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Let's do some back of the envelope calculation: starting total compensation: 150K. If your partner works a similar job, your combined annual income is 300K. N
by RestlessMind 6y ago
Let's do some back of the envelope calculation:
starting total compensation: 150K. If your partner works a similar job, your combined annual income is 300K.
No income tax in Washington State, so Federal + FICA taxes would be ~70K (look up any online calculator).
Rent ~1800 per month or 22K per year (based on Zillow's data for 1bd/1ba in Redmond, WA). Living expenses of 2K per month or 24K per year.
You are looking at 300K - (70 + 22 + 24)K, or >180K potential annual savings. Let's double the living expenses or throw in student loan repayments on top, but saving 100-125K per year is easily doable for such a couple. And in a couple of years, you have 200-250K for your downpayment.
- chrisseaton 6y agoHmmm... does add up can't deny that. But in reality I don't see many of my professional friends saving anywhere near to this kind of cash. Childcare, loans etc seems to really eat into it.
- s1artibartfast 6y agoYeah, This leads to the general convention of getting a house before having children. It is easier to save and stack cash without them.
- duutfhhh 6y agoA spouse making another 150k is a big assumption. It's mostly males living in such places.