Six digit income - breaking even or rich?

amother

Celeste

Thu, Dec 30 2021, 2:45 pm

amother [ Blush ] wrote:

Living on $600k a year and don’t feel rich yet.
Maybe rich means different to different people.

Lease simple minivan, simple house…

Warren Buffett also lives in a simple house.

I don't have more recent numbers, but your income puts you well within the top 5% of all Americans.

Yes, you're rich.

amother

Melon

Thu, Dec 30 2021, 2:54 pm

amother [ Cerulean ] wrote:

Can you explain why you’re kids are still mostly wearing hand me downs and second hand while you now spend more on yourself?

You're spinning her words. Spending a 'little' more on herself doesn't mean she's treating herself on the back of her kids. A 'little' more can be picking up an occasional piece of clothing for herself, or treating herself to a cappucino once a month or so. Also her kids may not care (yet) about wearing hand me downs or second hand clothing (especially if they're boys).

Before you so quickly jump to conclusions why don't you first seek out some more information. The question to first ask is if her kids have issues with her choice of clothing for them, and then take it from there.

amother

Blush

Thu, Dec 30 2021, 3:19 pm

amother [ Freesia ] wrote:

What does simple minivan and house mean to you?
Do you do this out of necessity? Why don't you live in a nice house?
Why dont you consider yourself well to do?

Our minivan is a Honda Odyssey.

We live comfortably and are thinking of remodeling our house but it can cost up to $1 million to renovate and it’s not like we have this kind of money saved up. Unless you make good money for many years and invest in different assets you will not be rich.

Yes we are comfortable and don’t think twice about every day purchases but again not rich.

amother

Melon

Thu, Dec 30 2021, 3:25 pm

amother [ Blush ] wrote:

Are your expenses more than the average family? If you're earning $600K, a simple living would probably put your budget in a $200k range (assuming here). If you'd put away $300K annually, you'd have that money quickly saved up. Though, if you're contemplating a $1 million dollar renovation, that doesn't fall in line with simple living.

Did you only recently start earning this money? If you don't have that kind of money saved up, and you say you're earning $600K and living simply, whats all the money going towards to?

amother

Lavender

Thu, Dec 30 2021, 3:32 pm

Rubies wrote:

I think up until a certain point you make do without a lot of necessities. It seems like double should cover everything. Then you realize that if you have the money you can afford therapy/needed vacation/braces/car.
It takes a huge jump to afford all necessities, have savings, and more.

This is true. I remember a time when I used to sew up the holes in my daughter's tights because I couldn't afford to buy new ones. I used to estimate the cost of ingredients when deciding which salad to make for shabbos. There was a time we only had a folding table and folding chairs

Now we have basic furniture in the house and I don't think twice about buying tights, but money still feels very tight.

amother

Daphne

Thu, Dec 30 2021, 3:54 pm

amother [ Cerulean ] wrote:

Can you explain why you’re kids are still mostly wearing hand me downs and second hand while you now spend more on yourself?

My kids go through clothes like they're disposable. It's just not worth buying all new when stuff gets ruined so quickly. I do make a point to buy them some special new stuff.
I have a rotation of friends who give to me, and I pass on whatever I can't use, and whatever is still in good condition. My kids are not suffering at my expense.

As far as spending more on myself, that means I finally got rid of my worn out stained clothing, and replaced it with newer stuff. I'm not wearing designer clothing while my kids wear rags.

imacoolmom

Thu, Dec 30 2021, 3:58 pm

My husband always says that the only way to feel comfortable financially or even rich is to keep upping your income but try to keep your spending the same. So if your income is half a million a year but you spend like you did when you only made 100k a year you’ll never worry about $ and get to put away a lot. So much easier said than done of course……and maybe not always realistic

amother

Blush

Thu, Dec 30 2021, 3:58 pm

amother [ Melon ] wrote:

We aren’t earning this amount for too long, and do try to invest in our future as well.
$50k a month
10k charity
3k mortgage small home in expensive city
1k car, ins, gas etc
1k utilities
2.5k tuition
8k life insurance for everyone (investment too)
5k food approx
1k personal trainers
1k insurance
10k-15k misc credit card including everything else clothing, house purchases, entertainment, vacation yom tov etc….
And of course we use petty cash as well…..
5k saving if possible

Now I know you will say there are luxuries here and I agree, but if I’m comfortable I should be able to have luxuries.
If I’m rich I would be able to have luxuries and put away lots of money monthly which isn’t happening so much now.

amother

Lavender

Thu, Dec 30 2021, 4:02 pm

amother [ Blush ] wrote:

How are you spending 5k a month on food and only 2.5 on tuition? Are you hosting 50 people a week?

You're giving 10k a month to tzedaka which is extremely generous. Wow.

amother

Daphne

Thu, Dec 30 2021, 4:03 pm

amother [ Melon ] wrote:

Thank you. My kids don't have problems with second hand clothes. (And yes, they are boys.) I don't think girls would want second hand, although a lot of my own clothes have been second hand. I really try to pay attention to their likes and dislikes with clothes.

amother

Blush

Thu, Dec 30 2021, 4:05 pm

amother [ Lavender ] wrote:

How are you spending 5k a month on food and only 2.5 on tuition? Are you hosting 50 people a week?

You're giving 10k a month to tzedaka which is extremely generous. Wow.

Chassidish tuition is low.
And re tzedaka, I said we invest in our future Wink

amother

Freesia

Thu, Dec 30 2021, 4:07 pm

amother [ Blush ] wrote:

Ok you may not be a Elon musk but this is rich. Yes even rich people should spend their money wisely and not squander it.

amother

Melon

Thu, Dec 30 2021, 4:10 pm

amother [ Blush ] wrote:

I guess we have different definitions of rich and comfortable. To me, comfortable means not worrying about making ends meet, being able to cover out of budget expenses (I.e. Simchas) and enjoying an occasional luxury. Spending $8k on life insurance, $1k on personal trainers, 10-15k miscellaneous expenses and $5k savings all on a MONTHLY basis, falls under the category of being rich.

Rich in itself falls under different categories. There are different ends of the spectrum there ranging from plain rich to filthy rich. I think that most people would agree that what you describe is being rich. To me it sounds like you're moving the goal post along as your income increases to not define yourself as rich. If that's true, would you have insight why you're doing that?

amother

Celeste

Thu, Dec 30 2021, 5:19 pm

amother [ Blush ] wrote:

This is what is called a "humble brag" And its really in bad taste. People here struggle to put food on the table. And you are NETTING $600,000 a year. That's what, a cool mill gross? And pretending that you're struggling.

Look, good for you making that kind of money. I wish you continued success. But anyone who spends $60,000 a year on food alone isn't just getting by. Anyone who spends between $120,000 and $180,000 a year on "misc" expenses isn't just getting by. Anyone paying $12,000 a year for "personal trainers" is not just getting by. Anyone who is able to save $60,000 a year -- about the median income for a household in NYC -- isn't just getting by.

And circling back to my first comment, its in really bad taste to suggest you are. Particularly in this group.

amother

Blush

Thu, Dec 30 2021, 5:29 pm

amother [ Celeste ] wrote:

I am sorry that this was so triggering to you. But I just answered the question, and I never said that we are just getting by! I said we are not rich! We are comfortable! The word RICH should not be thrown around like op was claiming . Rich is yachts and private jets and $100,000 vacations. Rich is not just well off.

amother

Daphne

Thu, Dec 30 2021, 5:30 pm

amother [ Celeste ] wrote:

This poster never claimed she was just getting by or struggling. She said she felt comfortable rather than rich. She shared her budget because someone asked.

amother

Lavender

Thu, Dec 30 2021, 5:33 pm

amother [ Blush ] wrote:

And the person with a yacht and private jet isn't REALLY rich because they're not going on personal trips to outer space.

They're just comfortable, not rich.

Do you see how riches is a continuum?

That's why chazal say eizehu ashir...