I was doing great when my wife was working. She stays at home now and we are still doing pretty good, so I feel blessed.
I used to think if I have 100k per year, I would be set, but now I know 100k is not going to make any where near being well off.
100K is pretty good if you are single. You can buy a house a 3 series bmw and still save up for retirement.
Depends on what your definition of 'being set' or 'well off' is. Do you have to worry about whether or not you can put gas in your car? Or if you'll have enough money for groceries? For some people that's a reality. Step it up a level on Maslow's Hierarchy of needs and assume you have enough for the basics but what about going to the movies or a decent restaurant for celebrations? What about vacations? Going on vacations for some might be being set.
Just think about it, put up a mortage (not a large one), a daycare for kid (14k!), IRA accounts, I don't even do the 401K anymore. I don't see a lot of left over money when you still have gas, electricity, food, insurance, cable, phone, TV.
The sad part is that 50 years ago a 1-man breadwinner could support an entire 4-person household. The quality of life in this country has gone to ****. I blame women for wanting to work.
i know this thread isn't about housing and i'm sure a lot of people will disagree but nothing kills your ability to build wealth like owning a house. houses are usually purchased at 3 times annual income. not only the purchase price but all the stuff you do to a house and it's land just eats up income. filling up the house with crap, maintenance, repairs, yard work, taxes, HOAs...etc. i love the privacy it provides, but it comes at a costly price. time and money. i think a lot of people would be richer if they didn't succumb so much to the "american dream". buy enough house to live, not to store stuff.
Owning a house only attributes to "wealth" if you desire to live in a house... if you're not renting it out and profiting from it then its just something you're living in.
If you are single and can't live well on 100K year, you are doing something wrong or you're definition of well is jacked.
It depends on how long you live and if you can pass it down to someone. Pay a house off in 15 or 20 years then you can possibly have what, another 20 years of so of no rent. That's huge. And when you die someone can get a free crib and live most of their life without paying rent or sell the asset and get some $$. I think home ownership is very much worth it if you can afford it.
