How much Money do you need for a Nice Lifestyle

[fj25]

I thought that instead of looking at things as how much does a certain field make, I wonder how much do I need?

So people with experience, maybe you can help me answer, how money do you need to live in a nice house ($500,000-1mil) and have a nice car ($30-50,000) and go on trips and have fun. I want to have kids but it's not my top priority now.

Is $150,000/ year enough?

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[southerndoc]

I thought that instead of looking at things as how much does a certain field make, I wonder how much do I need?

So people with experience, maybe you can help me answer, how money do you need to live in a nice house ($500,000-1mil) and have a nice car ($30-50,000) and go on trips and have fun. I want to have kids but it's not my top priority now.

Is $150,000/ year enough?

This is extremely variable. Some people can live comfortably on $150,000 per year while others live such extravagant lifestyles that a million per year is required.

Perhaps you should do your own calculations based on how much you anticipate spending.

 

[rad_one]

Pre tax 400-500k. After the gov't rips off its 50%, wastes my taxes and collects the social security that I will be unable to use beacause the program will be broke when I am of age. That leaves 200-250k , or 16-20k per month to use for house, cars, vacation, kids, life insurance, savings.......

 

[Surgeon24]

You need 324,229$ per year.

 

[8744]

Pre tax 400-500k. After the gov't rips off its 50%, wastes my taxes and collects the social security that I will be unable to use beacause the program will be broke when I am of age. That leaves 200-250k , or 16-20k per month to use for house, cars, vacation, kids, life insurance, savings.......

I believe you only pay social security tax on the first $82,000

 

[dawg44]

Spend less than you make is always a good philosophy for financial happiness

 

[DarksideAllstar]

$8 -10 million, period.

 

[RxnMan]

I've been living comfortably on $16k/yr, so when you get your job interview or whatever, be sure to mention this figure to your interviewer.

 

[LADoc00]

This is extremely variable. Some people can live comfortably on $150,000 per year while others live such extravagant lifestyles that a million per year is required.

Perhaps you should do your own calculations based on how much you anticipate spending.

There are MANY many places in the US where a family of 4 could not live "comfortably" on 150K/year. Something big would need to be sacrificed be that housing space, food budget, college savings, retirement or vacations. The dollar amount is less important than the total package. A 150K with no benefits is obvious completely and utterly different than 150K with health insurance for everyone in the family, disability, life insurance etc.

 

[modelslashactor]

I don't know where you people live but 150k (with benefits, of course) can go a helluva long way. I know several people in my area whose parents make around this much and their kids are getting out of med school debt free

Granted a couple factors are worth noting: 150k went a lot farther when the stock market was booming because you could damn near double your money, and 150k ten years ago puts the 150k we will be making as attendings in 5-10 years to shame.

 

[Wallachia]

I thought that instead of looking at things as how much does a certain field make, I wonder how much do I need?

So people with experience, maybe you can help me answer, how money do you need to live in a nice house ($500,000-1mil) and have a nice car ($30-50,000) and go on trips and have fun. I want to have kids but it's not my top priority now.

Is $150,000/ year enough?

in greenwich, ct, one needs 359,300$ net income after taxes to live well per forbes

link

 

[Sanman]

True, 150K is not what it used to be, especially if you live near a major city. That said, ther is also a difference between a $1 miilion house and a 50k car and a 500k house and a 30k car. I would say that the latter is most likely doable on 150K and the former would require more. The question then also becomes how much do you want to save? How many/much for the trips and fun? Are we talking about down the line with kids? benefits? Where will you live and what is the cost of living there? You aren't going to starve on 150K however in some areas this amount would make you upper middle class/ borderline wealthy whereas in others it will make you middle class/upper middle class. This is also assuming no additional income from an SO/spouse.

 

[E Z Daring]

I don't know where you people live but 150k (with benefits, of course) can go a helluva long way. I know several people in my area whose parents make around this much and their kids are getting out of med school debt free

Granted a couple factors are worth noting: 150k went a lot farther when the stock market was booming because you could damn near double your money, and 150k ten years ago puts the 150k we will be making as attendings in 5-10 years to shame.

Interesting. I can live great at less than $50k per year. I don't have kids, and live pretty small but high quality. But still, this is in Southern California, which is pretty expensive. It's pretty simple- I do my own car repairs, don't buy plasma TVs and IPODs, save wisely...

Whatever your income, start studying on finances. I say this b/c doctors are the absolute worst when it comes to anything financial. My words usually bounce of residents and attendings foreheads:

-"Consolidate student loans before the deadline!" - "What, huh? Oh noes!"

-"Don't buy a house now! This is a classic speculative Housing bubble!" - "Huh, what this isn't a normal market? My real estate agent says housing never goes down? And they aren't making any more land!" LOL.

-"Do you check your FICO score regularly?" - "my what score?"

A high quality of life to me means having my health, and not being on call ever again.

 

[LADoc00]

I don't know where you people live but 150k (with benefits, of course) can go a helluva long way. I know several people in my area whose parents make around this much and their kids are getting out of med school debt free

Granted a couple factors are worth noting: 150k went a lot farther when the stock market was booming because you could damn near double your money, and 150k ten years ago puts the 150k we will be making as attendings in 5-10 years to shame.

Yeah its crazy but guess what: we all dont live in West Virgina or Flint, Michigan! 150K is absolutely dogcrap in the places where Ive lived. In fact, there was a great article in the local paper how the manager at the supermarket was making 150K and was complaining.

 

[Dr JPH]

Mortgage (30 year)

$500,000 @ 6.0% = $3,000.00/month
$500,000 @ 7.0% = $3,325.00/month
$750,000 @ 6.0% = $4,500.00/month
$750,000 @ 7.0% = $5,000.00/month
$1,000,000 @ 6.0% = $6,000.00/month
$1,000,000 @ 7.0% = $6,653.00/month


Car (60 month)

$50,000 @ 6.0 % = $1,065.00/month

So if you want a $750,000 house and a $50,000 car you will need to net around $6,000/month or $72,000/year

If you are making $150,000/year then every single penny of your income will need to go towards just the house and car.

Now, a $300,000 house in some places can look like $1,000,000 home in others.

A mortgage on a $300,000 house @ 6.0% will run you $1,750.

 

[Wallachia]

Yeah its crazy but guess what: we all dont live in West Virgina or Flint, Michigan! 150K is absolutely dogcrap in the places where Ive lived. In fact, there was a great article in the local paper how the manager at the supermarket was making 150K and was complaining.

saw on another finance/job site:

In-N-Out Burger (Northridge, CA), and the tray liner had this information:

----------

Be a part of something great....

Starting salary $9.00 per hour (starting wage is $9.25 to $10.00 per hour at some other locations).

Flexible schedules
Comprehensive training
Paid vacations
Free meals
Advancement opportunities
401(k) plan
For our full time Associates, we also provide:
Medical
Dental
Vision
Life Insurance
Travel Insurance

All store managers started as entry-level associates and were eventually promoted with the help of our comprehensive development program.
Store managers earn an average of $100,000 per year.

 

[madtowngirl]

does it depress anyone else that, as a resident, we'll be making roughly the same amount starting out ($10/hr), even with an undergrad degree PLUS an MD???

saw on another finance/job site:

In-N-Out Burger (Northridge, CA), and the tray liner had this information:

----------

Be a part of something great....

Starting salary $9.00 per hour (starting wage is $9.25 to $10.00 per hour at some other locations).

Flexible schedules
Comprehensive training
Paid vacations
Free meals
Advancement opportunities
401(k) plan
For our full time Associates, we also provide:
Medical
Dental
Vision
Life Insurance
Travel Insurance

All store managers started as entry-level associates and were eventually promoted with the help of our comprehensive development program.
Store managers earn an average of $100,000 per year.

 

[Dr JPH]

does it depress anyone else that, as a resident, we'll be making roughly the same amount starting out ($10/hr), even with an undergrad degree PLUS an MD???

No. Because long term income potential far exceeds those people starting at $10.00/hour in the fast food industry.

 

[dockdock]

You need 324,229$ per year.

Sorry, but you're horribly mistaken.

You actually need $324,229.72 per year. If you had any basic understanding of economics, you'd see that theextra 72 cents will allow you to buy the essentials in life, like that Aston-Martin or that Armani watch.

 

[PainDr]

$750,000 @ 6.0% = $4,500.00/month

So if you want a $750,000 house and a $50,000 car you will need to net around $6,000/month or $72,000/year

Hmmm...good luck getting a 6% loan and don't forget about the extra $1000 per month for taxes and insurance, or the other expenses that go along with a nice home...pool and lawn upkeep, housekeeping, etc. That will set you back another grand per month and you haven't even paid the electric bill yet!

BTW, $750,000 will get you a pretty nice home in the midwest, but won't go very far on either coast.

 

[HTD]

The rules of good financial behavior do no exempt Physicians. Take the MD out of your job and describe your situation on paper to a banker. Debt, age, income, family etc. You will see that coming out of training, most doctors don't look to good on the wealth scale. Be reasonable about your choices. If you want to live in an LA type city and be in Primay Care with 40-50 hours/week, don't expect to live like a top of his/her peer group neurosurgeon.

Also remember that the business of medicine and the practice of medicine are not the same thing. Owning a surgery center is a whole different career than being a surgeon. You can do both, but not without putting out the extra time, effort, and risk.

Be proud of your committment and training. Try not to let phrases like, "it will work out, your gonna make a ton of money" cloud your judgement.

Good Luck!

 

[NonTradMed]

Holy crap. I must be dirt poor living comfortably on my $50k. Granted, it was in a medium sized city in the midwest but still, I'm assuming most people don't live in Socal and NYC so $150k is not what 'most' people need to live 'comfortably'.

My parents make about $150k and they live pretty comfortably. They've lived in three different states, in small towns and medium sized cities, and $150k goes pretty far where they've been.

Considering the average american family do not make anywhere near $150k (based on gov't data I've seen), I would say either:

1. Most people in the US live in poverty since $150k seems to be considered paltry by many here.

2. Most people can live a middle class livestyle for under $150k.

Then again, 'comfortable' is a subjective term. Some may consider comfortable to be a 6 bedroom mansion with live-in housekeeper, others may picture it a studio apartment and ramens noodle kind of life. To the OP, the $150k doens't sound it'll be enough to get you lifestyle you want. You may want to consider focusing on investing you money rather than just taking it on it's salary to get the million dollar house and fun vacation.

 

[docB]

Hmmm...good luck getting a 6% loan and don't forget about the extra $1000 per month for taxes and insurance, or the other expenses that go along with a nice home...pool and lawn upkeep, housekeeping, etc. That will set you back another grand per month and you haven't even paid the electric bill yet!

BTW, $750,000 will get you a pretty nice home in the midwest, but won't go very far on either coast.

PainDr is absolutely correct. You've got to factor in your property taxes. They go directly into your mortgage if you have an escrow account which is a good idea. You also have utilities, up keep, insurance, etc. And all that's just for your housing.

 

[Faebinder]

All hail the almighty Ramen Noodles..... the bread AND butter of the medical student.

 

[DarksideAllstar]

Considering the average american family do not make anywhere near $150k (based on gov't data I've seen), I would say either:

1. Most people in the US live in poverty since $150k seems to be considered paltry by many here.

2. Most people can live a middle class livestyle for under $150k.

Most middle class people dont carry the debt load of your average medical student ($100K+ and undegrad loans), either. Although you may be paying it only over the first 10-20 years of your career, I suspect that it will have detrimental effects on living as "comfortably" as you could with a salary of $150K.

 

[deleted50478]

Hmmm...good luck getting a 6% loan and don't forget about the extra $1000 per month for taxes and insurance, or the other expenses that go along with a nice home...pool and lawn upkeep, housekeeping, etc. That will set you back another grand per month and you haven't even paid the electric bill yet!

BTW, $750,000 will get you a pretty nice home in the midwest, but won't go very far on either coast.

This just in... there are 3 coasts in the US (48).

 

[Frumps]

Starting salary of a CRNA where I'm from is ~150,000....Plus they work a lot less hours and take more breaks.

 

[Ross434]

Hmmm...good luck getting a 6% loan and don't forget about the extra $1000 per month for taxes and insurance, or the other expenses that go along with a nice home...pool and lawn upkeep, housekeeping, etc. That will set you back another grand per month and you haven't even paid the electric bill yet!

BTW, $750,000 will get you a pretty nice home in the midwest, but won't go very far on either coast.

Yeah you're spot on about the taxes and stuff, but i live in a pretty high cost of living area in the midwest, and you can get a pretty nice home for $300,000

 

[NonTradMed]

Most middle class people dont carry the debt load of your average medical student ($100K+ and undegrad loans), either. Although you may be paying it only over the first 10-20 years of your career, I suspect that it will have detrimental effects on living as "comfortably" as you could with a salary of $150K.

True, but that $150k is nothing to scoff at around most parts of the country. We may have $100k debt and make $150k, but the average college student is coming out with five figure debt so I doubt the Joe College Graduate's $50k salary will carry him that far given, perhaps, his $40k debt. It's all relative. We have more debt than the average American, we earn more than the average American. I think most physicians still come out ahead. Again, 'comfortable' is a relative term. Where I've lived, six figures is enough for a family to live comfortable on. Sucks if one can't, because as a physician, there's a good chance that's our salary sometime in our career.

 

[daeojkim]

Living comfortable in a million dollar house and $50K car? It sounds more like luxury lifestyle than comfortable.

 

[outofhere]

Living comfortable in a million dollar house and $50K car? It sounds more like luxury lifestyle than comfortable.

Out here in CA, at the major metroplitan areas, all the single homes that you might want to live in with good school districts ARE over ONE MILLION dollars. You figure you want to give your children every good opportunity possible, so a million is not considered 'luxury' out here! That being said, I think if you are thinking about 'how much money one needs to make, for XYZ...etc', the answer will always be 'MORE!' Money is funny like that, never quite enough.

 

[GSresident]

You're in the wrong profession if you are looking to the future thinking about money. How much are they going to cut medicare payments this year? How about next year? How long is the current health 'care' system going to go on? Very very few of you will make (before taxes) more than 3-400,000. I wouldn't go looking to live a fat lifestyle in California on that income. I hope a lot of you come from old money because you will be severely disgruntled if you think everyone lives like Dr. 90210.