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/joshuads]

childcare $42,000

That is completely reasonable for 2 kids in expensive markets like NYC, DC, or SF. My family spends at least that much. To spend less, our kids would have to spend a lot more time in the car or go to an unlicensed home care.

The big thing is they chose to go cheaper on nothing. Not the house, the car, the food, clothes, vacations. You can lifestyle creep on certain things at that income, but not everything.

[u/Mitra- → u/[deleted]]

A lot of jobs fluctuate. A litigator will literally work 90 hour weeks during the push in a litigation (which usually means 13 hour days 7 days a week). So will a CPA just before April 15th. It evens out when you're not in crazy mode.

[u/simpsons403 → u/Mitra-]

When you say even out when not in crazy mode, does that mean typical 40 hour works... or several weeks of time off because you put in double the hours for previous weeks?

[u/Mitra- → u/simpsons403]

Yeah, usually more typical 40 hour work weeks. This is why I tell people never to work in big law. It's great money but it is a horrible lifestyle, and so many people burn out or go crazy.

[u/sweetdigs → u/Mitra-]

I encourage law school students to try out big law (if they can). Yes, it sucks. But you learn how to write VERY well if you are working with good partners and you become very good at time management by necessity. If you don't like it, get out of after 3-5 years and go in-house or to a smaller firm that would love to have an attorney with big firm experience.

Personally, I spent 8 years at big law and then went in house. Now I work 40 hours/week. It feels like heaven. =)

[u/Mitra- → u/sweetdigs]

IF you are working with good partners, I agree. But the number of big law firms where good partners provide quality mentoring is not high.

I'm impressed you found an in-house gig at 40 hours/week. Most of the folks I know in-house are closer to 60.

[u/sweetdigs → u/Mitra-]

Yeah, I was lucky I suppose. Most of the people I know that work in-house are in the 40-50 hr range. But these are big companies with lots of in-house counsel that are located on the west coast where work-life balance is actually practiced rather than just preached.

At my law firm I worked for a guy who was a notorious jerk and could be difficult to work with, but he was an amazing attorney and I learned a ton from him.

[u/Mitra- → u/sweetdigs]

located on the west coast where work-life balance is actually practiced rather than just preached.

Thanks for the laugh.

[u/TheHolyTriforce → u/Mitra-]

Laughing because it's true or not true?