I just saw another article pop up on Yahoo about people feeling poor while earning a six figure salary. I’ve seen articles like this before, and I can definitely relate. We’re not in the six figure bracket, but we are in the upper five figure area. We had similar feelings to those expressed in this article. Here’s the link so you can check it out for yourself. http://finance.yahoo.com/news/first-person-earn-more-100-000-still-feel-151200753.html
This article discusses a family living in Tampa, Florida. They live in a moderately priced home and have all the typical bills. They also have one car payment and are paying for their kids college. I imagine that after all their bills are paid, they don’t have much left over. They aren’t exactly living an extravagant life. Yet at $100,000 per year, you would think they should be. Maybe $100,000 just doesn’t go as far as it used to, or maybe our expectations got inflated.
I know how they feel.
We always felt like we should be living an easier life. A good salary should make financial matters easier. We were spending a fortune to live in our house. Our “must have” expenses (housing, utilities, food, and any contractual obligations like car payments or cell phones) were around 75% of our income. That only left 25% for other things. That little bit left over got spent on maintenance items, home and garden stuff, or fun stuff. 25% is not much left to split among our wants and savings.
Now we’ve adjusted our lifestyle by selling the house and renting an apartment. Our “must haves” are at 50% of our income and we actually have some paycheck left over at the end of the month.