Totally, learn to cook, especially nowadays you are not just paying ridiculous markup at the restaurants for anything remotely palatable you have to pay another 20% of that inflated price for tips. Could have easily save a butt load by just learn to pick up a wok.
@@swallow1106I did a lot of cooking duration pandemic which is both healthier and cheaper. But since last year I had a kid and then had to go back to office more often. Work also gets busy. It becomes really hard to find time to cook. I can definitely understand why they have to spend so much on food and regular daily expense.
I think there’s a major problem with using 1.8M as the house price. I used to live in Sunnyvale and 2bed 1 bath 1000 square feet sold for $1.6 million. That wouldn’t be big enough for a family of four.
Two things: 1.401K max out contribution is less than 50K or $22.5K per head, they did max out. 2. There is not that much benefit to do 401K if your income still high after 55 1/2, hence after tax Roth 401k is actually better choice for high net worth families. Because the tax break did not outweigh the tax benefit future down the roads.
Some corrections to your calculations 😃😃 (1) The property tax for a property worth 1.8 million is not 15k, but closer to 20k. (2) Considering that most young families have two kids, the cost for daycare or preschool should be at least 5k per month. (3) Young families in California usually choose to send their kids to private schools since public education in the state is generally considered below par compared to 90% of the states in the US. (4) Currently, they are saving about 50k per year, which is approximately the amount they would need to pay for their two kids' four years of college. However, individuals earning around 50k per year do not have to pay any tuition when their kids go to college. Therefore, while earning $700k per year may seem like a lot, it does not make them financially wealthy in the Bay Area
You have made some very good points. One thing to mention is extra-curricular activities for children can be very expensive. Unfortunately Asian students especially have to participate in many activities just to be somewhat equivalent to their competitors for college admission. Tennis and piano lessons for my two girls cost tens of thousands of dollars alone. The other major expense is home maintenance/remodeling. Yes you can build equity, but the upfront cost can be quite overwhelming.