Cost of living in coastal cities like San Francisco, New York, Seattle and Miami means that families on $300,000-a-year are living paycheck to paycheck

- Advertisement -


  • A family of three would need $300K a year to be ‘comfortably’ middle class
  • The budget was calculated by blogger Sam Doogen based on reader feedback—and doesn’t include saving over a 401k and an education savings plan
  • It lists a $46K-year mortgage and $29K per year in childcare and babysitting
  • The ‘ideal’ income for a family of one or two kids is closer to $340K, he says
  • The median home value in San Francisco is $1.5M and in NYC is $733K

- Advertisement -

Living a ‘comfortable’ middle class life in large coastal cities like New York, San Francisco and Miami would require a family of four to have a combined income of $300,000 a year – which would include saving for retirement and owning a home.

The six-figure salary is a far cry from the median American income of $67,521 a year, but it’s what two parents would need to afford a decent lifestyle in cities where home prices are far above average, according to the blog. financial samurai,

advertisement

Median home prices are $1.5 million in San Francisco and $733,000 in New York City, according to zillow – Much higher than the current US median home value of $404,700.

‘I use $300,000 in this post because I also believe it’s important to experience maximum happiness,’ wrote finance expert Sam Doogen, who surveyed the cost of living in expensive cities for dozens of his readers. This is close to the ideal income for a family of four. ,

- Advertisement -

Dogen notes that goods and services have become significantly more expensive with the Consumer Price Index, which measures the average price of a basket of goods in urban areas, a 68 percent increase since 1995.

A three-person family needs a combined income of $300,000 a year to live a ‘comfortable’ middle class life in cities like San Francisco, where the median home price is $1.5 million.

The budget also applies to New York (above);  Seattle;  Washington DC;  Denver and Vancouver

The budget also applies to New York (above); Seattle; Washington DC; Denver and Vancouver

Dogen created two mock budgets, one for a one-child household and the other for a two-child household.

The highest expense, perhaps unsurprisingly, is the mortgage, which comes in at $46,900 based on $3,900 per month for a $900,000 mortgage for a ‘standard 1,750-square-foot, three-bedroom, two-bathroom home on a 2,500-square-foot lot’. Used to be.

Dogen wrote, ‘The lifestyle of the middle class should include owning an average-priced house.

The second largest cost is babysitting and childcare at $29,400, taking into account pre-school – 18,000 to $20,000 per year – and the average babysitting rate in San Francisco at $20 per hour.

Food, property taxes, and 529 education savings plans round out the other most expensive costs.

The above budget was compiled with a family of three in mind by financial samurai blogger Sam Doogen, a former banker at Credit Suisse and Goldman Sachs.

The above budget was compiled with a family of three in mind by financial samurai blogger Sam Doogen, a former banker at Credit Suisse and Goldman Sachs.

Budget pays $46,900-year for a $900,000 mortgage on a 1,750-square-foot three-bedroom, two-bathroom home

Budget pays $46,900-year for a $900,000 mortgage on a 1,750-square-foot three-bedroom, two-bathroom home

Meals - Grocery Shopping and Weekly Date Nights - Budget spends about $20K per year

Meals – Grocery Shopping and Weekly Date Nights – Budget spends about $20K per year

The total annual car payment of $4,700 is based on one vehicle suitable for the family.

The budget does not include the cost of student loans, but does include $4,200 in charity payments.

At $300,000, a family isn’t saving much from 401k retirement plans and their 529 education savings plan, Dogen reported. San Francisco Chronicle,

‘We’re in this perpetual grind in San Francisco,’ he says, and it’s a city for those who are ready to hustle. ‘At one time in the past, $300,000 was a lot of money. Now at this zodiac sign, you will probably always work long hours and struggle relentlessly.

His budget includes $7,800 per year for vacation time.

Median prices vary widely across the U.S.—and Dogen encourages those wanting to save money to skip the expensive, coastal cities.

Median prices vary widely across the U.S.—and Dogen encourages those wanting to save money to skip the expensive, coastal cities.

A revised $300,000-a-year budget for a family of four with fewer vacation expenses and higher childcare costs

A revised $300,000-a-year budget for a family of four with fewer vacation expenses and higher childcare costs

‘The lifestyle of a middle class includes several weeks of holidays in a year. Some would say that spending three weeks on vacation is a luxury. However, I say that it is normal for two working parents to spend three weeks off, who want to maintain their sanity,’ Dogen writes.

He says the combined salary of $300,000 is all a two-parent family needs to save for their child’s education, own a three-bedroom home, take three weeks off, and retire by a reasonable age.

Dogen is a graduate of the College of William & Mary and the University of California, Berkeley, where he earned a master’s degree in business administration. He spent 13 years working at Credit Suisse and Goldman Sachs before leaving banking in 2012, negotiating a severance package for five years of living expenses, according to the bio of his blog.

For their budget, they considered cities such as San Francisco, New York, Boston, Los Angeles, San Diego, Seattle, Washington, DC, Boston, Miami, Denver, Vancouver, and Toronto.

The budget was compiled by Dogen using reader feedback and designed with cities like Seattle, above, in mind.  The median home value is $874,877 .  Is

The budget was compiled by Dogen using reader feedback and designed with cities like Seattle, above, in mind. The median home value is $874,877 . Is

‘It’s not an extravagant lifestyle,’ Dogen said. ‘This is a middle class lifestyle if you consider that a middle class person should be able to afford a modest household, at least have a car, a child or two. There is no private jet in this budget.

The revised $300,000 budget for a home of two includes more childcare and fewer vacation expenses.

He notes that the ‘ideal’ income for a family is actually closer to $340,000.

‘Any income in excess of $340,100 is taxed at a 32 percent marginal income tax rate, or an increase of 8 percent. This marginal federal income tax jump is larger than the 22 percent to 24 percent jump. [in the previous two tax brackets],

Finally, Dogen recommends moving out of these expensive cities if the costs become too high.

‘If you think the cost of living is too high, consider moving to a lower cost area. In this new decade, working from home has become more acceptable because of the pandemic,’ Dogen writes.

‘There is a shortage of trucks in places like San Francisco because a lot of people are moving out of this expensive city and other expensive coastal cities.’

- Advertisement -
Mail Us For  DMCA / Credit  Notice

Recent Articles

Stay on top - Get the daily news in your inbox

Related Stories