Do you consider a family that makes >$100,000 wealthy?

[tvguy]

isn't that the truth. same thing w/appliances. mom did laundry for a family of 6 w/ the same mid range cost washer/dryer set for over 20 years (and lots of those loads were heavy men's jeans laden with grease and dirt). what's the shelf of a set now-maybe 10 or 11 years? dishwasher-over 30 years, now one lasts maybe 9 or 10. her freaking maytag freezer finally died over 30 years after she got it-I've gone through at least 3 over the past 20 years b/c even if we can find replacement parts it ends up being cheaper to replace than repair. just had a repair guy over this past week, he and I were talking about different brands and their reliability and estimated lifespan-he said that one of the reasons it's so hard to find appliance repair people anymore is b/c the field is dying out due to the appliances no longer being built to be repaired-w/the exception of the realy high end stuff the manufacturers make um so they are next to impossible to repair or so costly for the consumer that they will just decide to opt to put out a few hundred more and get new.

Funny thing is, in California, if an electronic device cost more than $100, the manufacturer is REQUIRED to have replacement parts available for 7 years.* My brother ran a TV repair business for decades, and he says these days that doesn't always happen. Of course, your only ultimate recourse is to go to court. My brother was a Sony dealer, and he had to go to bat for a few customers with Sony, and in the end they always ended up providing a new comparable product for free to avoid legal problems

*(b) Every manufacturer making an express warranty with respect to an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to service and repair facilities sufficient service literature and functional parts to effect the repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.

 

[Colleen27]

The main factor in COL differences is housing.

Housing and taxes. I have friends in NJ who pay more in real estate taxes than we were paying for mortgage payment, taxes, & homeowners insurance on a comparably sized home.

Speaking of UAW, I saw recently that the salary they received in the 50's was basically the equivalent of $100,000 today. And yet, a 1,000 square foot home worked for your grandparents. Kind of puts things in perspective.

That doesn't surprise me. Bridge Magazine (a MI publication) recently published an infographic in their online edition showing county-by-county when median income peaked. The county I grew up in peaked in 1969 at a median income that would be almost $85K in today's dollars, but has lost $27K in inflation-adjusted buying power since then.

Meanwhile, the average size of new homes dipped briefly during the recession but has since resumed a slow climb... The average has nearly doubled since 1969, from 1400 sq ft then to over 2700 today.

 

[Colleen27]

Let's not forget the cost of health insurance/healthcare. I built my home in 2000. Had I built it twice as big, the increase in my mortgage would not be as big as the increase I've incurred in health insurance/healthcare costs since 2000

Absolutely. Also a lot of costs have shifted to the worker over the years. Instead of pensions, we have 401ks. Instead of public investment in mass transit, we have the assumption that every worker will have a car. Instead of well-funded schools, we have ever-increasing school supply costs at the K-12 level and skyrocketing tuition for post-secondary programs.

 

[nugov2]

Housing and taxes. I have friends in NJ who pay more in real estate taxes than we were paying for mortgage payment, taxes, & homeowners insurance on a comparably sized home.



That doesn't surprise me. Bridge Magazine (a MI publication) recently published an infographic in their online edition showing county-by-county when median income peaked. The county I grew up in peaked in 1969 at a median income that would be almost $85K in today's dollars, but has lost $27K in inflation-adjusted buying power since then.

Meanwhile, the average size of new homes dipped briefly during the recession but has since resumed a slow climb... The average has nearly doubled since 1969, from 1400 sq ft then to over 2700 today.

The taxes are what drive me insane. We are paying 1,000 a month in taxes on a house that is about 3,000 sq feet and they climb about 500 a year. It's ridiculous. I love our schools and wouldn't move, but I think if our taxes were even half...that extra 6,000 in savings a year would be awesome! !!

 

[Kenny1113]

The taxes are what drive me insane. We are paying 1,000 a month in taxes on a house that is about 3,000 sq feet and they climb about 500 a year. It's ridiculous. I love our schools and wouldn't move, but I think if our taxes were even half...that extra 6,000 in savings a year would be awesome! !!

I wish it were our taxes that were high(well they are too) but our home owners ins is out of control!!! At least it of were our taxes, in theory I would get use of the money in the community. with the ins, if there is a claim the premium goes up even more!

 

[midnightlouise]

Wealthy is in the eye of the beholder. I can't dogmatically state that 100K is wealthy, especially in places like San Francisco, but when you make half of that, it sure can seem that way...

 

[tcherjen]

I agree comfortable. We are edging closer there and life feels more comfortable.

 

[Christine]

Wealthy is in the eye of the beholder. I can't dogmatically state that 100K is wealthy, especially in places like San Francisco, but when you make half of that, it sure can seem that way...

Just try to think of it this way: in order to make $100K, you *generally* have to go to an area where it's easy to get a job paying that. The reason it's easy is because the CoL is so high so just about everyone gets it in order to live. Your $50K in your town, is often just like $100K is someone else's town. So you may very well be living just like a $100K a year person/family with your $50K.

I remember when my in-laws worked for the federal government in DC. My FIL was a GS-13 and my MIL was a GS-7 or something like that. They lived in a small townhouse in the suburbs of Maryland, had a very average lifestyle. Very middle class. An opening came up in their agency in a small town in North Carolina. They took it. Their GS level did not change. They did lose their DC locality pay but, even with that, they felt they "lived like kings" on the same salary. Now, "kings" was stretching it a bit but they were able to actually get a very nice home with several acres of land and afford a newer car and have much more cash in hand. Big difference for them.

The key is to be able to take one of those more rare jobs in a rural area that pays the $100K.

 

[eliza61]

Housing and taxes. I have friends in NJ who pay more in real estate taxes than we were paying for mortgage payment, taxes, & homeowners insurance on a comparably sized home.



That doesn't surprise me. Bridge Magazine (a MI publication) recently published an infographic in their online edition showing county-by-county when median income peaked. The county I grew up in peaked in 1969 at a median income that would be almost $85K in today's dollars, but has lost $27K in inflation-adjusted buying power since then.

Meanwhile, the average size of new homes dipped briefly during the recession but has since resumed a slow climb... The average has nearly doubled since 1969, from 1400 sq ft then to over 2700 today.

Lol, we just recently sold my childhood home and my siblings and I were laughing at how we ever " survived". 3 bedroom house, 4 kids 2 adults and 1 bath. NO AIR!!
Now, my kids think they're "roughing" it if they have to share a bathroom.

 

[mjkacmom]

Depends on one's needs. The main factor in COL differences is housing. I know people talk about California being expensive, but it isn't universal. It's the coastal population centers and maybe some upscale non-urban areas like Lake Tahoe. I remember passing through Bakersfield once and tuning to a local radio station where the station was doing a promotional work (not just an ad) for an apartment complex renting 3BR units for $800/month. It would have been double or even triple that where I lived.

Then there are other expenses. Construction costs vary a lot depending on location. Food prices may to some extent; I've noticed one benefit to living in California is low produce prices. Still that's maybe a wash since different prices hit you depending on what's relatively local. Still, a lot of standard stuff doesn't seem to absorb too much in shipping costs. Target ad prices are pretty much valid anywhere in the lower 48. Amazon charges the same price anywhere in the lower 48.

And then there are the big ticket items. You want to buy a car? A Honda Accord or Ford F-150 cost the same in Alabama, DC, California, or Idaho. So the big issue with COL estimates would be that not everything scales the same.

There's also the issue with taxes, when you start going into higher marginal tax rates. I've heard of some two earner families where one spouse (making far less than the other) decides it's not worth it because the marginal income isn't really that much, and might not make up for child care or travel expenses.

COL definitely effects housing. I pay around $11,000 a year on my 1800 ft house. Services are also more expensive - daycare, landscaping, construction, preschools - because people need to be paid more. Even restaurants and bars.

 

[Gumbo4x4]

COL definitely effects housing. I pay around $11,000 a year on my 1800 ft house. Services are also more expensive - daycare, landscaping, construction, preschools - because people need to be paid more. Even restaurants and bars.

I remember a trip to Chicago where I was stunned to pay WAY more at McDonalds than I paid at home. Always assumed the prices were universal. Nope!

Our home is 15 years old, 1,480 sq*ft, sitting on 7.4 acres. Our mortgage payment is about $640, taxes & insurance are about $3,000 for the year (total, not each).

 

[mjkacmom]

I remember a trip to Chicago where I was stunned to pay WAY more at McDonalds than I paid at home. Always assumed the prices were universal. Nope!

Our home is 15 years old, 1,480 sq*ft, sitting on 7.4 acres. Our mortgage payment is about $640, taxes & insurance are about $3,000 for the year (total, not each).

My first apartment (2 rooms, kitchenette) in a not so great area was $650 a month, over 25 years ago. It would probably cost $850+ a month today.

 

[Gumbo4x4]

My first apartment (2 rooms, kitchenette) in a not so great area was $650 a month, over 25 years ago. It would probably cost $850+ a month today.

Oddly enough, the apartments right next to my office are more expensive (per month) than my house.

 

[midnightlouise]

Just try to think of it this way: in order to make $100K, you *generally* have to go to an area where it's easy to get a job paying that. The reason it's easy is because the CoL is so high so just about everyone gets it in order to live. Your $50K in your town, is often just like $100K is someone else's town. So you may very well be living just like a $100K a year person/family with your $50K.

I remember when my in-laws worked for the federal government in DC. My FIL was a GS-13 and my MIL was a GS-7 or something like that. They lived in a small townhouse in the suburbs of Maryland, had a very average lifestyle. Very middle class. An opening came up in their agency in a small town in North Carolina. They took it. Their GS level did not change. They did lose their DC locality pay but, even with that, they felt they "lived like kings" on the same salary. Now, "kings" was stretching it a bit but they were able to actually get a very nice home with several acres of land and afford a newer car and have much more cash in hand. Big difference for them.

The key is to be able to take one of those more rare jobs in a rural area that pays the $100K.

Oh yes, you're absolutely right, I totally agree. I looked it up last night just for fun, and 50K in Nashville is pretty close to 100K in San Francisco. So yeah, not wealthy lol. It's just that logic is so often at odds with the visceral reaction of imagining 100K in your own situation. And I aspire to be like your in-laws one day.

 

[IDoDis]

I wish it were our taxes that were high(well they are too) but our home owners ins is out of control!!! At least it of were our taxes, in theory I would get use of the money in the community. with the ins, if there is a claim the premium goes up even more!

Why aren't you shopping home insurance prices? I can guarantee that you will find a better price --maybe even half of what you are paying now. I switch homeowner carriers every 2 or 3 years and save hundreds of dollars. Then when it creeps back up, I switch again.

Home and auto insurance companies are notorious for raising prices each year on their most loyal customers because they know based on statistics that they keep, those customers are the ones most likely to pay the increases and not shop around.

http://business.time.com/2012/09/06...st-customers-get-penalized-with-higher-bills/

 

[Kenny1113]

Why aren't you shopping home insurance prices? I can guarantee that you will find a better price --maybe even half of what you are paying now. I switch homeowner carriers every 2 or 3 years and save hundreds of dollars. Then when it creeps back up, I switch again.

Home and auto insurance companies are notorious for raising prices each year on their most loyal customers because they know based on statistics that they keep, those customers are the ones most likely to pay the increases and not shop around.

http://business.time.com/2012/09/06...st-customers-get-penalized-with-higher-bills/

Thank you. I am, we switch when we can. Unfortunately choices are limited in south FL.

 

[Gumbo4x4]

Just try to think of it this way: in order to make $100K, you *generally* have to go to an area where it's easy to get a job paying that. The reason it's easy is because the CoL is so high so just about everyone gets it in order to live. Your $50K in your town, is often just like $100K is someone else's town. So you may very well be living just like a $100K a year person/family with your $50K.

I remember when my in-laws worked for the federal government in DC. My FIL was a GS-13 and my MIL was a GS-7 or something like that. They lived in a small townhouse in the suburbs of Maryland, had a very average lifestyle. Very middle class. An opening came up in their agency in a small town in North Carolina. They took it. Their GS level did not change. They did lose their DC locality pay but, even with that, they felt they "lived like kings" on the same salary. Now, "kings" was stretching it a bit but they were able to actually get a very nice home with several acres of land and afford a newer car and have much more cash in hand. Big difference for them.

The key is to be able to take one of those more rare jobs in a rural area that pays the $100K.

Well, that depends on whether you need to earn $100k each or "as a family". I mean, your point is still correct - big salaries & high COL typically go hand in hand.

But, what I'n getting at is that $100k for a dual income family is not terribly difficult to achieve even in lower COL areas, assuming there's some industry there, AND we're talking about established people say in their 40's or older.

 

[Stitchfans]

For me personally, who brings in a little over $10.000 a year. Yep, it is a fortune.

 

[nugov2]

I wish it were our taxes that were high(well they are too) but our home owners ins is out of control!!! At least it of were our taxes, in theory I would get use of the money in the community. with the ins, if there is a claim the premium goes up even more!

I don't even know what is typical for home owners. Ours is 1,000 for the year.

 

[Kenny1113]

I don't even know what is typical for home owners. Ours is 1,000 for the year.

I wish. Ours is about 8 times that right now.