I spent some time reading those threads you’d linked and totally agree with what you’ve said there. Yes, people can live in SD on $80K/year (gross), even with 2-3 kids, but they will not be able to adequately save for retirement, kids college expenses, emergency savings, etc., AND live in a clean, safe neighborhood with good schools, take vacations and/or go to amusement parks every year, eat out once or twice a week, have kids in extra activities and classes, etc.
Some people are willing to make more sacrifices by squeezing a family of five in a very small apartment or condo, never/rarely eat out, never take vacations outside of a tent camping trip, not have their kids attend any extra classes/activities, etc…and I think they can actually make it; but very few Americans are able or willing to live this way over the long run.
And if you want to live the good life in sunny San Diego, you can forget about keeping the A/C on at night in the summer. 😉 (We like it very cold as well.)[/quote]
Hi CAR. Thanks for taking the time to read them. Oh absolutely one could “survive” as you mentioned. But it’s EXACTLY as you just mentioned. It’s absolutely impossible to really “live” (by most people’s definition) and save for retirement and do vacations, etc. here in San Diego on that salary with several kids.
I always get a kick out of the ‘eternal bachelors’ that don’t have kids trying to give advice to parents with 2 or 3 kids pointing out the median incomes in San Diego and how they can make it. LOL. These type of people have NO clue what it’s like raising a family in San Diego or having to worry about living in a good school district, etc.
Even forgetting the fact that many of these people with the median income figures bought real estate LONG ago that is totally paid off. Or that many of them are living paycheck to paycheck and barely surviving.
Yep. Short term that might work but longer term most parents figure out that it’s not sustainable here in San Diego and move out before it’s too late and they can at least recover and start to save for their retirement, kids college fund, etc.
It’s funny because now and again there will be someone that says it’s totally doable. I’ll ask them to detail on a spreadsheet (and I even put in all the categories below for them so all they have to do is fill in the blanks). And NO ONE does it. People say it can be done and when I challenge them to post their spreadsheet. No one does. It’s really telling.
-Mortgage or Rent
– Property taxes if you own
-Phone (Land line and Cell phone, blackberry, etc)
– Utilities (gas, water, electricity, cable, internet, etc)
– HOA fees (if you own vs. rent)
– Maintenance and repairs (if you own a property)
– Car payments
– Car insurance
– Auto Fuel each month for each car
– Registration fees for your car each year
– Maintenance on your car to include car washes and oil changes
– Home/rental insurance for your property
– Life insurance
– Health insurance premiums
– Dental insurance premiums
– Medical/Dental expenses (what insurance won’t cover)
– Prescription medications
– School expenses for kids (tuition, stuff for school, ballet classes, etc)
– Babysitter expenses
– Annual fee for Credit Cards
– Clothes for kids and yourself
– Toys for kids
– Dry Cleaning
– Health club / gym
– Beauty (hair salon for hair cuts, color, nails, make up, etc)
– Extracurricular activities dues/fees
– Entertainment (movies, theatre, plays, Seaworld, Zoo, concerts, sporting events, etc — TONS of stuff to do with kids here)
– Magazine/newspaper/Ipad subscriptions
– Dining out at restaurants
– Grocery budget
– Retirement savings contributions
– Kids college fund savings contributions
– Charity/donations
– Travel / vacation expenses
– Federal/State/local income taxes
– Any revolving debt payments you might have
– Bad habit type stuff (alcohol, smoking, etc — this doesn’t apply to me but it does for many people)
– Emergency savings fund for any major health issues
– Non reimbursed office/work expenses and supplies
