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Marketwatch: Why those earning 400k per year are barely scraping

Bear

Bear

Member
Oct 25, 2017
10,957
platocplx said:
Right ATL you can EAT on a 6 figure salary. hell even in my state of CT I can get a lot of house for my money And land.

look at this shit in fucking CT.
www.trulia.com

Guilmartin Rd, Bloomfield, CT 06002 | Trulia

Guilmartin Rd, Bloomfield, CT 06002 is a 4,687 sqft, 4 bed, 4 bath home sold in 2020. See the estimate, review home details, and search for homes nearby.
www.trulia.com www.trulia.com

this was 750k. you are seriously over leveraging yourself going for anything over 1 million in a lot of places. Even on a 400k salary lol.
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To be fair, these people making 400k probably don't live in central/north CT. They're in Westchester where houses start at 1 million for anything decent.

Doesn't mean they couldn't spend far, far less on a house.
 
Metroidvania

Metroidvania

Member
Oct 25, 2017
6,875
Isn't 'Financial Samurai' one of the guys who tried to FIRE, realized he was vastly overspending, and then 'un-FIRE'd' because he couldn't keep up his lifestyle?

Sounds about right, judging from this article.

Muu said:
Financial Samurai lmfaooooooo

Of course he would say 400k isn't enough. He had millions from tech jobs and some finance books and managed to squander all the money.
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Yeeeeep.
 
abellwillring

abellwillring

Member
Oct 25, 2017
8,966
Austin, TX
Something like this gets posted yearly at least. Don't give in to the clickbait and let it annoy you. Hell, this may be a repost... $400k and that chart seems familiar.
 
Kel Varnsen

Kel Varnsen

Member
Oct 31, 2017
95
So how are those mortgage payments, 401K and 529 plan not just a form of saving/expanding wealth?
Even if this ridiculous expenditure list is correct it seems like they're still accumulating about $ 7500/month.
 
WedgeX

WedgeX

Member
Oct 27, 2017
13,287
Sho_Nuff82 said:
How do you spend $400/month on gas if you live within the city limits for NYC or Boston? I commute 70 miles a day (living in Boston, commuting to North Shore) and spend less than half of that. If both parents' jobs are not in the city, why are you paying city prices?

A million dollars still gets you 4 beds/4 baths (new construction with a backyard) within city limits here. 1.6 means you're caking.
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Yeah, in DC the 1.6-ish homes are 4-6 bedrooms or brand new luxury condos. It's not going to buy you a diplomats compound but its luxury living.
 
platocplx

platocplx

2020 Member Elect
Member
Oct 30, 2017
36,084
QuantumZebra said:
I know folks that would fight to their last in a cage match to have a house like that.

And they're casually throwing in a $1.6m mansion like it's normal... and THEN have the audacity to say "but we got a Toyota!"... shameless
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I wish I couldve bought that, the land alone is fucking massive acreage you could literally have your kids build homes on the land and have your own street.
 
Beignet

Beignet

alt account
Banned
Aug 1, 2020
2,638
Bear said:
Here's a quick solve: Don't get a $1.6 million mortgage. Holy shit.

Nothing else in this chart matters. If they bought a more manageable house, it would be no issue. This is dumb as hell.
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How else are you gonna show off how white and "middle-class" you are without owning a severely overpriced McMansion in the suburbs of a major metropolitan center!
 

Johnny956

Member
Oct 25, 2017
2,934
The standard deduction would never apply to a couple who makes 400k a year. The deduction alone on mortgage interest (up to 750k of the house) would probably equal 24k minimum not to mention 10k in state tax deductions. Add in the 529 tax deductions as well.

Unless they're sending those kids to private school (which is a luxury), they'll be removing the preschool/daycare costs in the future which are over 50k a year.
 

Deleted member 8257

Oct 26, 2017
24,586
Ok. Hold up.

Who eats $2k worth of food every month? For a family of 4 with toddlers?
 
Richietto

Richietto

One Winged Slayer
Member
Oct 25, 2017
23,155
North Carolina
That food bill is soooo offensive coming from a family of 7. I think my mom spent $500-600 a month on food. It just borders on absolute bullshit.

Is it really scraping by if your every need is met? Scraping by is like having just enough money to feed yourself after all your bills are payed. No saving money, no vacation, no luxuries and shit.
 
Sho_Nuff82

Sho_Nuff82

Member
Nov 14, 2017
18,527
Lumination said:
The mortgage is not too ridiculous. But like, that's a CHOICE THEY MADE. You don't get to opt for the most luxurious life possible and then complain you don't make ends meet.

And those food costs. I eat a TON, buy organic when reasonable, get the occasional delivery, and I live in an "expensive metropolitan area". I sure as hell don't spend $2000/4 = $500 on food costs. I actually spend less than half of that $500.
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Dropping $300-$400k as a down payment and then lamenting about your monthly expenses in this economy is flat out ridiculous.
 
Perfect Chaos

Perfect Chaos

Member
Oct 25, 2017
3,357
Charlottesville, VA, USA
These are always the same shit.

"After we pay for literally everything to live an extravagant lifestyle and make ample retirement contributions, we barely have anything left!"

What the fuck else do you need??
 
Indurian

Indurian

Member
Oct 27, 2017
1,679
Why are they paying for 4 phones if their kids are in preschool? Why are their kids in preschool if they aren't out of diapers? Why are they buying baby supplies if their kids aren't babies? Why are they buying cribs yearly? None of this make sense!
 
captive

captive

Member
Oct 25, 2017
17,066
Houston
i will stan all day and night that 100k a year is not rich. But as i said on twitter in response to CNBC's claim of 400k not being wealthy, "i dont care what city you live in, 400k a year is wealthy.
 
PrivateWHudson

PrivateWHudson

Member
Oct 25, 2017
3,215
I think we're also overlooking the fact that even though they figured out a way to spend all but $34, doesn't mean they still aren't saving. They are still putting money into retirement and the kid's colleges, and paying down their mortgage. So yeah, isn't that how a budget works? Categorize everything, so you don't have any unaccounted money left over.
 
Tbm24

Tbm24

Member
Oct 25, 2017
16,587
The audacity to live that kind of life, including multi-week vacations in 1million $ homes, and saying you're "scraping".
 

Deleted member 41178

User requested account closure
Banned
Mar 18, 2018
2,903
RustyNails said:
Ok. Hold up.

Who eats $2k worth of food every month? For a family of 4 with toddlers?
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I'd say that would pretty easily add up if that cost includes eating out.

Pre lockdown my family generally ate out twice a week and the bill would range from £70 - £110 each time, say that's £200 a week £800 a month. Now as you earn more money you'll likely be eating at more expensive places or eating out more. That also doesn't take into account general food shopping for the rest of the week.
 
ShapeGSX

ShapeGSX

Member
Nov 13, 2017
5,263
JFC, maybe don't live in a $2M house.

I do alright, salary wise, and my 100 year old 3 bedroom house cost me <$200k in 2001.
 

reKon

Member
Oct 25, 2017
13,906
JB1981 said:
www.marketwatch.com

Joe Biden defines income of $400,000 as 'wealthy,' but here's why it's barely scraping by for some

Apparently, for some earning $400,000 a year, the struggle is real.
www.marketwatch.com www.marketwatch.com



"So $400,000 a year leaves you with $34?

Of course, that includes maxing out your 401(k), owning a nice home, taking a vacation, etc. Not a lot of tears are being shed by those who earn much less and can't make ends meet, but still, it's easy to see why someone with that kind of salary doesn't exactly feel wealthy.

"They are not living it up on $400,000 a year," the Financial Samurai said.
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I already saw the CNBC article that this comes from.

All you need to know is that the person who made this chart (owner of financialsamurai), is a moron who's known for making these stupid ass scenarios and should not be taken seriously for any personal finance matters.

This is not the first time this has happened and I'm not sure why CNBC keeps doing this.

There's going to be multiple pages on this thread all because this idiots work was cited in an article and we shouldn't even give this time of day.
 
Lost Lemurian

Lost Lemurian

Member
Nov 30, 2019
4,304
The most infuriating part of this is that their monthly take-home is twenty two grand.

Like, for a ton of people living in major cities in the US, that's their annual take home.

And the entire premise of the article is stupid, anyway (as these always are). "Look, these people have every conceivable luxury (huge house, new cars, best food, best insurance, best retirement plan, best childcare, multiple annual vacations, constant new clothes, etc, etc) and after paying for all those things, they have no money left!"

Money left for what, motherfuckers? Designer clothes and luxury cars? That's all you could think of, in terms of things they may not have??
 
orlock

orlock

Member
Oct 28, 2017
1,286
i just woke up from an hour of sleep, after working overnight, so i can to into my other job, work for 9 hours, pick up my partner from their workplace, get four hours of sleep (if im lucky), and go back to my overnight job.

i try to be pretty chill as im getting older, but shit like this just pisses me right the fuck off. i wish i could break their fuckin fingers.
 
Sho_Nuff82

Sho_Nuff82

Member
Nov 14, 2017
18,527
PrivateWHudson said:
I think we're also overlooking the fact that even though they figured out a way to spend all but $34, doesn't mean they still aren't saving. They are still putting money into retirement and the kid's colleges, and paying down their mortgage. So yeah, isn't that how a budget works? Categorize everything, so you don't have any unaccounted money left over.
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I think the expectation is to have all of life's luxuries, a lifetime of savings for yourself and your young, and still have money to throw in a waiter's face if your steak comes out medium instead of rare.

Under normal circumstances, I would applaud someone who paid off their loans, budgeted all of their necessities, and still managed to live it up. Not to so much when they try to play it off as a charity case.
 
entremet

entremet

You wouldn't toast a NES cartridge
Member
Oct 26, 2017
60,729
RolandOfGilead said:
I'd say that would pretty easily add up if that cost includes eating out.

Pre lockdown my family generally ate out twice a week and the bill would range from £70 - £110 each time, say that's £200 a week £800 a month. Now as you earn more money you'll likely be eating at more expensive places or eating out more. That also doesn't take into account general food shopping for the rest of the week.
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2k of food is ridiculous. Even with a family of four.

They're scrapping by maintaining a high cost lifestyle. Not exactly scraping by when they can easily trade the mortgage, eat out less, and buy less expensive vehicles.

Restaurants are a luxury.
 

Deleted member 41178

User requested account closure
Banned
Mar 18, 2018
2,903
entremet said:
2k of food is ridiculous. Even with a family of four.

They're scrapping by maintaining a high cost lifestyle. Not exactly scarping by when they can easily trade the mortgage, eat out less, and buy less expensive vehicles.
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I completely agree, they are definitely not scrapping by, but spending 2k a month on food when it includes entertain(i.e. going out for a meal) really isn't difficult with that sort of income.
 

dep9000

Banned
Mar 31, 2020
5,401
Don't send your kids to private school
Don't buy a $2M house
Don't contribute as much to the 529
Stop eating out as much. That food bill is WAY too high

That'll save you a ton right there.

The vacation expense is acceptable. Not sure why people are harping on about that. $7,200 in a year for a family of four is completely acceptable.
 
El_TigroX

El_TigroX

Member
Oct 27, 2017
4,229
New York, NY
Just a lot of folks out there that have never had to struggle.

I had someone I know say "Budgeting is for poor people" and I nearly strangled her. Just sad, sad outlook on life.

The amount of people I know that are out on unemployment right now, but who haven't pulled back expenses is insane. They think they will get that money forever... but it's drying up soon.
 
Sain

Sain

Member
Nov 13, 2017
1,534
What a stupid article. If you can't make it on 400k/year, maybe spend smarter. So many of those line items are not necessities and are the result of choices (many of which, I'd argue, are poor choices).
 
Nude_Tayne

Nude_Tayne

Member
Jan 8, 2018
3,678
earth
What a load of shit. These people keep forgetting that a $1.5M house and and everything that goes along with it is a choice and not a requirement of making $400,000 a year. Anyone can live beyond their means. Living beyond your means on almost half a million a year is a problem you make for yourself.
 
John Dunbar

John Dunbar

Banned
Oct 25, 2017
6,229
they're scraping by to just about spend all their money, except the vast amounts they save and invest. truly inspirational stuff here.
 
PrivateWHudson

PrivateWHudson

Member
Oct 25, 2017
3,215
dep9000 said:
Don't send your kids to private school
Don't buy a $2M house
Don't contribute as much to the 529
Stop eating out as much. That food bill is WAY too high

That'll save you a ton right there.

The vacation expense is acceptable. Not sure why people are harping on about that. $7,200 in a year for a family of four is completely acceptable.
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What do you mean by acceptable? Of course any of this can be justified somehow, but acceptable is NOT normal. A vacation to Disney costs less than that and most families have to save up for years to make a trip like that happen. To have that kind of vacation every year is indeed luxurious.
 
take_marsh

take_marsh

Member
Oct 27, 2017
7,337
This kinda "analysis" makes me laugh. It's like someone writing from a different planet where the data comes from between a pair of butt cheeks.

lmao $1.6 million mortgage and 20% down what the hell
 
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