3 ms·
It's really not that much money. I'm in the Midwest by the way and have explored moving to Bay area. But here's the reality. Contribute to 401k $19k small 3
by segmondy 7y ago
It's really not that much money.
I'm in the Midwest by the way and have explored moving to Bay area. But here's the reality.
Contribute to 401k $19k
small 3 bedroom house for family with decent schools - $5k/month - $60k a year
Daycare $4k/month - $48k a year
Health Insurance, Household Expenses, Food, etc $5k/month - $60k a year
Car/gasoline $12k a year
Assume 0 savings that's $180k post tax
$360k before tax + $19k = $379k.
Wanna save a little bit, we are already over $400k...
... and this is with a small shack of a 1200sq house and 2-3x the commute. It's easy to look at the numbers and drool in the mouth but start running the numbers and it's not that nice for those with family. If you're young and single, then it's worth it. Go do it, rent a room, live like a pauper and save like hell.
- dmode 7y agoThese numbers are wildly inaccurate. Public schools are free and my kids daycare is $1500/month. 48k health insurance ? I pay $200 per paycheck for Kaiser for a family of 3. Other expenses are all relative and not that different from living in a low COL. Living in Bay Area, you can easily save $200k per year at $400k salary
- rolltiide 7y agobut you know whats even worse? Making 1/3rd or 1/5th of that. Cheers.
- senordevnyc 7y agoI think you really want your analysis to be true, so you're fudging the numbers to "prove" to yourself that it makes no sense. - Taxes are not 50% - Daycare is not $4k for one kid, though could be for 2 - You don't need a 3 bedroom unless you have 3+ kids - Health insurance is a few thousand per year, max (employer pays most) - Household expenses and food expenses aren't THAT much different from elsewhere. Do you spend $5k / month on those now?