Friday, May 29, 2015

Lifestyle of $400,000 a year?


Disclaimer: I do not want to come off as ungrateful through this question! I'm 18 and starting college. Just want to get to understand finances.

I would like to know what kind of lifestyle $400,000 a year gets.

My curiosity has peaked in recent months because I know that my dad makes $380,000 a year (gross pay) and my mom makes $45,000 a year (gross pay as well)
That equates to over $400,000 annually

I'm just simply curious to see how our lifestyle compares to others with the same salary. This is purely to satisfy my curiosity. I don't want anyone calling me spoiled or uneducated. This is NOT meant to brag.

My family has a $480,000 home on a 15 year mortgage with monthly payments of about $3,000. We live in a cheap area so our house is a lot bigger than a comparable house in LA or Chicago.

We have three cars: one is $65,000, the other is $78,000, and the other one is $90,000. They are all on a 48 month loan w/ down payments of about $15,000 to $20,000.

We NEVER go on vacations. And if we do go on a trip somewhere, we usually stay at a family member's place OR a Best Western-like hotel. But that happens about once a year.

We have roughly $130,000 in our checking acct.
I'm going to a private university with no debt because my parents saved up enough to cover tuition and housing.

All in all, our total living expenses are about $10,000 to $12,000 a month for a family of four people. The rest goes into savings (401k, my brother's college account, checking account)
Added (1). NOW, MY REAL QUESTION IS:

If it's so rare to make $400,000 a year, HOW do so many people drive brand new BMWs and Mercedes worth $60,000+, have a pool in their backyard, go on trips to Hawaii at least once a year, and go out to eat so often?!
I certainly don't live in a wealthy area but I see this type of stuff al the time.

How would the "average" person spend a gross pay of $400,000 a year?
Added (2). I'm certainly not complaining at all, but I'm just confused. My parents don't let me spend more than $300 a month on going out and gas while my friends with parents that are nurses have allowances that are the same. Even with a household of two nurses, the max. Pay is around $130,000 gross.

Do people that have a household income of $100,000 or so Really somehow stretch their finances and get a $500,000 home with a pool and LEASE luxury vehicles?! Do they not care about saving money?
Added (3). even I spend about $180 out of my $300 monthly budget because I literally can't think of things to do to burn up $300 a month…

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