| It's helpful to remember that the Bay Area is extremely expensive, and even more helpful to remember that some people have large families. I could pretty comfortably raise a family of 6 on $100K in a midwestern city, or a family of 6 on $80K in the rural midwest/south. Without sufficient retirement savings, mind you, and my safety net would be non-exisent. I'd need at least another $30K-$50K on those numbers to build a strong safety net (remember, it's a safety net for 2 parents + 4 kids, not for one person...). Doing the same in SFBA would probably require at least $250K. Maybe more. > Surely you don't believe less than 1% of people in the US can live comfortably and have a safety net, do you? The number is larger than 1%, but probably still smaller than you think. The average American definitely doesn't have a sufficient safety net. IME, the average American raising more than 1 or 2 kids almost certainly doesn't have a sufficient safety net. So, no, you don't need to be in the top 1% of earners in the US to have a safety net. But if you have a large family, you probably have to be in the top 10% to live comfortably and have a safety net and retirement. |
Why? Each child might consume, generously, an extra 5k of food and 2.5k of clothes and other inputs per year. This is an increment of $30k on top of housing. For housing, you could add one or at most two bedrooms for four children. This does substantially raise housing costs, but there are still places in Sunnyvale for $1M or just above that that have three bedrooms. They may not be the nicest houses, but they would do.
So, before you have kids, save your downpayment. On a 250k salary, this would take one to three years if you're thoughtful about it. Then buy the house and start popping out babies. Times will be tight if you need to pay for childcare, but that's a defined and short period of the childrens' lives. You're not going to be taking lavish vacations, but if you wanted those, you wouldn't have four kids anyway.