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How could you possibly run out of savings when you had that kind of income? Were you spending most of it? What is your monthly expense rate now? Perhaps you bou
by aerovistae 8y ago
How could you possibly run out of savings when you had that kind of income? Were you spending most of it? What is your monthly expense rate now? Perhaps you bought a multimillion dollar house?
- DVassallo 8y agoI live in Seattle (high cost of living area) and have 2 small kids (2 & 4). Just housing and insurance (health, life, disability, etc) are $84K/year. That’s before food and utilities. My total expenses are about $150K. I start with a round $1M in liquid savings, so it’s about 5.5 years of runway. There’s more detail about my finances in this post for those curious: https://danielvassallo.com/from-employee-to-bootstrapper/ https://danielvassallo.com/from-employee-to-bootstrapper/
- fwip 8y agoI live in Seattle too, and this is the first year I made more than $85k. But I don't have kids.
- DVassallo 8y agoYes, it’s more expensive with a family. The cheapest health insurance from Obamacare was $15K/year, with a $14K decidable. I live in a 2,500 sqft 3-bed townhouse and all housing costs are $64K/year (mortgage, HOA, and insurance). Then I have another $5K for life, disability, umbrella, and auto insurance.
- aerovistae 8y agoVery interesting blog post, to me at least.