SAD! Check out this couple that makes $500,000 but has only $7,300 left each year

CNBC did a piece a year ago (but retweeted it Tuesday) that seems to be making the case that a couple can make $500,000 a year and yet still feel “average.” We’re not sure of the point — are we supposed to empathize with them? Point out how reckless their spending is? What?
Americans are falling short when it comes to saving. Even some families earning six-figures have little to no savings.
As the example of one New York City couple shows, you and your partner could be making $500,000 a year and still end up with very little besides 401(k) money.
Sam Dogen of “Financial Samurai” breaks down the budget of two New York City-based spouses, each of whom makes $250,000 a year as a lawyer. They’re 35 years old and they have two young children. “This one couple shared their story and I decided to anonymously highlight their reported expenses,” Dogen tells CNBC Make It, with a focus on why they end up feeling “average” even though they’re such high earners.
As Dogen puts it, they’re effectively “scraping by,” in part because they’re still living “paycheck-to-paycheck,” despite their generous salaries.
You know, socialism could really take a load off their minds by taking all that income and distributing it for them. Maybe that’s the point?
Anyway, here’s their budget:
“There's only $7,300 left each year,” the article says—which is *after* they save $36k/yr for retirement, somehow spend $9,500 on clothes and $18k in donations/yr, set aside $10k for whatever, and they have a $1.5m 1,700sf(!) Brooklyn condo w/ a BMW and Land Cruiser. YOU'RE FINE.

141 people are talking about this
If you own a $1.5M home, you are not “average” anywhere but LA, SF, NY or some other deep blue shithole.

See Stacey's other Tweets


Nor is taking 3 vacations a year “average”. Nor is two date nights a week when you have two kids. “Average” what does it mean?

See Stacey's other Tweets
A hill I'm willing to die on is pointing out that 401k contributions are savings, not expenses.

377 people are talking about this
So $36K in 401k contributions should be added to "what's left over," along with $18K in charity contributions (not an expense either).

229 people are talking about this
If you fix that then the headline becomes "This couple that makes $500K and spends too much money still saves more than 20% of their after-tax salary, which is what happens when you make a lot of money."

1,089 people are talking about this
Does anyone else notice the 1.5mil home? The BMW car payment? Three 6k vacations? Shit man.... I feel for this family. 😩

67 people are talking about this
"We have a modest budget, I mean, we only want to spend 4 million. Does it have an open concept kitchen?" 🀣

See Liz Dueweke πŸΎ's other Tweets
I think the more hilarious part is all the interest they are accruing on the student loans that they could easily pay off

35 people are talking about this
I see we are back to everyone dunking on this dumbass hypothetical.

Let's make it clear: there are plenty of dumb things in it. However, the dumbest is the idea that they live in NYC but spend $5000/year on gas. That's like 36,000 miles.

55 people are talking about this
“After we pay for our kids’ private school, our $1.5 million home, our BMW and Land Rover, and 3 vacations we just don’t have any money leftover for life’s luxuries”

See Evan Robertson's other Tweets
So after three vacations, three vehicles (One BMW) , two date nights a week, childcare, $60K mortgage, 401k investments, etc. they still have $7K to burn.... I’m confused. πŸ€”

21 people are talking about this
Ummm it was a date night every two weeks can you get it right please. The struggle is real.

See John Evans's other Tweets
give what you can. without a private chef they may starve or have to do the shopping at whole foods by themselves. i feel so dearly about their situation.

See Paul Richard Cook's other Tweets

Just another “average” American family scraping by.
Powered by Blogger.