An Amazon engineer whose story went viral recently for telling Business Insider that he was barely making it on a $300,000 annual salary.
Mr. Jain stated he did not feel financially secure at all while living in a high cost city like Seattle.
I kid you not. You can see the headline of the article below.
This dude is in the top 10 percent of income in America.
This article reads like an episode of Billions or Fleishman Is in Trouble.
Fleishman Is in Trouble is a 2022 limited series streaming on Hulu starring Jesse Eisenberg as Toby Fleishman. Adapted from Taffy Brodesser-Akner’s bestselling novel, the show follows a newly separated New York doctor whose sudden sexual popularity and parenting skills are tested when his ex-wife (Claire Danes) mysteriously drops off their kids and disappears.
Fun Fact: I actually wrote a blog post called My So-Called Finances as a salute to the incredible talent of actress Claire Danes. See my post here My So-Called Finances
Fleishman delivers this line in response to someone questioning their lifestyle:
“Excuse me, I make almost $300,000 a year. I am a rich man in every single culture except the 40 stupid square blocks that you insist we live within.”
New York City is the overall most expensive city in New York, with Manhattan boasting some of the highest real estate and living costs in the world.
The ranking from GoBankingRates found 13 municipalities with populations over 2,500 where residents spend at least $10,000 on monthly necessities alone.
The study looked at 2025 average home values, as well as mortgage payments and costs of groceries, utilities, health care and transportation.
Manhattan is on of those places where expenses can easily top $10,000 per month.
This show was primarily filmed in and around New York City, with extensive location shooting throughout Manhattan, Brooklyn, Queens, and the Bronx.
The breakdown below highlights the exact, localized centers of wealth depending on what type of location you are looking for:
1. New York City
As a whole, NYC requires the highest cost of living and housing in the state. Manhattan leads the pack, with hyper-luxury areas commanding astronomical figures.
- Most Expensive Neighborhood: Hudson Yards is recognized as the most expensive neighborhood in NYC, with a median sale price of roughly $5.95 million. TriBeCa is a close second, routinely seeing median sale prices around $4.15 million.
- Rental Costs: The average rent in Manhattan fluctuates between $5,200 and $5,600, though ultra-luxury pockets like Sutton Place can see median rents soar well beyond $8,000 per month.
2. Incorporated Cities & Suburbs (Outside NYC)
If you exclude the five boroughs, the highest costs of living shift to elite suburban enclaves in Westchester County and Long Island, per CBS news.
- Scarsdale (Westchester County): Tops the list for incorporated New York cities due to its extraordinarily high cost of living, premier school systems, and massive estate home values.
- Sands Point (Long Island): Located on Long Island’s Gold Coast, this area boasts average home values approaching $3 million, with massive monthly mortgages and high property taxes.
- Rye & East Hills: Both of these locales rank alongside Scarsdale as some of the most expensive non-NYC cities in the state, driven by proximity to the city and waterfront luxury.
For more context, Manhattan has a land area of approximately (22.66) square miles, and an additional (11.2) square miles of water, bringing its total area to roughly (33.8) square miles.
According to CNBC, to be in the top 10% of households in the United States, you need an annual income of at least $251,036 or a net worth (total assets minus debts) of approximately $1.6 million to $1.8 million.
Nationwide thresholds for the top 10% vary depending on whether you are measuring annual income or overall wealth:
Income (Annual Household Earnings)
- National Threshold: Households earning $251,036 or more make up the top 10% of earners. (For context, the national median household income is around $83,730).
- By Location: The exact number changes significantly depending on where you live. For example, in California, you generally need to make over $311,000 to be in the top tier, while in states like Mississippi, the top 10% threshold is closer to $200,900.
- Individual Earners: For single filers without combined household incomes, breaking into the top 10% starts around $135,000 to $170,000, depending on age and location.
Net Worth (Total Assets & Investments)
- National Threshold: A household requires a net worth of roughly $1.8 million to be in the top 10%.
- By Age: Net worth expectations shift heavily depending on your stage of life. While the threshold is around $1.6 million across all ages, that figure climbs closer to $3 million for households in their 60s
Even though Washington has no state income tax, which helps him save about 10% more of his take-home salary, he still feels it’s not enough to support his family of four.
Mr. Jain is a senior product manager at Amazon. He moved from one high cost state, California, to another one; Seattle, where the median home price is $850,000.
He is feeling the squeeze because of being in a single-income household with a wife, a child, and another kid on the way, which makes things feel tight with the rising costs of healthcare, childcare, and living expenses.
The problem with using a high income as a signal of success or failure in life is it often comes with consequences. This is especially true once kids enter the picture. The goalpost keeps moving. The barometer for success gets higher.
They say if you want to lessen the pool of highly qualified applicants or increase your options of better candidates such as those applying to Yale or Harvard, then just keep increasing the selection criteria for more exclusivity.
In the 1960s, less than 30% of all married households were dual-income families. That number has now more than doubled to more like 60%.
There are reasons for this change. Having children is more expensive than it used to be. The cost of education is higher. The cost of childcare is higher. The cost of housing is higher. The cost of transportation is higher.
Everything is more expensive.
And this gentleman believes $300,000 just isn’t enough to make it out here.
So what gives?
How did we get here?
Let’s break down his income and expenses shall we.
His monthly take-home pay is about $12,000 after taxes and 401(k) contributions.
Considering that the average annual wage in the U.S. is approximately ($64,505) to ($66,622) for individual workers, I would say $300,000 should be more than adequate to take care of a family. However, living in high cost states can definitely hold your wallet hostage with how quickly the monthly bills add up!
Housing is a big ticket line item with a high fixed expense
Mr. Jain lives 30 miles north of downtown Seattle in a four-bedroom single-family home. The area he lives in has a strong school district, and many people moved here during the remote-work boom. He bought his home in 2023. His mortgage is about $5,000 a month, including taxes and insurance.
This would estimate that he has a home with a $600,000 mortgage.
On a $12,000 take-home of salary, this is a huge chunk of his income at about 41 percent.
Utilities total about $800 a month. That includes about $300 for electricity and water, which also covers charging his Tesla at home; $125 for sewer; $20 for gas; $130 for trash; $70 for internet; and $100 for phone.
Just housing and utilities take up 50 percent of his take-home pay!
He pays $750 per month for a family health insurance plan.
Debt is pretty significant as well for this guy.
He has around $20,000 in personal debt from expenses and travel last year. He also is carrying mortgage debt from his home and an investment property. In addition, he has a Tesla with a car payment, but he has fully paid off a Range Rover.
Groceries is another big bill for this family. Their Costco bill alone is around $1,500 a month, including groceries, household items, decor, toys, and more. Outside of Costco, they spend another $400 to $500 monthly on additional groceries.
Hiring help also costs a pretty penny.
They hire nannies on an as-needed basis, which costs about $100 to $250 per day, depending on the hours. In a single-income household since his wife isn’t working right now, childcare expenses feel significant regardless of income. Between childcare, healthcare, and the general cost of living, expenses add up quickly.
No kidding!
I paid my taxes, got my car repaired, and went to the salon and spent about $5,000 in one week!
I mean, it’s hard out here for a pimp, trying to get this money for the rent! And rent is always due on the first!
Transportation costs add up quick too
He does have a Range Rover that is fully paid off, though he still spend about $100 a month on gas. There is a $630 monthly payment on his Tesla. And when he travels outside the Seattle area he spends an additional $50 to $100 on public charging. Car insurance is about $260 a month total for both their vehicles.
Big Savings Goals
Mr. Jain has a goal to retire around 50
Within the next 10 years, he stated he should be able to add another $1 million to his assets. He contributes about $2,000 a month to his 401(k) and about another $2,000 a month in cash. In total, he saves roughly $50,000 a year.
That is massive! He is saving $100,000 every two years!
Being a financial independence blogger, seeing that level of saving just warms my heart. Being financial independent (FI) gives you options in life and allows you to walk away from bad jobs and stressful situations. I am all for being FI.
I started my million-dollar financial freedom journey back in 2012.
I’ve gone from $25,000 to about $600,000.
I am just 3.5 years away from $1 million in investable assets. I estimate that I would have this amount in my 401k in about 1200 days based on what I am investing and earning in interest and dividends.
Getting back to the story, he stated that he would feel more comfortable earning between $400,000 and $450,000. That would make him feel more financially secure.
That statement above is what caused the uproar online as many people feel that earning $300,000 should be more than enough to meet your basic needs and living expenses and then some.
However, after adding up all his after-tax expenses, I estimate he is spending approximately $11,400 per month. That leaves very little left over from his $12,000 net pay.
The real reason he feels that $300,000 is not enough is because his fixed expenses are so high.
Although he is saving a ton of money before and after-tax, with his mortgage and utilities gobbling up 50 percent of his take-home pay, makes a huge dent in his wallet!
Just paying off the $630 car payment for the Tesla would free up some cashflow right there that he could put in an emergency fund.
He is still trying to also add money to his kids 529 plans for college.
That’s another bill!
However, he is basically maxing out his 401k with the $2,000 he puts in there every month, which is $24,000 a year. Therefore, he is not being frivolous with his earnings.
If he started maxing out his 401k at age 30, then within 17 years, he would have over $1 million saved for retirement with a 10 percent return.
In my POV, he is doing very well.
I personally do not want high fixed expenses, as I prefer to increase my savings rate every year.
The lower the expenses, the higher the savings rate.
The more you earn, the more you are taxed.
Therefore, you should aim to save more as your investments grow tax-free. Additionally, in a Roth IRA your money grows tax-free and is withdrawn tax-free which is the double advantage of this savings vehicle.
So if you are one of the chosen few lucky enough to get your hands on $300,000, then max out your 401k and Roth IRA.
Your future self will thank you.
About the Author
Miriam started Greenbacks Magnet in 2016 to keep a scorecard of her goal of $1M in investable assets. Armed with a Master in Management (MiM) and a calculator, she teaches readers how to achieve financial independence while also helping them learn how to smell the roses along the way. The palpable response she got from sharing her personal finance goal in a public speaking course at Georgetown University encouraged her to share her story and teach finance on her website. She invests in AI companies as artificial intelligence is the new iPhone of the moment as she likes to invest in companies that are disruptive.