This post will get hate but I feel it is necessary to call out how ridiculous some of y’all’s spending is for how much you make. Here are my general rules for a 200k comp. Let’s use 200k because most of y’all make around this. 200k TC -> 140k after taxes -> $11,500 / month 1. You should NOT be spending more than 2k on rent. I have lived in SF, NYC and Seattle. You do not need to spend more than this. Find multiple roommates if you must. 2. Mortgage payments should NOT be more than 3k/month. Put more down payment or find lower interest rate or don’t buy at all. You can’t afford it. 3. Food - 1k/month absolute max including groceries/delivery and eating out. Enough said. 4. Fun - 500/month. Find cheaper things to do. 5. Travel - 500/month average. You probably shouldn’t be traveling that much if you make 200k At this point we have covered the main things for a household and savings should be around 6k. You may spend an extra 1k at this point ONLY IF you have KIDS. On 200k TC, everyone should be saving at least 5k/month which is 60k/year to really be setting yourself up for financial stability. If your household makes more than 200k, you may scale up appropriately on everything EXCEPT housing. It’s so frustrating seeing households making 400k and spending 12k/month. SO IRRESPONSIBLE. Be smart. Be generous. Stay hard. HHI: 400k Monthly Spending: 5k Net Worth: 950k after 3.5 years. Edit 1: I acknowledge fixed costs such as loans, utilities, etc….Add those in if you must. My general principles still hold true about keeping the main costs in your life down. No need to get so salty folks 🤣 Edit 2: People keep saying kids are >1k/month but nobody listing out actual costs. Only list out what is absolutely necessary. Listing “childcare” is foolish and does not count. Figure it out until they are old enough to go to public school. Cmon y’all, have some common sense. I felt I was being quite generous by giving an extra 1k. Edit 3: I REPEAT, nobody able to list why a kid costs >1k/month. Classic uneducated people spouting off before thinking through facts. The poll speaks for itself. Edit 4: After considering some of the comments, I’m okay going up to $2500 in rent if you have kids on a $200k TC. I still would not approve of it. I see no reason why you can’t live in a simple 1B1B or even studio on 2k with kids
Ah yes, I forgot that kids only cost $1k/mo. That was my mistake!
Your sarcasm is coming through but you look foolish. Kids are way less expensive than people make out to be if you are willing to be a present parent in your kids lives.
Got it, so you're saying that I just need to forgo any preschool while maintaining a $200k+ career. Noted. You sound like you have a ton of experience parenting.
“Stay (rock) hard“
Always
Poor spouse
You?
Get a hobby and stop being bothered by what other people do with their own money
I’m doing this for society’s benefit actually
100% agree in principle to be disciplined and not worry about FOMO. Have a plan and stick to it whatever it is .. You shouldn't have to be doing this your entire life if you accumulate sufficient assets to prepare you for downturn. OP doesn't include fixed costs like student loans, medical insurance and life/car/homeowners insurance which can become outsized monthly payments 1k/month for student loans, 1k/month for all the insurance coverages should be factored in.
This is fair, I don’t have fixed costs like that but the general principle holds true
HHI: 600k Most of my months are around 5k spending. Irregular expenses can boost that a bit. My youngest goes to public school this fall, so that will drop 1.5k off our spending. I could knock another 400 off my monthly by paying off my mortgage, but I'm buying small caps while they're cheap. When the market really takes off, I might start paying the mortgage down
Sounds like you are doing very well and being fiscally responsible!
What’s it’s like to live in a world where you don’t pay for insurance, utilities, childcare, transportation, home and car repairs..?
^^Nitpicking and unwilling to acknowledge the principles
Noting a difference that’s potentially a few thousand per month is nitpicking?
Extra 1k for kids? Are you stupid? Tell me you don’t have kids without telling me you don’t have kids….
Maybe you are raising them wrong? I know I will not spend more than 1k/month on average on my kids
Jesus you’re gonna be a terrible parent. Hopefully your wife isn’t like you
His edit says “I acknowledge fixed costs such as loans, utilities. Etc…. Add those in if you must” what the hell does if you must mean 😭😭 do you think they’re an optional payment LOL
My point was adding those in you should still have a high savings rate and not be financially irresponsible. You sound illiterate right now my dude
So, find multiple roommates if you have kids✍🏾
Move farther out, Change states, get help from family, figure it out. The answer is not to increase your spending like crazy
Yes just like op said move to LCOL area but somehow still make 200k….. 💀