Holy hell, people live above their means so much... jesus

[Zeze]

Wife and I make low low six figs in nothern NJ. This is nothing special. We own a standard family home.

I drive a Hyundai Tucson 2013, paid cash when it was used 9 mos with 2,300 miles for 15-16K~.
Wife drives a 9 year old Honda Accord.

The daycare cost is kicking our asses. We shop at your average supermarket.

VS

My friend is an admin assistant for a semi-famous millionaire artist, and actually makes pretty good money. I'd wager $50-70K. Her husband is a physical therapist, probably $85K, who knows.

They bought an old home for $300K. Then COMPETELY regutted it entire house. Literally every floor- not even superficial. Added a new room with new roof/walls. A huge new balcony, all new cabinets, etc. She's good with interior design stuff. The renovated home is beautiful- it's straight out of the magazine. The renovation had to be at least $100-200K.

They bought a brand new, fully loaded 2016 BMW X3. I'm not into cars. I think those are $40-46K. Holy hell.

They have a full time nanny they're paying $2,000/mo.

They buy organic crap for food.

The husband has a richer dad. He must be helping out. But even then, how can they afford all this? Omg, I'd lose sleep if I had their expenses at their household income.

 

[isekii]

you're guessing she makes 50-70k I know some admin assists that make over 100k

 

[Zeze]

you're guessing she makes 50-70k I know some admin assists that make over 100k

She told me she doesn't make six figs. I guess 90K then.

 

[drinkmorejava]

That looks pretty easy if they're not eating out all the time, traveling, contributing significantly to retirement. A $500k mortgage is under $2500/month, a loan on the car might be $1000/month. Adding it all up it works.

Not sure why you're pointing out the Nanny. Doesn't look like it's much more than daycare.

 

[hardhat]

Physical Therapists make $$$. They make $50-$60/hour in small town Midwest, and I'm sure a lot more in any type of city.

 

[Carson Dyle]

Don't discount the rich parents. Especially the deceased ones. You don't have even a remote clue how well off these people are.

Worry about your own shit.

 

[Red Squirrel]

I guess dual income helps, but still that does seem pretty crazy. Wonder if they are just adding the renovation expenses to the mortgage. That's what I did when I redid weeping tiles and foundation sealing as it cost about 17k and it would taken me a very long time to pay that separately otherwise.

 

[Insomniator]

Look around in northern NJ... Every other car is a 50k bmw/benz/audi and the cheapest house is 500k. I always wonder how people afford it but then remember... no one understands how 401k's, IRA's and savings work. They think credit card debt is normal. They plan to spend spend spend until 60 and then retire somehow. Good luck!

My actual question is that even if you accept going into serious CC debt for things... there is still some limit. At some point you can't get anymore credit cards. I see people with $1400 worth of car payments, a $3000 mortgage + $50k weddings, kids, expenses, vacations... it just doesn't add up. Sometimes I think maybe everyone in North NJ is actually a doctor? Wife and I make ~140k in North NJ and live in a crappy two br apartment with two 10 year old paid off cars. Barely saving for what will probably be a crappy house!

I guess the answer is a bit of both... people are in debt and there is also indeed a lot of 'money' up here. My town in particular is known as a mob town... lots of old rich white people eating arugula sandwiches every day.

 

[dave_the_nerd]

Does the nanny cook for them too? Because that would save a hell of a shitton of money.

Also: http://www.30kmillionaires.com/

 

[OILFIELDTRASH]

Look around in northern NJ... Every other car is a 50k bmw/benz/audi and the cheapest house is 500k. I always wonder how people afford it but then remember... no one understands how 401k's, IRA's and savings work. They think credit card debt is normal. They plan to spend spend spend until 60 and then retire somehow. Good luck!

My actual question is that even if you accept going into serious CC debt for things... there is still some limit. At some point you can't get anymore credit cards. I see people with $1400 worth of car payments, a $3000 mortgage + $50k weddings, kids, expenses, vacations... it just doesn't add up. Sometimes I think maybe everyone in North NJ is actually a doctor? Wife and I make ~140k in North NJ and live in a crappy two br apartment with two 10 year old paid off cars. Barely saving for what will probably be a crappy house!

I guess the answer is a bit of both... people are in debt and there is also indeed a lot of 'money' up here. My town in particular is known as a mob town... lots of old rich white people eating arugula sandwiches every day.

You just file bankruptcy once you've reached the max. Seven years and it's time to do it again.

 

[Zeze]

That looks pretty easy if they're not eating out all the time, traveling, contributing significantly to retirement. A $500k mortgage is under $2500/month, a loan on the car might be $1000/month. Adding it all up it works.

Not sure why you're pointing out the Nanny. Doesn't look like it's much more than daycare.

We both eat out a lot unfortunately.

Look around in northern NJ... Every other car is a 50k bmw/benz/audi and the cheapest house is 500k. I always wonder how people afford it but then remember... no one understands how 401k's, IRA's and savings work. They think credit card debt is normal. They plan to spend spend spend until 60 and then retire somehow. Good luck!

My actual question is that even if you accept going into serious CC debt for things... there is still some limit. At some point you can't get anymore credit cards. I see people with $1400 worth of car payments, a $3000 mortgage + $50k weddings, kids, expenses, vacations... it just doesn't add up. Sometimes I think maybe everyone in North NJ is actually a doctor? Wife and I make ~140k in North NJ and live in a crappy two br apartment with two 10 year old paid off cars. Barely saving for what will probably be a crappy house!

I guess the answer is a bit of both... people are in debt and there is also indeed a lot of 'money' up here. My town in particular is known as a mob town... lots of old rich white people eating arugula sandwiches every day.

YES.

They all drive super fancy cars. When I drop off my kid at the daycare, the parents all drive super large / shiny Benz, Landrover, BMW. They don't look like directors.

 

[Dr. Detroit]

Wife and I make low low six figs in nothern NJ. This is nothing special. We own a standard family home.

So like $300K?

Or low 6-figures like $110K.

Doing all of us who make low 6-figures a disservice with your paltry $110K.

 

[Red Squirrel]

You just file bankruptcy once you've reached the max. Seven years and it's time to do it again.

Don't you lose your house if you do that though? Then you basically have to live in some crappy low income apartment complex full of druggies etc. Don't mind the hand in the stair well window that nobody can reach, it's going to decompose eventually.

 

[Sonikku]

The incomes being thrown around in this thread make me feel dirt poor lol.

 

[Zeze]

Don't you lose your house if you do that though? Then you basically have to live in some crappy low income apartment complex full of druggies etc. Don't mind the hand in the stair well window that nobody can reach, it's going to decompose eventually.

Houses are protected

 

[Red Squirrel]

The incomes being thrown around in this thread make me feel dirt poor lol.

Don't worry, I "only" make about 75k, and I thought that was a lot. 🙁

I'm at my max so other than OT and stuff it's pretty much the most I'll ever make. You'd think I would be super well off and have tons of savings but reality is with costs of living that keep going up, it's pretty much just enough.

 

[madoka]

Eh, that's not so bad. Redoing their house raises the value of their home. BMWs are often leased. Nannies don't cost that much more than daycare. Organic food is probably healthier.

To me, frivolous stuff would be taking expensive vacations, front row at concerts, season passes for sporting events, etc. Essentially buying experiences. Even pricey vacuums, bespoke suits, and trash cans have some value.

My friend's wife recently got laid off and has no new leads on a job. She took her entire severance and bought annual passes to Disneyland for her family. Now that was reckless and living above her means.

 

[Red Squirrel]

Houses are protected

Hmmm did not know that. So basically all your debts are written off but you keep the house? I presume you still need to make mortgage payments and pay municipal taxes and stuff? So I guess you still need an income, but it would at least get rid of credit card, loan etc debt.

 

[Sonikku]

Don't worry, I "only" make about 75k, and I thought that was a lot. 🙁

I'm at my max so other than OT and stuff it's pretty much the most I'll ever make. You'd think I would be super well off and have tons of savings but reality is with costs of living that keep going up, it's pretty much just enough.

Don't worry, Red. I "only" make about $600 a month atm with no assets and student loan debt. 🙂 I can't even imagine making 75k a year.

 

[Red Squirrel]

Don't worry, Red. I "only" make about $600 a month atm with no assets and student loan debt. 🙂 I can't even imagine making 75k a year.

Ouch yeah that sucks to try to live on these days. Don't get me wrong I consider myself quite lucky for the job/situation I'm in as it could be much worse. Honestly I don't know how people with minimum wage part time incomes manage here as while cost of living is not as bad as the south it's still quite high and keeps going up. I know someone with 2 jobs AND is a landlord, and just struggling to stay afloat, it's sad really. A lot of people here living that way due to lack of jobs.

 

[RockinZ28]

Even people that have decent jobs and far higher than average salaries can still live paycheck to paycheck. Without knowing more exact details, they may or may not be. Maybe they put 50% down on the house? Maybe they are just contributing like 10-15% to retirement/savings, and spending the rest?

I'm pretty conservative and try to invest/save 50% net income. That said, sounds a hell of a lot easier in the midwest to do that and still have nice things.

 

[Imp]

lol... what poverty. A $300k house and a BMW?

People be buying $1 million houses here and probably a Camry or 3-series BMW.

 

[brianmanahan]

maybe they got a big inheritance? who knows.

all i know is that people can buy whatever they want. imma just sit here and keep spending my 20-25$k per year.

 

[JimKiler]

Don't discount the rich parents. Especially the deceased ones. You don't have even a remote clue how well off these people are.

Worry about your own shit.

Who said he is worrying. Sounds like he is trying to understand it. I try and understand my neighbors too because i cannot afford half of what they have but no rich relatives for the wife and I. We are however putting 21% into 401K before the matching so i suppose we would have a lot more disposable income if not for that. But boats, snowmobiles, new cars, house expansions add up. Of course if my grandparents had a trust fund that owned my house i may not care about money either and leave only the screen door closed during the winter. That is my one neighbor at least. But if it bothers you to discuss this topic maybe you should cool off in the shower.

 

[madoka]

Even people that have decent jobs and far higher than average salaries can still live paycheck to paycheck.

One day my wife broke down her finances in tears with me. She makes $125K per year, but after taxes, mortgage, childcare, groceries, and health insurance, she had $100 per month leftover for everything else. 😱