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What does "doing well" financially mean to you?
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Katareen
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Katherine
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Re: What does "doing well" financially mean to you?
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
This is why it's hard to put a number on it--if my DH was making $200K and I was a SAHM we'd be able to put away $100K a year (if we lived our current lifestyle). I'd say putting away $100K a year in your mid-30's would definitely be well off! There are just so many factors!
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Posted 5/29/15 6:56 AM  |
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jessnbrian
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Jessica
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What does
Here is why you can't just look at salary alone, because it really is not just about that. I know numerous NYC specialty surgeons making $500k (the rarity for most doctors these days) who don't have savings because they don't live within their means. And then you have dh and I who make about 1/2, a little less, but we have significant savings, and we will have our house paid off early, we get to go on vacations, we go out to eat, etc. The salary # means absolutely crap to me if you don't know how to live within your means and rack up a ton of debt and don't save.
ETA - I also wanted to add that everyone has different lifestyles too, for us, we live in a great neighborhood in a smaller house. We like to vacation and we both have new cars, but they aren't luxury, neither of us are fashionistas, etc. it's all about where you put your values. I think if you aren't struggling and you aren't living paycheck to paycheck, you are doing ok, if you can put away a bit of savings you are doing good, if you are putting away significant savings and living the lifestyle you want without giving things up, you are well off.
I also wanted to add, that I (personally) think a lot people on here put too much value on the financial/monetary aspects in life and sometimes can miss the truly beautiful. If a person is happy and living their life with love, then IMO they are doing it right! (And not mooching off everyone.)
Message edited 5/29/2015 7:27:56 AM.
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| Posted 5/29/15 7:21 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
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Re: What does "doing well" financially mean to you?
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way! 
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
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| Posted 5/29/15 7:34 AM |
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LotsaLuv
Us
Member since 6/10 4094 total posts
Name:
F
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What does
Doing Well to me means having no debt, being able to pay bills with no trouble, a comfortable amount in savings to get you by if something happens, retirement savings.
I can't put a number to doing well, because everyone has their own bills, mortgage, etc....
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| Posted 5/29/15 8:01 AM |
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Re: What does "doing well" financially mean to you?
Posted by jessnbrian
I also wanted to add, that I (personally) think a lot people on here put too much value on the financial/monetary aspects in life and sometimes can miss the truly beautiful. If a person is happy and living their life with love, then IMO they are doing it right! (And not mooching off everyone.)
YES!!! We are "poor" compared to the majority of others, especially on here BUT we are able to pay our bills every month, put some away for retirement and college (little but something) and I would say we are happy.
Too many people think you need to have millions to live and be happy. Happiness doesn't always come from money, it DOES help but that is why so many people are depressed and drink and do drugs and are on meds as they don't feel like they have enough and others are stressed so much by making so much money that they don't even have a life anymore. I would rather have no money and be home with my family then millions in the bank sitting there while I have to work long hours.
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| Posted 5/29/15 8:47 AM |
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Re: What does "doing well" financially mean to you?
Posted by Hofstra26
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way!
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
We would be RICH if we made that much with our lifestyle.
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| Posted 5/29/15 8:48 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: What does "doing well" financially mean to you?
Posted by Hofstra26
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
This is key right here. I know people whose income is in the $300K range but they struggle..have a shit ton of debt, can't save and are constantly living paycheck to paycheck. Then there are others making much less who are doing much better financially because they made better decisions.
Doing well financially to me means living well within your means, being able to pay for your mortgage, car, bills etc and having extra to save for college, retirement and take vacations.
It's not necessarily the dollar amount that you bring home but the way you manage it.
Message edited 5/29/2015 9:07:33 AM.
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| Posted 5/29/15 9:07 AM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by EatingMyVeggies
"Doing well" to me no longer translate to a number.
To me, it means free and clear of debt, having some savings, a 401k, no financial stress. Living within ones means.
A high number (like people noted above) means zilch if your in debt and/or have no savings.
Yes I agree with this!
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| Posted 5/29/15 9:24 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by Hofstra26
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way!
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
But, to me (and yes, it is my opinion only), "doing well" financially means that you can afford to go out to nice dinners whenever you want, take a couple of nice vacations a year, drive newer cars (or at least not have to worry about what happens if you have a major car repair); not have to worry about a major home repair and still be able to save a substantial amount for retirement and your kids' college - without incurring debt. I don't think in most areas of LI, a $200K income would allow most families to do that. Doing well, to me, does not mean you cut back here and there , watch everything you spend etc. There is absolutely nothing wrong with that, but to me, that is not how I would define "doing well" financially. I would define that as living smartly and within your means - two different things to me.
Message edited 5/29/2015 9:27:03 AM.
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| Posted 5/29/15 9:25 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
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Re: What does "doing well" financially mean to you?
Being able to pay your bills without any struggle, able to put money in savings, take vacations, drive newer cars, deal with unexpected expenses (like home repair) with no worry. I guess everyone's situation is different because if my DH made 200k I wouldn't have to work, and we'd still be living a pretty comfortable lifestyle.
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| Posted 5/29/15 9:34 AM |
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lilqtny
-Crossfit & pitbull addict
Member since 7/06 2830 total posts
Name:
Tracy
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Re: What does "doing well" financially mean to you?
Posted by LSP2005
Posted by alexb
In my mind, its north of $150K (for one person). For a couple with two kids, i would say north of $300K.
yes, this. I would say by 40 having at least 500,000 and closer to 1 million in savings with no debts.
Wow. By these standards, not only am I not doing well, and never will, but I'm poor! Lol
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| Posted 5/29/15 9:37 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
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Re: What does "doing well" financially mean to you?
Posted by chilltocam
Posted by Hofstra26
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way!
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
But, to me (and yes, it is my opinion only), "doing well" financially means that you can afford to go out to nice dinners whenever you want, take a couple of nice vacations a year, drive newer cars (or at least not have to worry about what happens if you have a major car repair); not have to worry about a major home repair and still be able to save a substantial amount for retirement and your kids' college - without incurring debt. I don't think in most areas of LI, a $200K income would allow most families to do that. Doing well, to me, does not mean you cut back here and there , watch everything you spend etc. There is absolutely nothing wrong with that, but to me, that is not how I would define "doing well" financially. I would define that as living smartly and within your means - two different things to me.
Trust me, you can do ALL of the things you mentioned on $200K/yr without "cutting back" and watching every penny.
The REAL key here, along with a nice salary like $200K, is NO debt and a reasonable mortgage. If you're not drowning in debt and all you have is typical monthly bills you can VERY easily vacation, have nice cars, and save money on $200K/yr. That's a lot of disposable income every month if you're NOT servicing any debt.
ETA - NO matter what, it ALL comes down to HOW you MANAGE your money more than anything. You could be making $500K/yr and drowning in debt and you could make $100K/yr and live very comfortably. It's all hinges on how you handle your money.
Message edited 5/29/2015 9:40:53 AM.
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| Posted 5/29/15 9:38 AM |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
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Re: What does "doing well" financially mean to you?
I will never, for the life of me, understand why anyone else cares about anyone else's financial status or what it means to them.
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| Posted 5/29/15 9:43 AM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: What does "doing well" financially mean to you?
I also think it depends what your bills are. I agree that doing well means being able to pay your bills without worrying and still putting money aside for retirement, AND being able to afford luxuries that you choose.
but it all depends on what those bills are. 200k can easily cover all this, but it depends on how much your monthly mortgage, car payments etc.
obviously if you live in a house over $1 million and driving range rovers, $200k salary will probably not be enough. but I'm sure that is not the norm.
it also depends on what you define as luxuries. you can afford to go on vacations, but are you staying at the Four Seasons or the Marriott or somewhere else.
you can afford designer handbags, but do you buy Coach bags or Prada bags? there are so many variables.
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| Posted 5/29/15 9:44 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: What does "doing well" financially mean to you?
Posted by Hofstra26
Posted by chilltocam
Posted by Hofstra26
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way!
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
But, to me (and yes, it is my opinion only), "doing well" financially means that you can afford to go out to nice dinners whenever you want, take a couple of nice vacations a year, drive newer cars (or at least not have to worry about what happens if you have a major car repair); not have to worry about a major home repair and still be able to save a substantial amount for retirement and your kids' college - without incurring debt. I don't think in most areas of LI, a $200K income would allow most families to do that. Doing well, to me, does not mean you cut back here and there , watch everything you spend etc. There is absolutely nothing wrong with that, but to me, that is not how I would define "doing well" financially. I would define that as living smartly and within your means - two different things to me.
Trust me, you can do ALL of the things you mentioned on $200K/yr without "cutting back" and watching every penny.
The REAL key here, along with a nice salary like $200K, is NO debt and a reasonable mortgage. If you're not drowning in debt and all you have is typical monthly bills you can VERY easily vacation, have nice cars, and save money on $200K/yr. That's a lot of disposable income every month if you're NOT servicing any debt.
I have to agree. Now of course if you have a $750K mortgage and $24k in taxes no matter what you do you wont do well on $200K a year. Realistically there are very many nice areas on LI where you can find a decent house for $400-450K. Probably not in Roslyn or other really affluent areas but you can in Massapequa, Wantagh, Bethpage, etc. However once again that has to do with living within your means. $200K is a really nice salary and contrary to what is posted on this board most people on LI do not make that much $. Keep your mortgage reasonable and your debt low to 0 and you will be able to do well financially.
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| Posted 5/29/15 9:45 AM |
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Re: What does "doing well" financially mean to you?
Posted by Kitten1929
I will never, for the life of me, understand why anyone else cares about anyone else's financial status or what it means to them.
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| Posted 5/29/15 9:48 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What does "doing well" financially mean to you?
In a $200k income, let's say your effective tax rate is 15%, so you really only take home $170k. Dual income household with two small kids
These are annual numbers
Max out your 401k (36000)
Medical expenses (5,000)
Mortgage- let's say a $450k house 30 year mortgage at 3.5% 20% down (19500)
Property taxes (12000)
Homeowners (1300)
Electric (3000)
Gas heat (1800)
Water (250)
Cable (2000)- triple play
Cell phones (1800)- assuming two smartphones
Car insurance (2400)-assuming two cars
Groceries/household items (7200)- 2 adults 2 kids
Car payment -(7200) 600 (two cars- or this could be a car savings of you save to buy a car in cash)
Gas- (4800) - 50/week per car
House maintenance fund- (2400) say 200 a month
Gifts (1200)
Kids activities ($1200)
Car maintenance/registration (1800) -
Kids college (2400)- assume two kids and wouldn't fully fund college
Clothes (1200)
Vacation (2500)
Life insurance (1200)
Spending money (4800)
Eating out (1200)
So that is a total of 124k. With pretty conservative numbers in the budget. If you have to pay for daycare for two kids at $2k/mo you are at 148k leaving you about $1800/mo in general savings. I think that is comfortable, but definitely not living well off- no daycare costs would be a game changer though! Or if you work in the city- add in train ticket.
Message edited 5/29/2015 9:51:26 AM.
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| Posted 5/29/15 9:49 AM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by Kitten1929
I will never, for the life of me, understand why anyone else cares about anyone else's financial status or what it means to them.
I also agree with this!
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| Posted 5/29/15 9:52 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by Kitten1929
I will never, for the life of me, understand why anyone else cares about anyone else's financial status or what it means to them.
It's human nature to be curious about how others live and how your income compares to others in your age bracket, town, career, etc. Why do you think they publish stats like average household income and cost of living indexes? There is nothing odd about wanting to know these things, if you spend your life obsessing over what someone else makes that's one thing. But to be curious about how you compare in general to everyone else, that's normal.
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| Posted 5/29/15 9:52 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by MegZee
In a $200k income, let's say your effective tax rate is 15%, so you really only take home $170k. Dual income household with two small kids
These are annual numbers
Max out your 401k (36000)
Medical expenses (5,000)
Mortgage- let's say a $450k house 30 year mortgage at 3.5% 20% down (19500)
Property taxes (12000)
Homeowners (1300)
Electric (3000)
Gas heat (1800)
Water (250)
Cable (2000)- triple play
Cell phones (1800)- assuming two smartphones
Car insurance (2400)-assuming two cars
Groceries/household items (7200)- 2 adults 2 kids
Car payment -(7200) 600 (two cars- or this could be a car savings of you save to buy a car in cash)
Gas- (4800) - 50/week per car
House maintenance fund- (2400) say 200 a month
Gifts (1200)
Kids activities ($1200)
Car maintenance/registration (1800) -
Kids college (2400)- assume two kids and wouldn't fully fund college
Clothes (1200)
Vacation (2500)
Life insurance (1200)
Spending money (4800)
Eating out (1200)
So that is a total of 124k. With pretty conservative numbers in the budget. If you have to pay for daycare for two kids at $2k/mo you are at 148k leaving you about $1800/mo in general savings. I think that is comfortable, but definitely not living well off- no daycare costs would be a game changer though! Or if you work in the city- add in train ticket.
Again though, everyone's numbers and expenses will vary SO much that even this example won't accurately reflect how far $200K/yr will get you. Some will end up with A LOT more than $1800/month extra and some will end up with less. There are just too many variables to try and break down a salary so the numbers apply to the general population. KWIM?
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| Posted 5/29/15 9:56 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by MegZee
In a $200k income, let's say your effective tax rate is 15%, so you really only take home $170k. Dual income household with two small kids
These are annual numbers
Max out your 401k (36000)
Medical expenses (5,000)
Mortgage- let's say a $450k house 30 year mortgage at 3.5% 20% down (19500)
Property taxes (12000)
Homeowners (1300)
Electric (3000)
Gas heat (1800)
Water (250)
Cable (2000)- triple play
Cell phones (1800)- assuming two smartphones
Car insurance (2400)-assuming two cars
Groceries/household items (7200)- 2 adults 2 kids
Car payment -(7200) 600 (two cars- or this could be a car savings of you save to buy a car in cash)
Gas- (4800) - 50/week per car
House maintenance fund- (2400) say 200 a month
Gifts (1200)
Kids activities ($1200)
Car maintenance/registration (1800) -
Kids college (2400)- assume two kids and wouldn't fully fund college
Clothes (1200)
Vacation (2500)
Life insurance (1200)
Spending money (4800)
Eating out (1200)
So that is a total of 124k. With pretty conservative numbers in the budget. If you have to pay for daycare for two kids at $2k/mo you are at 148k leaving you about $1800/mo in general savings. I think that is comfortable, but definitely not living well off- no daycare costs would be a game changer though! Or if you work in the city- add in train ticket.
Exactly - and those are numbers for living a pretty average life, not a "doing well" life, in my book. Is it a good life? Yes, for sure, but not well off, financially. Especially $2500 for vacations - if you can spend that little for a family to take nice vacations a couple of times a year, I'd be really surprised.
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| Posted 5/29/15 9:56 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What does "doing well" financially mean to you?
Posted by Hofstra26
Posted by MegZee
In a $200k income, let's say your effective tax rate is 15%, so you really only take home $170k. Dual income household with two small kids
These are annual numbers
Max out your 401k (36000)
Medical expenses (5,000)
Mortgage- let's say a $450k house 30 year mortgage at 3.5% 20% down (19500)
Property taxes (12000)
Homeowners (1300)
Electric (3000)
Gas heat (1800)
Water (250)
Cable (2000)- triple play
Cell phones (1800)- assuming two smartphones
Car insurance (2400)-assuming two cars
Groceries/household items (7200)- 2 adults 2 kids
Car payment -(7200) 600 (two cars- or this could be a car savings of you save to buy a car in cash)
Gas- (4800) - 50/week per car
House maintenance fund- (2400) say 200 a month
Gifts (1200)
Kids activities ($1200)
Car maintenance/registration (1800) -
Kids college (2400)- assume two kids and wouldn't fully fund college
Clothes (1200)
Vacation (2500)
Life insurance (1200)
Spending money (4800)
Eating out (1200)
So that is a total of 124k. With pretty conservative numbers in the budget. If you have to pay for daycare for two kids at $2k/mo you are at 148k leaving you about $1800/mo in general savings. I think that is comfortable, but definitely not living well off- no daycare costs would be a game changer though! Or if you work in the city- add in train ticket.
Again though, everyone's numbers and expenses will vary SO much that even this example won't accurately reflect how far $200K/yr will get you. Some will end up with A LOT more than $1800/month extra and some will end up with less. There are just too many variables to try and break down a salary so the numbers apply to the general population. KWIM?
this was just a basic example- like a one poster said $2500 for vacation is small- or if you have to add student loans- the above is a conservative list of bills. Sure you could buy a more expensive car and put less in retirement, but if you have two kids and make $200k I don't know how you're rich on LI. If you're single or no kids, sure. Or if you have kids and have family to watch them for free.
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| Posted 5/29/15 10:04 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: What does "doing well" financially mean to you?
Posted by MegZee
Posted by Hofstra26
Posted by MegZee
In a $200k income, let's say your effective tax rate is 15%, so you really only take home $170k. Dual income household with two small kids
These are annual numbers
Max out your 401k (36000)
Medical expenses (5,000)
Mortgage- let's say a $450k house 30 year mortgage at 3.5% 20% down (19500)
Property taxes (12000)
Homeowners (1300)
Electric (3000)
Gas heat (1800)
Water (250)
Cable (2000)- triple play
Cell phones (1800)- assuming two smartphones
Car insurance (2400)-assuming two cars
Groceries/household items (7200)- 2 adults 2 kids
Car payment -(7200) 600 (two cars- or this could be a car savings of you save to buy a car in cash)
Gas- (4800) - 50/week per car
House maintenance fund- (2400) say 200 a month
Gifts (1200)
Kids activities ($1200)
Car maintenance/registration (1800) -
Kids college (2400)- assume two kids and wouldn't fully fund college
Clothes (1200)
Vacation (2500)
Life insurance (1200)
Spending money (4800)
Eating out (1200)
So that is a total of 124k. With pretty conservative numbers in the budget. If you have to pay for daycare for two kids at $2k/mo you are at 148k leaving you about $1800/mo in general savings. I think that is comfortable, but definitely not living well off- no daycare costs would be a game changer though! Or if you work in the city- add in train ticket.
Again though, everyone's numbers and expenses will vary SO much that even this example won't accurately reflect how far $200K/yr will get you. Some will end up with A LOT more than $1800/month extra and some will end up with less. There are just too many variables to try and break down a salary so the numbers apply to the general population. KWIM?
this was just a basic example- like a one poster said $2500 for vacation is small- or if you have to add student loans- the above is a conservative list of bills. Sure you could buy a more expensive car and put less in retirement, but if you have two kids and make $200k I don't know how you're rich on LI. If you're single or no kids, sure. Or if you have kids and have family to watch them for free.
I wouldn't say your "rich" either but I would say, if you're managing your money right, pretty damn comfortable even for LI.
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| Posted 5/29/15 10:05 AM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: What does "doing well" financially mean to you?
Posted by chilltocam
Posted by Hofstra26
Posted by chilltocam
Posted by itsbabytime
Thanks ladies - I think this thread took an unexpected turn as I think it goes without saying what many of you said defines doing well financially. I should have been clearer that I was talking solely about salary. For ex. My debate was that a husband making $200,000 per year when the wife was a SAHM- is really just average these days - not doing "well." Sadly. Thanks for the responses though!
Yes, I think that is true - one income of $200K (depending on how many kids you have and their ages) does not necessarily mean that you are "well off" financially. Better off than many, yes, but definitely not living the high life. But that income for just a husband and wife with no kids to support would be in a very different situation from a family with a couple of kids - then I might consider it "well off"
I would have to disagree BECAUSE...........it all depends on HOW you live your life. If someone were making $200K with a few kids and a SAHM and they had no debts, just a mortgage and your typical monthly bills they would be living quite nicely on the island. $200K is a really nice amount of money even on LI, when you look at what the AVERAGE income is per household on the island you can appreciate that most people would consider $200K enough money to afford a pretty nice life. If you save and invest right on that salary it will go a long way!
Again, being well off financially has a lot more to do with the way you spend your money and live your life over just the actual amount of money you make. KWIM?
But, to me (and yes, it is my opinion only), "doing well" financially means that you can afford to go out to nice dinners whenever you want, take a couple of nice vacations a year, drive newer cars (or at least not have to worry about what happens if you have a major car repair); not have to worry about a major home repair and still be able to save a substantial amount for retirement and your kids' college - without incurring debt. I don't think in most areas of LI, a $200K income would allow most families to do that. Doing well, to me, does not mean you cut back here and there , watch everything you spend etc. There is absolutely nothing wrong with that, but to me, that is not how I would define "doing well" financially. I would define that as living smartly and within your means - two different things to me.
It does... because I'm in a desirable neighborhood, that's about our income (ballpark), and we have 2 brand new 2015 cars, have a SUBSTANTIAL savings for retirement, good savings for our 6 month old for college, and we do various updates/renovations/repairs on our house just about every 6 months, without worry (last year was a major kitchen & dining room gut and renovation). We have no debt besides our mortgage, which will be paid off well before we are 50. We also go on multiple vacations a year, when we can find the time  We go out to dinner a few times a week, too.
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| Posted 5/29/15 10:24 AM |
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jlm2008
LIF Adult
Member since 1/10 5092 total posts
Name:
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What does
$70k-$100K....but my standards are apparently a lot lower than most on LIF.
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| Posted 5/29/15 10:27 AM |
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