Last year $650k. This year $375-450k depending on bonus. I know rationally we are doing well, but we still feel pinched. We try to save our bonus and spend our base ($275k) and with 2 DCs in private pre-school, modest place on far UWS, and pretty modest life, we rip through that $275k incredibly fast. But for those haters, here is the math: $275k = $137k after tax. That is a bit more than $11k per month. After rent, it’s $6200. Annualize preschool and subtract, we are down to $3500. And between all of our other expenses, somehow we burn through that.
Actually, I’m not a hater, I’m a ‘contempter.’ There’s a difference, but I digress. Let me get this right. This family lives on the Upper West Side, sends two kids to private school, saves ~$75,000 – $100,000 per year, and has, after all of that, $3,500 per month to spend. And this, apparently, is a bad year.
Only rich families in America today live in detached houses with spare bedrooms in high-tax high-cost areas (and get the services and amenities those buy), spend $36K/year on mortgage payments, $4K/year on clothes and dry cleaning, $8.5K/year on eating-out and bringing-in, $3K/year on gifts and holidays, $20K/year on daycare, babysitting, and summer camps–and still save $75K/year. That is what rich families in America do: that is how they spend their money. The fact that after they have spent their money and paid their taxes there is only $75K/year left for savings is not a sign that they are not rich.
But this from another whiner pretty much sums it up:
Obviously we are totally over extended. If we could get out of this mess, we would, but we can’t.
Good thing you’re not a poor single minority mother, because then, it would totally be your fault. According to Newt Gingrich anyway.
I guess the rest of us are just doomed to lives of squalor. Austerity for thee, but not for me….