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I came from a poor area. I used to think 80k/yr was rich. Time passed, I got work in Silicon valley with a wife and kids. Living there I think 500k would be mi
by geggam 7y ago
I came from a poor area. I used to think 80k/yr was rich.
Time passed, I got work in Silicon valley with a wife and kids. Living there I think 500k would be middle class. Not even upper middle class.
Perspectives change as you are exposed
- silverfox17 7y ago80k/yr CAN be rich, it all depends on location. 80k/yr would be poverty in the valley, most of that money going to just having shelter.
- gnaritas 7y agoYou're way off base, median income in Silicon Valley is $110,373; 5x median income is not middle class by any stretch of the imagination. There is no city in the world where 500k a year isn't rich.
- ac29 7y ago80th percentile household income in Santa Clara County is $200k/yr [0]. The linked dataset doesn't go any higher, but I suspect 500k/year is 95th percentile or above, which puts you in the upper class. Even in the Bay, $500k/yr is the "own two homes and a few Porches" level. [0] http://www.vitalsigns.mtc.ca.gov/income http://www.vitalsigns.mtc.ca.gov/income
- geggam 7y agoIf you are single maybe. I think of a middle class man being what my old man was. Single income, wife stayed home and he provided for everyone. 4 kids. Good luck having 2 homes and some porsches with only 500k in the valley supporting a wife and kids
- brokensegue 7y agoplenty of people support a family on $60k/yr so take the remaining 440k minus taxes and buy two porsches outright. You should be able to save enough for a down-payment on each house given a year of saving.
- geggam 7y agoNo one supports a family on 60k a year. Healthcare alone for a family runs 20k/yr plus simply for insurance
- brokensegue 7y agoYou typically get free insurance when you have a job paying 500k/yr...
- geggam 7y agoIts not free. CFO is very aware of your total cost and its starting to show up on W2's.
- brokensegue 7y agothat's besides that point? When you quote 500k/yr salary that typically includes perks like insurance. But are we really quibbling about $20k in expenses on a 500k salary? Even if I grant you 80k/yr to run your family that still leaves more than enough for your two porsches.
- jjeaff 7y agoA $2.5m mortgage would cost you around $13k a month, Porsche lease less than $1k a month. You've got about $15k a month left in take home pay what in the world are you going to spend that on and still feel middle class?
- geggam 7y agoJust to follow up here. 500k/yr is around 41k a month. Figure you are going to be paying about 40% in taxes or 16,400 a month in taxes you get 24600 left Considering you just spent 14k on a house and car you get 10,600k left. Groceries for a family in the bay runs around 2k a month so now you are down to 8k a month. Wife needs a car plus you need insurance gas and maintenance. Parking runs what $45 / day or 1350... lunches run around 30/day or 900... you haven't paid for clothes or extra curricular activities ( karate lessons 1k / month ) Family is not cheap, Family in the bay is hella expensive
- jjeaff 7y agoAre these karate lessons taught by Bruce Lee reincarnate? Because that is the only way anyone is paying $1000 month.
- brokensegue 7y ago500k/yr is definitely, at least, upper middle in the bay area.