$95k+ = happy

[DLC]

No offense to your friend but how will he buy a home in the mid 400s making under 80k? Sounds like a recipe for disaster to me. 6500 a month= take home of what 5100 or less? Mortage not including taxes and fees on a 425k home is about 2k right? So figure just the home with taxes, utilities, insurance etc will cost close or at 3000. He has 2k left for vehicle, gas, food and everything else. How about if that house needs a new AC unit or stucco on month. He would be in the hole. Ugh.

What area can you get something decent in Cali for the mid 400s?

Maybe I live too high on the hog, but 2k to pay all my bills and still have a high quality of life would be a stretch. Definitely one of the reasons I left California. I don't understand the need to stick out that rat race with millions and millions of other folks.

He is currently paying $1,900 rent for a 2 bedroom, he can afford $2,500 month. He is also due a bump in pay in October....

This is a starter home and a 1st time buyer program, he is a prime candidate for the program, some city’s will help w/ down payment and closing costs...

He has newer paid off cars, his medical is covered, with his job. He is married w/ 2 kids. How he pulls it off I don’t know but he will do it!
If he makes to much money he doesn’t qualify for the down payment assistance. So he has to do something now before the next bump.

 

[Cole Trickle]

15 miles inland is more "the coast" than Corona or Riverside. I'm 6 miles from the launch ramp at Marine Stadium....and as of tomorrow, I'll own a house with a bigass lot and a huge backyard (by city slicker standards)...so I'll take it. There is absolutely NFW I could have pulled this off had I not scooped into the market back in 2008 right after the crash. Otherwise I'd be in a different state

We're getting off topic.

95K is plenty if you want to own a home and were able to get into the real estate market back before things went completely stupid. 95K is nowhere near enough if you're attempting to buy your first home in SoCal in a reasonable area right now. It's all relative. The guy I just bought my new (to me) house from said his last payment was $151/month....and he wrote the last check 20 years ago. He pays property taxes on an assessed value of $84K. He could live comfortably on $30K/year. Most of the rest of us can't.

I bought a 1650 sq foot house in corona after selling a condo in trabuco canyon in 2006. My mortgage is is over $3300 a month including taxes and insurance and that was with putting 75k down.(I pay a couple extra hundred a month and am shooting to have the house paid off in the next 11 years)

I got boned on the housing game compared to most and we are still doing fine. We don’t waste $$$ live within are means and have 1 child.

My point was you have to do what you have to do. Happiness isn’t related to $$$ if you pick a good partner and surround yourself with good friends. I am happier/more content than most.

 

[Flying_Lavey]

95k a year isn't enough money today, to start off in California. Unless you can stay home with the parents for a few years rent free and save for a down payment.

I don't even think a decent house under 500k can be had right now in Cali. That's 100k down, with 2600 a month or so mortgage payment. After taxes, you are probably taking home 6-7k? That's a stretch. Half of that to your mortgage or rent, health care, cars, food. Maybe a netflix monthly subscription and cereal for breakfast, lunch and dinner.

I bought a house in California last June. I should make just under that 95k this year. I am the only income in our family and have a 3rd kid on the way. It's tight for us but we're making it. Our house was 315k. There is more to Southern California than LA, OC, and the IE.

15 miles inland is more "the coast" than Corona or Riverside. I'm 6 miles from the launch ramp at Marine Stadium....and as of tomorrow, I'll own a house with a bigass lot and a huge backyard (by city slicker standards)...so I'll take it. There is absolutely NFW I could have pulled this off had I not scooped into the market back in 2008 right after the crash. Otherwise I'd be in a different state

We're getting off topic.

95K is plenty if you want to own a home and were able to get into the real estate market back before things went completely stupid. 95K is nowhere near enough if you're attempting to buy your first home in SoCal in a reasonable area right now. It's all relative. The guy I just bought my new (to me) house from said his last payment was $151/month....and he wrote the last check 20 years ago. He pays property taxes on an assessed value of $84K. He could live comfortably on $30K/year. Most of the rest of us can't.

I think my house is only about 20 miles or so from the coast and I'm only a little over 1 mile from the lake launch ramp and my house was only 315k. And yeah, San Luis County is in So Cal.

you all are looking at this through filters. The price of homes you are kicking around is down in the heart of so-cal. There is a lot of California remaining. Stay out of the bay area and specific high end neighborhoods and you can still do reasonably well in the 2's and 3's. We all make our choices in life. You have to remember that a huge swath of people still live in apartments and such. You don't actually have to live in a stand alone house to be happy and comfortable. I spent last week in a rented unit four blocks east of the gas lamp district in San Diego on vacation with family. There were many happy people around (a lot of homeless and piss smell, but you get the point.) it was not for me long term but good for them. Many of these people survived happily without boats, toys and in many cases vehicles but that is their choice.

Yeah, mine was only 315k last year and it's actually in VERY good shape.

Sent from my SM-G935V using Tapatalk

 

[bowtiejunkie]

No offense to your friend but how will he buy a home in the mid 400s making under 80k? Sounds like a recipe for disaster to me. 6500 a month= take home of what 5100 or less? Mortage not including taxes and fees on a 425k home is about 2k right? So figure just the home with taxes, utilities, insurance etc will cost close or at 3000. He has 2k left for vehicle, gas, food and everything else. How about if that house needs a new AC unit or stucco on month. He would be in the hole. Ugh.

What area can you get something decent in Cali for the mid 400s?

Maybe I live too high on the hog, but 2k to pay all my bills and still have a high quality of life would be a stretch. Definitely one of the reasons I left California. I don't understand the need to stick out that rat race with millions and millions of other folks.

Plenty of nice new homes in Fresno/Clovis under $500k. A single person making $95 would be well here. A married couple with kids can do good on $95k with saving in right investments. My job is based out of Santa Clara, so I’m not in tune with salaries around Fresno.

I bought a new 1750 sq ft house outside of Fresno in 2006 for $312k. I was single and making less than $60k. Then got married, had two kids, wife has stayed home 9 years now, bought three new vehicles, and only saved 11% in 2010 (down from 20% in years prior). I’m back to saving 20% and 3 years ago I topped $95k salary. I have a small new vehicle payment), and the mortgage of $1300/mo. No other debt. Retirement savings is nearly double the recommended balance at my age.

My priorities were a balance between retirement savings and living a decent life. We’ve gone without nothing we’ve really wanted. I’m not too happy we with state of affairs in CA, but happy with life.

 

[LargeOrangeFont]

and have 1 child.

See, there is your problem right here.

 

[DrunkenSailor]

95k doesn't get it done for someone starting out on Orange county. I feel bad for my kids. Either way we are looking to move.

 

[MeCasa16]

It’s the state income tax that makes California unreasonable for me. Especially now that the state income tax deduction on your federal taxes is going away..

 

[Albert]

It’s the state income tax that makes California unreasonable for me. Especially now that the state income tax deduction on your federal taxes is going away..

 

[Bpracing1127]

Wife and I are above that but below 150k combined we have a condo in Santa Ana and are buying a house is RSM. We have a little guy on the way and i wonder sometimes is it enough. It’s all about not spending money like crazy. The one thing I wish I could do is also buy a house in havasu but....
we live comfortably now. I know it’s all about to change

 

[milkmoney]

Holy shit. Ballers up in this thread.

We be poor , but we be happy ....

Is the biggest crock of shit line I ever heard, see how miserable I am being poor. [emoji202]

Sent from my SM-G930V using Tapatalk

 

[Albert]

For many people it’s a revolving door it’s the escalator affect the refinance pay all the credit cards off and then come up with debt again . My personal opinion should be if you can do it . pay off everything except your house that’s the only thing you should have a payment on and you should be striving to pay that off and not just thinking of it as a bill that’s always going to be there . And if you’re in that situation go get yourself a Dave Ramsey book

 

[Albert]

To me wealth is measured by family and free time.

 

[beaverretriever]

Yeah we took this off topic bad.

Unfortunately there are just too many variables to use that 95k mark as everyone's idea of happiness = money (in California). I have friends with nothing and are the happiest people I know, and others that make a million a year and are f-n miserable. 95k is a great amount of money if you have everything paid off and are retired!!!!!

Money can make things easier and can sometimes give you more opportunity but it can also lead to bigger problems. The more you make, the more you spend, right?

I will piss some people off with this next paragraph and that is ok. It is completely subjective on what people believe is a livable area. Since I am going to say "no offense" prior to this next statement it gives me a pass that nobody can get mad at me

So here we go... NO OFFENSE to anyone, but the affordable Fresno, Madera, Hemet, Barstow, Victorville, Modesto, San Berno, IE, most of OC, most of LA, most of NorCal and much, much more are complete shitholes. Every area has their nice pockets however (my caveat so everyone doesn't get too mad at me). I don't care if you live in Miami, LA, Vegas, Maui, Key West, Havasu, Minnesota, Alaska, Nebraska or Kansas there are bad areas and nice areas of every state and city. If you have to punish yourself and live in California the nice areas are expensive, that's just the way it is. Hell most of the shitty areas are expensive. And if they are nice and not expensive they offer no work or opportunity. I would rather live in Bishop than Santa Ana if I had to live in Cali, unfortunately making a living in Bishop can be tough unless you work for the DWP or own a good business.

My mom and dad live a great life. Super frugal, smart with the little money they have but do most things they would like. My wife and I are not quite as good with money, but we live WAY below our means because I don't want to be working and trying to make ends meet the rest of our lives. I won't ever hide the fact we want to make as much money as possible. I would never say I don't like toys, a nice home (or homes), travel, going out to dinner. It adds to our already great life. Not having kids helps too

 

[beaverretriever]

For many people it’s a revolving door it’s the escalator affect the refinance pay all the credit cards off and then come up with debt again . My personal opinion should be if you can do it . pay off everything except your house that’s the only thing you should have a payment on and you should be striving to pay that off and not just thinking of it as a bill that’s always going to be there . And if you’re in that situation go get yourself a Dave Ramsey book

My wife is a huge Dave Ramsey fan. She is definitely the monthly expenses spread sheet type of person.

I talk a big game, but I would be crazy in debt if it wasn't for my wife keeping me in check!!!

 

[Englewood]

Might be enough in Victorville or some other town in the middle of nowhere.

$95k aint cutting it in San Diego, OC, or most other coastal counties.

That is $2,468 every 3 weeks (per ADP calculator).

I just don't see how that is enough, unless you have no kids and live in a home with a payment under $1,500.

 

[Cole Trickle]

See, there is your problem right here.

lol....um yeah

One thing I will admit is that I have always been good with my $$$$. With that said I am a different person today after going through the down turn of 06-08. There is no way I would have said the house I'm in now is my last house (aside from retirement) and I absolutely would have bought bigger if I didn't get trapped. I might have even had another kid.

It has reset my desires and wants. We only have 1 car payment now and zero credit card debt and have been on two great vacations in the past 3 years while being able to put $$$ into savings.....If the market ever dips again (I don't think we will see an 08 drop in our life unfortunatley) I will be ready to buy a couple rentals.

I love where I live and have zero desire to ever move back to Orange County. People never understand that but Corona just fits us better. We have a great neighborhood with friends that share our interests.(rons of RV's Boats,Cool cars and Rzr's up and down the street) We live in a great are with great public schools when compared to most of OC. Most of my neighbors in Trabuco Canyon when we had our condo would never understand our boat,car and hobbies lifestyle.....I have friends that had to buy in Anaheim (not the nice one),cerritos or other older northern parts of OC and I think they are nuts...haha

Now if I would have had a crystal ball and could have held off for two years and bought in 08-10 I would be rolling....haha

 

[BHC Vic]

You guys crack me up.

Guess I can make it because my mortgage is only $1200 month.

2179sq ft built in 2005 1/4 acre

I don’t live in some high class laguana hills type area but.

I choose to live within my means by a large margin.

I’m Savin now and when the market crashes maybe I can buy up a social class or 2 lol

My wife and I both make more than that. We bought a 400k dollar house in chino and put 80k down. Or mortgage is higher than yours. We love comfortable and are very happy. We are looking to buy a 5 bedroom house. Our mortgage will go up quite a bit. My little brother make around 80k. He’s currently looking for a small starter home. He had to raise his budget to 400k. He gets outbid in every house he puts on offer in on. I’ve been very fortunate as it sounds you have. But our situation isnt everyone’s. Could you do it sure... but not the way I want to live.

 

[LargeOrangeFont]

lol....um yeah

One thing I will admit is that I have always been good with my $$$$. With that said I am a different person today after going through the down turn of 06-08. There is no way I would have said the house I'm in now is my last house (aside from retirement) and I absolutely would have bought bigger if I didn't get trapped. I might have even had another kid.

It has reset my desires and wants. We only have 1 car payment now and zero credit card debt and have been on two great vacations in the past 3 years while being able to put $$$ into savings.....If the market ever dips again (I don't think we will see an 08 drop in our life unfortunatley) I will be ready to buy a couple rentals.

I love where I live and have zero desire to ever move back to Orange County. People never understand that but Corona just fits us better. We have a great neighborhood with friends that share our interests.(rons of RV's Boats,Cool cars and Rzr's up and down the street) We live in a great are with great public schools when compared to most of OC. Most of my neighbors in Trabuco Canyon when we had our condo would never understand our boat,car and hobbies lifestyle.....I have friends that had to buy in Anaheim (not the nice one),cerritos or other older northern parts of OC and I think they are nuts...haha

Now if I would have had a crystal ball and could have held off for two years and bought in 08-10 I would be rolling....haha

Well that is what it is all about. If you are happy where you are that is all that really matters. It is the debt that will really sink you if it keeps piling up.

If my wage shrank to $95k we could live, the hit would be to 401k and future savings/investments.

And my cheese budget would have to be slashed.

 

[Cole Trickle]

Well that is what it is all about. If you are happy where you are that is all that really matters. It is the debt that will really sink you if it keeps piling up.

If my wage shrank to $95k we could live, the hit would be to 401k and future savings/investments.

And my cheese budget would have to be slashed.

You seem to enjoy that cheap american cheese so you are already on your way to financial freedom.....I heard Dave Ramsey eats Shitty cheese and loves it...lol

 

[ka0tyk]

95k isnt even going to get you a uhaul with a blow up mattress in san francisco.

 

[bk2drvr]

Yeah we took this off topic bad.

Unfortunately there are just too many variables to use that 95k mark as everyone's idea of happiness = money (in California). I have friends with nothing and are the happiest people I know, and others that make a million a year and are f-n miserable. 95k is a great amount of money if you have everything paid off and are retired!!!!!

Money can make things easier and can sometimes give you more opportunity but it can also lead to bigger problems. The more you make, the more you spend, right?

I will piss some people off with this next paragraph and that is ok. It is completely subjective on what people believe is a livable area. Since I am going to say "no offense" prior to this next statement it gives me a pass that nobody can get mad at me

So here we go... NO OFFENSE to anyone, but the affordable Fresno, Madera, Hemet, Barstow, Victorville, Modesto, San Berno, IE, most of OC, most of LA, most of NorCal and much, much more are complete shitholes. Every area has their nice pockets however (my caveat so everyone doesn't get too mad at me). I don't care if you live in Miami, LA, Vegas, Maui, Key West, Havasu, Minnesota, Alaska, Nebraska or Kansas there are bad areas and nice areas of every state and city. If you have to punish yourself and live in California the nice areas are expensive, that's just the way it is. Hell most of the shitty areas are expensive. And if they are nice and not expensive they offer no work or opportunity. I would rather live in Bishop than Santa Ana if I had to live in Cali, unfortunately making a living in Bishop can be tough unless you work for the DWP or own a good business.

My mom and dad live a great life. Super frugal, smart with the little money they have but do most things they would like. My wife and I are not quite as good with money, but we live WAY below our means because I don't want to be working and trying to make ends meet the rest of our lives. I won't ever hide the fact we want to make as much money as possible. I would never say I don't like toys, a nice home (or homes), travel, going out to dinner. It adds to our already great life. Not having kids helps too

I’m flying on an airplane right now and laughed out loud.

“I would rather live in Bishop than Santa Ana”

Me too!

 

[beaverretriever]

I’m flying on an airplane right now and laughed out loud.

“I would rather live in Bishop than Santa Ana”

Me too!

Surprisingly most people would not.

 

[cofooter]

My wife is a huge Dave Ramsey fan. She is definitely the monthly expenses spread sheet type of person.

I talk a big game, but I would be crazy in debt if it wasn't for my wife keeping me in check!!!

Ramsey is pretty good, but if we all listened to him, we wouldn't have boats, at least not til our mortgage was paid off. He's a bit of a fun-hater.......

 

[Albert]

Yeah hes def extreme and I agree . Somethings I agree somethings not so much.

 

[Albert]

Makes me laugh the people that call into his show “ Hi Dave we make 600k a year have 1.3 mill in our 401 k and thinking of buying a new car , whats your thoughts Dave?” Really ? I would just hang up on them.

 

[beaverretriever]

Makes me laugh the people that call into his show “ Hi Dave we make 600k a year have 1.3 mill in our 401 k and thinking of buying a new car , whats your thoughts Dave?” Really ? I would just hang up on them.

Yeah it's funny as majority of the calls are like that. People who have no sense of how to handle money don't listen to him! hahaha!

 

[Classic Daycruiser]

The Article was written in 2014, and I'm sure the data gathered, to calculate the "Perfect Salary" was 2011 or 2012.

Housing has doubled since then.

 

[Classic Daycruiser]

This kind of seems like a new thread topic: how do you guys teach your kids about money???

Read to them "the richest man in Babylon" twice a year, starting at age 6.