"I Make $200,000 & I'm Considered Lower Class" – My Reaction


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At first glance, it is shocking to see that someone can make $200,000 a year and feel lower class. But let’s take a deeper look to see what’s really going on here.
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“I Make $200,000 A Year & Feel Lower Class” – My Thoughts
0:15 – Is $200,000 a year upper class or lower class
1:05 – How much money you keep if you make $200,000 a year
2:21 – Why you feel lower class with $200,000 a year
3:49 – Surprising poverty levels in San Francisco
4:50 – Looking at real estate in San Francisco
6:35 – The average salary in San Francisco compared to the cost of living
8:45 – What to do if the city you live in and cost of living are holding you back form building wealth

What Is The Minority Mindset?
The Minority Mindset has nothing to do with the way you look or what kind of family you’re from. It’s a mindset.

Give the majority $200 and they will come back with a pair of shoes. Give the minority $200 they will come back with $2,000.

Think from the mindset of a consumer and be the provider, that’s the Minority Mindset. Don’t be the majority. #MIH #GetMoneySmart

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This Video: https://youtu.be/sti-ID7xbiw
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Video host: Jaspreet Singh <br> <h3>Auto Generated Captions</h3>

what’s up everybody I’m just but it’s
saying I’ll welcome to the minority
mindset if you made $200,000 a year
would you consider yourself upper class
or lower class financially well I think
that’s kind of a skewed question because
it depends on where you live we got this
question from Keo investing well it’s
not really a question it’s more of a
statement that says my wife and I make
$200,000 a year combined in the Bay Area
and we have no kids yet we are
considered lower-class here sadface
at first glance you’re probably thinking
what the heck
how could you consider yourself
lower-class with $200,000 a year in
income with no kids I mean what can your
expenses be private jets every weekend
but let’s take a look at the numbers
because remember it’s not how much money
you make that matters it’s how much
money you keep so let’s start by looking
at taxes over here I got this federal
income tax calculator pulled up and
let’s fill in the household income you
have $200,000 and you are filing married
so in 2018 your federal income taxes
plus FICA are right around 52 thousand
dollars you’re paying around 1/4 of your
income straight to the federal
government but that’s not the only tax
you have to pay don’t forget you have to
pay state taxes and because you live in
the Bay Area or the San Francisco area
you have to pay California state taxes
and if you didn’t know California has
some of the highest state taxes in the
country you have to pay an additional
fifteen thousand four hundred and forty
four dollars in state taxes because you
live in California so your total income
taxes are just under $70,000 meaning you
are left with around a hundred and
thirty one thousand dollars after paying
your taxes and with this one hundred and
thirty thousand dollars you have in the
you feel like you’re lower class if you
have a hundred and thirty thousand
dollars in your
after paying your taxes every single
year and you feel like you’re lower
class there are three potential reasons
why the first reason is because
everybody else around you is super
wealthy remember so you feel like you’re
lower class because everybody else is
making two three four five million
dollars a year so that’s the first
reason the second reason is your
expenses are super high and as we know
and we’ll see California expenses are no
joke and third your spending sucks
either your expenses are super high or
you’re spending too much money on things
you don’t need but let’s take a look at
California or let’s take a look at the
San Francisco area specifically I pulled
up the San Francisco City website and if
you scroll down just a little bit you
see here what the poverty or low income
guidelines are in San Francisco and here
in green it says
the San Francisco Housing Authority and
the United States Department of Housing
and Urban Development the HUD state that
in California around San Francisco the
low income limits are eighty two
thousand two hundred dollars for an
individual and 117 thousand four hundred
dollars for a family of four in 2018
that means if you make a hundred and
seventeen thousand dollars as a family
and you have two kids so you’re one
person you’re married and you have two
kids and your family brings in a hundred
and seventeen thousand dollars you are
considered low income by the city of San
Francisco wow that’s really crazy to
think about because San Francisco is
like the tech giant of the world right
and so if you went to this great school
and you’ve got this computer science
degree and you got this tech job and
you’re still new in the field so you
making a hundred thousand dollars a year
and you have a family you could be
struggling to put food on the table if
you have average expenses because you
are considered low income by the city of
San Francisco and you might be asking
for government assistance it’s not hard
to see why people feel like they’re
struggling financially in San Francisco
because one your state taxes are so high
in addition to
government taxes so you could to keep
less money and second on top of that
expenses are so high in San Francisco
over here it says at the median
one-bedroom rent one-bedroom in San
Francisco is around thirty seven hundred
dollars a month this is just a small
one-bedroom apartment I wanted to see
this for myself so I pulled up Zillow
here and I got San Francisco as the city
and I am going to change this if you are
making two hundred thousand dollars a
year you probably don’t want to live in
a one-bedroom apartment especially if
you’re married you probably want a
two-bedroom apartment so you can have
something a little bit bigger so your
friends can come and stay so let’s put
in a two-bedroom apartment let’s see
I’ll put houses and townhomes I’m open I
just want a place to live and let’s take
a look at this Wow okay so the first
results are well I don’t need four
bedrooms so I don’t want to pay $10,000
a month two bedrooms $43.99 okay kind of
expenses two bedrooms 5447 two bedrooms
54:15 two bedrooms 5040 two bedrooms
6210 finally got something a little bit
under five thousand dollars for two
bedrooms but yeah you can see that Oh
finally if you found a two-bedroom
apartment for under four thousand bucks
you can see that the cost of living in
California is very very high I mean
everything is three at least $3,500 and
you want a two-bedroom easily four
thousand and a lot of them or over five
thousand and you got if you want four
bedrooms you’re looking at ten thousand
dollars plus so you can start to see why
somebody or a couple making two hundred
thousand dollars a year could feel like
the lower class because I mean if you
want to look and feel like your peers
who are living in nice places you’re
gonna want to do the same thing and so
now you’re paying four or five six
thousand dollars a month in rent and
that doesn’t even begin to include
utilities or food or going out or
anything else but one thing that I find
really really interesting is right here
the average salary in San Francisco
or let’s start with this the median
salary in San Francisco is 96 thousand
dollars for households and 74 thousand
dollars for individuals well the average
salary is 137 thousand and for
individuals it’s 103 thousand the reason
this average is so much higher it says
right here is because you have a lot of
billionaires and very wealthy people in
San Francisco so if you add up the
billionaires and the people that are
more working-class the data gets skewed
upward and you wanted a decent place to
live you’re gonna be paying most of your
income to your rent to your landlord at
that point you should really start
asking yourself is it really worth it
for me to live here in San Francisco or
wherever where the cost of living is so
high but if I move just a little bit
away I could afford a much better
lifestyle for myself but more money away
to my investments more money for my
future and more money for my savings
these are things you really should be
considering if you feel like the reason
you can’t build wealth is because of
where you live is it really worth that
location and if you really love the
location you love San Francisco or
wherever leave for a few years start
building that wealth and then move back
once you have built yourself and can
afford to live there nerd wallet has
this pretty cool cost of living
calculator where you could come in and
say where you live so I wrote in San
Francisco California
you can say where you want to live and
you write in your pre-tax household
income so putting this information in
saying I made $200,000 in California you
can see how much money you would need
somewhere else to live the same
lifestyle if we just moved to LA or Long
Beach you would only need to make a
hundred and forty-eight thousand dollars
to afford the same lifestyle you do in
San Francisco if you moved in to Miami
area you would only have to make 115
thousand dollars I know only a hundred
and fifteen thousand dollars but
relative you would only be making a
hundred and fifteen thousand dollars to
afford the same lifestyle so you can
come here play with this to see how a
different cities work look if you feel
like the city you live in is holding you
back from building your wealth then you
need to move go to a new city where the
cost of living is much lower while you
can maintain
a similar income and now you have this
extra money every month and you could
take this money and invest it in
yourself invest it in your future and
invest it into things that will build
you wealth it can be scary but just
because you move for a little while it
doesn’t mean you can’t come back now
that you’ve heard my thoughts on this I
want to know what you think is it
worthwhile for somebody to move out of a
high expense city or state so they can
build their wealth or should they
continue to find a way to survive where
they live currently let me know what you
think in the comments below thank you
for watching and as always keep hustling

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