* Renting a 3 bed near work (financial district) will cost around $70k/yr
* a nice car (a BMW M3-ish) + a cheap van (costs around $20k/yr
* Ordering in everyday costs $40k/yr
* Nice vacations and trips will easily cost $30k/yr
total = $160k/yr
wage = (250k x 0.7(taxes)) - 30k (401k, HSA) = $145k/yr
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Yep, I can totally see how allowing common types of 'tech-people life creep' will quickly lead to a paycheck-paycheck situation. I only outlined the macro-costs, and those still add up.
Of course, this also clearly outlines the main savings a person can make:
* Save on rent. always. 33% of your wage is a recommendation for poor-americans. Don't rent at 33% if you're making $250k (70k -> $35k)
* Cook if you can or pickup from your local street vendor, not doordash.($40k -> $15k)
* Buy a cheap car, or none at at all.
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It also outlines why a subsection of HN has been shouting about urban infrastructure reform in the US.
Higher density, more middle housing and better public transports allows for more housing supply, more walkable amenities and car-free lifestyles.
* Car free = save 15k/year (assume 5k for ubers, car rentals when needed, public transport)
* More walkable density = cheap food downstairs (NYC is an excellent example of this)
* More housing = cheaper rent (the biggest culprit)
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The numbers are staggering. I haven't added any of the extra costs that come with emergency medical care or children (except food and living). $250k is the top 5 percentile of households the US. Unless America makes its infrastructure efficient and sustainable, the current framework will bankrupt literally 95% of irresponsible spenders in HCOL regions in the US.
Worst of all, the cities are ugly, the concrete landscape is hellish and the hedonistic treadmill quickly catches up, as the new luxuries start feeling no different than a Motel or a Corolla.