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NikiterZTS,Apr 3 2008, 05:32 PM Wrote:100K is alot of money..

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lets break this down a bit with some #s .. say 4yr out of college some dude is pulling 100k/yr give or take and lives in downtown sf.. figure that person's net income is $60k/yr after taxes, health insurance, 401k, etc etc are subtracted

so 5000/mo cash in hand to play with

rent for a 400sqft studio is around 2000/mo incl parking.. figure about 1000/mo for a cheap economy car like a wrx (350 payment, 100 insurance, 300 in fuel, 250 in random junk like parking, tolls, etc etc)... around 1000/mo in random spending (food, some shopping etc)

that's 4k spent already.. so 1k to save for a rainy day

12k/yr savings.. that's like.. change in the grand scheme of things.. that's not saving for retirement.. and forget about saving the $100k (~20% down) just to think about getting into the real estate game..

100k/yr gross is not a lot of money.. its 'comfortable survival' level of income.. it isn't going to get you out of 'poverty' (i define 'poverty' as living pay cheque to pay cheque)

250k/yr is unfortunately the 'magic number' because that allows you maintain the very modest lifestyle that i outlined above and have $$ left to plow into retirement and downpayment savings