live boring life but you're debt free. Get hit by bus tomorrow say to self, "Self why didnt we do more fun things in life?" Costs too much
Disagree. I pretty much do all of those things listed, but that's because I don't give a crap about the kind of car I drive, the things I do for fun are pretty much free, and I value the freedom of living with very little debt. I don't think my life is boring, and I love every minute of it.
Speaking of cheap entertainment, I paid for my football tix yesterday....not so cheap anymore! I guess I will assume that all of your entertainment is pretty much free, with the exception of isu events. :smile:
Depends on where in IA you live. I live in DSM suburbs and lived in a couple major metro areas out of state and was shocked to find it cost me about $100,000 more for the same house I had before in DSM. Average Cost of Homes from stats isn't out of line, but "suburbia" costs are much higher than most non eastcoast/california parts of nation.
They pretty much are - I basically hang out with friends and play sports at places it's free to compete. I would say easily my biggest entertainment expense other than ISU is eating out and my wife and I only do that about once a week.
Not really accurate it so depends on your situation:
consider: First 200 is proabably more like 45 in taxes all in for most peoples filing situation so you are at 155 after tax. Max out 401K contribution takes out maybe 10,000 assuming company contribution to get you up to tax ded limit
145/12= approx 12,000/month
Typical DSM suburbian mortgage $2700/month (figure low equity to allow for 2nd's)
Two cars (van, plus aver 2nd) on 60 month loans $1200/mo
Assume two teenagers with cars...they pay for car, you get stuck with insurance
$800/month
Charity/Church/Giving (since average is less than 10% tithe lets say $12,000 annually not $20,000....so thats $1000/month
Utilities/Phone/Cell/Cable
$300/$50/$250/$100 for total of $700
Gas/Groceries/Household maintenance
$250/$750/$500 total of $1500
One student in college (at $200,000+ financial aid is virtually nonexistent)
$1500/month if they go to state school
Now you are down to $2600/month left over for Football tickets/BB tickets, money for vacation, health care out of pocket, all the fees you get hit with for kids sports and schools, kids clothing, clothing for you and your spouse....
now is this poor/struggling no, I am not saying that, but wealthy, not by US standards
A lot of people have that mindset....then they get old.
I agree that you should have fun when you're young. In my younger days I had PWC's, quads, bike, sports cars, etc.
With that being said I think saving should be your #1 priority and these things can come second. I remember being 20 something and driving my 89' Honda Accord thinking "as soon as I make some money I'm going to buy a sports car and then I'll be happy". Well a few years later I bought a brand new Nissan 350z. I loved the car and it was a lot of fun but a year later I was thinking to myself "as soon as I make some money I'm going to buy a Mercedes". I never bought the MB but I can tell you that after you buy something, a few months later you'll start dreaming of some other toy to buy. I still do this today. I have a Honda 919 that really is the perfect bike for me. It only costs about $5K when I bought it, it's pretty quick, and 100% reliable. The bike I'd like to replace it with, a $16K Ducati. It absolutely would make no sense for me to buy that bike but I want it. 10 years ago I would have just went and bought the bike and said screw it. Now I think about things like how many years that $16K would take off my mortgage, or how good I would feel by leaving that $16K in my emergency fund. I still have a long way to go when it comes to being thrifty but I've always funded my retirement first and then bought toys later.
As far as living cheaper later in life. Believe me, it most likely won't happen. Then you'll turn 40-50 and realize you're in a crappy position where you have very little retirement, no emergency fund, no equity in your house, etc. My wife and I decided to not have kids and it doesn't sound like you have them either but what if you decide to have kids? Wouldn't it be nice to fund their education. Well you won't be able to fund their education because you'll be so far behind in your retirement.
The little bit you save now in your 401K is huge compared to starting later. There are tons of stats on this but a lot of young people just ignore the facts. My first year out of college I made $20K/year and still managed to put 10% in my 401K. These were also some of the best times of my life. I've found very little correlation between how much I make and happiness. Things like good friends and cheap beer go a long way.
If you tried to sell it the next day would you make or lose money? It would be close.
I have a crappy phone and plan as well. I have no idea why someone would pay $150/month for an iphone and service. Granted, if you can afford it, fine, but I still don't get it.
Car buying usually comes down to something like this.
MSRP=$20K
You pay=$17K
A year later you try to sell it.
As someone who is in the market for your type of car am I going to give you $17K for your used vehicle or am I going to go and buy a new one?
Yes, there are rare circumstances like what has happened in this last year where you can get some vehicles for super discounted prices but those big discounted vehicles are also usually the vehicles with the worse resale value.
MSRP=$20K
You pay=$17K
A year later you try to sell it.
As someone who is in the market for your type of car am I going to give you $17K for your used vehicle or am I going to go and buy a new one?
Yes, there are rare circumstances like what has happened in this last year where you can get some vehicles for super discounted prices but those big discounted vehicles are also usually the vehicles with the worse resale value.
