Mr Chen’s viral post ignited a debate about the high cost and practicality
Damon Chen, CEO of Testimonial.to, sparked a conversation on X (formerly Twitter) by sharing an eye-opening story about a seemingly well-off couple struggling financially. Despite having high-paying tech jobs, Mr Chen’s friend from Google revealed they often feel strapped for cash. Examining the situation, Mr Chen found this surprisingly plausible.
The crux of the issue lies in the couple’s hefty monthly expenses, totalling a staggering $30,000 (around Rs 25 lakh). This leaves little room for unexpected costs. In a post on X, Mr Chen breaks down their expenses. Chen revealed that the couple’s monthly expenses amount to an astonishing $30,000 (about Rs 25 lakh), leaving little room for savings or flexibility. The breakdown includes $17,000 per month on the mortgage for a $3 million home, $3,000 on property taxes, $3,000 on private school tuition for one child, $2,000 on travel, $1,000 on utilities, $2,000 on groceries, $1,000 on dining out, and $1,000 in car payments for two vehicles.
Mr Chen pointed out that the $30,000 figure doesn’t even account for house maintenance, streaming subscriptions, or other common family expenses. To sustain this lifestyle, the couple would need to earn roughly $60,000 per month before taxes, or $720,000 annually.
Mr Chen’s viral post ignited a debate about the high cost and practicality of maintaining such a luxurious lifestyle. He concludes by posing a thought-provoking question: “What’s the point of living a life like this?”
See the post here:
My friend told me he and his wife live paycheck to paycheck.
I don’t believe it because they both are high earners in tech, and he even works for Google. But after doing a little bit of math, I found out he didn’t lie.
• Mortgage: $17,000/month for a $3M home
• Property Tax:…— Damon Chen (@damengchen) October 19, 2024
Responding to the post, a user claiming to be a Mountain view resident shared that he earns a decent income but leads a simple lifestyle. “We don’t live in a mansion but our kids are happy. Instead of eating out expensive food, our kids love what my wife and I cook every day. We see a neighbor kid sent to school by a hired driver while we walk and talk to the elementary school every morning as a whole family. Instead of stressing out at a big tech, I run a one-person tech business on my term. My wife and I saved and invested enough and now our annual investment return alone is much bigger than the money we spend. So whether we work is a choice. We are in our healthy 40s and still love working. We aren’t too thrifty but never upgraded our lifestyle like others do around here in Silicon Valley. That was the key for the growing assets.”
“I’ve always dreamed of living in the Bay Area, but when I see this, I feel way better off in France,” another user wrote.
“I find that mortgage line extremely stressful and would never put myself into that situation,” the third user wrote.
“That’s not paycheck-to-paycheck. That’s a lifestyle choice. Big difference,” the fourth user commented.
“”Living paycheck to paycheck” was a phrase coined to describe the struggles of the American working class. This would be more accurately described as “spending every penny they make,” the fifth user wrote.
