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It properly answers the question that they replied to, "What are you doing where people are making close to 2x what you need to be in top 1% of income?" S/He r

It properly answers the question that they replied to, "What are you doing where people are making close to 2x what you need to be in top 1% of income?" S/He replied that it's not what you're doing, it's where you're doing it. It's why judging on these income bands makes no sense. $300k household income with kids is comfortable but not rich in SV, but you'd be living like royalty in most of the rest of the US.

vonseel 8y ago
What defines rich? Private jets and Lamborghinis? I’m not familiar with the SF cost of living, but Nerd Wallet says a 2 bedroom apartment is about $4k per month. I figured $7k is more accurate so I’ll assume $96k in rent per year. $300k is roughly taxed at 75k for an individual with no exemptions and standard deduction. That leaves $225k of actual cash to spend or save. Ok, so after rent and taxes we’re at about $129k. I see cost of living for food and transportation is higher than Texas, but I bet you also drive less. Does that fancy tech company provide meals once per day or more? I bet they do. So, you have $125k left to spend on food, transportation, bills, entertainment, and invest. If you invest 20% of your gross income - $60k - you’re still left with $65k to spend on those things. That’s $5400 per month or so. I’d bet that buys a lot of $15 coffees and $30 lunches. Or hookers and cocaine, if that’s what you’re into.
- Domenic_S 8y ago
  Oh man, you grossly underestimate what we pay for taxes in CA. You forgot FICA (4.4% effective) and State tax (8.28% effective) for a total tax burden of $114,536. That leaves $185k of cash to spend or save, $89k after rent, $77k after a meager 4% 401k contribution. Everything is more expensive. Insurance is more expensive. Gas is more expensive. Movies, ubers, doctors, groceries, sales tax, you name it. While that leftover $77k isn't exactly hand-to-mouth poor by any stretch, compare it to some other state -- what is a fairly decent middle-class family wage in the Valley is a truly bonkers amount of money almost anywhere else in the US (or world, probably)
  - ryandrake 8y ago
    It is very expensive but still not that bad. I live in Silicon Valley too and I’ll say that $300k is a huge salary here. If I made that I could live extremely well in all but the most expensive Bay Area communities. Not private jet rich but far above a middle class lifestyle. If someone’s struggling (EDIT: just comfortable) with $300k I don’t know what to tell ya.
    - Domenic_S 8y ago
      I never said it was struggling, in fact I explicitly said it wasn’t. The context of the thread was... well, just read it.
      - ryandrake 8y ago
        You're right--edited. Thanks!
  - vonseel 8y ago
    Very good point on other taxes. In Texas we don't have state income tax, so I forgot about those, but we do have property taxes and sales tax... I haven't been to a movie in at least 4 years, so I don't really add things like that into my budgeting. Everything else.. sure, it's more expensive, but some of it is only 30-50% more expensive, and $300k is easily double the salary one would receive in most other states.

vonseel 8y ago

What defines rich? Private jets and Lamborghinis? I’m not familiar with the SF cost of living, but Nerd Wallet says a 2 bedroom apartment is about $4k per month. I figured $7k is more accurate so I’ll assume $96k in rent per year. $300k is roughly taxed at 75k for an individual with no exemptions and standard deduction. That leaves $225k of actual cash to spend or save. Ok, so after rent and taxes we’re at about $129k. I see cost of living for food and transportation is higher than Texas, but I bet you also drive less. Does that fancy tech company provide meals once per day or more? I bet they do. So, you have $125k left to spend on food, transportation, bills, entertainment, and invest. If you invest 20% of your gross income - $60k - you’re still left with $65k to spend on those things. That’s $5400 per month or so. I’d bet that buys a lot of $15 coffees and $30 lunches. Or hookers and cocaine, if that’s what you’re into.

Domenic_S 8y ago
Oh man, you grossly underestimate what we pay for taxes in CA. You forgot FICA (4.4% effective) and State tax (8.28% effective) for a total tax burden of $114,536. That leaves $185k of cash to spend or save, $89k after rent, $77k after a meager 4% 401k contribution. Everything is more expensive. Insurance is more expensive. Gas is more expensive. Movies, ubers, doctors, groceries, sales tax, you name it. While that leftover $77k isn't exactly hand-to-mouth poor by any stretch, compare it to some other state -- what is a fairly decent middle-class family wage in the Valley is a truly bonkers amount of money almost anywhere else in the US (or world, probably)
- ryandrake 8y ago
  It is very expensive but still not that bad. I live in Silicon Valley too and I’ll say that $300k is a huge salary here. If I made that I could live extremely well in all but the most expensive Bay Area communities. Not private jet rich but far above a middle class lifestyle. If someone’s struggling (EDIT: just comfortable) with $300k I don’t know what to tell ya.
  - Domenic_S 8y ago
    I never said it was struggling, in fact I explicitly said it wasn’t. The context of the thread was... well, just read it.
    - ryandrake 8y ago
      You're right--edited. Thanks!
- vonseel 8y ago
  Very good point on other taxes. In Texas we don't have state income tax, so I forgot about those, but we do have property taxes and sales tax... I haven't been to a movie in at least 4 years, so I don't really add things like that into my budgeting. Everything else.. sure, it's more expensive, but some of it is only 30-50% more expensive, and $300k is easily double the salary one would receive in most other states.