How much would you spend annually if your HTC were 750k?
Hi, we are a family of 3 with a kid. Our annual expenses sum to 120k including home mortgage and childcare. (401k excluded). Do you think we are living too frugally or our strategy is good to retire early? We are also planning to buy a second bigger home but that would add 100k to our annual expenses. How much would you spend if your HTC was similar to ours? Note that this amounts to about 450k after tax.
You learn to spend whats in your pocket. Maybe you want to send kids to private school. Maybe you want another room in your home. Maybe you wanna put it all on black. Its easy to spend on things you dont necessarily 'need'
You're on the right track but seems like you're about to head down the path of lifestyle creep
~620k household income. Our spending is variable, but it's in the vicinity of 80k. When our youngest kid gets out of preschool, that will knock 18k off it. I find, as you get older, the tendency is to be more frugal, mainly because you are more aware of what actually moves the needle for you and what you'll regret as a waste of money later
Save enough to retire, then you can spend more.
In Seattle 750k makes 540k after tax (including 401k). Yours is Bay Area? Our family of 5 spends ~125k for everything. In the end, what matters is how much money you want to have at retirement, how many years you plan on working, etc.
That’s impressive. Yes we are in Bay Area. Our mortgage along with property tax itself adds to 60k. It’s very very hard to spend less than that on a house in Bay Area. Thankfully we bought it when the interest rates were low. So outside of mortgage and childcare, we only spend about 40 grand annually for everything else. However, better car/house/private school are things we are considering for future. So wanted to get some perspective.
Now THAT is impressive. We have $40k for housing, $25k for travel and $60k for everything else. If my DD makes it to private school this year we will have to move nearer to the city + tuition fee -> add $100k a year. We don't have a choice here, education is a priority. I'm wage slave for life despite a ~ simple life (except for the travel). If you're comfortable working until 60 there's no problem at all.
You guys really are so far from reality it’s crazy. 3-400K in liquid assets per year is enough to do whatever you want comfortably. Get a franchise if you’re not the most enterprising person and become passive and allow for tax benefits. People are on damn game shows for 20 and 50k saying how life changing it is and you have that in 3 months. You see why tech gets no sympathy.
The fact your poll has no option for $120-$150 bothers me emotionally
What are kids activities? We are a family with 2 kids, spending around 140-160k excluding 401k. Renting.
I spend at least 75% of my after-tax income. Saving it for the future when we are not physically young and strong enough to travel/eat/enjoy???
440k