Quote:
Originally Posted by RabidRat
Damn dude, 160k seems really good for Vancouver. I hope by broke all you really mean is you're lean with your cashflow because all your surplus is going to funding a real estate empire  .
Otherwise... if this is about kid expenses you're making me anxious about what our little guy's going to cost us as he grows up lol.
Lol in CAPP class they had us write out a weekly budget and all I had for expenses was like, a tent and loaves of white bread. I'm like what's the big deal? I could get by on 10k a year.
I got a big red "SEE ME"  . |
160k a few years ago when I was just breaking 100k would have been amazing. A few years ago I had a 320k mortgage on a 3bd townhouse which was down to under 200k after 5 years. We are 2.5 years into a 2 million dollar house and it's rough. Property taxes has gone from 6k, to 7k, to 8.5k last year. We are looking at probably 9.5k for 2024. Mortgage has gone up because we were on variable rates, from 4.5k to close to 8k now.
We bought the house on a household income of 200k. We are at 250k right now and arguably doing worse than before because of the increase in housing costs and food costs.
The kids don't actually cost that much yet, wait till they get into organized team sports, competitively..... Or joining band class and traveling all over the country or world.
LOL on the CAPP story. We did a life planning exercise in CAPP8 where we were given a career at random and to plan a life around it in regards to accommodations, vehicle, savings, etc, and the canned formula spat out what our life would look like at retirement. I drew, funny enough, software engineer at 50k/y income which had me living decent. I'm in tech now so that kind of came true.
Quote:
Originally Posted by Gerbs
Do ya have kids + house? What makes ya feel broke?
I'm at the stage where my mind tells me if I can get up to $160K asap or maybe $10K net a month, I'd feel less strapped. But I think I spend in the upper 5% on lifestyle creep for people in mid 20s. No roommates, summer and winter fun car, 3-4+ hobbies, eat out whenever but choose not to, 30-40% into investments, 1-4+ vacays, can afford to date, can go to weekly bday parties and contribute to gift.
Mentally, my mind thinks the extra cash would allow me to upgrade condo to 2BR, upgrade car, more hobbies, quicker retirement, have enough for kids in the future. fatter savings rate so for ease of mind etc.
At the same time, I don't need anything above ^ to make me anymore happier so I have 0 desire to earn more if it ruins work life balance atm.
I think $160K is a lot, the peers around me that clear over $140K complain about being broke / life's too expensive but forget that they live well.
- 2BR - Duplex they bought
- 2 Cars usually $40K-70+
- Kids have 2-4+ activities, new clothes, balanced meals, daycare
- Travel 2-4x a year and hotels at least $300+
- Only eat out or cook with expensive ingredients
- Concerts + entertainment are a time issue not a money issue
- Easily $500+ a month to improve health related stuff per person
I think the biggest mistake of higher earners is not being more mindful of how good they live.
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^ Details above in terms of brutal monthly payments, but yes two kids, 4 yo and 10m old.
Part of it is lifestyle creep for sure.
I drove a used Mazdaspeed3 when my income grew from 30k/y to 72k/y
Transitioned with a NC Miata for a year and a bit and took delivery of a new M3 where my income was ~90k.
We eat well tbh compared to most people. Fresh meat, fruit, and veggies almost everyday when we cook at home. The kids get Avalon milk or whatever that's grassfed. Organic or free range eggs only. There's always a variety of snacks at home. We eat out at least once a week, more sometimes if the youngest kid behaves and let's out to eat lunch. I try to make a pot of chinese soup every week because wife likes it and it's good for you. I drink a decent amount actually because of the stress (2-4 beers a week + a whiskey/cognac pour once a week? More hard stuff if work or the kids are giving me a particular bad week)
We find ways to penny pinch. Riding my bike to pick up from daycare instead of driving - extends the tank of gas on the family car from 10 days to 2 weeks or more. The older kid's idea of a great time out is going grocery shopping with us at Costco. Membership at Science World for unlimited entrance (in a sense it's a splurge as well since it was $430 for 2 years of membership for the family). We eat at Ikea a lot because it's under $30 for a full meal and it's literally 5 mins from home.
We managed to squirrel together enough for a cruise last month to San Diego. Little trips here and there to Whistler or Victoria or the interior. Can't afford the grand trips to Asia or Europe. We are also unsure about flying 10+ hours with two kids.
160k will not net you 10k a month. Even after you've maxed out EI I am netting 8800/m. 160k will net you roughly 100k a year. With no mortgage it would be amazing but unfortunately neither of us are graced with balling parents. We are mindful of us eating well, and buying toys within reason, and able to splurge on not buying the cheapest shit to make do (I bought AD09 for summers on the M3). But it doesn't allow to spend without a care in the world.
Quote:
Originally Posted by westopher
I think the money really depends on age. Are you making 160k at 35 and bought a house at 1.6 million 2 years ago? Yeah, you're fucked. Are you making 160k at 32 and bought a house last year at 2 million? You're super fucked. Are you making 160k at 38 and bought a house 6 years ago at 900k? You're fucking ballin. That's the bullshit part of this and why our generation is so pissed. We are top 10% and living like bottom 50% because real estate in this country is a pyramid scheme so the Canadian government can suck their own dicks over "gdp" when there is nothing propping it up other than real estate.
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Quote:
Originally Posted by Gumby
I find that the more you make, the more you spend. I’m not saying that happens to everybody, but it’s extremely difficult to keep your current lifestyle if you got a significant raise in income.
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Westopher and Gumby both got it, tons of truth in that.