Registered: Sep 2010
03-04-12 11:28 PM
Quote from Clubber Lang:
350k in NYC isn't as much as you would think.
After federal, state, and city taxes he would end up with roughly 190k.
Now before everyone starts screaming that 190k is "rich". If you've ever lived in NYC, San Francisco, Tokyo, etc you know how obscene the costs are for everything from rent to a sandwich. Even the supermarket prices are routinely 50-100% more than you will find just an hour outside a major city.
His one kids private school eats up 32k of that 190k. And for anyone who says "send your kid to public school", well you have no fucking clue about PS in nyc, especially if you're white.
So you're down to 158k. I'm being generous and saying his lower duplex brownstone rent is only 4000 a month. That's 48k a year.
Down to 110k and still haven't fed or dressed a family of four, paid electric, water, gas, cable, phone, car or other transportation, entertainment, recreation, vacation, charity, and not a penny towards retirement or savings.
He is still way ahead of most people, but he's hardly "rich" in NYC.
+ 1, 190Kusd is not enough to get a lavish lifestyle in many world cities plus it's difficult to adjust to a dimishing buying power. To put this into perspective 190k is slighlty less the rental of an apartment I'm going to visit monday afternoon, which, although almost twice bigger and probably better than the noisy smallish flat I live in now, is far from great for the area, and which I probably won't be able to rent anyway for a bunch of reasons. Real estate in most of the US sound so dirt cheap many of you guys can't understand the dificulty to afford a decent living in many of the world cramped cities.
BTW, New York definetely doesn't qualify as a city with cheap real estate, if the banker in question lives in a 1200sqft duplex(!) with 2 kids, he can't feel comfortable at home.