Budget breakdown of a couple that makes $500k a year and still feels average

I can see two areas where they could save some money:

  1) Cars
  2) Vacation

Drop to one vacation a year (probably more than most people do) - bam, an extra $12k per year (assuming each vacation is a $6000 luxury outing - you could probably drop that to $2-3k and gain some more).

Purchase their vehicles outright - and more importantly, buy used, and keep them for 5-10 years. Don't go for "high end" (BMW? Land Cruiser?) - because that translates to "high end maintenance". Instead - stick to something that requires little maintenance and is reliable - Toyota would probably be best here; a late-90s Camry and a late-90s 4-runner would probably work well to meet their needs. Once purchased, then gone over by a mechanic (which won't be cheap that first year) - after that, saving another $9k per year (maybe more, since there might be better mileage and lower insurance).

There's potentially $20,000+.

Other possibilities? Well - there isn't much left that wouldn't mean sacrificing some real stuff. Maybe a cheaper home, but for where they are living that may not be an option.

But I think the first two basics identified would be the best place to start. Ultimately it comes down to not living within your means, but living below your means. But that a decision each of us has to make, based on what is wanted from life.

Both max out the 401(k) per the article and then the article adds (disingenuously), “only $7,300 left each year to go towards other savings goals, investment accounts or retirement funds.” Boohoo.