What do you consider a "comfortable" yearly salary?

[lilia78]

This is interesting because my "stats" sound a lot like yours. Except we could NEVER do that here on $60,000 income. In fact, about $60,000 is what you would need to make a single person to be able to live on your own in a one bedroom apartment.

I make at least $175,000.

I have a 4 bedroom home, 2400 square feet. And GASP, I still have formica countertops, my original kitchen, bathrooms, etc. We have not been able to afford to upgrade in any way (House is 21 years old). Oh, I did get a new roof last year. That was some joyful spending.

I do have a car payment right now, and I have an emergency fund of about $25,000.

What I am able to do is:

Fully fund my 401K (but have not yet taken the plunge for the extra $5K per year "catch up" I am now eligible for.
Eat out once or twice a week (this is more in the form of take out. Sometimes I do eat at a Carrabas/Firebirds/PF Chang's level place.
Both my husband and I are members of our Park Authority's gym.
I have paid outright for two kids to go to college (one took 5 years) and the other is on his way to 5.5 years due to a major change mid-stream.
I pay for a cellphone plan for 5 phones (my parents are on it) but they and my daughter pay me for some.
I have a pretty hefty cable bill because I like my premium channels but I hate what I pay.
My car insurance bill is pretty high with two, under-25 drivers. (one pays me though)
Property taxes are only about $5,000 a year.
I carpool and don't have to pay for parking so my commuting is not high.
I never do anything like Starbucks and I rarely go out for lunch because I'm so busy at work I sometimes can't get away for the hour it would take.

I really don't know why I don't feel like I am rolling it. I sort of feel comfortable in that I can go out and buy *minor* things without thinking/worrying about it. Things like clothes, gadgets, etc. But taking a bigger family vacation gives me pause. See my ticker--haven't been anywhere since 2012. I want to go to Europe with my family but I feel like I can't.

Anyway, I'd say my biggest drain has been the college costs. I might feel really good if I didn't have to pay that.

$60,000 is what he started at and makes well over double that now. At $60,000 we felt comfortable but didn't vacation but in a couple years the vacations started. BTW he has only been working full-time for just under six years, before that he was a self-employed farmer. His job has given us many great advantages as well as scholarships for our two oldest, one totaling $20,000 US and the other $2,500 US.

We still have Formica counters as well. I still like them and don't feel the need to change our house is almost 100 years old so it doesn't work to have all of the latest trends in it, they just don't work.

We are fully funded one university education but this is after $20,000 US scholarship so the cost is drastically reduced. The other will need us minimally as he is in Military College, in Canada it is a full scholarship they cover everything expect plane rides home.

I pay 6 cell bills and we have premium channels plus high speed interest as well. We don't worry about sales and shop when and where we want. I've always loved my husband but I enjoy our life much more now that it is comfortable.

 

[Colleen27]

Excellent point. One of the things I think we (average joe and janes) fall victim to is the "I can have it all" syndrome. I love, love, love HGTV one of my current obsessions is Bargain beachfront house hunting. I giggle a bit when the couple gives the realtor their "wants" in a house. has to be beachfront, has to have enough space for kids and a possible guest, has to have big rooms, oh and could you make that happen at about 150K.

I quit watching all of the House Hunters type series because the people on them got so annoying. It seems like they went out of their way to select people with ridiculous wish lists... "We're a family of three so we need at least four bedrooms, three bathrooms, a finished basement for a playroom, and a brand new kitchen. It has to be in a prime location, and we don't want to spend more than 100K." The only one I watch now is the International version because most of those people seem to go into it with more flexibility and an mind open to cultural differences. There are still the occasional nuts, though - looking for spacious American-style housing, complete with air conditioning and walk-in closets, in old-world parts of Europe or major Asian cities.

OY Vey, you ain't kidding there Gumbo. My entire work life I've had at least a 50 minute commute each way. Now the problem is, what I thought was easy breazy at 30, is a big NOT at 55. My eating out bill alone would drop and that's another "comfort" thing. I admit that after a 11 hour day, it became way to easy for me to just pick up take out as oppose to cooking dinner every night. So while eating out use to be a luxury for us, it's became almost a necessity when the boys started sports and after school activity. so my perception has morphed.

Those are the things also we tend to forget about.

This is sort of one area I think the old guy and I dropped the ball in regards to my sons. We taught them about money management and saving but I don't think the really saw the connection between some of the "choices" we made. I think in their little "world" lol, they got the connection of work=pay=buy a dvc. but what they didn't "see" was "ok if we buy the dvc that means no new stove, car or fridge for a few years".

We're debating the commute trade-offs now with no good resolution in sight. I tell myself that at least it is a good lesson for the kids in life's choices. Do we stay put in a home we love and a town we like, even though I'll probably be gone 12+ hrs/day because of the long commute to where the jobs are in my field? Do we relocate, giving up the huge advantage of being mortgage free, to live closer to the urban/suburban job centers? Or do I consider freelancing rather than seeking full time employment right after I graduate, essentially giving up a big jump in income for the advantages of staying in our home a few more years? It is nice to have the choices and regardless our situation should get more comfortable with two incomes rather than just one, but it is still a tough decision coming up before too long.

 

[dizprincess77]

$75,000 would be decent for my household. Enough to survive without living paycheck to paycheck.

 

[SirDuff]

I quit watching all of the House Hunters type series because the people on them got so annoying. It seems like they went out of their way to select people with ridiculous wish lists... "We're a family of three so we need at least four bedrooms, three bathrooms, a finished basement for a playroom, and a brand new kitchen. It has to be in a prime location, and we don't want to spend more than 100K." The only one I watch now is the International version because most of those people seem to go into it with more flexibility and an mind open to cultural differences. There are still the occasional nuts, though - looking for spacious American-style housing, complete with air conditioning and walk-in closets, in old-world parts of Europe or major Asian cities.

It's not that they've selected people wit ridiculous wish lists, it is that they've told people to say that they have ridiculous wish lists. In reality, the couple has already bought the house (and had before signing up for the show). I've had friends on both House Hunters and Property Brothers (different shows). I knew the shows were faked, but didn't realise how much until talking to them.

 

[punkin]

$75,000 would be decent for my household. Enough to survive without living paycheck to paycheck.

...but "enough to survive" is not really my definition of comfort.

 

[scrapquitler]

lol, always 10K more than I make.

That's pretty much what I was going to say, but I was going to say $25K more than our annual income would be 'comfortable' for me, in our area, with our expenses.

 

[sunshinemelody]

It's not that they've selected people wit ridiculous wish lists, it is that they've told people to say that they have ridiculous wish lists. In reality, the couple has already bought the house (and had before signing up for the show). I've had friends on both House Hunters and Property Brothers (different shows). I knew the shows were faked, but didn't realise how much until talking to them.

*lip wobble* Property Brothers?

 

[FINFAN]

That's pretty much what I was going to say, but I was going to say $25K more than our annual income would be 'comfortable' for me, in our area, with our expenses.

yep, matter of fact to me if college savings weren't in there I'd back off from 175 to 125. I know 50 extra a year to cover college sounds crazy, but after taxes and depending on the number of kids, it really isn't. I am keeping in mind the "comfortable" part, as in getting to visit said kids, still vacationing etc, the whole "not having to worry" part.

ETA: O.K., just read a thread on abysmal health care coverage changes from a major carrier, then this email came up

do you see the price!?!?!!??!!? yeah...I'm sticking with 175....and I am NOT one to spend that kind of cash on a gym shoe, at all...that's not a shoe for a professional athlete, it is geared to the general public, that's the scary part.

 

[Colleen27]

yep, matter of fact to me if college savings weren't in there I'd back off from 175 to 125. I know 50 extra a year to cover college sounds crazy, but after taxes and depending on the number of kids, it really isn't. I am keeping in mind the "comfortable" part, as in getting to visit said kids, still vacationing etc, the whole "not having to worry" part.

ETA: O.K., just read a thread on abysmal health care coverage changes from a major carrier, then this email came up

do you see the price!?!?!!??!!? yeah...I'm sticking with 175....and I am NOT one to spend that kind of cash on a gym shoe, at all...that's not a shoe for a professional athlete, it is geared to the general public, that's the scary part.

The college issue is one place where "The more you make, the more you spend." is practically unavoidable. My DD has her sights set on some crazy-competitive, crazy-expensive schools and right now we're "lucky" to be low-income enough to get generous need-based aid (from the schools, not the govt - the federal govt has a very different idea of "low income"). When I run the net price calculator for her top choice school based on our current stats, we'd have to come up with a very reasonable sum well below what we've saved. When I run the same calculator projecting a post-college starting salary of 35K for myself, our family contribution jumps by almost that much. Between taxes, the cost of commuting, and the lost financial aid my income might actually be a net loss for our household budget!

As far as the shoe goes, that's one place where price does often equate to quality. I'm quite frugal, too much so at times, but I think nothing of dropping $100+ on my running shoes. They're not a fashion statement; a good pair of shoes makes a world of difference in terms of comfort, likelihood of injury, and overall feeling good rather than sore when training for a race (and I'm not a serious runner, I just run 5ks with my daughter). But they're only that expensive if you pay retail... I paid full price for my first pair of the style I wear because I wanted to get them from a running store where I could get professional advice on fit and style. Since then, though, I've just gone online and ordered the same brand/style/model from discount sites, usually 6pm.com, where you can find steep discounts on "last season's" colors.

 

[mjkacmom]

yep, matter of fact to me if college savings weren't in there I'd back off from 175 to 125. I know 50 extra a year to cover college sounds crazy, but after taxes and depending on the number of kids, it really isn't. I am keeping in mind the "comfortable" part, as in getting to visit said kids, still vacationing etc, the whole "not having to worry" part.

ETA: O.K., just read a thread on abysmal health care coverage changes from a major carrier, then this email came up

do you see the price!?!?!!??!!? yeah...I'm sticking with 175....and I am NOT one to spend that kind of cash on a gym shoe, at all...that's not a shoe for a professional athlete, it is geared to the general public, that's the scary part.

Dd14 has those sneakers. She's a competitive dancer, and runs xc, and right now can't do either because of a hip injury (sees the chiropractor 3 times a week, and is finally getting in with her sports medicine doctor next week). Not skimping on sneakers!

 

[sunshinemelody]

yep, matter of fact to me if college savings weren't in there I'd back off from 175 to 125. I know 50 extra a year to cover college sounds crazy, but after taxes and depending on the number of kids, it really isn't. I am keeping in mind the "comfortable" part, as in getting to visit said kids, still vacationing etc, the whole "not having to worry" part.

50K a year extra isn't crazy, believe me. Unless Congress (hah! I'm funny) steps in and puts a cap on this price gouging on education, it's only going to go higher. And if you can afford to send your kid off to college on your own dime (we're obviously shooting for scholarships here), it's better than dealing with the headache that are loans and ridiculous interest rates. Believe me, if I could've paid my first two years of education at St. John's University I would've done that instead of wrestling tooth and nail with financial aid. What a pain in the tuckus.

You go, @FINFAN, I'm in your corner with this one coming from a current college student with a seemingly insurmountable amount of school debt ... and growing! Whoo!

 

[FINFAN]

The college issue is one place where "The more you make, the more you spend." is practically unavoidable. My DD has her sights set on some crazy-competitive, crazy-expensive schools and right now we're "lucky" to be low-income enough to get generous need-based aid (from the schools, not the govt - the federal govt has a very different idea of "low income"). When I run the net price calculator for her top choice school based on our current stats, we'd have to come up with a very reasonable sum well below what we've saved. When I run the same calculator projecting a post-college starting salary of 35K for myself, our family contribution jumps by almost that much. Between taxes, the cost of commuting, and the lost financial aid my income might actually be a net loss for our household budget!

As far as the shoe goes, that's one place where price does often equate to quality. I'm quite frugal, too much so at times, but I think nothing of dropping $100+ on my running shoes. They're not a fashion statement; a good pair of shoes makes a world of difference in terms of comfort, likelihood of injury, and overall feeling good rather than sore when training for a race (and I'm not a serious runner, I just run 5ks with my daughter). But they're only that expensive if you pay retail... I paid full price for my first pair of the style I wear because I wanted to get them from a running store where I could get professional advice on fit and style. Since then, though, I've just gone online and ordered the same brand/style/model from discount sites, usually 6pm.com, where you can find steep discounts on "last season's" colors.

we were hit hard with the "just over the line" salary for college...not eligible for FA, and our EFC was painful to read, so I hear ya on the fine line of the second salary. However, we had been saving..and then 2008 markets plunged just as DD was entering. Basically lost 3 semesters worth right when we needed it, forcing us to do hurry up re- savings while she was in school which was rough as DS started the year she graduated.It totally sucked as we had already saved, but didn't get it out fast enough. We stuck it out (while taking care of parents) but let me tell ya, I do know families who bobbed and weaved to get their #'s in a better place of salary vs. FAFSA, some bordering illegal IMHO. One neighbor was going on and on about how they don't have to save as _____ is so advanced for their age, scholarships, probably full ride will be in their future~ well , the kid won't be applying for that stuff until 14/15+ and if it doesn't happen, not a lot of time to save 6 figures lol. As for the shoes, yeah, I understand and agree on having quality shoes, but that price solidifies the salary suggested to live comfortably to be able to afford the decision of purchasing said shoes. Add the costly health insurance changes/increases, rising college costs, rising taxes etc. I check the discount sites, believe me. I am not as hard core as people who combine all these purchase/points /cards places, but know what works in our budget (which is NOT 175 lol)Comfy would be seeing those shoes, and knowing it's no biggie to order them.

Dd14 has those sneakers. She's a competitive dancer, and runs xc, and right now can't do either because of a hip injury (sees the chiropractor 3 times a week, and is finally getting in with her sports medicine doctor next week). Not skimping on sneakers!

no skimping on the shoes, but does that mean skimping elsewhere? If not, cool, if yes, then to me, not at "comfortable" yet lol(hope the injury heals quickly!)

 

[mjkacmom]

we were hit hard with the "just over the line" salary for college...not eligible for FA, and our EFC was painful to read, so I hear ya on the fine line of the second salary. However, we had been saving..and then 2008 markets plunged just as DD was entering. Basically lost 3 semesters worth right when we needed it, forcing us to do hurry up re- savings while she was in school which was rough as DS started the year she graduated.It totally sucked as we had already saved, but didn't get it out fast enough. We stuck it out (while taking care of parents) but let me tell ya, I do know families who bobbed and weaved to get their #'s in a better place of salary vs. FAFSA, some bordering illegal IMHO. One neighbor was going on and on about how they don't have to save as _____ is so advanced for their age, scholarships, probably full ride will be in their future~ well , the kid won't be applying for that stuff until 14/15+ and if it doesn't happen, not a lot of time to save 6 figures lol. As for the shoes, yeah, I understand and agree on having quality shoes, but that price solidifies the salary suggested to live comfortably to be able to afford the decision of purchasing said shoes. Add the costly health insurance changes/increases, rising college costs, rising taxes etc. I check the discount sites, believe me. I am not as hard core as people who combine all these purchase/points /cards places, but know what works in our budget (which is NOT 175 lol)Comfy would be seeing those shoes, and knowing it's no biggie to order them.



no skimping on the shoes, but does that mean skimping elsewhere? If not, cool, if yes, then to me, not at "comfortable" yet lol(hope the injury heals quickly!)

Definitely skimping elsewhere, no vacations, no eating out, no home improvements... Not even close to be eligible for financial aid, family of 7 on one salary (DH also teaches at a university part time twice a year). But, kids have what they need, participate in some expensive activities which they love, have braces, their medical needs met, school trips... Everyone has different priorities. I can't remember driving a vehicle that wasn't a hand me down - lol.

 

[Colleen27]

we were hit hard with the "just over the line" salary for college...not eligible for FA, and our EFC was painful to read, so I hear ya on the fine line of the second salary. However, we had been saving..and then 2008 markets plunged just as DD was entering. Basically lost 3 semesters worth right when we needed it, forcing us to do hurry up re- savings while she was in school which was rough as DS started the year she graduated.It totally sucked as we had already saved, but didn't get it out fast enough. We stuck it out (while taking care of parents) but let me tell ya, I do know families who bobbed and weaved to get their #'s in a better place of salary vs. FAFSA, some bordering illegal IMHO.

Ugh, that sucks to do all the right things and then get stuck by bad timing. We've been saving too, but saving on one income is going to fall well short of what the FAFSA will tell us we should have saved if we have two incomes when we start sending kids off to school. I finish my B.A. in Dec '16 and have kids graduating from high school in '17 & '19 so no matter how much of my income we save we won't really have time to catch up, and I'm seriously considering how best to work the situation to the least disadvantage.

 

[kbwright]

Fiance and I make a combined 85k a year and are doing fine. We are in the Southcoast area of MA and where we live the median income is around 30-35K and most people rent and property values are 150-225k on avg. We have a 2 bedroom/1 bathroom house with 1/4 acre lot. It's not big but it is enough house for us (and less to clean!!!!). We have both paid off student loans so don't have that hanging over us. Mortgage, 1 car payment, and DVC loan are the big bills but we are able to live comfortable in that we have a budget and we stick to it and it allows us to go to Disney once a year and spend what we want, save some money, go out to eat 1-2 time a week but neither of us are big shoppers or have expensive tastes. If we has $100 or $120k a year would it be more comfortable, sure, but I also know from experience that at a previous job and in a previous relationship we made $160k combined and still spend it b/c we had it to spend. Also, we don't have kids and may not so obviously that makes it a little easier on us financially

 

[HeatherC]

Ugh, that sucks to do all the right things and then get stuck by bad timing. We've been saving too, but saving on one income is going to fall well short of what the FAFSA will tell us we should have saved if we have two incomes when we start sending kids off to school. I finish my B.A. in Dec '16 and have kids graduating from high school in '17 & '19 so no matter how much of my income we save we won't really have time to catch up, and I'm seriously considering how best to work the situation to the least disadvantage.

Colleen...I feel your pain with the college savings thing. Based on what we have seen and found out, it seems that if a family makes anywhere near $50,000 a year then any sort of financial "aid" that is need based is nonexistent. That doesn't count loans or scholarships, but actual aid. We were primarily a one income family for many years (I work part time) and since my DH has made over $50,000 since we got married 20 years ago, we qualified for NO financial aid. The financial aid packages were"here's some loans you can take".. I guess my point is that a full time job probably won't even impact any aid if your DH makes close to or over $50,000.

 

[bethy]

Around here, while raising a family with 2- 3 kids in sports and activities, and having a mortgage on a 2500 sq ft home and driving two nice but not luxury cars, saving for college and retirement, 1 family vacation per year and one getaway weekend: A "comfortable" salary would probably be around $250,000. And that would only be true if one spouse were earning that - not a combined salary.

 

[tzolkin]

A lot of these numbers seem quite high to me. Sure, $250k would be nice but I don't consider that necessary to be "comfortable" I know everyone's situation is different and perhaps that's why the opinions vary so widely, but maybe we also have different definitions of "comfortable"

Our current income ($60k) is not what I would consider "comfortable" because we don't have enough for too many unnecessary expenses and I do need to pay attention to our spending each month. But I can't see how we would need 3+ times that amount to be comfortable. With our current income we own a 3000 sq ft home in a nice neighborhood, two cars, contribute to retirement, have over $40k in accessible cash, and take a vacation every year. $100k would be plenty comfortable for our family of five.

 

[Christine]

A lot of these numbers seem quite high to me. Sure, $250k would be nice but I don't consider that necessary to be "comfortable" I know everyone's situation is different and perhaps that's why the opinions vary so widely, but maybe we also have different definitions of "comfortable"

Our current income ($60k) is not what I would consider "comfortable" because we don't have enough for too many unnecessary expenses and I do need to pay attention to our spending each month. But I can't see how we would need 3+ times that amount to be comfortable. With our current income we own a 3000 sq ft home in a nice neighborhood, two cars, contribute to retirement, have over $40k in accessible cash, and take a vacation every year. $100k would be plenty comfortable for our family of five.

That just proves out the vast differences in cost of living. To be able to afford a 3000 sq ft home on $60,000 is unheard of here. Would never happen. You'd never qualify for the mortgage. Most people here making that are trying to figure out how to live in an apartment without roommates!

 

[NewRVLady]

. One neighbor was going on and on about how they don't have to save as _____ is so advanced for their age, scholarships, probably full ride will be in their future~ well , the kid won't be applying for that stuff until 14/15+ and if it doesn't happen, not a lot of time to save 6 figures lol.

You have to wonder if a FULL ride happens anymore!
My semi-brilliant nephew received an National award in 7th grade because of his near perfect SAT score-finished 5th in class of all Honors kids (a select Boarding high school -10-12th grade-for brilliant kids in Arts and science-all arrived with over 4.0 averages)....and he only had a little scholarship $$