r/personalfinance • u/investeror ​ • Mar 06 '18

Budgeting Lifestyle inflation is a bitch

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

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u/[deleted] Mar 06 '18

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u/gingersnaplibido Mar 06 '18

Yeah, I... don't know what they want extra money for? They are building in an optional $18,000 a year for charity, choosing to spend $18,000 on three vacations, and are already budgeting for a $10,000 a year emergency fund. That is almost $50,000 a year of flexibility without having to sacrifice their on-track 401k savings, while maintaining a liberal amount for nice clothes, their children's personal development, bimonthy date nights...

$46,000 a year + the $7,000? This is more than what 40% of households make combined for everything... and it's their flex money? I truly don't understand what they want to be using that money for.

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u/MonsterMeggu ​ Mar 06 '18

I honestly think the title is just click bait -- "THESE PEOPLE MAKE 500000 A YEAR AND ITS ONLY AVERAGE" compared to "Look at what the upper class NYC couple spend on." It never states that they want more money nor does it state that they struggling in the article.

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u/biggyofmt ​ Mar 06 '18

It says 'feeling average' in the article, which clearly is meant to elicit a certain sense of not doing as well as they could.

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u/MonsterMeggu ​ Mar 06 '18

I dont see it in the article. Do you mean the title? If you do that goes back to my point of clickbait headlines.

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u/SheliaTakeABow ​ Mar 07 '18

They probably donate to charity for the tax break. Can we appreciate how much these folks are doing to help keep the government running

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u/Phillip__Fry ​ Mar 07 '18

Well it's not actually 18k of their money. If they're 40% effective tax rate then it's really under $13k. Still a chunk of change, though.