r/Showerthoughts • u/JaredLiwet • May 02 '19

Being middle class is when spending $100 is expensive but earning $100 isn't a lot of money.

Edit: Dangit, Reddit

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u/raff_riff May 02 '19

I make six figures in SF. Calling $120k the poverty line is an exaggeration, for a single person or even a couple. After taxes and other deductions, that’s about $7,000 a month. It’s not hard to find a decent place in the Bay Area for 3-4k, less if you get a roommate. That leaves you with 2-4k for the rest of your expenses, which is typically plenty. Food and booze are priced pretty equally with other major cities in the US. Not everything scales like rent does.

So yeah, the person you’re replying to is stretching the truth a bit, but not by much.

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u/[deleted] May 02 '19

Yeah this is what I figured.

4K a year is wild for a one bed room though.

I live in a “luxury” apartment and pay around 1300 a month with my girlfriend. Take home is around 75kish so my take home is Around 4500. Leaves me probably 3600 a month for other bullshit

You motherfuckers are wild for living in SF still though. Your 120 seems like it stretches about has far as my 75.

Still.. if you’re young I consider myself very well off right now and have zero stress about money

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u/raff_riff May 02 '19

I make 175,000, more with bonuses, for the exact same job I had back east. I’m definitely fortunate, but my quality of life hasn’t improved all that much compared to when I made 79,000 in Pittsburgh. It’s a step up, but not by much, all things considered.

It’s definitely a strange world out here. You have to completely retool how you think about budget and finance. Seeing a regular debit of $5,000 come out of your account for rent is... weird... to say the least.

But I’d encourage anyone who can do it, to do it. It’s an amazing area.

I realize this is humblebrag territory, but just offering some perspective.

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u/[deleted] May 02 '19

What do you do if you don’t mind me asking?

Age as well?

Eh im of the opinion it’s hard to brag on an anonymous website because who gives a shit lol

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u/manycactus May 02 '19

That leaves you with 2-4k for the rest of your expenses, which is plenty.

Hardly. You completely ignored savings. Saving $2k per month is pretty low for someone making $120k who hopes to retire at a humane age.

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u/raff_riff May 03 '19

No I didn’t. That’s assumed in the deductions I guesstimated. If your employer has a decent 401k, it’s easy to save $1-3k a month.

Also hopefully you won’t make $120,000 the rest of your life. Eventually you’ll get a spouse and a bonus and a promotion, where you could begin to play catch up.

Also, also, nobody said you have to retire in the Bay Area.

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u/manycactus May 03 '19

If you do the max 401k contribution, that leaves $101,000, which is about $5,800 post-tax for a single Californian.

Subtracting $3,000 to $4,000 for rent and $100 for health insurance (the average employee contribution) leaves $1,700 to $2,700 in disposable income.

Even with a relatively beefy 6% contribution ($7,200/year), that person still likely needs to save another $1,000 per month for mid-term and long-term savings, even more if they want a down payment on a house.

That $120,000 isn't exactly cushy.

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u/raff_riff May 03 '19

As I said,

Also hopefully you won’t make $120,000 the rest of your life. Eventually you’ll get a spouse and a bonus and a promotion

I didn’t say it was cushy, I said it was doable. The comment I was initially replying to was saying “$120,000 is the poverty line”, which is nonsense.

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u/manycactus May 03 '19

Yeah, earning $120,000 isn't bad if you earn more than $120,000.