Quote:
Originally Posted by ThriftoRama
It's easier than you think to live paycheck to paycheck making $100k. First, taxes take a huge chunk out of that. And then throw in health insurance, 401k, and you might be left with like $50-60 k, or maybe a little over $4,000 a month. If you have kids and a mortgage, it can go quick.
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We make around $120K gross and live in a fairly high tax state (MD). Married filing jointly with one child, and we pay about $9K in federal tax, $5500 in state and local, $8500 in Medicare and SS. That adds up to $23K in tax income and payroll tax (19%). Health/dental/vision is about $5K a year. I would not add in the 401k since that is going towards savings. A family making $100K (20K less than us) would likely have lower taxes, but even at what we pay they would still be bringing home $72K or so, nowhere near $50-60K. It is misleading to add in the 401k with taxes, since that is going towards saving. Someone who saves $12-22K a year I would hardly consider living "paycheck to paycheck" even if their checking balance goes to zero the day before they get paid.