What do you consider a "comfortable" yearly salary?

[Gumbo4x4]

That's what I'm leaning towards. The median household income (not single yearly salary) in my area is ~$65,000 (and we live in a nicer area). So either we're all just really poor backwards folk, or the values in the thread are greatly inflated (or they're all living in WAYYYY expensive places). I'm betting all of my "$60,000 median household income" on the latter one.

A family could have a combined $80,000 household income here and be doing just fine.

The discrepancy is between "doing just fine" and being "comfortable". For a lot of people (myself included), "comfortable" means not really having money concerns. I pay my bills, have a few luxuries, save some for retirement, drive decent cars, etc. But hardly a day goes by that I don't have some sort of financial "worry". What if this happens? What if that happens? Man, I wish we could afford this!

So, while we're "doing fine", we're not "comfortable", at least not by my definition.

 

[Kimberlyann11]

The discrepancy is between "doing just fine" and being "comfortable". For a lot of people (myself included), "comfortable" means not really having money concerns. I pay my bills, have a few luxuries, save some for retirement, drive decent cars, etc. But hardly a day goes by that I don't have some sort of financial "worry". What if this happens? What if that happens? Man, I wish we could afford this!

So, while we're "doing fine", we're not "comfortable", at least not by my definition.

So individual personality probably feeds into the definition of "comfortable". I'm sure I make a lot less than most people here, but I feel I'm comfortable. Like a PP, I have always defined this as everything I need and some things I want. I own my home (bought at the very bottom of the market), drive a ten year old car that I love and is paid for (not a "crapmobile"), pay for all DD's expensive extracirruculars and go out to eat once a week or so. I feel comfortable because I don't worry. I've never been a worrier. I don't know how I escaped the genetic curse, because my mom and sister both have it bad - but it really makes life easier.

Of course, I am looking at DD going to college next year along with the loss of about 10K in income, but instead of worrying, I put together a game plan. I know that I won't be "comfortable" anymore but since I know where the cuts are going to be and that it's for the greater good, I am not worrying.

 

[Christine]

So individual personality probably feeds into the definition of "comfortable". I'm sure I make a lot less than most people here, but I feel I'm comfortable. Like a PP, I have always defined this as everything I need and some things I want. I own my home (bought at the very bottom of the market), drive a ten year old car that I love and is paid for (not a "crapmobile"), pay for all DD's expensive extracirruculars and go out to eat once a week or so. I feel comfortable because I don't worry. I've never been a worrier. I don't know how I escaped the genetic curse, because my mom and sister both have it bad - but it really makes life easier.

Of course, I am looking at DD going to college next year along with the loss of about 10K in income, but instead of worrying, I put together a game plan. I know that I won't be "comfortable" anymore but since I know where the cuts are going to be and that it's for the greater good, I am not worrying.

Personality and one's own definition of comfortable make a real difference. I think it depends a lot on what you had growing up. My definition of comfortable is very much like Gumbo's definition above. While I can cover my needs, several of my wants (not all, though), I still have money issues I stress over. Right now, it's windows for the house. I also see that I need a new driveway at some point. These are necessities by any means but they are things that should be updated on the home (and my HOA won't like it if my driveway starts washing away). I balance those requirements against the thought of "how do I keep enough money in an emergency fund" as well as retirement savings. If I could wipe all that away, I'd deem myself "wealthy" (see last month's thread!!).

 

[Gumbo4x4]

So individual personality probably feeds into the definition of "comfortable". I'm sure I make a lot less than most people here, but I feel I'm comfortable. Like a PP, I have always defined this as everything I need and some things I want. I own my home (bought at the very bottom of the market), drive a ten year old car that I love and is paid for (not a "crapmobile"), pay for all DD's expensive extracirruculars and go out to eat once a week or so. I feel comfortable because I don't worry. I've never been a worrier. I don't know how I escaped the genetic curse, because my mom and sister both have it bad - but it really makes life easier.

Of course, I am looking at DD going to college next year along with the loss of about 10K in income, but instead of worrying, I put together a game plan. I know that I won't be "comfortable" anymore but since I know where the cuts are going to be and that it's for the greater good, I am not worrying.

Absolutely! I mentioned upstream that medical & dental costs are chewing up better than $30,000 worth of pre-tax income this year. I don't anticipate that happening again next year, but "what if?". My income is highly dependent on OT & bonuses - 31% of my gross last year. This year, I'm down $3,500 YTD and will probably be down $5,000 for the year, and we were "supposed" to be much busier this year than last. "What if" the delays this year extend to next? I also went through a layoff a decade ago & while I feel very comfortable in my current slot, there's always that little "what if" in the back of my brain. My wife only accounted for 20% of our income last year (will be more this year with my income down & hers up), so the idea of making it without my salary is just not something I even want to consider. And as my income has increased, I know finding a comparable paying job is less likely.

So yes, personality & experiences definitely color one's definition of "comfortable".

 

[Kimberlyann11]

Personality and one's own definition of comfortable make a real difference. I think it depends a lot on what you had growing up. My definition of comfortable is very much like Gumbo's definition above. While I can cover my needs, several of my wants (not all, though), I still have money issues I stress over. Right now, it's windows for the house. I also see that I need a new driveway at some point. These are necessities by any means but they are things that should be updated on the home (and my HOA won't like it if my driveway starts washing away). I balance those requirements against the thought of "how do I keep enough money in an emergency fund" as well as retirement savings. If I could wipe all that away, I'd deem myself "wealthy" (see last month's thread!!).

I think that's true too. We didn't have a lot. We lived in a high unemployment area where the main industry was tourism. My mom had secretarial skills so she found a job with the county government. My dad went to college and was a stay at home dad, which he was awesome at. He got his degree when I was in high school and took a job over an hour away. We never went out to eat unless we were traveling (I remember eating a lot of macaroni). My prom dress cost $20 and my younger sister altered it a few years later and wore it to homecoming. We had old cars that were kept up by the guys and all the home repairs were done by the men as well. My dad was home most of my youth and since he was an industrious guy, the place always looked fantastic. We kids never felt poor. In fact, years later my sister told me that she thought we were upper middle class.

All that probably makes me feel pretty comfortable since I can pay people to do home repairs, my DD can choose from a number of colleges and doesn't have to go to the one that offers her a full ride, and I can actually order a take-out pizza every now and then.

 

[DisneyPrince1982]

As for the college kids, my son is a recent grad and is making $60,000. Housing costs have skyrocketed so much in his area that he and his friends who have similar jobs are struggling to make it. One friend is making over 6 figures (computer science and has a wife that works. They have 2 roommates to make ends meet. There was just a report on the news that said that in his area, because of the skyrocketing rents and housing prices, that more college grads are living at home than during the recession. So, for a single guy in our area, a $60,000 salary is not comfortable.

60,000 should be more than enough for a single guy unless he's living in downtown NYC or San Francisco.

I have a lot of friends who live in downtown Chicago and are only making 50-60k. They rent a studio in downtown, they still vacation and go out with friends, and live a nice life.

 

[FINFAN]

As for the college kids, my son is a recent grad and is making $60,000. Housing costs have skyrocketed so much in his area that he and his friends who have similar jobs are struggling to make it. One friend is making over 6 figures (computer science and has a wife that works. They have 2 roommates to make ends meet. There was just a report on the news that said that in his area, because of the skyrocketing rents and housing prices, that more college grads are living at home than during the recession. So, for a single guy in our area, a $60,000 salary is not comfortable.

My DD makes 3x's her age but lives outside San Francisco, in San Mateo. She used to live in the Financial District. She, her BF and another friend shared a 1 bedroom~ rent alone was over $3000 and most building have no rent control. There are 4 of them now, living in San Mateo in a 2 bedroom. All make respectable salaries and they live very frugally. DD is a saver tho, and both she and her BF plan to be able to retire so they are saving and investing now at age 25. They do not plan to have kids, they feel they cannot afford it overall. They do not vacation other than to family at Christmas and they share a car, one my DD would classify as a crapmobile, but it gets the job done. If she made her current salary back in Orlando, she would have already purchased a home and started to settle, enjoy life. Also, for those who have kids and save for college for them, state school costs vary widely. Illinois (me)averaged 25 grand and up a year for resident where South Dakota is $15 grand..so as so many have said, variable of personal choice for comfort level salary. At this point? Absolute JOB SECURITY would be my biggest choice. I will adjust to the total family income (within reason, say, the 70 range) if I know the jobs are there indefinitely WITH health and dental coverage.

 

[SouthFayetteFan]

That's because life is MUCH cheaper in Pittsburgh.

The average household income in Pittsburg is $55,000. It's $86,000 where I live, and trust me, those making $86,000 and under are not living large.

From what I've read - the cost of living in NYC is about twice what it is in Pittsburgh (I'm sure other cities are up in that neighborhood too but I'm not sure any are worse). My family of 4 lives comfortable here in the burgh spending an average of $42,000 (+ or - about 5k) based on the last 7 years (I didn't track all of expenses via spreadsheet prior to 2008). I do realize that we make about 30% more than the median and we're thankful for that but that doesn't mean we need to spend like we do. I also acknowledge that in some areas we spend exorbitantly, including going on multiple vacations each of the past 2 years, but it makes us happy. Based on my calculations, if we had to we could cut our total annual spending to under $20,000 we could. Our key is only spending money on things that truly make us happy. I'm fairly certain we would be able to live on less than $84,000 if we lived in NYC so we'd have to find a way to make a little extra money and we'd be good.

The important thing that I think people miss is that everything discussed in these posts are all choices. Going to an expensive private university and racking up HUGE student loans...Choice! Living in a city with a high cost of living...choice! Buying a house with over 1,500 square feet...choice! Living in a suburb an hour away from the city you work in and spending thousands a year commuting...choice! Even within these so-called expensive cities if you look hard enough you'll find people who find a way to have an awesome life spending 50%+ less than the masses.

Our Choice...Live in Pittsburgh which has a moderate cost of living, spend enough money to live comfortably (which is easily less than $50k annually) and save the rest. Perhaps its not how much does it take to live comfortably...what we focus on is how great our simple life is and try to find contentment in the modest pleasures.

HOWEVER...I'm not going to judge anybody who wants more out of life than us. We all must decide what is most important to us (choices...right?) I just wanted to present a different viewpoint that hopefully somebody may gain from reading.

 

[FINFAN]

From what I've read - the cost of living in NYC is about twice what it is in Pittsburgh (I'm sure other cities are up in that neighborhood too but I'm not sure any are worse). My family of 4 lives comfortable here in the burgh spending an average of $42,000 (+ or - about 5k) based on the last 7 years (I didn't track all of expenses via spreadsheet prior to 2008). I do realize that we make about 30% more than the median and we're thankful for that but that doesn't mean we need to spend like we do. I also acknowledge that in some areas we spend exorbitantly, including going on multiple vacations each of the past 2 years, but it makes us happy. Based on my calculations, if we had to we could cut our total annual spending to under $20,000 we could. Our key is only spending money on things that truly make us happy. I'm fairly certain we would be able to live on less than $84,000 if we lived in NYC so we'd have to find a way to make a little extra money and we'd be good.

The important thing that I think people miss is that everything discussed in these posts are all choices. Going to an expensive private university and racking up HUGE student loans...Choice! Living in a city with a high cost of living...choice! Buying a house with over 1,500 square feet...choice! Living in a suburb an hour away from the city you work in and spending thousands a year commuting...choice! Even within these so-called expensive cities if you look hard enough you'll find people who find a way to have an awesome life spending 50%+ less than the masses.

Our Choice...Live in Pittsburgh which has a moderate cost of living, spend enough money to live comfortably (which is easily less than $50k annually) and save the rest. Perhaps its not how much does it take to live comfortably...what we focus on is how great our simple life is and try to find contentment in the modest pleasures.

HOWEVER...I'm not going to judge anybody who wants more out of life than us. We all must decide what is most important to us (choices...right?) I just wanted to present a different viewpoint that hopefully somebody may gain from reading.

Sometimes the job location isn't much of a choice. In today's work climate passing on a job offer may not be wise and you do what you have to do. Luckily my DD accepted the offer for her current job as her last place laid off several (and she would have been one) 2 months after she left. Her field basically has opportunities on either coast, studios are in expensive locations, hopefully near public transportation. Some have to travel far to work to be able to afford housing at all, not fancy housing.

 

[SouthFayetteFan]

Her field basically has opportunities on either coast

To me it eventually still comes back to choices...she chose to go into that field. That's the theme of the blog I mentioned in my earlier post (Mr. Money Mustache) - we all make choices.

When I lost my job due to our company being acquired last year (I was in purchasing) I headed in a new direction...banking...because the opportunities that existed in purchasing weren't right for our family. If that hadn't come along I may have gone back to fast food management to make ends meet until something better came along.

On a side note - I also respect somebody who follows their dreams even when it's tough. Sounds like your daughter made a great call finding a new opportunity before the current one went south.

 

[FINFAN]

yes,she chose to go into the field, at the time of entering school available jobs and functioning studios was far larger than time of graduation~things literally changed that quickly and financially ,it would not have been wise to stop school and restart in a different major. Many have to face that choice. She is fortunate to be employed with a decent salary. Many ,( as you describe your own situation) have had to go a new direction~ some within just a few years of graduating.

 

[mjkacmom]

From what I've read - the cost of living in NYC is about twice what it is in Pittsburgh (I'm sure other cities are up in that neighborhood too but I'm not sure any are worse). My family of 4 lives comfortable here in the burgh spending an average of $42,000 (+ or - about 5k) based on the last 7 years (I didn't track all of expenses via spreadsheet prior to 2008). I do realize that we make about 30% more than the median and we're thankful for that but that doesn't mean we need to spend like we do. I also acknowledge that in some areas we spend exorbitantly, including going on multiple vacations each of the past 2 years, but it makes us happy. Based on my calculations, if we had to we could cut our total annual spending to under $20,000 we could. Our key is only spending money on things that truly make us happy. I'm fairly certain we would be able to live on less than $84,000 if we lived in NYC so we'd have to find a way to make a little extra money and we'd be good.

The important thing that I think people miss is that everything discussed in these posts are all choices. Going to an expensive private university and racking up HUGE student loans...Choice! Living in a city with a high cost of living...choice! Buying a house with over 1,500 square feet...choice! Living in a suburb an hour away from the city you work in and spending thousands a year commuting...choice! Even within these so-called expensive cities if you look hard enough you'll find people who find a way to have an awesome life spending 50%+ less than the masses.

Our Choice...Live in Pittsburgh which has a moderate cost of living, spend enough money to live comfortably (which is easily less than $50k annually) and save the rest. Perhaps its not how much does it take to live comfortably...what we focus on is how great our simple life is and try to find contentment in the modest pleasures.

HOWEVER...I'm not going to judge anybody who wants more out of life than us. We all must decide what is most important to us (choices...right?) I just wanted to present a different viewpoint that hopefully somebody may gain from reading.

Actually living in NYC would cost way more than twice of living in Pittsburg. Living in the NYC suburbs is twice the cost of Pittsburg. We choose to stay here because of family, friends, and the fact that we like living here, clues to the ocean, mountains, major cities, and most importantly, great pizza and 24 hour diners.

 

[FINFAN]

To me it eventually still comes back to choices...she chose to go into that field. That's the theme of the blog I mentioned in my earlier post (Mr. Money Mustache) - we all make choices.

When I lost my job due to our company being acquired last year (I was in purchasing) I headed in a new direction...banking...because the opportunities that existed in purchasing weren't right for our family. If that hadn't come along I may have gone back to fast food management to make ends meet until something better came along.

On a side note - I also respect somebody who follows their dreams even when it's tough. Sounds like your daughter made a great call finding a new opportunity before the current one went south.

Thanks for the side note, and she would , by far, prefer to still be in FL with a salary cut to do so, but is gaining far more experience and has a much better role at the new position. Sometimes the $ isn't the wealthy part lol

 

[Patch'sD]

One of the good things about living in a high priced area is that if you choose, you can pick up at retirement age and move to a lower cost area like most of Florida. You can buy a similar sized house for 1/2 the price and live on a High Priced Area Pension.

I don't believe that where you live or work is matter of choice but more of necessity. There are drivers like Family, Career considerations, Medical requirements, and so forth. Yes everything is based on choice, but there are drivers that effect that choice.

 

[Maxpowers]

That's a nice area. Property taxes are probably outrageous ($50,000 a year?). There are no McMansions here, but real mansions. The only new builds are tear-downs, and that's rare.

ETA, the rooms in that house are small, and a little wacky! And notice there are window a/c units. We have them as well, but our house is worth a third of that one. I bet most people would expect at least central air for a million dollar + home.

The poster I was responding to suggested that $175k would get you the lifestyle of that area....shopping at whole foods & daily starbucks, etc... Montclair is the perfect illustration (sans actual McMansions).

 

[Maxpowers]

You know how depressing this thread is for a college student? Almost everyone is saying "You would need to make more than $175,000 a year to live comfortably - not rich - but comfortably..."

All my hopes and dreams of raising a family, having a moderate house with a little land, and taking yearly Disney vacations by being a doctor are now crushed... I hope you all are happy!

You just need to marry another doctor! Doctor x 2 FTW!

 

[Art 1]

You know how depressing this thread is for a college student? Almost everyone is saying "You would need to make more than $175,000 a year to live comfortably - not rich - but comfortably..."

All my hopes and dreams of raising a family, having a moderate house with a little land, and taking yearly Disney vacations by being a doctor are now crushed... I hope you all are happy!

Depends what kind of doctor you are or want to be. Many don't make a huge income. Some do. It takes a while to earn money and acquire things. It still amazes me that so many college graduates think they deserve or will have a nice house, a few cars and so forth right out of college. The best way is to relay on your self to make a big income if thats what you want, not some company to pay you.

 

[Maxpowers]

Actually living in NYC would cost way more than twice of living in Pittsburg. Living in the NYC suburbs is twice the cost of Pittsburg. We choose to stay here because of family, friends, and the fact that we like living here, clues to the ocean, mountains, major cities, and most importantly, great pizza and 24 hour diners.

That and our jobs are here

From what I've read - the cost of living in NYC is about twice what it is in Pittsburgh (I'm sure other cities are up in that neighborhood too but I'm not sure any are worse). My family of 4 lives comfortable here in the burgh spending an average of $42,000 (+ or - about 5k) based on the last 7 years (I didn't track all of expenses via spreadsheet prior to 2008). I do realize that we make about 30% more than the median and we're thankful for that but that doesn't mean we need to spend like we do. I also acknowledge that in some areas we spend exorbitantly, including going on multiple vacations each of the past 2 years, but it makes us happy. Based on my calculations, if we had to we could cut our total annual spending to under $20,000 we could. Our key is only spending money on things that truly make us happy. I'm fairly certain we would be able to live on less than $84,000 if we lived in NYC so we'd have to find a way to make a little extra money and we'd be good.

The important thing that I think people miss is that everything discussed in these posts are all choices. Going to an expensive private university and racking up HUGE student loans...Choice! Living in a city with a high cost of living...choice! Buying a house with over 1,500 square feet...choice! Living in a suburb an hour away from the city you work in and spending thousands a year commuting...choice! Even within these so-called expensive cities if you look hard enough you'll find people who find a way to have an awesome life spending 50%+ less than the masses.

Our Choice...Live in Pittsburgh which has a moderate cost of living, spend enough money to live comfortably (which is easily less than $50k annually) and save the rest. Perhaps its not how much does it take to live comfortably...what we focus on is how great our simple life is and try to find contentment in the modest pleasures.

HOWEVER...I'm not going to judge anybody who wants more out of life than us. We all must decide what is most important to us (choices...right?) I just wanted to present a different viewpoint that hopefully somebody may gain from reading.

Okay...here's a cheaper 3 bedroom home in an okay (not affluent but you also won't get stabbed out on the street) area near NYC. I'll give you a generous 60% of your $84k which puts you at $50,400 (or $4,200 a month) take home pay. That home's mortgage & taxes would run you about $1,600 a month. Can you outline a budget that pays for everything else for a family of 4 on $2,600 a month? This needs to include all other costs aside from house payments (i.e. utilities, food, clothes, car costs, savings, vacation funds, medicine, etc... you get the point). I am very curious.

Thanks

 

[Mickeyluver37]

Yeah, love watching Love It Or List It when they are I think in the Toronto area. Learn so much about regional differences like "detached" homes. Detached to me is a home. Otherwise it is a commercial structure with multiple occupancy. I guess they are common in Eastern Canada and the Eastern U.S.

And yes, Toronto real estate prices are just plain out of hand.

Are there no townhouses in CA due to earthquakes? We don't use the word "detached" here so much, but we would call that a Single Family Home as opposed to a duplex, condo, townhouse, etc. The funny thing for me is when people of cheaper areas of the country talk about buying a duplex and renting out the other side. Here if you buy a duplex (in the 250K range and we are in the suburbs!) you are only buying that one side.

...any salary that gives me all of what I need and a good portion of what I want. Since retiring, I don't need much and don't want anything extravagant (traveling is my big thing), then I guess I'm comfortable on a HECK of a lot less than $100,000.

Ha! In retirement I expect to have no mortgage, no student loans for DH and I, no daycare expenses, no college tuition to still be paying on or saving for 4 kids, AND I won't be contributing towards my retirement funds. So, if I had even 25K in spending cash per year, that's more than we're living on now after all that stuff is paid. We could take all the kids on a Disney Cruise every year!

 

[SouthFayetteFan]

Okay...here's a cheaper 3 bedroom home in an okay (not affluent but you also won't get stabbed out on the street) area near NYC. I'll give you a generous 60% of your $84k which puts you at $50,400 (or $4,200 a month) take home pay. That home's mortgage & taxes would run you about $1,600 a month. Can you outline a budget that pays for everything else for a family of 4 on $2,600 a month? This needs to include all other costs aside from house payments (i.e. utilities, food, clothes, car costs, savings, vacation funds, medicine, etc... you get the point). I am very curious.

I think my post may have been a bit wordy and not clear. What I was trying to say is since my family currently spends about $42k annually that I would expect to pay $84k annually if we lived the same lifestlye in New York since it probably would cost twice as much.

Using the example above, with Mortgage and Taxes of approx. 19k I'd definitely think it's doable to keep the rest of our expenses under 65k.