If you’re making 150k and are living paycheck to paycheck you either live in a crazy expensive area or are a total fucking idiot when it comes to managing your money.
Hmmm you’re not going to be making 150k a year in a shit fly over state.
I moved from the Bay Area to the East side of Washington near Seattle, folks here don’t make as much as I do for sure, at least not on average. We both have good salaries so we can afford a lot of things. We essentially got to keep most of our bay area salaries.
But even then if we need a big repair we still have to sit down and plan out the money.
I can’t even imagine what it’s like for folks around here.
I live in Nebraska, and all comp included make around 155k per year salary + bonus. You can make that kind of money even here in the “shit”
In California, a new mortgage payment is 8-15k/month. Rent on an apartment is 3-4k/month. $150k salary isn’t enough for the mortgage and will struggle to cover that cost of rent.
In California, a new mortgage payment is 8-15k/month. Rent on an apartment is 3-4k/month
Buddy of mine lives in LA and was just posting angry complaints about his rent going up to 1800/mo, so no.
I’ve got three friends in the LA area and one in the Bay and none of them pay anything close to 3k/mo rent or 8k(!!!) on their mortgages.
Those numbers are insane.
Household income not personal income? And gross not net, correct? After healthcare, taxes and retirement deductions my net is 50% of gross so let’s say that calculates to 6,250 a month. It is a lot of money! But for a household of 4, 2 paid off cars 3 drivers and one college student with no tuition costs, and one high schooler in a school that gives everyone lunch(so it could be much worse) here the average community monthly costs are:
2.5k mortgage with the tax & insurance in there, make that 3k if you are renting.
800/ month car insurance
600/month electric, water, internet
200/month family cell phone service
50/month streaming and donations to community radio
600/month average repair & maintenance on home and cars
Leaving 1700 for food for 4, gas, vet bills, credit card payments (because if someone is making bank now, they got there by making less for years). It’s certainly reasonable but here it’s about the least you can make household - wise and be solid, so if you are making 50k, you need three people working not two. And I can see how a family could get behind. That 2.5k plus $600 housing cost can be much more if you bought a house in the last year or so, and car loan or tuition could also blow this up, as could a medical emergency.
800/ month car insurance
The fuck? Why is your car insurance so expensive?
600/month electric, water, internet
The fuck? Why are you water and electric bills so high? I live alone, but my water bill is always <$40 and my electric bill is $70-$150 depending on if I’m running the A/C or heater.
Internet for me is only $25/month because I use my phone for Internet and have unlimited data with Visible.
200/month family cell phone service
Switch to Visible, like I said. $25/month per line and you all have unlimited data so you can cut your cable Internet.
50/month streaming and donations to community radio
Complete waste of money. You don’t get to do these and then complain you don’t have enough.
600/month average repair & maintenance on home and cars
Lol, what? Are you constantly hitting your walls with hammers? Do you do offroading in a sedan? No way you’re spending $600 per month on home/car repairs (on average) unless you’re driving a Benz or BMW.
That said, thank you for listing out your expenses. It’s a way more fruitful discussion when we talk actual numbers instead of vague “I don’t have enoughs.”
Nope. 2 cars and 3 drivers here with one of them 18 years old. Highest cost car insurance market in the nation. But without that third driver our household income wouldn’t hit the $150k.
Electric, Water, Internet. That’s mostly electricity. Electric bill is higher since I’m working from home, and everything in the house is electric (no gas bill) we don’t eat out much, cook a lot. Very high in the summer. Big windows, high ceilings, old house. Water includes garbage and is usually $100 or so. Internet about $75 FIOS so I can work from home mostly (2 cars not 3 that way).
The $200 is a legacy t mobile plan covering 8 people so if needed I could get the grown kids to cover half of it, that one is high but not per line, we just pay it because if we cut them off it would still cost us $200 for 4 lines.
House is older and cars are too. Tenting for termites has to happen every 10 years and costs 10k, we’ve had to fix plumbing, electric, replace an old porch, need blinds to help with the electrical cost, and the cars won’t last forever - I honestly think the $600 may be underestimating the cost of maintenance, not overestimating.
And of course every month something happens. Vet bills, or some medical cost, or car repair eats the 600 AND the plumbing springs a leak, or I have to work weekends and we buy restaurant food - no month is just bills.
It’s easy to go cheap for awhile, I have done that plenty. We have dry beans, rice, a garden. But things fall apart. I am putting here the cost of maintenance because if we don’t accrue this $600ish, it will end up costing even more. It’s a real cost.
Oh, and I know this isn’t poor, lol. In my 20s lived with 3 families in one house and dumpster dived to make ends meet. Then raised 4 kids with a guy who, halfway through, decided he couldn’t work. 6 people living on what I could make, we are paying that deficit now too. Even so, this is is an awesome life, I am not complaining at all. Just saying that the bills do take most of the netpay if the real cost of housing and transportation is included.
Hi, this is pretty much me, and I concur. If you can’t live on $150k then you are definitely making some questionable decisions. That’s around $8k/m take home. Even if you are spending $4k on rent/mortgage, you should have plenty left over to live on.
I own a home just outside of a city and my mortgage is 1060/mo. 3BR, 3 bath, finished basement, on a half acre.
Good for you. I bet you have to drive everywhere and you don’t even realize that the cost of the infrastructure to make your life convient is bankrupting your closest city.
Good thing there are plenty of places to live outside of major cities.
The only people who this isn’t a solution for are those who feel they’re entitled to live in places they can’t afford 🤷
A lot of people like not commuting several hours a day, or having access to actual culture, or not being constantly robbed by meth heads, or not being murdered because of their Identity, or about a million other things that are difficult to impossible outside of cities…
But fuck all the queer and trans people who escaped to the safety of cities. If they can’t afford t, they shouldn’t be there, right? /s
Rent in NYC where I live is insane. My partner and I recently toured a place where they broke up the basement of a building into 4 apartments, none of which had a real bedroom, and were asking for $3k each
Supply and demand.
You can always move somewhere else and have hope of one day owning property. Or you can rent forever and have nothing to pass on to your kids.
The choice is yours. I wouldn’t wait around for others to solve your problems.
Ya, people should be forced to move away from their family and friends and home by insane cost of living and instead of sympathy we should just expect them to single handedly solve an entire fucked up economic system.
🤡
This is a trend everywhere, I just recently moved to different apartment and I’d say 8/10 apartments I saw on Zillow and the other sites were these “open concept” or whatever 1 bedrooms and hallway kitchens. It’s depressing
Move to Ohio and you can buy a house for significantly less than your current rent.
Try making $150k in a “reasonably priced area.” It can be done, but is not the norm. The problem is that to make a good salary, you have to be in a place that pays those wages. Obviously, this attracts more people, so real estate is more expensive.
The trick is to make $150k in some kind of sweet spot where housing does not compensate. But it’s always a moving target and is extremely difficult. Then in you lose your job? Start all over again.
My salary is $160k in the most expensive region in the country. My total yearly expenses don’t exceed $50k, $20k of which is rent. The rest maxes out my 401k and goes towards a house down payment fund. I have a $30k emergency fund in case I lose my job which gives me 9 months of runway.
I’m not a nomad by any means. I have very nice things and I spend a grand a month on wants (eating out, my hobbies, whatever else I impulse order from Amazon), but I’m extremely aware of all my purchases and budget out every transaction at the end of every week. Hell, I just spent $2k on Christmas to get my family very nice gifts, but I’ve been spending less and sacrificing wants the past few months to offset that to prevent lifestyle creep.
This is a financial literacy problem, not a $150k is not a lot of money problem.
ETA: I split rent 50/50 with my partner in the California Bay area for a decent-sized 2b2.5b townhouse. My friends who do have 5 housemates, as so many of you seem to think I do, pay $1050 a month in rent, or $12.6k a year.
You live in the most expensive region of the country but you only pay $20k in rent? Is your idea of “most expensive” Akron or something?
Because in your world, mobile home trailer parks are free or even exist in urban areas. Come on. A studio apartment around here starts at $1600/mo. The average home sale price in this area in 2022 was $580k. At 10% down, 30 year fixed, at 6.5% interest, after taxes and fees, that’s a mortgage payment of about $4000/mo. Plus about $300-600/mo if you have an HOA/COA. Plus repairs as needed.
Your net take home pay at $150k, after taxes only, is about $9k, making your mortgage 45% of your income. That doesn’t include health insurance, retirement, or any other paycheck deductions.
It doesn’t include transportation: payments, gas, repairs, tolls, or insurance.
That doesn’t include utilities: gas, electric, water, trash, phone, or internet.
That doesn’t include food, supplies, clothing, or personal care.
And it sure as shit doesn’t include medical issues. God help you if you’re a diabetic.
And kids? What are you, fucking Rockefeller? Daycare, schooling (yes, even public schools cost money because of all the extras they ask you to provide like supplies, lunch, etc), and all their needs. At at least 16 years before they might be able to pay rent, that’s a long time for a free tenant sharing your resources.
Plus all of life’s extra costs.
And looking at Zillow, I can’t find any properties within 10 miles of me going for less than $600k. They got townhomes for 1.2 million just down the block. $580k for a house is gonna be hard to find, and probably not in the best condition. Doable, possibly, but not easy.
I started working remotely and then left America. Now I live in a very low cost of living city and haven’t owed more than 1-2% taxes in years… It blows my mind that more people don’t do this.
Where did you go? And how do you not pay fed taxes working for an American company? Or is it a foreign company?
You just explained how work from home jobs will transform how people buy housing and where they buy it.
Yeah, my job went remote in 2020 and this year I moved out of the city and just bought my first house in my home state where the cost of living is almost 1/2 of my former city. I could’ve would’ve never bought a place where I was before. I’m sure someone would have loaned me the money but that felt like a death sentence for my small amount of disposable income.
I make $150k and learned to manage a very strict budget living in the city. Now I have some disposable income and my own house with a yard.
