High Income Kith

[Sweet Tart]

With our income (~$120,000/year before bonuses) we fall into this category. We are currently paying $3,000/month towards debt and will be doing so for the next 2-3 years to pay down one remaining cc and DH's student loan.

A situation came up recently which made me very uncomfortable and I'm wondering what others in similar situations to ours would do. We have quite a few friends who are musicians and actors and we get asked to their performances which can vary in price from free to quite expensive. We like the free ones. Often we will be offered a spot on the list which is a no-brainer (as long as we don't buy expensive cocktails). Recently a friend invited us to a show that he was producing which was $25/ticket. DH told him that we couldn't afford to go and the friend offered to buy us one ticket. I don't think it's true that we couldn't afford to go, we choose to spend our "extra" money getting debt free and a few other areas. I was embarrassed that my DH gave the impression that we couldn't afford it when obviously we can--it's just not in our budget. I absolutely did not want our friend to pay for one of our tickets (it was a benefit so no free passes available). We ended up buying two tickets and taking it out of another budget area. The offer of the free ticket actually made me feel pressured to go to the performance, but then pay for it all ourselves.

I usually don't care what our friends think, but this struck a nerve with me. How do you all handle similar situations?

[forHISglory]

Sweet Tart,
I would just smile and be sweet, and say we can't come but thanks so much for the invitation and offer. I don't think you owe any excuses or reasons as to why you choose to use your finances in different ways. Just be nice and sincere as you give your thanks and refusal.

[FrabjousDay]

Your husband needs to practice the response...thank you so much for the invitation, but we already have plans. There is no reason to mention finances or provide additional explanation.

[Sweet Tart]

Thanks forHisglory and frabjousDay. I'm going to coach DH on how to turn down expensive invitations. I don't have a problem saying no thanks, but he feels compelled to give a reason why along with the no. He wants to see his friends and support their endeavors (he is also a musician) and feels guilty just saying no.

[FrabjousDay]

Declining an invitation can be definitely be uncomfortable. We typically have a steady stream of invitations to various fundraising events due to our professions and volunteer work. Despite a comfortable income, it's not feasible for us to attend everything. My husband and I have had to master the art of saying no. It gets easier and more comfortable with a little practice.

[cadamsgis]

We make $128,000 combined. I like this kith because I don't know about the rest of you but as we started making more and more money - we just got out of control with the debts. We are trying to get in under control and get things paid off and then start an aggressive savings plan and never go back to all that debt.

I work for county government in technical field and my husband works for federal government as cartographer.

Cat

Lots have happened since this post - I got divorced so my income is now $81,000. And I have tons of debt but I commited myself to my 5year plan to get out of debt.
(see post 143013 in debt -reduction section if interested)


cheers
cathy

[Sumacaroni]

Hmm, this thread is interesting. I guess I never thought that anything over $75,000 was "high" income but, of course, to some it must be. I think cost of living in whatever area plays into it so much, too, though. If average homes sell for $500,000+, then $75K annually is barely a drop in the bucket. If a nice home in your area costs you $125,000 then $75K might be a really great income.

And perhaps in 2011's economy, the outrageous home prices pre-2008 are leveling out a little so yesterday's income might go farther now towards home ownership?

Anyway, we are over $85K annually with me working part-time. Hubby is a project manager in the water industry. I am a technical type employee at a public education institution.

[Handy Andy]

We range from $150-$170k/year depending on bonuses and extra work. We are chosing to live frugal for a number of reasons.

We lived off of $28k/year and racked up a ton of student loan debt while I was in school even though we lived really frugal, or so we thought. (DH graduated 3 years bf me). We bought a house right after he graduated. Once I graduated we bought everything we could, nothing flashy, just new. I think it was the years of self depravation caught up to me. Then we had a major house repair (foundation issues) that cost us over $80k, which of course we borrowed against the house. So basically we just made a bunch of really poor choices. We have no excuse.

We are living frugal so once the debt is paid back we can pursue the following goals. We are avid dog lovers and would like to purchase a bigger piece of property to foster more dogs as well as give more money to the rescues we support. If ever needed we want to be able to help out with the college education for any of our relatives. We don't want them starting out how we did. Most importantly, we want to be able to take care of our parents if the need ever arises. I want their golden years to be the absolute best they can be.

I think the biggest reason we are frugal is because "wealth" or displays of it embarrass me. I can from a pretty wealthy family and was always so embarrassed with my parents' huge house, luxury cars and nice things. To the point I wouldn't invite people over and would make my dad drop me off a few blocks from the school. My parents are not ostentaious people, they made their money and can spend it how they chose, it just has always made me uncomfortable.

I have promised in the past I will post my debt numbers in my signature, but right now I am too embarrassed to admit them to anyone. It is probably in the $150k range, not including our mortgage.

Oh and LOVE FV bc everyone here is SO non judgemental. I hope you all know how much you have already helped us in our path to becoming debt free - thank you!!!!!

[FrugalKate]

WOW I remember the good ol' days when I was making close to $70K...now thanks to everything that's gone on the last 3 years I'm making about $26K

[QM]

I think this year, our combined income will be somewhere between $90Kto $100K. That seems like a really high number, but at the end of the day we don't have extra money. I'm doing my best to cut expenses, but I know the percentage we put into our mortgage is higher than it should be. Plus I'm putting all of my pay (from home childcare) onto/into either our Line of Credit, savings account, mortgage or Retirement Savings Plan. If everything stays the same over the next few years, our mortgage should be paid off in full in about 7 years. Currently, the bank shows 12 years and 11 months left on our mortgage but since I'm doing Prepayment on Mortgage payments it decreases the years in about half. I'm so excited! The expression "Don't count your chickens before they're hatched!" keeps running thru my head, so I'm just trying to take it one day at a time and making one good financial choice at a time.

[HeathAE]

New to this site... looking for some support and inspiration! I currently make 115K and am a working, single mom. I live in a high cost area and am barely able to make it by on my salary. Lived extremely comfortabley when married but took all for granted. Learning to start over and this time do it right. Have tons of debt to work towards alleviating.

[nodmicks]

We cross over as of dh's raise Jan 1. I can't say as we plan to change much at all with his very generous raise. I am thinking of working more than 12 hours a week to bank up more retirement funds faster regardless of his raise. I think if we had fit this kith 10 years ago I would have felt rich. With the current prices and economy it is not happening.

[melodys]

I was raised poor and worked really hard, so I am now delighted to be in this kith. I am a single mom and we live pretty simply, but it means a great deal to me to have enough money that I don't worry about food on the table, a roof over our heads, and the occasional indulgence.

[Shewillbemine]

I make between $80,000 - $100,000 per year and the fiancee went back to graduate school for a career change. When she's done in early 2013, she'll make a range of $50,000 - $80,000 depending on placement.

I'm actually happy that we'll have 3 years of living under only my income since I can only imagine life when she's making money too. Sure, we've definitely had to cut down on certain things but at the end of the day, we own a house, eat what we want, and live very comfortably.

What sucked is that I wasn't eligible for the Obama house buying credit because I made over the maximum salary for that year.

Having discovered Dave Ramsey in the last 2 years, I beared down and tackled all of my credit card debt and other loans, and am now debt free. I am working on building up our 6 month emergency fund and should be done mid-late 2012. I'm grateful for all that we have and am looking forward to continuously securing our financial future.

[MaryinFL]

I am at the other end of the spectrum, being a single Mom and earning about $36K per year. I also have a 19 yr old at home who is going to school, which I am paying for. But we are doing okay

I definitely have to watch every penny that I spend, but I had a great mentor in my mother who was very frugal. Even more so than I am.

I am fortunate enough to not have any debt, except my car, which I hope to have paid off in 2012.

What I find interesting, is that while I have no debt outside of my car, many people I know who make considerably more, have mounds of debt racked up in credit cards, home equity loans, and other things. They are really no better off than I am, and some are even worse off than I am at the end of the month.

I have two part time jobs as personal assistant to two very wealthy families, and the lessons I have learned watching their money management is amazing. One woman who is married to a man who owns several car dealerships, shops at the Dollar Tree, Kmart, and online to find the best prices. She is a coupon clipper and there are always coupons for Beall's, and craft stores on the counter and in her purse. She shops with cash, or pays off her credit card every month. She sews to make things for their home.

I think no matter where you are in the income bracket, what you accumulate in debt is what matters. Yes, I would love to make more money, however, I left a much higher paying job to be able to spend more time with my kids when they were growing up. That is something that you can't put a dollar figure on.