What's the new "$100K" mark?

[FoBoT]

2 new cars? only rich people have 2 new cars

i haven't had a new car payment since 1995

 

[PlatinumGold]

Originally posted by: AMDZen

Originally posted by: HN
i think i get it. it's the term "barely getting by" that's taken on new definition.

So very, very true.

Take platinumGold's comments for instance

then you add payments for 2 new cars.

Chances are those two new cars are high dollar. But if there not, god forbid you should have to settle for a *gasp* used car or *gasp again* a used house.

i did buy a "used" house. house i just bought is over 30 yrs old. it cost me $465k and that is considered a good deal by most in this area.

i have 3 kids so 4 bedroom house is almost mandatory (i know, i don't mean mandatory in the sense of they couldn't survive without it type deal).

i just bought 1 new car (for wife and kids) and my car is over 7 yrs old (no payments).

but IF i did go out and buy a new car, 100k / year would be tough to get by on. do you have any idea what kids cost, clothes, food, extracurricular activities etc.

do we have an expensive lifestyle? i don't think so, we don't go to shows, ballgames (well sometimes minor league games) etc. but we don't live like paupers either.

100k / year is not wealthy in this neck of the woods.

 

[Riverhound777]

*Kicks back and opens a beer in his $300/month (per person) 5 bedroom 2800sf home in central CA*

Too bad it'll be hot as hell here in a few months and I only make $1760/month after taxes

 

[essasin]

New homes in a decent neighboorhoood in the bay area cost at the very minium 900k for anything above 2k square feet.

 

[Night201]

Originally posted by: PlatinumGold
in NJ/NE Philly area, it's hard to buy a new home, have a couple of car payments, pay insurance etc on less than 100k / year

seriously, homes are seriously expensive these days. you can't get anything decent for less than 500k and that's just decent. if you want a nice home, if you want a new home, you are looking at over 700k just for the house.

then you add payments for 2 new cars. insurance for cars, home etc. and you are looking at 5k to 6k in payments alone.

AMEN!

 

[Linux23]

Originally posted by: NanoStuff
I live in a closet for $400/month. If prices keep going up like this I'm gonna have to move into a shoe box.

LOL.

 

[dmw16]

In DC/Baltimore area, from what I've seen, I'd say a couple could live nicely on $150k...but $200k would be nice (esspcially w/ kids).

 

[Dr. Detroit]

Us in the bay area think LA is cheap:

Median household income in the bay area is roughly $80K.

Median home price is $720K


You need closer to $200K household income to buy a home and have a car payment.

 

[MysticLlama]

Originally posted by: FoBoT
2 new cars? only rich people have 2 new cars

i haven't had a new car payment since 1995

Unfortunately this doesn't seem to be the case... a good 50% of the cars in the lot at the office are 4 years old or less, bought new. About 70% of those are owned by people that make a good chunk less than I do.

I have a 26 year old car and a 9 year old car, drive them both semi-daily (obviously I can't drive them both at once, just saying that one doesn't sit)

One is paid off, the other I have a payment on, and they are both in the shop far less than all of these new cars.

So considering I make 30-60% more than most of these people, I wouldn't really say that only rich people have new cars, seems to me like the poor ones are more likely to. (And the car contributes to that)

Of course, both of mine do happen to be Porsches.

 

[Noirish]

do you live at So Cal?
i think $100k is still good.

 

[dwcal]

Originally posted by: HN
i think i get it. it's the term "barely getting by" that's taken on new definition.
reminds me of the guy i overheard while waiting in the potential juror lounge:
"i can't take a week off to do jury duty because my company doesn't pay me for the week and i'll have trouble paying the mortgage and 4 car payments" :roll:

Most things aren't that expensive in L.A., just the housing. Housing isn't as expensive as NYC, but it's pretty high. If you move here from somewhere less crowded, you will have to lower your standards for housing. If someone refuses to live in an apartment/condo, live in a seedy neighborhood, or live 40 miles from work, you'll be paying a lot for rent or mortgage, and you'll barely get by on $100K. If you look at cities like New York or Chicago, lots of middle class people raise families in a 2 or 3 bedroom apartment. A house with a yard is nice for a family, but it's not at all a necessity. If people complain about other expenses, it's because they refuse to downsize their lifestyle, i.e. name brand clothes, nice car instead of a cheap, reliable car, etc. Retail is so competitive here. If you wanted to be frugal, you can buy groceries, clothes and electronics for so cheap.

A single guy can easily live on $40K a year, meaning an apartment (or split a bigger place with roommates), car payment, and spending cash.

 

[CessnaFlyer]

It doesn't matter how much I make, my wife can spend it faster that I can earn it!

 

[quikah]

$100k is still fine even in SoCal. I lived in West LA for 8 years until 2003 on $50-$60k/yr perfectly well. No you can't afford to buy a house, but you can get a 1 bdr condo if you have half a clue how to save. I just rented (alone, never with a roommate) and was able to save ~$50k in those 8 years, nothing stupendous, but then I wasn't trying to save a WHOLE lot. The people who claim they can barely get by on $50k in LA are morons who couldn't get by on $50k in the middle of Iowa, it is not hard, you just need to manage your money and keep your lifestyle within your means.

 

[middlehead]

Originally posted by: Feldenak
$100k/year in my location and I would be living like a king.

 

[dwcal]

Originally posted by: MysticLlama
Unfortunately this doesn't seem to be the case... a good 50% of the cars in the lot at the office are 4 years old or less, bought new. About 70% of those are owned by people that make a good chunk less than I do.

I have a 26 year old car and a 9 year old car, drive them both semi-daily (obviously I can't drive them both at once, just saying that one doesn't sit)

One is paid off, the other I have a payment on, and they are both in the shop far less than all of these new cars.

So considering I make 30-60% more than most of these people, I wouldn't really say that only rich people have new cars, seems to me like the poor ones are more likely to. (And the car contributes to that)

Of course, both of mine do happen to be Porsches.

Here's an interesting article about the consumerist culture of Orange County. Here's a bit about the customer profile of a Mercedes dealership there.

http://talk.ocregister.com/archive/index.php/t-14400.html

Fletcher "Ted" Jones bought the Newport Beach dealership after it filed for bankruptcy protection in the early '90s. With its emphasis on service, the business thrived. Car a little dusty? Drop by for a free wash and a cappuccino while you wait?as long as 90 minutes on a Saturday morning. Get a manicure from Cinnamon Davis or perhaps work on your putting on the green out back.

Antony Chandler, a sales manager, sees the credit reports of customers and marvels at their behavior. "We get the cream of people who can afford it," he says in the accent of his native Zimbabwe. "And we get the cream of people who want to seem like they can afford it."

Chandler puzzles over why young people still renting apartments want to make $800 monthly lease payments on a car?not that he'd try to talk them into a Honda. He points out the terms of a typical transaction: A 25-year-old man with good credit putting down $2,500 and paying $758 a month for a 48-month lease on a $52,000 Mercedes. That's $38,884 to essentially rent a car for four years.

 

[Fritzo]

Originally posted by: Feldenak
$100k/year in my location and I would be living like a king.

Same here

 

[tranceport]

Originally posted by: NanoStuff
I live in a closet for $400/month. If prices keep going up like this I'm gonna have to move into a shoe box.

I have a renter moving out of the other half of my matchbox. I can get you in for $350 a month.

 

[vi edit]

The question here is, are we talking single income or dual income homes?

I could live comfortably on $100,000 household income in a majority of the midwest. I could live VERY comfortably on a $100,000 + $50,000 household income on the midwest.

The first 100k pays the bills. The extra $50k is icing on the cake and a lot of "fun" money.

 

[shenjingbing]

Originally posted by: vi_edit
The question here is, are we talking single income or dual income homes?

I could live comfortably on $100,000 household income in a majority of the midwest. I could live VERY comfortably on a $100,000 + $50,000 household income on the midwest.

The first 100k pays the bills. The extra $50k is icing on the cake and a lot of "fun" money.

Individual income, no wife, no kids... just gf (gf + $40K). No fancy cars, just debts...

 

[Baked]

My bro and his wife live in SoCal, both engineers, making about a quarter mil a year combined. My boss, who lives in NorCal, paid about 120K tax this year.

 

[SamurAchzar]

I was just thinking about that too. I want to move to the San Diego area, I figured that I'm worth between 100-120k a year.
Single, no kids.

My calculation was that if you rent a nice house, that's like 2K$. Add 2K$ for other bills + car payments (you can get a really nice car for 500$/mo, can't you), and you're still left with 60-80K$ yearly for saving and spending. Save half, spend half - 40K$ as "funny money" can get you an awful lot of toys

Also, I don't know what the standard is among different industries, but it seems like most of my medical insurances/expenses would be payed by the employer.

But I'm not American, let alone Californian. Did I miss anything?

 

[dwcal]

Originally posted by: SamurAchzar
I was just thinking about that too. I want to move to the San Diego area, I figured that I'm worth between 100-120k a year.
Single, no kids.

My calculation was that if you rent a nice house, that's like 2K$. Add 2K$ for other bills + car payments (you can get a really nice car for 500$/mo, can't you), and you're still left with 60-80K$ yearly for saving and spending. Save half, spend half - 40K$ as "funny money" can get you an awful lot of toys

Also, I don't know what the standard is among different industries, but it seems like most of my medical insurances/expenses would be payed by the employer.

But I'm not American, let alone Californian. Did I miss anything?

Tax?

 

[PrinceofWands]

Yup, it's a combination of area, and definitions of living. I live on 10-20k easily because I have no bills and the area is so cheap. Most people I know need 25-35k to make it. 100k around here is for the top 1/10th of 1%. Maybe even less. It just doesn't happen.

 

[Nebor]

I'm making a bit over $100k a year in Dallas, TX. Single, no house payments, no car payments. I save\invest about 50% of my income every year.

But I had the fortune of being from a well off family. There's a huge gap between me and those who didn't have the same opportunities.

 

[PrinceofWands]

Originally posted by: Nebor
But I had the fortune of being from a well off family. There's a huge gap between me and those who didn't have the same opportunities.

Bless you for publicly admitting that. Seriously. Thank you.