[Ruffles]

This is purely hypothetical, from a conversation with friends over dinner.

How much do you think you would need to earn, to service this lifestyle.

Mortgage - $600 000
school fees - 2 children x $15 000 each - $30 000
Annual holiday - $20 000

2 working parents - so after school care/nanny etc. + Cleaner.



I'm thinking it could be done on $200 000 per year. $100 000 each. What do you think?


I know it sounds strange. It was a strange conversation. So I'm interested in the wider community thoughts - especially EB experts

Maybe I'm just a dreamer, thinking what it would be like to have more!

[hiccamups]

Yeh or perhaps a little more. We were living with similar commitments (less the holiday and half the school fes) on half that income and it was super duper tight. Not an enjoyable lifestyle.

So, considering tax, I'd think to be comfortable at that you'd need perhaps one on $280k and one on $120k. Or how ever it's divided.

That's what we'd be working on with those commitments.

[Supernova2012]

Unless they eat 2 minute noodles, have no car and buy clothes off eBay, I would say you are way off. I would add 150-200k to your estimate.

This post has been edited by Lexillotti: 04/08/2012, 01:26 PM

[red_squirrel]

I would guess more like 200,000 -250,000 each parent. So combined 4-500000.

Those mortgage payments would be a killer.
Then there is 2+ x cars, clothes, food etc.

[JRA]

interesting question.

A 600K loan is about $2k/fortnight, so $52K a year, plus another 50K for school and holidays. So it $100K before you do anything. So you need to earn give or take $150K to start with.

Base on that I would think $300K at least, probably 350. By the time you add Nanny and the things that go with it.

Which is only two people on $150K each, so don't need to be high flyer type income.

This post has been edited by JRA: 04/08/2012, 01:27 PM

[Jenflea]

Don't forget the bills such as phone, water, electricity, uniforms for the fancy school....
I'd be thinking easily 400k a year to be comfortable doing it.

[Tecopa]

I was living a similar lifestyle when I had no kids just substitute the school fees for the amount of money we wasted on crap. Partner was on $100K I was on $70k. We had a cleaner and dog walker and all sorts of rubbish(in hindsight) but we were always fairly cash poor each week lol. And ate noodles and had no car and shopped on EBay.

This post has been edited by Tecopa: 04/08/2012, 01:32 PM

[JRA]

Don't forget the bills such as phone, water, electricity, uniforms for the fancy school....

$15K a year are not top level school fees.

[hiccamups]

$15K a year are not top level school fees.

No but you'd not be missing out on things like cello lessons, ballet and other expensive sports.

[tothebeach]

With a $200K income and those permanent commitments (mortgage, fees), you would not be having a $20K holiday. You would be using that money to buy food, pay PHI etc.

In fact, just checking home loan calculators, you'd be lucky to be able to borrow $600K with dependants and a $200K income.