The 100k club

Discussion in 'Politics, Religion, Social Issues' started by niuniu, Sep 22, 2010.

  1. niuniu macrumors 68020

    niuniu

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    A man of the people. The right sort of people.
    #1
    Really interesting bit in the news today about the 100k'ers (140k dollars?). I think most of us want to join the club - but it looks like it might not be as great as we think..

    Reckon you could handle the paycheck without falling into the Jones' trap?

    http://www.bbc.co.uk/news/magazine-11382591


    (btw the Cityboy book they mentioned was only 1p on Amazon, snapped one up but there's a few left)
     
  2. Eraserhead macrumors G4

    Eraserhead

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    #2
    I suppose Chinese peasants are supposed to be excellent savers and they only earn a few dollars a day.
     
  3. niuniu thread starter macrumors 68020

    niuniu

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    #3
    Yeah and not just the peasant folk. The Chinese buy their houses in cash, cars too. I have no idea how the city crowd afford to buy anything, the price of a pad in Shanghai is the same as in London... and to be on a 300 quid a month wage...

    I find a few months of regimented saving quite difficult personally..
     
  4. glocke12 macrumors 6502a

    glocke12

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    #4
    Im sure to catch flak for this statement, but 100k is not that much. At the least it is not as much as people think it might be, and does not entitle you to as many luxuries as one might think.

    The past two years, with my bonus, my salary has been just over ~101k, yet I still struggle financially.

    Some of it is my own doing, as in years past I have purchased fancy, expensive toys I do not need, and have had some expensive night outs. However three years ago I made a decision to cut down my spending and clear my credit card debt. In the end I sold alot of the expensive items I was not using, and limited myself to one to two nights out a month, with a maximum budget of $40.00 a night.

    Since than I have cleared out most of credit card debt and have gotten rid of other expenses, but I still struggle.

    I dont drive a fancy car, I have 7 year old 4runner with 170k miles on it...

    I have a modest house...built in 1972 and at 1500 sq feet is small by todays standards...though it does sit on 5 acres.

    I go out maybe twice a month at the most, usually spending 40 bucks tops...

    No expensive clothing, and I generally wear clothing threadbare before I buy new.

    The list goes on...but the point is that even with being frugal, 100k does not allow one to live a rich, extravagant lifestyle. At the most it allows you to live a more comfortable existence than someone making 50k. This probably means at 100k you can own while at 50k you probably have to rent or own a house in a less than desirable neighborhood, and at 100k if you budget very carefully you can probably take a decent vacation every other year or so while at 50k you may not be able to.

    Thats my take anyway...Im also single, I cant imagine supporting a wife that does not work and kids on my salary.

    Also, they only way that I would feel rich on my salary, and by rich I mean that I am able to walk away at the end of the month with $1000.00 in cash to save or spend is if I lived in an efficiency apartment that was like $650 a month..
     
  5. rasmasyean macrumors 6502a

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    Jul 11, 2008
    #5
    The free market system floods the environment with stimulus that rewards spending money…even money that you don’t have. Luxurious car, bigger house, nice “accessories”, latest gadget… If you are to be within a “class system”, many luxuries to “poorer ppl” become a standard.

    But I beg to differ in the conclusion. You DO plan ahead. It’s just that planning ahead involves spending in the anticipation of earning. And in a downturn like this…loans tend to bite anyone, whether it’s $1K or $1,000K.

    Even ppl who have enough money to buy BIG stuff…I mean stuff that is not in the realm of consumer products…in the order of 100s of millions of dollars, get “in trouble”. When you have that kind of money, the stimulus changes. It makes you feel you “need” to buy the biggest company you can afford and form this company and merge that company, and own a gazzilion shares of that hot bank that was over exposed to mortgages, etc.

    Some might think they have it bad complaining they can barely pay off the house…but there’s another poor sap out that lost the equivalent of 5 of these houses in Lehman Brothers stock.
     
  6. Shivetya macrumors 65816

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    Jan 16, 2008
    #6
    Sorry, but I am at the same financial point but while I don't feel rich, I am more than capable of supporting a family should I choose, let alone a wife who does not work, etc.

    I have friends who do it on 50k. They are happy, seem to have all they need, and in some ways enjoy life more than I do.

    My expenses aren't bad, I know where it goes. My frivolous expense used to be vehicles, I usually bought something new each year, whether it be a new car or new motorcycle. Hell I bought a new car this year, trading in a 2008. The bike is 2009. I have it up for sale and am promising myself not to buy another, well not another 20k bike.

    So where can we go with 100k.
    After taxes, 401k, auto-savings, etc... lets figure on just less than 5k a month after. Those deductions are 800 a month to 401k, 100+ medical, and another 100 or so in a savings account that auto deducts... I forget about that at times.

    How in the heck can I NOT live on nearly 60k a year after taxes? I have lived on two minimum wage jobs before, yeah in an apartment with three other people (we had a large apartment), but still when I look at what I make I realize I pay more in taxes than I earned twenty odd years ago.

    So where does it go, in my case.
    $1400 to the house. (escrow for taxes)
    $400 to the car (a TDI - my mileage went up 30% while fuel costs went up 10%)
    $100 CHOA (charity - childrens health care of atlanta)
    $70 insurance on car
    $50 internet
    $50 phone (inc cell)
    $30 water
    $40 satellite
    $20 security
    $180 electric&gas (it cycles, spring/fall I get down to 100 or so there)
    $105 fuel for diesel (commute see below for how I figure it)
    $200 food (I really don't know, its probably obnoxious)

    Hmm... only accounted for 2645. I know I am missing something....

    I must piss away a lot of money... by the above that would leave me with nearly $2400 a month to lose.

    HOW IN THE HELL CANNOT ANY SINGLE PERSON NOT LIVE ON THAT? LET ALONE A FAMILY OF FOUR?

    Sorry for the shout, but damn, I remember living on 26k before taxes. I did it on even less than that. Sure it wasn't driving Bentleys, but I am not driving them now either. 100K per year is awesome. 50K a year is great too. If you measure your success by comparing what you have to others you will never be successful.

    Rich is happiness, I am happy therefor I am rich. Don't get me wrong, I think some of those super cars are really awesome, but I do not feel deprived not owning one. Vacation home, don't have one, don't care. Large house, ok, mine is obnoxious for one person, but I only paid $260k before the meltdown. I have great parents, whom I use much of my vacation to take care of things they need done, a sister with a good family, and many friends.







    Commute : Fuel calculation, figure commute round trip of 55 miles, I get @40mpg. Average is 22 days per month to work so that that is 1200 miles a month, throw in extra driving, lets figure on 1400 @ 40, or 35 gallons diesel)
     
  7. glocke12 macrumors 6502a

    glocke12

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    #7
    Well, here is my financial breakdown. My base salary is $91030.00 USD, excluding a bonus. Some years I get them, some years I dont.

    I claim 0 dedutions on my W4, and put 10% of my salary into a 401k plan.

    With that my monthly pay is ~4210.00

    Mtg 1876
    Car Loan 350
    Student Loan 350
    gas 270
    auto ins 100
    cell phone 100
    land line 20
    internet 50
    groceries 400
    eating out 50-100
    starbucks 60-80
    electric $200-$300 depending on the season

    After all that I have roughly $200.00 per month to save...

    Not included in the above breakdown are auto and home maintenance costs, these can run anywhere from a few hundred a year to a couple of thousand a year. Also not included is a local wage tax. I believe this is 1% of my salary.

    I could probably save a few more dollars by cutting out on dining out and starbucks, but I already live a hermit like existence and need some pleasures.


    At $1800.00 my mortgage may seem excessive, but even with renting, anyplace that is with a commutable distance of my job is going to be about $1200.00 a month...

    So...how can one raise a family of 4 comfortably on 100k again??


     
  8. Veldek macrumors 68000

    Veldek

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    Germany
    #8
    Are these expenses also biweekly? Then the mortgage (and everything else) seems indeed really high and the comparison with the monthly rent would look different. If the expenses are monthly, you would have $4,400 to save which is a lot IMHO.
     
  9. glocke12 macrumors 6502a

    glocke12

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    Jan 7, 2008
    #9
    sorry..typo...$4210.00 is my MONTHLY pay,


     
  10. cleanup macrumors 68030

    cleanup

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    Toronto
    #10
    Haha. I think many of the folks who live in Shanghai make quiiiite a bit more than 300 pounds a month. Maybe 300 pounds in a few hours.
     
  11. Shivetya macrumors 65816

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    Jan 16, 2008
    #11
    his 4400 biweekly is before taxes.

    Still, running with zero deductions is wrong if your single, it should be at minimum two, if your mortgage interest deduction is large you can increase the number of deductions you take.

    If your feeling as pinched as it appears you feel, you need to itemize all your expenses, use a budget, an envelope system is pretty easy. You need to get a handle on exactly where it goes to get away from the apprehension of not having enough.

    I may do it just to convince myself to save more.
     
  12. glocke12 macrumors 6502a

    glocke12

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    #12
    4400 is not my biweekly pay...

    4210 is my MONTHLY pay AFTER taxes
     
  13. niuniu thread starter macrumors 68020

    niuniu

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    #13
    Same as any city, doesn't make it a normal pay packet for the average professional :confused:
     
  14. Shivetya macrumors 65816

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    Jan 16, 2008
    #14
    OK, so that is still forty eight thousand dollars after taxes. There are many families living just fine on that before taxes. Your expenses list many areas which with a little care can bring you back into a comfort zone.

    The biggest problem with single people at "our" level, even that mythical 75K reported somewhere before, is that we get stuck in habits which are not making effective use of our money. We don't know where it all goes because we don't have too. That leads to a lot of waste.

    By your own numbers your going through nearly 700 dollars a month just in food related items. Your starbucks expense is incredible. Knowing that you already have an area to work on. I will assume your stuck with your $100 cell bill for some time, myself I never understood the desire to saddle oneself with such a large monthly just for a phone.

    Like my numbers, there is a lot of fluff in some "fixed" numbers, I could get my exact monthly insurance costs but until I get it fixed in my head I need to I just round it. You are doing better on your 401k, I think I am at eight percent. I will check tomorrow.


    Whoop out the spread sheet, keep every receipt. Start logging it, categorize it, and then look for where improvements need to be made. You and I both are raking in a good amount of money and neither really has the right to feel constrained. Yet we both are victims of not having to decide.
     
  15. rasmasyean macrumors 6502a

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    #15
    You do get extra deductions that help a bit when you have dependants. But assuming that you are married, often these days the wife also works. And given what you say about the rent, I'm guessing your talking big city. In this setting, "100K" means something totally different. "200K" is more like what we're talking about.
     
  16. StruckANerve macrumors 6502

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    Rio Rancho, NM
    #16
    :eek:What the hell are you eating that you are spending 500 a month on food? I spend 250-300 on groceries a month and that is for me, my wife and 2 kids.
     
  17. rasmasyean macrumors 6502a

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    #17
    I think you're missing something. According to your claim, you spend $2.50 max per day per person. I find that extremely hard to believe. I think hobos spend more.
     
  18. Eraserhead macrumors G4

    Eraserhead

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    #18
    If you cook stuff from scratch that isn't an unreasonable spend. Vegetables and cereals are cheap. And besides the huge number of people on $2/day clearly spend less than $2/day per person on food.
     
  19. dukebound85 macrumors P6

    dukebound85

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    #19
    What are you talking about? My first job out of college was 55k and I was able to save nearly half of it after taxes

    I had an 1000 rent check
    150 util bill
    80 phone bill
    Probably 300 a month for food
    Prob 100 a month in gas
    200 student loans
    Etc

    I was able to save nearly 20k that year

    How can one not live on 100k boggles my mind

    Though with that said, I drive a 20 year old car and live frugal .Point is one can reduce there expenses if they want to
     
  20. flopticalcube macrumors G4

    flopticalcube

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    #20
    Depends on location and eating habits.
     
  21. sammich macrumors 601

    sammich

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    #21
    I wonder what the equivalent salary is in Australia (or any other country). We have a GST (10%), a 38% tax for above AUD$80k and everything is more expensive, like a decent premium car is at least 1.5x including exchange rates.
     
  22. rasmasyean macrumors 6502a

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    #22
    That's some pretty darn cheap vegetarian diet and supermarket brand cereals! :eek:

    Anyway's perhaps if you have a "cook" that cooks for multiple ppl, I guess it can be sort of norm to just eat routinely like this. If you're a single person, cooking (packing lunch) for one is not always worth the couple of bucks saved per day. So you might likely buy prepared/proccessed food and/or dine out sometimes. Maybe all the time even since many kids comming out of college are used to the "cafeteria life".
     
  23. rasmasyean macrumors 6502a

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    Jul 11, 2008
    #23
    That's where you're missing out on classic Americana. Sports car, nights out at the bar for $7 a beer, Tripple play premium cable with HUGE LED TV, loads of XBox games, etc. :D

    Also, I think if you came out from an IVY league school, your salary starts a bit higher often so your lifestyle gap has not closed in with your initial salary. When ppl get used to a particular lifestyle, often money just starts disintegrating. Not for everyone, but for many people. That's how this economy works. Only now in this "super recession" do you hear so many stories emphasizing on being frugal. It wasn't this way before. And that's the only way a capitalistic economy can really thrive. In the capitalism religion, you worship much more than bare necessities. ;)
     
  24. CaoCao macrumors 6502a

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    Jul 27, 2010
    #24
    Wow, that is pretty wasteful spending,

    1) Groceries, that is just excessive, you can eat well on $200 a month
    2) eating out
    3) Starbucks,
    total that is $310-380 saved extra a month
     
  25. Eraserhead macrumors G4

    Eraserhead

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    #25
    The economies of scale are implied by my comment :).
     

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