[quote=Brutus]A $250K a year income can disappear as quick as you can say “pink slip.” I’ve never made anywhere near $250K a year, but if I did, I would save like hell because that job can vanish overnight leaving you with an income stream that looks more like the bottom 10%.
Real wealth is measured in tangible assets (including stocks, etc…), not in year to year income. $250K a year isn’t rich, it’s just real comfortable. However, if the person making $250K puts their mind to it, they can become rich very easily, but they must hold onto that job and invest wisely.[/quote]
Brutus, an employee often has no say as to whether and when they will be riffed, laid off or fired. This is why I don’t think it’s wise for young families with school-age children to voluntarily try to live on one income of an employee, no matter how much they make. While most of them tried to financially expand and “grow-into” the raises their “breadwinner” received by upgrading the size of their home and choosing it in what they believe to be a “better” school district, they are in reality just one paycheck away from default and possibly eventual BK. A family making these choices really needs two decent incomes for security and health coverage in case of unemployment or long-term illness of one of the parents and to be able to save money every month.
I think there are a lot of these families in financial distress only because they were unrealistic about the cost of real life and what could happen to them and NOT due to buying or taking out equity at the peak.
