$250K and can’t pay bills

https://apple.news/Auo_uPE9xR3GuyFQWWkXe4A

1/3 households making $250K a year live paycheck to paycheck

$250k isn’t a lot of money.

PSU

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" $250k isn’t a lot of money.

PSU "


You might want to sharpen your pencil.

Howie52

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" $250k isn’t a lot of money.
PSU "

You might want to sharpen your pencil.

Howie52

Very old inside joke.
Thus you must be a young newb.

4 Likes

You know, I read that piece and I also remembered a piece from several years ago where some blogger “showed” why $250k wasn’t a lot of money (as I recall the budget included three major family vacations with airfare, hotel, etc, and maybe a part time nanny…).

But this article is really short on details about where these folks’ money is going. If they live in San Francisco and bought a house recently, they may, in fact, barely be scraping by.

I thought of my own finances and I don’t make close to $250k a year. Arguably I, too, am “living paycheck to paycheck”—but before I ever get any money in hand a bunch goes into the 401k, a bunch goes into an investment account, some goes into an HSA, some goes into my IRA, some goes into regular old savings, extra gets put on my house payment…. So I, too, “have very little extra at the end of the month.” I have it, but it’s not handy.

Anyway. I suspect a lot of these folks who are “barely making it”are still buying lattes, paying their nannies, driving fairly new cars, etc.

9 Likes

" You know, I read that piece and I also remembered a piece from several years ago where some blogger “showed” why $250k wasn’t a lot of money (as I recall the budget included three major family vacations with airfare, hotel, etc, and maybe a part time nanny…).

But this article is really short on details about where these folks’ money is going. If they live in San Francisco and bought a house recently, they may, in fact, barely be scraping by.

I thought of my own finances and I don’t make close to $250k a year. Arguably I, too, am “living paycheck to paycheck”—but before I ever get any money in hand a bunch goes into the 401k, a bunch goes into an investment account, some goes into an HSA, some goes into my IRA, some goes into regular old savings, extra gets put on my house payment…. So I, too, “have very little extra at the end of the month.” I have it, but it’s not handy.

Anyway. I suspect a lot of these folks who are “barely making it”are still buying lattes, paying their nannies, driving fairly new cars, etc. "


https://www.lazymanandmoney.com/how-many-people-make-more-th…

“based on information from the IRS, fewer than 3% of tax returns (3.924 million returns out of 140+ million total returns) claimed more than $200,000 in adjusted gross income (AGI) in tax year 2009 (more current data is not available). By definition, the number making more than $250,000 must be less than 3% (since some will fall in the range between $200,000 and $250,000.)”

If we allow 3 million people then you might have 1 million people making a small fortune just
getting by on their paycheck. A bunch of folks - but not an incredibly excessive number. But I
doubt San Francisco would be the sole residence.
After all, there are several locations across the country where people make a ton of money and
spend even more.

Howie52
By the way - did you see?
Someone called me a “newbie”.

Neato.

3 Likes

By the way - did you see?
Someone called me a “newbie”

I’ll call you a young whippersnapper if it makes you happy.
Very appreciative of your contributions.

4 Likes

You the man Howie! :slight_smile: and no, I’m not sexist for those who get offended easily.

We all have our priorities in spending. Mine is not being broke and living in my car or someone else’s.

If I’m was making 250K a year and can’t make ends meet, well the reality is I have some misplaced priorities in what I’m spending money on. I don’t live beyond my means, no matter what.

This girl dog needs food, shelter, running water and toilets, etc. I don’t need the latest car or truck or boat or fancy vacations or second home or the latest anything to show off or make myself feel better, and especially if that would mean depleting all of my financial resources. It’s nuts to think otherwise but some folks don’t learn the lessons until much later in life after a lot of painful experiences with being in debt up to their ears.

I’ll take financial security over flash any day of the week. :slight_smile:

Lucky Dog

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I thought of my own finances and I don’t make close to $250k a year. Arguably I, too, am “living paycheck to paycheck”—but before I ever get any money in hand a bunch goes into the 401k, a bunch goes into an investment account, some goes into an HSA, some goes into my IRA, some goes into regular old savings, extra gets put on my house payment…. So I, too, “have very little extra at the end of the month.” I have it, but it’s not handy.

I was thinking the same. Savings are siphoned off up front, like you mentioned that money never hits the checking account. Our income is somewhat lumpy, a little more than half is base salary, the rest comes as bonus/profit sharing and equity/RSUs. In a month with only base income, our checking account will actually decline. So you could say we “have very little extra at the end of the month.” Would a millennial consider that paycheck to paycheck? I sure don’t, because I know what our net worth is.

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many years ago writer Andrew Tobias wrote an article for i believe CQ Magazine about how friends of his couldn’t live on 100K a year in New York…Tobias laid out their expenses…lol…the article is probably 40 years old but it’s nice to know that the more thing change…the more things are the same…

Here is the book from Tobias -

https://www.amazon.com/gp/product/B01MU2EEHG/ref=dbs_a_def_r…

Undoubtably discussion on LBYM in the way back.

1/3 households making $250K a year live paycheck to paycheck

Some of them may be new to big bucks and have student loans and day care/babysitters/nannies to pay. Just saying.

Some people aren’t wired or trained to focus on the future. The only financial advice I got from my parents, for example, was “don;t pay finance charges.” They didn’t save for retirement, although they always started saving for their next car whenever they bought a new car (so they didn;t have to pay finance charges!).

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Here’s the piece I was thinking of. It’s got a recent date on it, but I recall a lot of discussion here a few years ago.

It’s $200k and not $250k.

https://www.financialsamurai.com/how-to-make-six-figures-a-y…

1 Like