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This, 1,000x. There are a lot of families making $1 million gross ($500K net) in income. They live in SF and NY. Both parents work 10 hour days. They live in a
by microdrum 9y ago
This, 1,000x.
There are a lot of families making $1 million gross ($500K net) in income. They live in SF and NY. Both parents work 10 hour days. They live in an uncomfortably small house and have a $1 million mortgage. They can barely save for college after paying for childcare costs and the mortgage. But they're "rich." Yeah, right.
- mi100hael 9y agoIs there really no cheaper housing options available to people like that? That sounds absurd.
- chadgeidel 9y agoNot sure about your numbers here. A million dollar mortage today represents just under $5k per month or $60k per year. that's well under the recommended 30% for a $500k income. I have a hard time believing "They can barely save for college after paying for childcare costs and the mortgage" - I have no idea what childcare costs are, but I would be shocked if they were in excess of $300K-$400k per year.
- kudokatz 9y agoTheir choice to buy a house like that in such a market and have a kid on top of a huge mortgage with almost no free time. Consider an alternative: live together in a tiny $3k/mo apartment, save hundreds of thousands of dollars a year, move to a low-cost market, and retire at 35 with an amazing amount of money. THEN have children while the investment portfolio goes bananas over the next few decades ...