I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!I read this article today:
http://articles.moneycentral.msn.com/SavingandDebt/Advice/RichDontSaveEither.aspx
and I have to say I really did not have a lot of sympathy. Even less than when I read the one about the family living on $150,000 a year and having such a hard time of it.
What is the world coming to when people can't save money on a $250,000 a year salary? Just what are they spending their money on? McMansions?
I guess I just don't get it. To me a house is a house, whether you're living in an RV park, a manufactured home, a log cabin, a garden shed, or a stick-built house. As long as it is structurally safe and is well-kept, one place is as good as the other. Maybe paying for a better neighborhood, I can see, but a home shouldn't break you. It should just be the place you hang your hat and sleep at night.
Fancy cars? Again, its transportation, it should just get you from point A to point B. As long as it is well-maintained and of a size to fit the needs of your family there is no reason for a Mercedes or even a Lexus or Lincoln Town Car if it means you can't afford your bills or to put a little something into savings.
Private schools? Even private schools don't need to break the bank. The Waldorf one here is less than $4000 a year, so it doesn't have to be some $50,000 a year perparatory academy.
I don't know. I don't know what they could be spending so much of their income on that they can't afford their bills and to save money. Even considering a hefty tax bite, I just don't get it.
Maybe they just never learn delayed gratification. I can't fathom it.
They Can't Save Money on an Income of $250,000 a Year
May 24th, 2007 at 06:46 am
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BUT I can play the other side as well. They have choices, many many many choices that the truly poor don't have. & in general none of these people are living particularly deprived lifestyles (that I know). You know, we simply chose not to play that game, I am not going to make $150k/year just to afford a crappy house. It's that simple.
& of course living out here where wages and COL is both higher than average, I see it a lot. You don't know how many people I thought were really bad off just to find out they make six figures. Since housing is nowhere near insane expensive up here though you just scratch your head until you realize private school, manicure/pedicure/hair done weekly, expensive name brands, big expensive new cars every couple of years, and dinner out every night - and biggest of all vacations and mini-vacations galore - you see why the six figures isn't exactly cutting it. Pretty much ALL the stuff that isn't in our budget. They'll complain about their rent too, but that doesn't exactly pull on my heartstrings considering where I am from. Rent at 10% of income sounds like a bargain to me! Since housing is relatively expensive though most people I know out here aren't sinking a lot into big homes or anything. BUT I did have a friend in her early 20s that did rent a McMansion for $2k/month. Lord knows why!!! Couldn't afford it in the least, but that is what the young 20 crowd wants and they want it now I guess. It creeps me out. She was one I thought was really bad off before, but later found out makes six figures, just bought a new truck, had a 4th unexpected child, and has 2 kids in private school. Oy vey. I was very generous at her last 2 baby showers, and then I got fed up and skipped the last one - what a racket. I used to feel bad for her and want to help her out as a young mom. Now I just have to roll my eyes. Why am I trying to help her out when I make 1/2 as much? LOL. But I see this over and over and over around here.
May 24th, 2007 at 02:56 pm 1180018612
Luckily, we have pretty cheap property tax too and my electric bill is usually under $100 a month.
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