Well, just got the gas bill - it was just under $12.

I checked when I turned down the water heater - it was exactly mid-cycle. & our gas was down over $5. That was a 30% decrease in our bill just turning the water heater down mid-month.

WOW!

What is it going to be next month? $5?

Little things do pay off apparently. Lord knows why I didn't think of this one sooner. The water can still get pretty hot too - it's just no longer scalding. I turned it way down to "warm" on this particular water heater, but it is still plenty HOT. We will turn it up in the winter, but what a way to save money in the summer. I might save like $10/month...

The interesting thing is we cook almost every day (gas stove) and we do do laundry almost every day (hot water). I could have sworn our dryer was gas too. But all of these energy efficient appliances REALLY pay off.

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I mentioned in another blog about how some people have made it in high COL areas buying homes. I mentioned how combined dh and I made $60k out of school and saved like 70% of it. I got reamed over there for being like a rich princess or something. LOL. I actually mentioned how timing was everything and I did not envy people today (a bow to how we lucked out getting in when we did. Luck certainly plays a HUGE part in our current financial situation). Someone got on a high horse and set timing had nothing to do with it - I picked a very high paying job and a spouse too - like we are going to ride off in the sunset on $200k/year or something. Then on and on how we made more than the average homewoner, etc. Totally blowing by the point how expensive homes are in the Bay Area. So yes I have to beat the dead horse again. Some other guy popped on about how he doesn't buy new cars or carry debt, blahblah blah and that's how he saved. I am like, well, I thought that was pretty self-explanatory when I Said we saved 70% of our income. You don't do that without cutting some corners. Yeesh!

Anyway, I was just peeved and rather than ruin that guy's blog with a debate that will probably fall on dead ears, let's do a math lesson.

#1 - When dh and I both made $30k/year out of school these were NOT big wages. If you want to say we were lucky to have 2 incomes - sure - I have always said it made saving VERY easy to have 2 incomes. IT certainly doesn't cost twice as much for 2 of us to live. There is tremendous benefit. However, I probably could have walked into Wal-Mart and got paid more back then. The point is the area is insanely expensive but I took a low-paying job as it was a stepping stone for my career. Honestly I think I was paid $32k and dh was $28k. I absolutely laugh at the idea of $28k as a high paying job. Teehee. We don't live in KAnsas anyway!!! Plenty of relatives who do live in Kansas, NC, etc., and I know they haven't got a clue what it is like out here - they get mesmerized by the "high wages" as well.

Secondly, let's do the math. Dh and I made $99k combined one year before we moved out of the Bay. Again, not high paying jobs. I could have made more as an administrative assistant myself, at the time.

But you say that and people assume you are filthy rich and homeownership is easy as pie.

Well, if we wanted to buy a $600k (2-bedroom major fixxer upper) say we scrounged the 20% down (what is that like $120k?).

Say, sure we waited a few more years and maneged.

$100k income - $30k taxes leaves $70k to play with (but people don't realize bigger wages mean BIGGER taxes!!!).

Minus $40k for mortgage interest (who knows what the principal would be), property taxes, and insurance. This would not even include earthquake insurance.

Leaves $30k to live on. Might sound nice, but you have a major fixxer upper to fix up in this case. Plus this is a house you probably don't want to live in the rest of your life - you will want to strive to move up to say a 3-bedroom if you have kids. (YEah I know too many people cramming 6-person families in these houses with little choice though). & also since the city is expensive and WalMart pays $30k/year to its employees, then you know EVERYTHING is expensive.

Then there is savings and retirement too.

So no, making $60k/year is not filthy rich, nor is $100k. Quite the opposite.

Rents were even worse. You couldn't live without at least $12k annual rent (& that would be a pretty crap studio apartment). But I guess that brings the point that I lived with roommates in a nice house and only paid $400/month rent through college and such, and did a lot of house sitting (free rent!). Only way I could survive on so little as we saved for a down payment. You just have to think outside the box in these situations.

Timing is everything to us. It means we could live on like 1/2 as much money, we can stay close to our family, we don't have to work so hard the rest of our life. We were able to start our family younger, etc. We couldn't have done any of this without our luck and timing. Our wage has nothing to do with it. But anyway, I guess I Was annoyed to be painted as a 2-yuppy household because that is SO not us. I admit I am going for that high-wage job but the whole point is I like it and it means I can work part-time and have most of the benefits of most full-time jobs. The point isn't because I want to hoarde a ton of money - work/life balance is very important to me. As far as my spouse, the idea of him being some upper class yuppie makes me laugh - hehe. I did not marry someone who was going to take care of me, for sure. He hasn't worked in years...

Oh well, just had to vent, and do some math. I guess it annoys me too to post how you did the impossible and just get shot down. For every argument they had against me I know someone who did it their way, but if they didn't want to hear the solution, why do they ask??? Dh has 2 cousin singles who bought homes in the Bay Area, one was a school teacher and one doesn't even have a college degree. If you put your heart and soul to it it CAN be done. It didn't require 2 wages and a fancy job, I would have bought a home in the land of expensive regardless of my situation. But why are all of us (related) buying homes when none of our peers can figure it out? Because we were raised with financial sense. IT makes all the difference...

Well, I already said the other day that with like $400k equity and six figure job I still have no idea how we could even afford a house 1/2 the size back there. The income taxes and the property taxes will eat you alive! I guess what more do I need to say - that speaks volumes!