A six-figure income isn't what it used to be, and a $400,000 annual household income isn't even enough for some people. A husband recently posted on Reddit (NYSE:RDDT) about feeling like his family is treading water despite their combined $400,000 annual income.
On paper, things look fine. The couple has $700,000 in retirement and between $500,000 and $700,000 in home equity. They even have $250,000 in cash and other investments, but it still doesn't feel like enough. Because of various expenses, the couple only feels like they are saving $25,000 to $40,000 per year.
"I've refrained from doing fun things to save money," the husband conceded.
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Is this an overreaction from someone who is financially well-off, or is it a sign that even some of the highest earners are struggling to make ends meet? Redditors shared their thoughts in the comments.
The Couple Is Already Moving At A Good Pace
Most people said that the couple was doing well and insisted that their finances were solid. They earn more than the average person and still put a respectable amount of cash into their assets each year.
"He's saving more money per year than the average household even makes," one commenter said.
The couple pays $7,000 per month for their mortgage, so that portion of their money is going toward home equity. They are also considering paying down the mortgage faster, which currently has 25 years left. The husband also mentioned that the couple has mostly ignored college savings accounts for their children. We don't know how many children the couple has, but it still seems like they are in a good financial position.
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Burnout May Be The Main Issue
Although the couple's finances look solid, the husband may not feel that way because of burnout. He's not looking to stick with his career forever and wants to retire early. The couple makes enough money to make ends meet, but they don't have enough money for the husband to retire in his late 30s. That could be why the original poster feels like he is treading water.
"I'm in my late 30s. I'm sick of my career and my job. I've been grinding since I was a kid," the original poster said. "There's a part of me that wants to cash out our equity, move to a [more affordable] area, and get out of the rat race."
He also mentioned that he has not gone on a family vacation for five years. Some Redditors suggested taking a small break.
"Take a two-week vacation. Disconnect entirely from work. Go do something fun. It'll cost money, but who cares? Drop in the bucket for you," one commenter said.
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Finding A Different Path
The husband knows that he can retire at retirement age if he keeps it up, but he also doesn't want to work for another 15 to 20 years at a job that he doesn't enjoy. Right now, he feels stuck and wants a quicker path to retirement.
Moving to a more affordable location will make it easier for the couple to save money. Opting for a smaller house can also help the couple save money, but their ability to downsize depends on how many children they have.
The husband can also keep it up for another decade and then reassess. However, just as many Redditors suggested, a nice vacation may be the best solution.
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Image: Imagn Images
