Author Topic: "$100,000 income: No big deal anymore"  (Read 11055 times)

panda

  • 5 O'Clock Shadow
  • *
  • Posts: 20
"$100,000 income: No big deal anymore"
« on: January 08, 2015, 02:28:32 PM »
DELETED
« Last Edit: December 15, 2017, 10:14:39 AM by panda »

zephyr911

  • Magnum Stache
  • ******
  • Posts: 3619
  • Age: 45
  • Location: Northern Alabama
  • I'm just happy to be here. \m/ ^_^ \m/
    • Pinhook Development LLC
Re: "$100,000 income: No big deal anymore"
« Reply #1 on: January 08, 2015, 02:58:24 PM »
Location/COL makes all the difference. I gross about 100k in northern Alabama. I plan to invest 70k in 2015, even with a car payment and a bunch of stupid habits (I am barely Mustachian, working on it).

I would imagine that being a different story in other places.

eil

  • Stubble
  • **
  • Posts: 246
Re: "$100,000 income: No big deal anymore"
« Reply #2 on: January 08, 2015, 03:07:58 PM »
Well, I'm not reading that whole thing but I think this about sums it up:

Quote
Due to the rising costs of food, energy, college tuition, health insurance and the growing "necessities" of a middle-class life, a $100,000 salary in some parts of the country covers little more than the essentials.

Where "necessities" is code for a McMansion in a HOAhood, the latest iPhone with an unlimited service plan for every member of the household, satellite/cable TV, and two late-model SUVs depreciating rapidly in the driveway.

A bunch of complainypants baloney, if you ask me. Jobs are abundant these days, the housing market is doing alright, the stock market is doing better than ever, and gas is cheap! But I guess politicians and their media mouthpieces don't win elections by telling the population that everything is going to be just fine.

irishbear99

  • Bristles
  • ***
  • Posts: 294
Re: "$100,000 income: No big deal anymore"
« Reply #3 on: January 08, 2015, 03:10:33 PM »
This strikes me as overwhelmingly complainy pants.

Quote
Roy Laux, president of Synergy Financial Services in McKeesport, Pennsylvania, says it's an unavoidable factor that the cost of one's mortgage or rent can make or break that six-figure income.

Sorry, but housing costs aren't something that just "happen" to you, even in HCOL areas. I live in a very HCOL area and managed to spend just under half the median price for my home. Apparently a lot of people don't understand that median means half the prices are higher and half are lower. There's nothing making me end up in the first category instead of the second except my own decisions.

Quote
Nowadays, he or she is more likely to live in a 1,500-square-foot house and drive a 7-year-old Toyota.

FFS, the author makes it sound like you may as well resign yourself to a leper colonly. My house is 1,500 SF and I drive a 7 YO Honda. You know what? My house is nice and has plenty of room for my family, and my car gets me safely , reliably and comfortably where I need to go. What's wrong with that?

Ironically, the author spends a tiny amount of time discussing the real root of the problem for a majority of people:

Quote
While conspicuous consumption and blatant overspending is a problem, even those who try to keep an eye on their budget spend a large portion of their income on what financial advisers call "lifestyle inflation." Koos says these are things that may not be necessities but are considered such at a certain income level. Many middle-class citizens now see cable, smartphones, tablets, computers, multiple televisions, Blu-ray players and gym memberships as "essential."

If someone really things those are essentials, well, all I have to say is this...

NoraLenderbee

  • Handlebar Stache
  • *****
  • Posts: 1254
Re: "$100,000 income: No big deal anymore"
« Reply #4 on: January 08, 2015, 03:57:09 PM »
Well, I don't agree with most of the article, but there's some truth in the title. 100K salary used to be enormous, meaning a life of luxury (or ER in a few years). Now lots of people make 100K. and while it's still very good, it isn't what it used to be. Like a million dollars used to be more money than you could imagine, and now it's "a good start" on a retirement portfolio for a non-Mustache, but reasonably prudent,  person.

In 1976, my eight-grade math teacher asked the class what we'd do with a million dollars. He told us that the right thing to do was put it in a savings account and live on the interest. You can tell how long ago it was because banks paid 5% on savings, and 50K per year was a *very* comfortable income--two or three times what our teacher made. Not too many folks, even here, could live on the interest on 1 million today.

netskyblue

  • Pencil Stache
  • ****
  • Posts: 637
  • Location: Midwest USA
Re: "$100,000 income: No big deal anymore"
« Reply #5 on: January 08, 2015, 04:23:13 PM »
Not too many folks, even here, could live on the interest on 1 million today.

Assuming the 4% safe withdrawal rate (and that it's invested), that's $40k, more than I make.

dandarc

  • Walrus Stache
  • *******
  • Posts: 5488
  • Age: 41
  • Pronouns: he/him/his
Re: "$100,000 income: No big deal anymore"
« Reply #6 on: January 08, 2015, 04:30:26 PM »
In 1976, my eight-grade math teacher asked the class what we'd do with a million dollars. He told us that the right thing to do was put it in a savings account and live on the interest. You can tell how long ago it was because banks paid 5% on savings, and 50K per year was a *very* comfortable income--two or three times what our teacher made. Not too many folks, even here, could live on the interest on 1 million today.
Not on the interest in a savings account true.  Truth is, putting it all in a savings account wasn't terribly great advice then, and it is even worse now.

HalfDollar

  • 5 O'Clock Shadow
  • *
  • Posts: 45
Re: "$100,000 income: No big deal anymore"
« Reply #7 on: January 08, 2015, 05:08:51 PM »
They're talking about household income not a person's income. The article says about 20% of households are hitting that and mentions in some parts of the country it's not much. That's true.

RFAAOATB

  • Pencil Stache
  • ****
  • Posts: 654
Re: "$100,000 income: No big deal anymore"
« Reply #8 on: January 08, 2015, 05:41:21 PM »
We have over 300 million people in this country.  The decamillionaires can outspend the millionaires.  The high incomes can outspend the low incomes.  Advertising and coverage skew towards the richer lifestyles.  My family AGI last year was 80k.  Bumping that up to 100k (per couple, not per person) isn't going to get me into the country club.

100k is not a big deal anymore indeed.  Where's my McMansion?

golden1

  • Handlebar Stache
  • *****
  • Posts: 1541
  • Location: MA
Re: "$100,000 income: No big deal anymore"
« Reply #9 on: January 09, 2015, 07:30:19 AM »
The reason why consumerism has caught on is that is taps into human's evolutionary drive for status.  It is the default to always be chasing, bigger, faster, better more until you drop dead because we are wired for survival, not happiness, and survival favored people who have high status in society.  So it makes sense that if you are status seeking, $100K is not that much because once you get to that income level, you get access to the people who have $150K and have more stuff  etc.... 

EDSMedS

  • Stubble
  • **
  • Posts: 211
  • Age: 39
  • Location: Washington, DC
Re: "$100,000 income: No big deal anymore"
« Reply #10 on: January 09, 2015, 07:56:29 AM »
I guess politicians and their media mouthpieces don't win elections by telling the population that everything is going to be just fine.

+1!

dplasters

  • 5 O'Clock Shadow
  • *
  • Posts: 28
Re: "$100,000 income: No big deal anymore"
« Reply #11 on: January 09, 2015, 08:00:27 AM »
In that I live in a county where the median household income is above 100k I agree.  Making over 100k as a household can't be a big deal if over half the households are doing it.

In fact, I'm surrounded by counties with median household income over 100k.


neo von retorch

  • Magnum Stache
  • ******
  • Posts: 4944
  • Location: SE PA
    • Fi@retorch - personal finance tracking
Re: "$100,000 income: No big deal anymore"
« Reply #12 on: January 09, 2015, 08:37:35 AM »
One might think that after years of reading public comments on public internet articles, one might learn to not read those, but alas... one is a slow learner.

The article didn't bother me nearly as much as the comments. For any person that said they either made $100k and were doing quite well or said they made less than $100k and were getting by, there was someone there to attack them and accuse them of being miserable!

Quote
You might be living a frugal life, but you are probably getting some kind of assistance to afford healthcare, prescriptions, etc.
Quote
Easy to say when you live on your own. You probably have no girlfriend and you really don't have much of a life. From what you describe is that you get up, go to work, and come home and that is it.
Quote
Good luck raising a family on an income less than $100,000 here unless you want your whole family to be cramped into an old 2 bedroom apartment.
Quote
Unfortunately, all of these extras that are required in today's times (except for the TV) are necessary and expensive.

Chester Allen Arthur

  • 5 O'Clock Shadow
  • *
  • Posts: 22
Re: "$100,000 income: No big deal anymore"
« Reply #13 on: January 09, 2015, 10:33:34 AM »
Funny, I made closer to half that, save half of what I make, and still have a giant television in my nice apartment 30 minutes from a major city.

RFAAOATB

  • Pencil Stache
  • ****
  • Posts: 654
Re: "$100,000 income: No big deal anymore"
« Reply #14 on: January 09, 2015, 10:45:34 AM »
Funny, I made closer to half that, save half of what I make, and still have a giant television in my nice apartment 30 minutes from a major city.

No big deal, all the poors have giant televisions.  And nice apartment is code for doesn't have a nice house.  Poors, poors all of you.

Not that I'm much better.  I got a baby condo.  If you stick it in the garage of a normal house it looks like the normal house is giving birth.

r3dt4rget

  • Stubble
  • **
  • Posts: 182
Re: "$100,000 income: No big deal anymore"
« Reply #15 on: January 09, 2015, 03:29:16 PM »
I'd be very surprised if a family of 4 could spend $100k excluding housing costs. You would need to live it up big to go though that kind of income. When you realize this, it makes sense to minimize housing costs, which is the opposite of what most Americans do. They head to the bank, which tells them based $100k income you can afford this $500k house.

NoraLenderbee

  • Handlebar Stache
  • *****
  • Posts: 1254
Re: "$100,000 income: No big deal anymore"
« Reply #16 on: January 09, 2015, 04:41:09 PM »
Not too many folks, even here, could live on the interest on 1 million today.

Assuming the 4% safe withdrawal rate (and that it's invested), that's $40k, more than I make.

The apples-to-apples comparison is interest, not SWR.  In the example I gave, you could live very well without touching principal.
The point is not simply that interest rates have dropped, or that lots of people live well on less, but that 100K really, truly doesn't buy what it used to.

Roland of Gilead

  • Handlebar Stache
  • *****
  • Posts: 2454
Re: "$100,000 income: No big deal anymore"
« Reply #17 on: January 09, 2015, 04:47:18 PM »
I'd be very surprised if a family of 4 could spend $100k excluding housing costs. You would need to live it up big to go though that kind of income. When you realize this, it makes sense to minimize housing costs, which is the opposite of what most Americans do. They head to the bank, which tells them based $100k income you can afford this $500k house.

Yeah, uhm, before we found the light, we were making over $200K and saving $0.  A couple with no children.

galliver

  • Handlebar Stache
  • *****
  • Posts: 1863
Re: "$100,000 income: No big deal anymore"
« Reply #18 on: January 09, 2015, 05:15:47 PM »
In terms of inflation, a $100k income today had the purchasing power of $80k 10 years ago and $62k 20 years ago. Or going the other way, $100k 10 years ago is $125k now, and $100k 20 years ago is $160k now. So, what makes an income "a big deal?" Was $62k "a big deal" in 1994?

I like the 20% figure. That's 1/5 Americans. But if you recognize that salaries are higher in HCOL areas, that means those salaries are even more concentrated in those regions. More common than 1/5. By my standard, if one of every five people you meet in the street (or more) meet a given standard...it's not really "a big deal."

Is it enough to live on? That would depend, wouldn't it? One person, two, four, or ten? What is the housing market like (my bf and I each spend 50% more on our share of a 1br in our area than we did on a room in a 3br/2br respectively where we used to live, and our rent is on the low end for our area, so don't say it doesn't matter). What's the school situation like, for people with kids? There are just so many factors you can't really make a blanket statement about $100k on its own. Maybe it's luxurious. Maybe it's comfortably sufficient. Maybe they're being wasteful. Maybe it truly is a stretch.

GrayGhost

  • Bristles
  • ***
  • Posts: 388
  • Location: USA
Re: "$100,000 income: No big deal anymore"
« Reply #19 on: January 09, 2015, 11:21:31 PM »
In the sense that $100,000 had a lot more buying power in the past, it's true, $100,000 isn't what it once was.

But if you make $100,000 as a single person, or as the sole earner in a family of four, you're rich as far as I'm concerned. I make just about $50,000 a year as a single fellow, and I am so rich that I save about half of my income. Anyone who's even richer than me is practically bathing in cash as far as I am concerned. I couldn't imagine making $100,000 and not feeling rich.

greaper007

  • Handlebar Stache
  • *****
  • Posts: 1117
Re: "$100,000 income: No big deal anymore"
« Reply #20 on: January 10, 2015, 02:33:30 AM »
I think a lot of people without kids, or those that don't value getting into the best school system as much, don't totally get why you might spend more to live in a given area.    I think I get more bang for my buck by living in a more tony suburb (but in a 40 year old  neighborhood next to the McMansions) than I would if I'd bought a cheaper house somewhere else.

Being on the edge of a very specific school district, and luck, allowed us to get my son into one of the top 30 charter schools in the country.   Now he's in for k-12 and his sister will probably be able to get in too.    It also helps with resale value for our home.

Other than housing costs, I think most of the things mentioned in this article are pretty silly.    TVs and Blu-ray players are relatively cheap.  I pay $50 a month for my whole family to use our town's rec center.    Cars can easily go over 200k miles now and be had for less than 5000 dollars.   And $150 a week lets you buy food and booze for a family of four without really thinking about it.   

EarlyStart

  • Stubble
  • **
  • Posts: 115
Re: "$100,000 income: No big deal anymore"
« Reply #21 on: January 10, 2015, 11:49:04 PM »
The article makes a valid point about the psychology behind big, round, pretty numbers irrespective of purchasing power.


Regardless, inflation hasn't made $100,000 "no big deal". If you have an army of children or incredible medical costs, it could be looked at that way, but that's kind of a different discussion.

mm1970

  • Senior Mustachian
  • ********
  • Posts: 10935
Re: "$100,000 income: No big deal anymore"
« Reply #22 on: January 11, 2015, 10:23:45 AM »
Quote
Sorry, but housing costs aren't something that just "happen" to you, even in HCOL areas. I live in a very HCOL area and managed to spend just under half the median price for my home. Apparently a lot of people don't understand that median means half the prices are higher and half are lower. There's nothing making me end up in the first category instead of the second except my own decisions.

Well, sometimes it does.  Now, of course, many (most?) people have the option of, well, moving somewhere cheaper.

But $100k income won't get you much in this town, where a 2BR condo (apartment) is $500k and a 2BR fixer house in a bad school district is $730k (I think I'm going to walk up the street to an open house today, just for kicks.)

You can, of course, live an hour out for cheaper (the local landscape is such that you are either "in town" for that atrocious amount or you are 40-60 minutes "out" - nothing in between).

Someone else alluded to the school district.  We live in a bad one, and managed to transfer our son into a "less bad" one.  But seriously, that $730k 2BR old fixer up the street from me would be about $150k more in one of the better school districts.

For fun, I was perusing houses for sale in NoVa (Sterling area, long story), and I see houses our size for a decent price (low 300's) but then I see they are not in good school districts (2 out of 10).  To find a house in a better school district (7 out of 10) they appear to be $150k more, difficult to find smaller homes.  I guess the schools reflect the income and socio-economic status of the parents, and thus house sizes follow?  At least in NoVa.

Rezdent

  • Pencil Stache
  • ****
  • Posts: 814
  • Location: Central Texas
Re: "$100,000 income: No big deal anymore"
« Reply #23 on: January 11, 2015, 11:55:50 AM »
Gosh this idea of "must have a good school" is wearing on me.

 Public schools are what they are.  The curriculum is set at state or federal levels - the schools are teaching the same materials.
My kids (now all grown) attended a district which many of my coworkers considered as "awful" because it was poor in relation to the others.  A significant number of students were from the very worst neighborhoods.

The discipline issues were minimal because the school was almost militant with their rules.  The kids hate that part but dang if it didn't work. Very little bullying or mayhem at the schools.
Due to the at risk population, the district was able to implement all sorts of interventions to help kids.  Vocational assistance,  tutoring, study and mentoring programs are everywhere and kids are expected to use them.

It does have its downside.  The places where the gap was most notable was in the "nice-to-haves".   Areas like athletics programs where the lack of funding resulted in the football team never winning; the drama team for UIL did not have an even playing field when it came to materials and props.  Guess what, these things did not tank the kids.  Disappointing but really no big deal.  Football and drama still happened and were fun.

Peer pressure to have the latest best stuff is much lower at this school than some of the richer ones.  The kids have to improvise and use their creativity more, which is a huge advantage for future Mustachians.

My kids have done amazingly well - all of them graduated within the top 1% of their class.  One of them is an astrophysicist and the others are attending college with bright futures.  They have great skills at maneuvering through large bureaucracies. I am especially proud of their ability to get along with very diverse groups.

Good parenting is the essential ingredient.
I didn't let the school shoulder all the responsibility.  I taught my children that they were responsible for getting the most out of their studies.  I stepped up when they needed something extra.  I actually met with and discussed progress with the teachers.

I'll wager that a whole lot of the "good school" mentality that parents hear is a subtle attempt at keeping up with the Jones'.
/rant.

mm1970

  • Senior Mustachian
  • ********
  • Posts: 10935
Re: "$100,000 income: No big deal anymore"
« Reply #24 on: January 11, 2015, 12:48:58 PM »
Gosh this idea of "must have a good school" is wearing on me.

 Public schools are what they are.  The curriculum is set at state or federal levels - the schools are teaching the same materials.
My kids (now all grown) attended a district which many of my coworkers considered as "awful" because it was poor in relation to the others.  A significant number of students were from the very worst neighborhoods.

The discipline issues were minimal because the school was almost militant with their rules.  The kids hate that part but dang if it didn't work. Very little bullying or mayhem at the schools.
Due to the at risk population, the district was able to implement all sorts of interventions to help kids.  Vocational assistance,  tutoring, study and mentoring programs are everywhere and kids are expected to use them.

It does have its downside.  The places where the gap was most notable was in the "nice-to-haves".   Areas like athletics programs where the lack of funding resulted in the football team never winning; the drama team for UIL did not have an even playing field when it came to materials and props.  Guess what, these things did not tank the kids.  Disappointing but really no big deal.  Football and drama still happened and were fun.

Peer pressure to have the latest best stuff is much lower at this school than some of the richer ones.  The kids have to improvise and use their creativity more, which is a huge advantage for future Mustachians.

My kids have done amazingly well - all of them graduated within the top 1% of their class.  One of them is an astrophysicist and the others are attending college with bright futures.  They have great skills at maneuvering through large bureaucracies. I am especially proud of their ability to get along with very diverse groups.

Good parenting is the essential ingredient.
I didn't let the school shoulder all the responsibility.  I taught my children that they were responsible for getting the most out of their studies.  I stepped up when they needed something extra.  I actually met with and discussed progress with the teachers.

I'll wager that a whole lot of the "good school" mentality that parents hear is a subtle attempt at keeping up with the Jones'.
/rant.
For sure some of it is keeping up with the Jones', but there's another aspect.

For one thing, we have a couple of schools with MUCH better test scores.  And parents from all elementary areas try to get into that school.  The downside for me?  Keeping up with the Jones'.  Those kids tend to be MUCH richer and much more spendy and much more spoiled.  Speaking from a little bit of experience, but also the experience of friends who are teachers at these schools.  There's a ton of peer pressure.

I realize that the requirements are set at the federal/state level, but to give you an idea -

The test scores (I'm an engineer, bear with me, numbers matter to me) of the district we are in are dismal.  740 out of 1000.
Generally they also break the scores down by socio-economic status and English learner status.
However, they don't at our home school because >95% of the students are economically disadvantaged and >75% are English learners.
The 25-30% of the district that don't fall into those groups transfer out or go to private school.
This means for the 9 English Origin students in the school (out of 400) who attend the school, they are held back by the amount of work put into the English learners to, well, learn English.

The school we transferred into has 75% economically disadvantaged and about 50-60% English learners (and 34% of the students' parents did not graduate high school).  However, because there is a larger % of students with English origin language and not economically disadvantaged, they break out the numbers.
702 for English learners
940 for English origin.

The larger % of EO students means that the teachers teach to the EO students, mostly (it's also a reason the EL students do dismally.  They  haven't figured out how to fix that.)  Also, a large % of the students are bussed in, so it's not particularly a "neighborhood school", and we have an extreme tardiness problem.

If you have a "smart" student, you have to wonder how well they would do with more competition, which is what you get at other, better, schools.  I know for one thing, my son (in 3rd grade)  has made MANY more strides the 2 years that his classmates included a pair of twins with a math teacher mother and a doctor father.  He's a competitive little bugger.  In general the better schools have better students, kids can learn "faster", and yes, there is more money for extracurriculars.

The budgets being what they are here, there is no money in the budget for art, science, computers, music, physical education.  Thus, the PTA has to raise money for these things.  The really poor schools (>95% economically disadvantaged) get state money.  The rich schools easily raise $150,000-250,000.

Our school needs to raise $80k per year, and we are at $20k, and the school year is half over.  That's $200 per student, but only about 60-80 families can afford to fund raise or donate.

Half of that money goes to pay the "specialists" salaries to teach music, PE, art, science (well, actually they canceled science this year), etc.

It's a bummer.

My kids will be fine, because we also teach at home.  But the school district is hugely important, especially if you don't have the ability to teach at home or the money to supplement school learning.

TrulyStashin

  • Handlebar Stache
  • *****
  • Posts: 1024
  • Location: Mid-Sized Southern City
Re: "$100,000 income: No big deal anymore"
« Reply #25 on: January 11, 2015, 01:03:07 PM »
I guess politicians and their media mouthpieces don't win elections by telling the population that everything is going to be just fine.

+1!

Disagree. 

Reagan won the reelection in 1984 with his "Morning in America" campaign (https://www.youtube.com/watch?v=EU-IBF8nwSY).  Clinton won in 1996 by running on his "we built a great economy campaign" (https://www.youtube.com/watch?v=Pt-LDpxS5iQ).   

There is plenty of precedent for winning on a positive message.  The politician who resurrects this kind of campaign in 2016 will be a force to be reckoned with -- people are tired of negativity.  We are hungry for a message like these.

Bob W

  • Magnum Stache
  • ******
  • Posts: 2942
  • Age: 65
  • Location: Missouri
  • Live on minimum wage, earn on maximum
Re: "$100,000 income: No big deal anymore"
« Reply #26 on: January 11, 2015, 01:52:06 PM »
100k is not much but in my super cool. LCOL area I would guess less than 1 in 100 makes that much.     

Kyle Schuant

  • Handlebar Stache
  • *****
  • Posts: 1314
  • Location: Melbourne, Australia
Re: "$100,000 income: No big deal anymore"
« Reply #27 on: January 11, 2015, 02:28:00 PM »
I actually met with and discussed progress with the teachers.
Every study and every experienced teacher say that the number one determinant of a child's success is parental involvement.

Quote
I'll wager that a whole lot of the "good school" mentality that parents hear is a subtle attempt at keeping up with the Jones'.
Certainly. With the caution that there are actually schools where children are under threat of violence from other children. I don't think my boy would get a good education if he were busy worrying about being stabbed.

And while parental involvement matters most, other things do matter. Your peers, for example. If you're black in the US or Australia, some of your peers - in the bad areas - will be saying that seeking a good education means you're "trying to be Whitey." I grew up working class, and a lot of kids were held back by their peers, "what? you think you're going to uni? wanna be posh?" etc. Parents can overcome that, but it's not easy.

So I would say that it doesn't have to be the best school, but it shouldn't be the worst. Luckily, you don't need a lot of money to avoid the worst schools. Or worst nutrition, or worst healthcare, etc.

Melody

  • Handlebar Stache
  • *****
  • Posts: 1087
  • Age: 35
  • Location: Australia
Re: "$100,000 income: No big deal anymore"
« Reply #28 on: January 11, 2015, 04:29:35 PM »
Where I come from $100k does not equal an impressive life. At yhis level taxes are quite high,  a mortgage payment on an average property ($500k) will take up half of your take home (rates are high in Australia)  and while you'd be comfortable if this income is supporting a family stuff like good private schools would be out of the question.

greaper007

  • Handlebar Stache
  • *****
  • Posts: 1117
Re: "$100,000 income: No big deal anymore"
« Reply #29 on: January 11, 2015, 06:30:12 PM »
Schools generally teach to the middle of the class.    I had the unique perspective of transitioning from a low performing school to a high performing school in 6th grade.    I went from the top of my class in terms of advanced placement, to the lower middle.    I essentially lost a grade level by moving school and I never really recovered.   

At my low performing school we spent 40% of our time learning how to take standardized tests.   Many of the students were not English speaking natives, and as such I didn't have to work very hard to do well.    I never really learned how to work hard because I didn't have to.    It was very difficult to face competition after that experience.

My son is currently attending one of the top charter schools in the country.   My wife and I volunteer fairly often, so we're really able to see what goes on in the school.    All the children are fairly well behaved and intelligent, it seems that the majority of parents have at least a masters degree.   There is a very good integration of technology that really asses the exact level that my son is at for things like math and reading.

They have a very unique integration of skills in things like math.    He's actually learning algebra in the first grade, yet it isn't presented as algebra and it isn't pushed in a sort of tiger mom way.    They meet the student exactly where he or she currently is.

Beyond this, something like 90% of the graduating seniors are attending college and the majority of them were accepted to their top choice school.

This school is probably on par with the better private schools in the area.   But we were able to get into it for free since it's a charter school.    Our house was only $275,000, which was about $25,000-$35,000 more than a similar house in lower performing district.

YoungInvestor

  • Bristles
  • ***
  • Posts: 409
Re: "$100,000 income: No big deal anymore"
« Reply #30 on: January 11, 2015, 07:18:53 PM »
100k income (on a household, or even on anindividual level) certainly is not a big deal anymore. Any household with 2 relatively qualified people can reach that somewhat easily.

Is it enough to live comfortably off of? Sure.

totoro

  • Handlebar Stache
  • *****
  • Posts: 2190
Re: "$100,000 income: No big deal anymore"
« Reply #31 on: January 11, 2015, 08:51:58 PM »
Where I come from $100k does not equal an impressive life. At yhis level taxes are quite high,  a mortgage payment on an average property ($500k) will take up half of your take home (rates are high in Australia)  and while you'd be comfortable if this income is supporting a family stuff like good private schools would be out of the question.

Ditto.  Average family income is over $100,000 and the average price of a single family home is over $900,000 (median is less but still high).  $100,000 income is not a big deal around here and most of my kids friends' families earn well above this unless they are single parents.

steveo

  • Handlebar Stache
  • *****
  • Posts: 1928
Re: "$100,000 income: No big deal anymore"
« Reply #32 on: January 11, 2015, 09:28:06 PM »
Where I come from $100k does not equal an impressive life. At yhis level taxes are quite high,  a mortgage payment on an average property ($500k) will take up half of your take home (rates are high in Australia)  and while you'd be comfortable if this income is supporting a family stuff like good private schools would be out of the question.

Ditto.  Average family income is over $100,000 and the average price of a single family home is over $900,000 (median is less but still high).  $100,000 income is not a big deal around here and most of my kids friends' families earn well above this unless they are single parents.

I'm Australian as well but I think that an income over $100k is a fortune. I don't think though a family earning that much would be anywhere near well off. Its not enough to make you rich quickly especially with home prices however I'm hopeful that once the mortgage is gone we will move towards FI reasonably quickly.

randymarsh

  • Handlebar Stache
  • *****
  • Posts: 1369
  • Location: Denver
Re: "$100,000 income: No big deal anymore"
« Reply #33 on: January 11, 2015, 10:02:40 PM »
100K as a household income has lost it's luster because today it's 2 earners that are making it. 100K for one person was/is much more impressive. 2 teachers right out of college today are earning 80K in Ohio. Give them ~5 years and they're at 100K or even sooner if they coach a sport, tutor, or side hustle in the summer.

I just ran a paycheck calculator though and 100K would definitely feel like "unlimited money" to me as a single guy. My current take home of $2,800 vs. $5,830. It's weird how 2 or 3 grand more feels like a million when it's not spent on "mandatory" expenses like housing or high car payments.
« Last Edit: January 11, 2015, 10:06:52 PM by thefinancialstudent »

mm1970

  • Senior Mustachian
  • ********
  • Posts: 10935
Re: "$100,000 income: No big deal anymore"
« Reply #34 on: January 12, 2015, 01:57:27 PM »
100K as a household income has lost it's luster because today it's 2 earners that are making it. 100K for one person was/is much more impressive. 2 teachers right out of college today are earning 80K in Ohio. Give them ~5 years and they're at 100K or even sooner if they coach a sport, tutor, or side hustle in the summer.

I just ran a paycheck calculator though and 100K would definitely feel like "unlimited money" to me as a single guy. My current take home of $2,800 vs. $5,830. It's weird how 2 or 3 grand more feels like a million when it's not spent on "mandatory" expenses like housing or high car payments.
Well, yes.  Especially if you don't succumb to lifestyle inflation, every extra dollar feels like a lot.

I had a few good years after I changed jobs (got raises amounting to $21k over 3 years).  But I've been stagnant ever since, had a second child, and childcare costs have gone up so...

dandarc

  • Walrus Stache
  • *******
  • Posts: 5488
  • Age: 41
  • Pronouns: he/him/his
Re: "$100,000 income: No big deal anymore"
« Reply #35 on: January 12, 2015, 02:04:35 PM »
100K as a household income has lost it's luster because today it's 2 earners that are making it. 100K for one person was/is much more impressive. 2 teachers right out of college today are earning 80K in Ohio. Give them ~5 years and they're at 100K or even sooner if they coach a sport, tutor, or side hustle in the summer.

I just ran a paycheck calculator though and 100K would definitely feel like "unlimited money" to me as a single guy. My current take home of $2,800 vs. $5,830. It's weird how 2 or 3 grand more feels like a million when it's not spent on "mandatory" expenses like housing or high car payments.
May not quite be a million but 3K / month over 10 years invested is over half a million dollars http://www.mrmoneymustache.com/2011/04/15/getting-started-3-eliminate-short-termitis-the-bankruptcy-disease/.

gimp

  • Handlebar Stache
  • *****
  • Posts: 2344
Re: "$100,000 income: No big deal anymore"
« Reply #36 on: January 12, 2015, 03:52:47 PM »
I earn just over the 6 figure hump. It really does feel like unlimited money. Let's see.

- Max 401k
- Max IRA
- Max HSA
- Max anything else that makes sense to max
- Max 10% employee stock purchase plan contribution (the sum is 10% pre-tax, but paid post-tax)
- Massively accelerate student loan payback, to be done in 3.5 years or so from start to finish
- Pay 1800/month for rent and utilities (bay area ain't cheap, and I was expecting to be splitting this sum)
- Pay car costs
- Drive to wherever the hell I want, whenever I want, without ever caring about gas prices (though $2.60 is nicer than $4.60)... midnight jaunts to a beach, weekend trips of a thousand miles, whatever
- Buy camera gear and spend time shooting wherever I drive
- Keep a stable of liquor, though I'm mostly done buying it
- Brew kit hobby
- Go skiing
- Whenever driving with people, never ever ask or need gas money, and refuse if offered
- Buy incredible tech gear when it improves productivity (mostly a once-every-five-years expense than recurring)
- Still save thousands in taxable investments after all that
- And obviously pay my fair share of taxes without complaint

My net worth increased $50k last year, hopefully over $60k this year.

It is basically unlimited money as long as I don't, you know, spend it all.

Obviously, with regular inflation, $100k loses its luster more and more every year. More so when you have kids and a house and a couple animals. Even more so when you have two SUVs, a salon addiction, a bar habit, a need to go on fancy vacations twice a year, a desire for nice watches, and all the latest tech gadgets. One of those things is inexorable - the passage of time. One of those is normal in the course of life - family, kids, a place to live. The expensive habits... well, they're a choice.

 

Wow, a phone plan for fifteen bucks!