What It’s Really Like to Live on $50K, $300K and $1M

Yes, even millionaires have money trouble.

By Jordan Rosenfeld January 15, 2021 Build Your Wealth

Wealth is relative. An annual income of $50,000 might be more than enough for a single person living in a mid-sized city. But a family of four in New York City might feel pinched on $500,000 if they live in a penthouse apartment, pay private school tuition and own a second house in the Hamptons. Even a big paycheck might not go far in some parts of the country  if you have an over-the-top lifestyle.

To find out what life is like at various income levels in very different areas, GOBankingRates talked to three people with three very different paychecks. You might be surprised by the similarities and differences in their spending and saving habits.  Click through to find out what it’s like to live on $50,000, $300,000 and $1 million and whether salary alone can make you wealthy.

What It's Really Like to Live on 50K

Jamie Hickey, a furniture maker in Philadelphia, Pennsylvania lives on $52,000 per year, with a tiny bit of unreliable side income from several websites he runs. He, his wife and two kids, pay about $1800 for mortgage, spend between $150-$200 per week on food, have a car payment of $500 and pay about $2000 per year on health insurance.

It’s Enough for a Comfortable Life

Hickey and his family live a comfortable life. They can afford internet and streaming entertainment services, still put a little bit in savings, and take an annual vacation to the beach.

Hickey says one key is how he manages his debts. “I don’t have any debts. Some people wait until their monthly statement comes out, but I pay as soon as I use it. I don’t want to get into the habit of paying hundreds of dollars later.”     Hickey uses his credit card mainly to get the points it awards him.

There’s Room in the Budget to Save

Hickey has always made it a point to save 10 to 15 percent of all income that he makes.

“You just have to be careful of what you have, save what you can and understand that there’s a big difference between things you need and things you want.”

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