Savings is probably the best thing you can teach him. Cars break down, rent requires a security deposit, so does the utility company. Furnishing a house isn't cheap either.

I've actually done this math recently....$100k annual household income would be enough for us to have everything we need and most of what we want (within reason). $120k - $140k/yr and I figure we could have everything we wanted.

that's living in the kind of house we'd ideally like to have, in the area we'd like to live, driving the kind of vehicles we'd like, putting the kids in private school, having the "toys" we'd like to have and putting a certain percentage away each month for retirement.

Ya'll are doing something wrong.

100K bring home pay would be ~$6,250 (after taxes and health insurance)
-$1,100 mortgage (15 years)
-$500 Groceries
-700 Utilities (tv,cell phone, power, etc)
----------------------
~$4,000/month for spending, tithing, and savings
No way a family of two should be paycheck to paycheck at $100K income.

Agree

I agree jeeze

It don't matter where you are on the ladder, it always seems like the guy above you should have plenty of money.

We are a family of 4 and even with OT I/we struggle to make 50k a year much less bring home after taxes and killer insurance...

all about balancing wants and needs - and knowing the difference - and staying out of consumer debt. there is no "want" worth credit card interest rates. i learned this the hard way ...

Guys, the question isn't how much it takes to get by. You can always get by and you can always want more.

I feel the best use of the exercise is to show the boy what kind of life he can expect at any given income. What he needs to understand is that he will likely need a lot more income to meet his expectations.

If I was 19 years old I would buckle down in college unlike what I did when I was 19 and I would either go to pharmacy school or dental school. I have a friend who is a dentist and he wants for nothing that money can buy.

I was lucky to earn enough to support my family. So the 15 years my wife could work, we put 100% of her take home pay into a joint IRA. Now we don't have to depend on SS to solely fund our retirement years. Also, the money was not missed when medical problems forced her to leave the workforce three years ago.

For real.

I recently put this together for my Step-Son. The assumptions, getting a trade, (I used plumber)and 25% tax.

Career Path Hourly Start Weekly Weekly Post Tax
Plumber Helper $8.50 $340.00 $255.00
Apprentice $10.50 $420.00 $315.00
Journeyman $14.50 $580.00 $435.00
Certified ? ? ?
Pay scale chart $8.50 $340.00 $255.00
$9.50 $380.00 $285.00
$10.50 $420.00 $315.00
$11.50 $460.00 $345.00
$11.75 $470.00 $352.50
$12.00 $480.00 $360.00
$12.25 $490.00 $367.50
$12.50 $500.00 $375.00
$12.75 $510.00 $382.50
$13.00 $520.00 $390.00
$13.25 $530.00 $397.50
$13.50 $540.00 $405.00
$13.75 $550.00 $412.50
$13.95 $558.00 $418.50
$14.00 $560.00 $420.00
$14.25 $570.00 $427.50
$14.50 $580.00 $435.00
$14.75 $590.00 $442.50
$15.00 $600.00 $450.00
$15.25 $610.08 $457.56
$15.50 $620.00 $465.00
$15.75 $630.00 $472.50
$16.00 $640.00 $480.00
$16.25 $650.00 $487.50
$16.50 $660.00 $495.00
$16.75 $670.00 $502.50
$17.00 $680.00 $510.00
$17.25 $690.00 $517.50
$17.50 $700.00 $525.00
$17.75 $710.00 $532.50
$18.00 $720.00 $540.00
$19.00 $760.00 $570.00
$20.00 $800.00 $600.00

Money management is key. Listen to some of Dave Ramsey. I don't do his whole plan, just pieces. We do twice as much stuff as some of the people I work with, with the same income. We just save and then buy. Never go in debt except a house, and maybe a vehicle. It's doable.

I will throw my 2 cents in and that is about what it is worth. Not everyone realizes the cost of raising a family. If you are fortunate enough to work and live in an area where you can send your children to a public school you have won half the battle. Early years of childcare providers and private schools can eat up a $200,00.00 yearly salary.

I have just reached retirement age and I can honestly say raising and educating our two children has been the greatest accomplishment of my life. I wish all you young folks well with your attempts at life.

I'd say this is pretty close to being in the ballpark.

Im not sure what it would take but you cant do it in the military.

$350,000 - $500,000

Both of you are spot on. Beadle, you are happy. You don't need some guys on a hunting forum that you don't know telling you that you aren't.

Stick within the means of what you make and I PROMISE you will be happier than the guys knocking out $200K+ and in debt up to their eyeballs.

Like others have said its about how you spend it. I've never made more than 65,000 a year. My wife makes 25,000 a year working partime. We have three kids, Two still at home.

Since May of 2000 we have bought 76 acres paid for it. Built a 2500 hundred square foot home with a Mortgage of 425 a month. We haven't inherited anything. We bought a house to start with remodeled it ourselves and sold it. I built the second one myself.

We are at the point now and if we want something we buy it. I'm also contributing heavy to retirement. I should be able to retire at 58.