Living a Six-Figure Lifestyle on a $30,000 Salary

Modern Saint

Modern Saint

Starve your Fear, Feed your Dream!
Like millions of Americans out there, I like the nicer things in life. I have an affinity for high-end cars, designer clothing, and name-brand home furnishings.

There was a time when I had the six-figure income to afford these things. That was before the crash of what has now become known as the dot-com era. After losing many nice things, I learned that even living at one's means can be a risky proposition. So the challenge became how to continue to live that lifestyle while spending drastically less than I did before.

I wanted to figure out how I could afford these things at a $30,000-a-year salary, just in case I ever had another salary decrease. That planning all paid off when the great recession came. Here's how I learned to have a six-figure lifestyle with a $30,000 yearly budget.

How to Get the Big Home

This one was all about patience, hard work, and discipline. First: New homes are out of the question. They're generally overpriced. I almost bid on a couple of for-sale-by-owner homes, but just couldn't get the right combination of price and neighborhood. I focused on HUD homes and foreclosures, and learned quickly that banks don't want homes on their books. I found a HUD home in a neighborhood with prices averaging above $200,000. My home was more than 60% less than that. It required a bit of work -- I spent a lot of free time on it as a do-it-yourself project -- but in the end I had my nice home. No one knows that I paid less than $80,000 and that I have a monthly mortgage payment of less than $500.

Getting the Car to Match the Lifestyle

I'm a sport and luxury car enthusiast. First I wanted a Mustang, and this was the easiest deal of them all to find. I didn't go to dealers for this one. I went to Craigslist and the classified ads. I know many people will say that this is immoral, but I found a desperate seller who was willing to almost give the car to me because his notes were too high. I was happy, and he was happy to be rid of it. A simple refinancing and I had a car note for less than $150 per month. Not long after that I decided that I wanted a Lexus, and I did go through a dealer to get that one. I got a great deal on a used Lexus (I no longer buy new cars). Here's how I saved about $5,000 on that deal.

I Love Movado Watches

Anyone who knows me knows that I love Movado watches and will rarely, if ever, wear anything else. At a $30,000-a-year salary, I certainly can't afford to shell out $1,000 or $2,000 on a watch. So I had to find a new source. I began scouring Craigslist, eBay, and pawn shops for good deals on watches. I found three Movado watches that were used and paid less than $500 total for all three of them. I recently sold one of these watches on eBay for $600. I now wear watches valued at more than $800 each, and I basically paid nothing for them.

Got to Have My Designer Clothes

I am an avid wearer of brands such as Ralph Lauren, Armani, Perry Ellis, and Gucci. Jackets for these brands can run from $300 to $3,000 dollars, so there's no way I can afford these on a $30,000 salary. I had to really swallow my pride and begin browsing through eBay for good deals on used items. A few of you may say there's no way you'd wear used clothing, but I say one trip to the cleaners, and they're as good as new. I found that even better deals can be found at consignment shops and Goodwill stores. At one Goodwill store, I found an Armani jacket for only $15, and I get constant compliments on it.
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http://finance.yahoo.com/news/First-Person-Living-Six-ac-2328933919.html?x=0
 
So basically buy used, scour auctions and local ads and get a foreclosed home. Not exactly epic revelations made there. :embarrassed:
 
Did I write that?
Got my house for half the going rate in the neighborhood as a fixer upper.
The vehicles I buy new, but keep for 10+ years. Hondas and Fords, though. Lexus doesn't interest me much.
Clothes? Consignment shops and Marshall's. Men's fashions don't change much.
One can live large for cheap. I do it every day. And without credit cards.

EG
 
How to live a wide and out loud lifestyle without earning much cash myself.

I like to sleep when I'm tired and eat when I'm hungry, sometimes pulling all nighters.
When my friends are playing or having a showing, I like to hang out when they're happening.
If a music store gets a hot new product, I want to be able to visit and try it out.
And when someone who has something I like wants me to come over, I need to be free.
Playing other guitars is all right, but I need to quit playing to build or rebuild the guitars I build.

And just as meaningful, when reports of sightings from migratory species call me out in nature,
when I want to get out there on long distance bike-hikes, out there a day or two, I need to be able to go.
When friends want me to visit and jam, maybe write a song, if there's a guest house or a place to crash, I wanna stay.

Yeah, like my Scottish parents would say, if you don't spend money you don't have to make it.
May you grow in all peace... and love.
 
Conversely,

You could go back to school, get some sort of professional certifications or qualifications, specialize in something that you do, and get a better job.

I imagine some sort of mix of the two would let you live fairly well, and dress fairly well.

Buy low, sell high.

:rolleyes:

Remember, life is what you make of it.
 
I would say that pretty well describes my shopping habits as well in regards to autos and guitar gear.

I covet expensive German cars and expensive American guitars and amps.... but can't afford to pay retail pricing for any of them.


By purchasing used, I've got some damned nice guitars and have owned some pretty damned nice US and UK tube amps. I've owned cars by Porsche, Audi, Lexus and BMW but never spent over 10K for any of them.


Now if I only had the energy to do the fix-it-up at home..... I'm usually exhausted by the time I get home.
 
Coralkong said:
Conversely,

You could go back to school, get some sort of professional certifications or qualifications, specialize in something that you do, and get a better job.

I imagine some sort of mix of the two would let you live fairly well, and dress fairly well.

Buy low, sell high.

:rolleyes:

Remember, life is what you make of it.
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Life is, indeed, waht you make it. I do fairly well in my line, but I'm a tightwad. :grin:
I don't really live large, however I do like to stretch a buck to its breaking point and my savings account reflects that.
I'd much rather have a decent house for cheap and a few extra zeroes on my bank account than a fancy new house.
My truck has 260,000 miles on it and old fashioned crank em up windows but it's paid for.
My Gibson is a cheapo Junior, but I paid cash for it and replacing it if stolen or damaged won't cost me a fortune.
And I'll be able to retire with a paid off house and money in the bank.

My church parish used to include the "old money" neighborhood and I made a few friends there. The one thing I learned about rich people is that they didn't get that way by spending foolishly.

EG
 
Alternatively, one could work harder and get a six figure income.

Article seems to be fairly obvious things to me.
 
I'm not really passing judgement on anyone.
And there's nothing wrong with being a tightwad.


Though, I must say, the original article kind of makes the guy out to be a bit of a "douchebag".

I mean, why would you want to dress like you have a money if you don't? Armani, Gucci, etc...
They don't make excellent clothing....they make "trendy" clothing that costs a shitload of dough.
Who are you trying to impress (because at that point, you obviously are trying to impress someone.)?
That just screams "poser" to me.
The original author of that obviously is a real estate salesman. Probably commercial real estate, if I had to guess. Easy money and a "something for nothing" mentality.


JM2CW.
 
When I lived in Dallas, there was a common term: The $30,000 millionaire. This goup felt they needed the trendy stuff, the big house and the fancy car. Being idiots, however, they accomplished these things with credit cards and interest only home loans. They all rent small apartments now. :lol:

I agree, Kong, that the author does come off a bit shallow with his fancy watches and trendy clothes.
His advice is sound, if misdirected. I like to live my normal life for cheap. The trendy stuff can keep its own company.

EG
 
Tiltsta said:
Alternatively, one could work harder and get a six figure income.

Article seems to be fairly obvious things to me.
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Depends on your age.

The trend in the business world (depending on where you live) has had good paying jobs drying up, making people of different experience levels and educational backgrounds competing for the same job. Depending on the employer, most are running very lean and have fewer "experienced" positions and more "young inexperienced entry" positions. :mad:
 
Well, been there and done that high finance crap, and the stress is gnarly... Now I'm debt free, my rent is low, I have a really good trade and am able to work for myself, and I am in the market to buy a home for cash, and still be debt free... Sure, I will spend my savings, but I won't owe the bank...
 
Elias Graves said:
When I lived in Dallas, there was a common term: The $30,000 millionaire. This goup felt they needed the trendy stuff, the big house and the fancy car. Being idiots, however, they accomplished these things with credit cards and interest only home loans. They all rent small apartments now. :lol:
EG
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I think these days this group is known as 'Douchebags' and also includes younger people who sport expensive trendy cars, clothes, and hair while still living in Mom's basement.
 
there is also a huge difference between things that are expensive because of their quality versus things that are expensive because they're trendy.


People who buy previously owned items that would normally be outside their price range because of it's quality are often more likely to hold onto that item for a much longer time than someone who's constantly trying to get whatever's trendy or fashionable, because that's a moving target.
 
baimun said:
there is also a huge difference between things that are expensive because of their quality versus things that are expensive because they're trendy.


People who buy previously owned items that would normally be outside their price range because of it's quality are often more likely to hold onto that item for a much longer time than someone who's constantly trying to get whatever's trendy or fashionable, because that's a moving target.
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Tony, i'd like to introduce you to John Mendoza. or just look in the mirror. :tongue:
 
Elias Graves said:
And without credit cards.
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This is the big one. My wife and I got into HUGE credit card debt during our first 3 years of marriage, basically living beyond our means and supporting that with cards, which is just really stupid. Three years ago, when the monthly payments were out of control, we cut 'em all up and haven't used one since. They're all paid off now. We owe lots of $ for the house, car, and student loans, but no more credit cards. It's really liberating.
 
Frank Prince said:
I think these days this group is known as 'Douchebags' and also includes younger people who sport expensive trendy cars, clothes, and hair while still living in Mom's basement.
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That pretty much describes one of my high school friends.

Keep in mind that we are both 36 years old.

He works at Lowes and drives a 2010 Mustang GT. Also has a Peavey 5150 1/2 stack and a Peavey Wolfgang, though he's never played outside of his bedroom. And, his bedroom happens to be in his parents' basement. :facepalm:
 
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