Submitted by ipsissimus666 t3_zqwnqe in boston
man2010 t1_j10ecbf wrote
Depends on a lot of factors; some people can afford to live here on $50k while others don't think it's possible on $150k
ipsissimus666 OP t1_j10f50x wrote
I know it. It’s a trip seeing everyone’s perspectives.
charons-voyage t1_j13m1rl wrote
With two young kids, $150K would be super tight. Daycare is like $4K/month. Rent/mortgage figure $3K/month, that’s $84K right there, leaving you with $66K or $5K/month for taxes, insurance, car/T, food, savings….yeah $150K is fine for a single dude, but pretty rough for a family.
bakgwailo t1_j1g6t7r wrote
On $150k, you are looking at probably 40% in taxes (fed+state), social security, and deductions (health care, 401k, etc.
Coffee_cat262 t1_j144f3a wrote
Yep, I was going to say this. Kind of related but I was reading an article the other day about people in Hawaii, the state with the highest cost of living not just in real estate but across the board- utilities, groceries, shipping, even taxes. It was talking about how they live in what would easily be considered conditions of poverty here in the states. When I moved to Boston I made $40k and made it work, still being able to contribute 15% to my 401k so I could get the employer match, had student loans, etc. I lived outside of city limits in Brookline, had a roommate, and lived kind of frugal. 8 years later and I make $120k now not including bonus and I make it work, I now live in a small 1 bedroom near back bay station. I’ll live differently if I am dual income with someone one day or if I make a lot more in a few years. I think it’s just living within your means. Follow the typical rules- 30% or less on rent, etc. If you have a to live with a roommate or move farther away from the city, if your salary requires it, then that’s what it takes. If you don’t want to do that then you’d need to make the trade off of living in a cheaper state, but then you’d have to deal with the drawbacks of living in a cheaper state and possibly not in a large city (whatever those are for you- more driving, less liberal, no public transit, etc). Idk hope that helps!
man2010 t1_j14gtjm wrote
Completely agree, and I've had a similar experience starting around $45k with roommates and now at $110k on my own. Going to a state school and getting better than average financial aid helped make the student loans manageable, and my frugal habits from the $45k lifestyle have somewhat stayed until now which also helps (though lifestyle creep is very real and I've picked up some more expensive interests too). I think your point about dual incomes is a big one that often gets missed. I've accepted that property ownership is out of my reach on a single income without moving farther away or cutting way back on retirement savings, but adding a moderate second income would completely change that.
Coffee_cat262 t1_j14iwg7 wrote
Ya exactly! Also not sure why you’d want to buy alone though, unless you’re taking advantage of a truly amazing deal (read super early Covid days when I should have bought)! What if you blow your savings on a place in the city and you end up with someone who hates living downtown and prefers the burbs? Or vice versa. Also just the simple fact that dual income gives you a million more possibilities, and same, I’d really only need the person to make a moderate living for my purchasing possibilities to be widely expanded.
man2010 t1_j14n9a3 wrote
If I could own a condo and build equity in where I live it would be great so I definitely get it, though there are benefits to renting that I like as well (not responsible for maintenance, can move easily, etc.). If you're a single person buying property then you're probably not worried about what a future partner will want, and if they ultimately want something different then hopefully you'll have owned for long enough to have built a little equity and come out positive when selling. It's a "cross that bridge when you come to it" situation to me.
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