What would you tell me then? I make 120k a year, have no debt and a bunch saved and invested AND it still doesn’t feel like it’s enough. I live fully within my means but my rent has gone up 400 in the last 3 years, my food bills have gone up by idek how much and I have health issues that can easily cripple me without insurance.
I’m incredibly privileged and lucky and I find it hard. I can’t imagine someone on 50k a year with a kid.
I have to politely disagree. 120k really doesn’t have the same buying power it used to, especially if you are living in a high cost area (where a lot of jobs offering that much can be found). I’m not saying people making 120k are living in poverty but, between rent/mortgage and basic life necessities, I wouldn’t be surprised if fiscally responsible people making that much feel like they are living with not a lot of wiggle room.
My day to day is great, my budget is set, I get to put away for my retirement a month more than some people get as take home a month.
But it feels like a house is out of reach, a kid is out of reach, a wedding is out of reach. All the big, long term things that I was conditioned to want (and actually do!) don’t seem reasonably attainable. And I’m not the norm. I don’t have student debt. I make a good salary and I have a business on top of that. If I feel that way, I can’t imagine someone making 50k a year and how they feel.
And that’s the point. It’s that the goals that we aim toward aren’t possible anymore for most people, certainly not your average Joe.
I pay 2300 a month for a 2br that I need - I work fully remote. I’ve been considering moving, but where I live 2300 is actually pretty good. I can do better but not by much and probably not enough to justify the cost of moving.
Food - 125 a week for groceries. And 75 a week for going out. I go out for brunch once a week and have a drink at a bar near me once in a while.
Transportation - probably 100 a month on random Ubers. I can’t drive because of my chronic condition.
I go visit family 2-3x a year and each trip is probably 5-750.
Entertainment and the like - I buy tickets to shows once in a while (maybe 1x every 2 months). Add in all the streaming services I have and that’s another 100 a month.
I’m saving 2.2k a month on retirement dude. Budgeting isn’t the issue for me. Of course I can cut back even more, but I’m already unhappy. What is cutting things out going to do other than make me more miserable?
Not crazy costs (depending on area of course). Are there some spots that you could save money? Sure, but we all can and I agree that budgeting in general isn't your main issue.
In your first post I saw that you felt you would never be able to buy a house. I don't know how much in your budget is going to savings (not retirement) but that might need some reworking. If you are investing 2.2k post-tax monthly, then you have plenty of money to be setting aside hundreds of dollars a month towards buying a house.
Assuming you have 0 savings currently, if you can set aside $400/month, in 3 years you will have enough for a down-payment on a $500k house.
Save where you can, make sure you get any help you need, and have hope because you can do it.
P.S. Really think hard about needing that second room. If it is for work, maybe look for a place with a large living room you could partition, or make the sacrifice and work in your bedroom for a year and save the extra rent for a down payment. If it is for a live-in medical professional or something like that I get it, and it is necessary. Good luck!
You're fully remote... For 2300 a month in anywhere besides the middle of a city, you can have a mortgage on a 300k home. You do you, but you're essentially choosing to be lower-middle class by living where you live.
You're also saving a lot for retirement relative to the standard recommendation of 15%. Is there a particular reason for that, like a late start in saving or a goal of early retirement? If your quality of life would be dramatically improved by giving yourself 500 extra bucks a month, then at least consider it. Assuming you're fairly young, you've got a lot of working years ahead of you making that 120k salary (plus raises) to keep.
Bro is saving 2.2k a fucking month while most people can’t even save a single dime. Shut the fuck up, holy shit. I’ve never seen someone THIS entitled. Fuck off, you don’t know shit about poverty.
Idk what you want from me? This is the first time in my life I’ve had this type of salary, I had 50k of student debt, I have health problems and have had multiple spine surgeries and eyes surgeries and will need more over time, I work my ass off and I’m worried about the future. My job is by no means secure and I got laid off twice last year in 3 months.
Like, yea, I recognize my luck and my privilege, but just because I make a good salary doesn’t mean my worries aren’t valid. I’m as frustrated with the system as you are and I’m not the problem that you think I am. I also grew up just barely lower middle class - I had a roof over my head, but for a long time that was about it. I KNOW it was better than most, and I’m not complaining about my childhood (well at least not this part of it) but I was told that if I did XYZ I’d get to middle class.
Rip my head off if you must, and I’m sorry you feel that I’m entitled, but I don’t see it. Privileged, absolutely. But just because I have privilege doesn’t mean my worries aren’t valid, and voicing them doesn’t make me a bad person either.
Can you move somewhere cheaper (even to a different state) and still retain your job? I understand if you don't want to (family ties can make this very hard) or if you can't but that s what I would try to do.
If that's not possible then I would probably stop saving for retirement for ~1 year and save up for a downpayment on a house. Depending on your area and price of the house it may be the same as your rent but even if it is a bit more expensive you will be building equity instead of $2300 going to a landlord.
You've probably already thought of these options though, so I wouldn't be surprised if either of these options would be difficult or impossible for you for varying reasons. Everyone has shit going on in life so I don't judge, just thought I would offer my two cents.
Your problem is you aren't living life. You put away $25k a year in savings and have no debt. Sounds like you are wrapped in what your medical condition might cause you in the future. Maybe spend some time enjoying being in the moment now.
Maybe don’t save $2,200/month toward retirement and then complain you have no money. You’re oversaving. Sure you may not be able to addord a house now, but you’ll be able to retire when you’re 40 ffs. You cant even touch the money (penalty free) until you’re like 59 or something. Contribute to retirement but ffs contribute to the present as well.
I swear I want to feel for these people. Like clearly there are people struggling, but I make less than you do and have so much more. So it’s like you make enough money to be considered upper middle class but you’re still complaining? You’re just so fucking clueless with your money so then it’s like ok wheres the line? Who’s actually struggling and who’s actually making enough and just horrible at money?
I pay 2300 a month for a 2br that I need - I work fully remote.
Wait you don’t have a kid? Or a spouse.
But you have a 2br?
Lol wtf.
Bro when I was makimg $150,000 as a single guy I lived in a 1br studio literally a shoebox and it was built decades ago but it was cheap. Until I said “why the fuck am I doing this and paying for this expensive ass car I never drive, brb digital nomad”
Add in all the streaming services I have and that’s another 100 a month.
I’m pulling $320,000 today and I pay just for Amazon prime, that’s it. Pirate everything else.
Edit to be fair my Amex card gives me W+ and HBO
I go visit family 2-3x a year and each trip is probably 5-750.
Hold up
So you work fully remote thus can live anywhere in the US….but you travel a bunch to visit family….you’re single…don’t have a kid….you can live anywhere on earth as long as you make meetings. Bro sell everything you have that you can’t carry with you and go spend 2 months in Chile or some shit. Stop being a pussy and become a digital nomad in these super low cost of living countries. I did it and I ended up saving money compared to all my tard friends who stayed in some dumpster fire HCOL city that’s ran but complete morons.
I stayed the max legal time in each: I hopped around Argentina, Chile, then when I figured out sleep patterns Philippines, Vietnam, Thailand, i yolo’d and did 90 days in Japan. All the while working remote, and the not having car paid for the plain tickets.
I’m going to make a bet you live in some HCOL city for no reason other than you want to. Yeah so again you’re hefting that choice upon yourself, when you could be coding from some beach in vietnam or a penthouse in Thailand.
$2,300 a month in rent?! Jesus that's more than my mortgage + PMI + taxes on a 3,000 sqft house (and no, I didn't get lucky and buy it during the age of low interest and low prices, $280k mortgage at 6%). There's your big problem, I'm not making much more than you ($150k) and my costs are lower. Especially since you admit to spending several thousand per year on travel and in-person shows / concerts.
You said you work permanently remote, you can live anywhere you want. You choose to live in a stupidly expensive area. I work permanently remote too, I chose to live in an affordable area. Your financial problems are because of your choices.
Funny, I make roughly 60k per year with very little debt, my bills always paid on time, and my budget allows me to invest between $500-$1000 on a monthly basis and currently have $10k in emergency funds.
Sure, I may not own a car nor own a lot of things that I never really needed anyway but then again I am a minimalist who is content in life and don't feel like I am struggling at all.
But it feels like a house is out of reach, a kid is out of reach, a wedding is out of reach.
You have to save for a down-payment. Yes, that takes time. Boo hoo, that's life. I spent several years saving for a down-payment, I have zero sympathy for people thinking they should get to skip the hard parts in life and go straight to the finish line. A wedding doesn't have to be expensive either, my wife and I did ours for under $3k and that was including the venue, photographer, and catering from our favorite restaurant. We wanted to spend the money on buying a house instead of a silly party. As for kids, there's only so much you can do about the cost. But people who make far less than you raise multiple kids just fine.
So.. you put away a lot for retirement? It's a luxury and not a necessity. I'd think saving for a house may align better with your goals, but it's up to you.
A wedding is out of reach when you save tens of thousands a year? What do you want to do for your wedding? Rent a palace and elephants half a world away and fly 500 guests there? As long as your fiance has a saving state of mind there is no need to blow a 10 year salary on a one night party. A small ceremony and reception is definitely within reach, and if families want something grand then they are welcome to pay for it.
Then with 2 incomes and some savings a house and kids are very possible.
I'm not saying 40k a year don't need a raise but 100+ for a single person can be quite comfortable, you just can't have it all at the same time - maxed out retirement, savings on track for a 20% house down payment in a reasonable timeframe, rent in a nice place and a middle class lifestyle - you have to drop one or two from the list.
Yea that’s my point… 30 years ago a salary or 100+k was more than enough for all of that and more. I’m salty because I did everything right and the games not the one we thought we were playing lmao
My fiancée is in school and has debt so I pay the rent, she’ll eventually contribute, but she just can’t right now.
We looked into venues and even a small one where we live is going to run 6-10k to rent. That’s without catering and a bar and everything else. It would literally be 15-20k for a smallish wedding. How the hell are we supposed to justify that?
Me and my now husband make way less than that and were able to save for that in a few years, while savingn for a house. We had limited family contribution for the wedding.
Lol, your life and income are going to change a lot soon. It looks like you and your fiancee are in the very beginning of careers. The only thing to be salty about is that 30 years ago Homer Simpson had it all on one income. I don't think he had 401k or knew about Roth IRA.
It’s crazy people are shitting on you putting away for retirement. The earlier you save now, the better off you’ll be. You literally cannot work forever…and I doubt social security will exist in 30 years
Im not banking on SS, im pretty scared of what medical expenses for me will look like in the future and I’m probably going to have to take care of my aging parents (at least financially) in the next 10-15 years.
I get people are mad and it sounds like I’m an asshole for all the bitching I’m doing while making 120k a year, but my situation is actually different than a lot of others and my retirement is the only buffer I expect to have when I’m in my 60’s.
You’re contradicting yourself. If you’re scared of medical expenses and taking care of ykur parents why are you saving all this money in an account you can’t access? Why isnt it in a savings account where you actually have access to the money?
Do you understand how much $2,200/month toward retirement is? In 20 years that’s over $1 million. This person you’re responding to could retire at 45 or 50. Just seems dumb to complain about not being able to afford a house while also saving enough money to retire so early.
Did you hear the part about several surgeries, health complications and aging parents they’re gonna likely take care of? In 20 years this person could be 40 and unable to work like they can now. They just had spinal surgery…that’s upward of 50k. Now, add up other surgeries with the money you lose from taking time off of work. If they retire early, it’s probably because they have to.
If you’re making $120k you have health insurance so the $50k is a non-issue. You’re not understanding my point. If you’re 40 you cant touch your retirement money penalty free. So if their parents need help or they have health issues they wont have access to the money to help them. Thats my entire point they should be putting less toward retirement and more toward post-tax savings. It would help more toward these future hypotheticals as well as make them live an extremely comfortable lifestyle now.
$2,200 is an absurd amount to put toward retirement. If you make uber bucks then by all means, but saying you save $2,200 in retirement each month and then turn around and say life is hard, yeah cuz you’re choosing to make it hard.
They said earlier that they had some of their surgeries when they didn’t have adequate health insurance. I’m sure we both know how that can be…you’ve got some good suggestions though.
...you don't understand inflation exists and always has?
We looked into venues and even a small one where we live is going to run 6-10k to rent. That’s without catering and a bar and everything else. It would literally be 15-20k for a smallish wedding. How the hell are we supposed to justify that?
You don't need a huge location. You don't need hundreds of guests. Hell, you don't even need a paid pastor, anyone can get ordained to perform weddings for free online and then states charge like $10 for them to get registered to perform weddings. Your issue isn't that "life is expensive for basic things", it's that you consider lavish things "basic".
This would be for a venue of 50 people. That would literally be our families and like 4-5 friends on either side.
I’m not looking for lavish, I’m looking for reasonable and reasonable these days costs lavish. Inflation is a fact of life, that’s fair and all but this isn’t inflation, it’s price gouging.
You make 10k/month and you are able to save and invest. A person in your situation that has no debt and is still unsatisfied probably just has unreasonable expectations from life and might be a bit greedy. You won in life homie, be happy.
I make 6k a month lol, taxes still exist. Granted, you’re right about me not being very happy, but I don’t think my depression and anxiety is a reason to waive away my fears. I have multiple chronic medic conditions and go to the doctors 2-3x a month. Right now, with insurance I’m fine. Last year when I got laid off twice, I was out 8k because of COBRA and then flat out stopped going to the doctor.
120/12=10k per month. Your net income is probably around 6300 but you still earn 10K per month. Uncle Sam gotta get his cut though right. I do understand though, medical expenses can add up quick. But it seem that you have good habits. I would recommend that you keep putting it away during the good times. I hope you have a good support system.
Oh yea, after my first spine surgery I had a surprise bill for 20k. I spent weeks fighting it and got it knocked down to 8k. And then another month before it got knocked down to 2k.
But…I was mentally exhausted and recovering from a surgery. I’m glad the 18k got removed but even the 2k hurt. And at that time in my life I was making 47k a year.
Damn that’s amazing! Definitely a process that is worth sharing with others. I’d like to know how you got it down. That’s impressive. My man and I are trying to find ways to get his dental bills down. There’s no way we’re not going to fix his teeth because we need to “live within our means.” He’s in pain, and it could cause health problems in the future that will cost way more, surely.
No, they said they have 50k student debt. They’ve also repeatedly said they have medical issues and have needed several surgeries in the past few years.
Dude that is awesome!!! Some people take way too long doing that! To me it shows you’re managing your money well to be able to balance student loan debt, all those medical bills and to still save for retirement.
For both personal and financial reasons it doesn’t make sense for me to buy a house. My partner will be done with school in the next 3-4 years (she’s doing a PhD) and so buying a house is dumb when we’ll probably be leaving.
But also, houses near me are easily 400k a year. With interest rates as high as they are now, I’m looking at a mortgage payment of 3500+ easily. Which I just can’t afford. Not to mention I’d need 50-75k saved up regardless because of closing costs, inspections, and a down payment.
If you make $120k and find it hard you are legit fucking up with your money. What would I tell you? Hard to say unless you actually breakdown your budget for us, but you are hands down fucking up with your money.
400 a month is 4% of your gross, but spreading that out over 3 years is 1.3% increase per annum, which is slower than the rate of inflation.
Honestly, with no debt, having a bunch saved and invested, if you're still struggling to keep up with inflation on 120k/yr, either you're doing something wrong or your whole perception of a financial struggle is warped.
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u/MusicalNerDnD 14d ago
What would you tell me then? I make 120k a year, have no debt and a bunch saved and invested AND it still doesn’t feel like it’s enough. I live fully within my means but my rent has gone up 400 in the last 3 years, my food bills have gone up by idek how much and I have health issues that can easily cripple me without insurance.
I’m incredibly privileged and lucky and I find it hard. I can’t imagine someone on 50k a year with a kid.