[to3m]

$145K take home pay is surely like $200+K/year? (In the UK, if you earn ~£110K+/year after tax, you're in the top 1% of taxpayers.)

If your spouse is going to work too, I admit that is a lot more doable.

If not, well... looks like the secret is, "be rich/well-paid, and don't piss it all away". Excellent advice, but I could have told you that already ;)

[n00b101]

$145K take home pay is surely like $200+K/year?

It's $240k/year in Canada.

If your spouse is going to work too, I admit that is a lot more doable.

Is it? Saving $1.5M by age 40 gives you a $30k/year life annuity (2%) for retirement. During the accumulation phase you need to save $100k/year for 15 years, so you only get to spend $45k per year during your pre-retirement life. Living off $30-45k/year maybe makes sense for 1 person, but 2 people or a whole family?? I think not, that's called poverty. You need to be earning $240k gross per household member starting from age 25, in order to make this retirement "plan" work.

[nommm-nommm]

>Living off $30-45k/year maybe makes sense for 1 person, but 2 people or a whole family?? I think not, that's called poverty.

Ah yes, the hacker news bubble where $40k a year is poverty.

Sometimes I am just speechless... This is one of those times.

[mcguire]

"Living off $30-45k/year maybe makes sense for 1 person, but 2 people or a whole family?"

You'd be in good company.

The median household income in the US is ~$51k. The median personal income is ~$30k. The poverty line in the continental US for a family of 4 is ~$25k.

[sheepmullet]

$30k/year is ~$550/week.

If you already own a home that is more than enough to live well as a family in most parts of the US.

> Living off $30-45k/year maybe makes sense for 1 person, but 2 people or a whole family??

Of course you have to make sacrifices. It all depends on what you want in life.

I lived with my parents until my early thirties and that allowed me to buy a house outright.

[trprog]

Although it is advice that an alarming number of people don't seem to follow. I have spent the last decade and a half working with plenty of reasonably high earning individuals. Although I have only occasionally got any insight into their personal financial situation the number of them still living pay to pay is mind blowing.

[kowdermeister]

How is that possible? Are they not saving up or the cash just goes down the drain here and there?

[trprog]

Spending tends to rise inline with income if you are some combination of foolish, bored or unhappy. Most people are some or all of those things at least some of the time. In particular people safely ensconced in comfortable long-term, well paying office jobs tend to be bored and unhappy a lot of the time.

That can lead you to make poor decisions which provide short burst of happiness. No matter how large an income you have you will be able to get a mortgage, a car loan and credit card payments sufficient to entirely consume your paycheck. And if you do still wind up with extra cash why not put in a swimming pool/buy a boat/take an expensive vacation. That will cheer you up (for a while).

Stuff like a more expensive home, vehicles and boats are especially disastrous financially because they have ongoing costs in addition to the upfront expense. You pay a bunch of money now and then have to pay money for maintenance, insurance etc for as long as you own the thing.

[nommm-nommm]

If you have $20 on your pocket you tend to spend $20. If you have $40 you tend to spend $40.

(Not you specifically, people in general. Or society encourages this)