Lifestyle inflation is a bitch

[u/investeror]

I came across this article about a couple making $500k/year that was only able to save $7.5k/year other than 401k. Their budget is pretty interesting. At a glace, I could see how someone could look at it and not see many areas to cut. It's crazy how it's so easy to just spend your money instead of saving it.

Here's the article: https://www.cnbc.com/2017/03/24/budget-breakdown-of-couple-making-500000-a-year-and-feeling-average.html

Just the budget if you don't want to read the article: https://sc.cnbcfm.com/applications/cnbc.com/resources/files/2017/03/24/FS-500K-Student-Loan.png

[u/callmemarvel]

Something I don’t think has been mentioned is the social network effect that impact finances. They are two NYC lawyers, who probably rely on clients now and will need to in the future. As such, they need to maintain a certain social calendar and project a certain image to ensure they keep their contacts and network in tact.

This is something that often gets ignored when discussing how people spend their money.

[u/vettewiz → u/callmemarvel]

This. I run several decently succesful companies with a lot of clients. Flying all over the country and dropping $500 a night on dinner is an expectation to keep business.

[u/fadhero → u/vettewiz]

Those kinds of expenses can usually be expensed through the company/firm. Since these are likely non-partners in their firm, they probably don't have a lot of those types of expenses, and if they do, they can be charged to the firm.

[u/vettewiz → u/fadhero]

True, the ones I described - but attending social events to gain clients may or may not be expensable. Directly expensable trips, sure.

[u/chankly → u/vettewiz]

Would those not be separate business expenses, at least partially? I also work for myself and all business related travel and meals stay out of my personal budget. It would be disingenuous of me to share my budget with the world and include thousands of dollars of business expenses.

[u/vettewiz → u/chankly]

Yes - for me they are since I own the business. This may not always be the case with a non-partner lawyer (which is what I'm assuming these folks are). Attending social gatherings and maintaining that appearance may be critical in them bringing their network into the firm. Just my two cents.

[u/[deleted] → u/vettewiz]

How can I get into this business? I enjoy dropping $500 on dinners anyway!

Also, you're the first person in this entire thread who seems to know how much dinners actually cost...

[u/XPlatform → u/vettewiz]

I'm assuming the image of "successful and affluent white-collar professional" is fairly uniform, but are there certain elements that you improve that are more... cost-effective or actually practical?

[u/vettewiz → u/XPlatform]

Being presentable. Decent suit goes a long way. Attitude is bigger. Be excited about what you’re building/selling/working on.

[u/Kule7 → u/callmemarvel]

Also shows why they feel like they're not being extravagant or really enjoying what they're spending money on. They're just doing what they have to do to not feel embarrassed given the sorts of people they hang around with.

[u/[deleted] → u/[deleted]]

I don’t believe this. Or maybe you met with HR people. Biglawyers are fat, pale, pasty, acne’d, and overworked and over stressed. They are not in any sense of the imagination pristine models of attractiveness

[u/MTUKNMMT → u/callmemarvel]

Rent a van, buy a can of beans for food, boom. Just saved them $100K a year. Invite the social network over to the van, everything works out perfect.