re: WSJ: “They are in the top 10% of earners; but they don’t feel rich”

$9000/month

-$2000/month school for two kids
-$1000/month groceries for family 4
-$800/month car notes for a highlander and acura tlx both bought used
-$2000/month maxing 401K so I can actually retire one day
-$1000/month for medical issues that pop up (ear tubes, hernia surgery, mammogram dense tissue examination, etc...)
-$1000/month miscellaneous (car insurance, 529, church donations, teeball, school fundraiser, dance, swim lessons, gas, etc...

So now I have $1200/month left to save for one annual vacation, new roof, new ac, emergency fund, and anything else that pops up.

I love my life and not asking for pity, but 9k in a major city burns fast.

I read this with my wife yesterday.

We're combined at about $420k in Austin area.

After maxing 401ks, mortgage at 6% due to when we purchased, two kids in daycare, and moving from a city a couple of years ago where we didn't need cars to needing to purchase two cars at the same time.

I definitely recognize we are blessed when compared to a lot of others but we definitely don't feel rich.

quote:

---

We're combined at about $420k in Austin area.

---

Yeah you definitely should be feeling VERY well off. Unless you way overbought on your house at 6% or something. I can feel you on 2 kids in daycare if thats around $3k-$4k/mo for you.

So, I'm old - I remember the 1970s. I remember adults talking about income levels. I have a vague idea of the difference between $50k/year and $100k/year was back then.

As an example, overall inflation has been just under 4:1 since 1980, so for simplicity let's roll with that. So, $30k/yr in 1980 is $120k today, $50k then is $200k now, etc.

But, the true big ticket items have gone up around 7x (houses and cars). Yes, quality of life and availability of many things (information services, media, entertainment, consumer electronics, etc.) are both better and cheaper relative to inflation (IMHO), but even in the aggregate, that does not offset the huge hit a middle class family feels in getting into a home or car in 2025.

quote:

---

American households that make about $250,000 or more are typically considered to be in the top 10%

---

250k with 2 smaller children does not go as far as people think if you are saving.

quote:

---

I think part of the issue is we really just started making around this amount over the last two years.

We purchased our home for more than what's it worth according to zillow. We're aggressively paying the remaining student loans. We're def blessed but I don't feel rich and our companies are constantly having layoffs; feels like things could change at any moment.

---

This is reasonable, imo. You obviously know you are well off, but at that income level you feel like you can and need to pay off all of your liabilities and be able to save a good amount. You could certainly cut your expenses if you needed to, but also feel like what’s the point of making that much money if you have to watch what you’re expenses like a hawk.

I think most people just grew up thinking making nearly a half mil meant you didn’t have to worry about money, but I just don’t think that’s true these days if you have kids

quote:

---

These threads are unbelievable. Some have got to be trolls.

---

I don’t think we’re a week removed from the poor guy living paycheck to paycheck after satisfying his investment contributions.

quote:

---

we are in the mid to higher 300s and I’d say we feel broke more often than any feelings of ‘rich’

---

Drugs are an expensive habit

quote:

---

we are in the mid to higher 300s and I’d say we feel broke more often than any feelings of ‘rich’

We’re blessed but no way we could currently make it on a single income

---

If you had the capacity for a truly objective analysis, you would be shocked at your lifestyle creep to even think such a thing.

quote:

---

I think part of the issue is we really just started making around this amount over the last two years.

---

Congrats!!
Based on the daycare situation, sounds like you're you're 30-somethings with a GREAT start!

Obviously it's water-under-the-bridge for you at present, but be as unemotional and investment oriented as you can be with future home purchases. Realtors will make their percentages on your spend, regardless of the property valuation deal for you. So tap their expertise, but just approach the commitment with the same analysis you would if making a huge stock purchase on margin with a stock broker (which is how you're buying a home). Even then you may get burned in real estate under tough buying circumstances like these.

Next, fight off the "we SHOULD be able to afford __(blank)__ ..." tendencies, based on your salary. You DO NOT NEED TO KEEP UP WITH THE JONESES!

Instead, at your level of income (which is great), look long term. Do the analysis .... where do we think we'll be in terms of job stability, income, financial needs, etc. in 10, 15, 30 (OMG! ) yrs? In business we do continuous SWOT (Strength-Weakness-Opportunity-Threat) analyses. Do something similar at home.

Identify "waste" .... i.e., daily $5 Starbucks, bar hopping, eating out at expensive places, and asterisk it. Maybe you should cut it out all together. Maybe should not. But take a look.

Anyway, good luck.
Again, it sounds like you're off to a great start.