Can yinz (your hubby, 2 kids and you) live with $500K per year in NYC?

[marylander1940]

I lived in NYC for 20 years without a car. If I wanted to go any real distance outside the city, it was far cheaper to rent a car for a long weekend, than to deal with the tremendous hassle of keeping one in the city. Still, for a family of 4 living in the depths of Brooklyn (that is not a dig as Brooklyn is huge and requires a long subway ride from Manhattan) it would be convenient to have one family vehicle.

 

I can see requiring a car w/2 kids living in Brooklyn.

 

That said, this reminds me of a couple I knew in college who got married and moved int a small condo in Chicago's Gold Coast. Of course, they didn't own a car - they walked, biked, or took transit everywhere. Eventually, they bought the condo next door and combined the two units. After having kids they didn't buy a car - they sent the kids to a very good public school that was walking distance from the condo and they rented a car when it was their turn to shuttle the team around or they visited family and friends in the suburbs. I commented once that it must be expensive to do all the shopping at the local Walgreens or supermarket. They said they did the math and they were saving money because 1) they did not have a car payment, insurance bill, or pay for gasoline and 2) didn't require a ton of storage for the large quantities they would buy at a Target or Costco. They also mentioned that trekking to Target for a "deal" required renting a car, so they thought twice about purchases.

 

sorry guys but I wouldn't have a car in NYC under any circumstances.

[+ OliverSaks]

I am not in favor of cutting back on the charity, fwiw.

[+ nycman]

Supposedly "smart" people will always find stupid ways to spend just under their income.

 

The "dumb" ones?....of course live way beyond.

 

I would say these people are living well beyond their income....they just don't realize it.

 

I've lived in Manhatten on $20K per year and I've live in Manhatten on over $1M per year.

If anything I was happier living on $20K. Yeah it was "easier" to live on $1M...but not

nearly as much fun. I always prided myself on knowing I could drastically cut expenses

at anytime...and I was going to be "ok". One benefit of being poor when you're young is

that you realize early on that most shit in life you don't really need.

 

Unfortunately, its easy to spend cash and become a slave to your income.

 

Saving for tomorrow isn't sexy.....that is until you're in your 70's with a bankroll...then?....it's like fucking Viagra!

 

The couple in this example need three things:

1) an accountant

2) a budget

3) fewer rich friends with whom they are trying to keep up.

[+ Keith30309]

[misterlobo]

Makes me think a little about people who claim winning the lottery is a curse and warn against wanting to win because they don't know how to budget and end up broke in a month :/

[Despardo]

Supposedly "smart" people will always find stupid ways to spend just under their income.

 

The "dumb" ones?....of course live way beyond.

 

I would say these people are living well beyond their income....they just don't realize it.

 

I've lived in Manhatten on $20K per year and I've live in Manhatten on over $1M per year.

If anything I was happier living on $20K. Yeah it was "easier" to live on $1M...but not

nearly as much fun. I always prided myself on knowing I could drastically cut expenses

at anytime...and I was going to be "ok". One benefit of being poor when you're young is

that you realize early on that most shit in life you don't really need.

 

Unfortunately, its easy to spend cash and become a slave to your income.

 

Saving for tomorrow isn't sexy.....that is until you're in your 70's with a bankroll...then?....it's like fucking Viagra!

 

The couple in this example need three things:

1) an accountant

2) a budget

3) fewer rich friends with whom they are trying to keep up.

I tell everyone in their 20's that the secret to happiness is a Roth IRA, a Vanguard index fund and 40 years. They don't listen, but neither did I.

[gallahadesquire]

A camry and a highlander would be cheaper, and better gas milage.

[+ FreshFluff]

Three vacations a year: I'm guessing that 2 of the 3 vacations are long-weekends in a Hamptons sub-let. That explains part of the driving expenses and the need for a BMW or SUV. I still don't understand why the need both.

 

I also find it hard to believe theyonly eat out once every two weeks; it doesn't match the rest of their lifestyle.

 

I would:

 

• Reduce the children's lessons by half
  
• Stop contributing to the college alumni fund until after the student loans have been paid off
  

 

The goal of both of those is the same: to increase the kids' chances of getting into the parents' alma mater(s). It's possible that most oI doubt these expenses are going anywhere.

 

• Watch the "Miscellaneous" expense - $10K for stuff that comes up is excessive
  

 

Probably hair , a trainer, and facials for the wife. She won't be happy if she has to give these up, especially in Manhattan where perfectly groomed and worked-out women are everywhere.

[rvwnsd]

Three vacations a year: I'm guessing that 2 of the 3 vacations are long-weekends in a Hamptons sub-let. That explains part of the driving expenses and the need for a BMW or SUV. I still don't understand why the need both....

That would also explain the relatively modest sum for the three vacations. I agree they do not need both the 5-series and the SUV. They also don't need that particular SUV. Then again, $400/month is a modest car payment, so they might as well have a nice car. Checking the MTA's fares, an unlimited 30-day MetroCard is $121. If they got rid of one car and both took the subway, they would spend an additional $242/month, so the net savings would be $158 plus gasoline. I'm assuming their parking is comped at the office.

...

I also find it hard to believe they only eat out once every two weeks; it doesn't match the rest of their lifestyle....

I read it as they go out as a couple once every two weeks and assumed they ate out or bought take-out/have delivery as a family several times a week. I won't mention that every couple I know who feels the need to have a designated "date night" has a rocky marriage.

 

...The goal of both of those is the same: to increase the kids' chances of getting into the parents' alma mater(s). It's possible that most oI doubt these expenses are going anywhere....

Well, they will not be able to afford the tuition at the rate they are going. They also won't be able to afford private school, so the kids will get (gasp) a public school education and, thanks to the couple's income, won't qualify for financial aid.

 

...Probably hair , a trainer, and facials for the wife. She won't be happy if she has to give these up, especially in Manhattan where perfectly groomed and worked-out women are everywhere.

Yeah, the same is true in Southern California and in Chicago. They all look the same. In fairness, for a family of four $10K/year is essentially $200/person per month. If that includes dental visits, birthday/holiday/anniversary/event presents, museum/sports/cultural outings it really isn't THAT much. Still, it seems some of that could be cut out when they are "living paycheck to paycheck."

[Bearofdistinction]

Why one couple feels like they're scraping by on $500K a year

 

Make Date Night Sharing one Kids Platter at Steak and Shake -- Lose a Car and one vacation a year - Give the Kids POLE DANCE and STRIP LESSONS! And let them pay for their own lessons and college fund -- Get a better accountant

 

[ATTACH=full]9724[/ATTACH]

 

http://www.financialsamurai.com/scraping-by-on-500000-a-year-high-income-earners-struggling/

 

https://www.yahoo.com/finance/news/one-couple-feels-like-theyre-scraping-500k-year-144630331.html

My suggestion would be getting rid of the car (16,600) and cutting the expenses on charity (18,000)

 

I would also cut in clothing for 4 people (9,500 per year = 208 per month per person), and 1 holiday instead of 3 (18,000) besides 6,000 per holiday for a family of 4, even if they're paying $500 per person round trip to San Francisco they could get a better deal for hotel and food and not spend 4,000. There's no better city for a staycation like NYC.

 

What would yinz do?

 

What would you cut or get rid of if you were lucky enough to be making 250k per year, have a mortgage instead or rent, and have a hubby/bf with an equal salary.

[+ purplekow]

They could live/commute in SoCal, wouldn't be that unusual a commute distance.

Not picking on your post...my point is any one here could pick at any set of numbers in that couple's sheet and find reason to differ and say "how could they....because for me..."

Article says they are living in NYC.

[MikeBiDude]

Article says they are living in NYC.

Did you edit this post? Or resurrect an old thread on purpose...?

[+ Pensant]

A camry and a highlander would be cheaper, and better gas milage.

A Highlander alone would be fine. If they weren’t such spendthrifts, they’d pay cash for a slightly used car.

[Walker1]

In a similar vein-actor Joey Lawrence declares bankruptcy.

http://people.com/tv/joey-lawrence-filed-for-bankruptcy/

[+ sync]

Three vacations per year seems a bit much to me, and a deposit to savings, other than 401k, is missing from the itemized listing.

[+ FreshFluff]

I am not in favor of cutting back on the charity, fwiw.

 

They don’t break it out, but most of the 17K in “charity” may be donations to their alma maters. The elite universities get more selective every year.

[marylander1940]

Did you edit this post? Or resurrect an old thread on purpose...?

 

No, there's a thread about a would-be-escort (maybe he's already working) who wants to move to NYC. I posted a link to this old thread on that one, I guess someone felt curious about all of this.

 

They don’t break it out, but most of the 17K in “charity” may be donations to their alma maters. The elite universities get more selective every year.

 

Hold on... they might be thinking of Legacy.

 

Thanks for bringing this up!

[marylander1940]

I think this is my first thread that isn't about escorting but it must be made lol. I bought 50 dollars worth of groceries from target thinking it will last me the entire week, and it was all gone in 2 days lol. Everything from rent, food even some escort prices (not mine hehe) are so crazy. Everything seems to be rising while the minimum wage is not that high enough to combat the inflation. Nowadays the only way for most people to survive is to become roommates with 1 or more people, there are so many people in their 20-40's living with roommates and thats the norm or were seeing people living at home even at 30 until they save enough to move out. Any tips from you wise older gents that you've learned to save money, or even your thoughts on this discussion

 

NYC is not only expensive for you, it's for everybody!

 

I'm using your post to bring back this one on a similar subject.

[YoungAD]

What is the point of resurrecting a thread from nearly eighteen months ago that already died a natural death? Did you not make your point the first time? We get it, NYC is expensive.

Edited September 17, 2018 by YoungAD

[+ sniper]

If they are socking away $36k per year to their 401(k)s they are, by definition, NOT "living paycheck to paycheck." They are just spending most of their take-home pay.

Also keep in mind they likely work for employers who match part of their contributions, so that $36k is probably $54k going into their accounts each year.

And when the kids go to college they wqn't be paying childcare or lessons any more, so the expense of college will be a wash from their perspectinve.

[Gvtire]

If they live in NYC I assume they live in a condo/co-op. What’s not listed is parking for the BMW and Land Cruiser. With pmts like that I’m sure they’re leasing both vehicles