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• This family pulls in more than $1 million in salary annually. 
• There is a concern about spending too much time working on the Redditor’s part. 
• With significant yearly expenses, stopping work in their mid-30s may be challenging. 

For most people, earning $1 million annually feels like a dream. In the case of this Redditor in the r/fatFIRE subreddit post, it’s every bit of a reality. Of course, you think your financial concerns will diminish with earning more money, but that isn’t the case. 

Even those with money to burn, like this Redditor, still have to consider how to handle their financial situation to live the life they want and give everyone the lifestyle they hopefully deserve. While that might sound dramatic, this is the scenario this Redditor is trying to work through.  

I enjoyed reading about this post because even with a net worth of $15 million, you must consider approaching your future smartly and intentionally. 

The Scenario

While this post provides just enough information, we only know this couple is in their late 30s and has two children of elementary school age. As far as what we know financially, we know that the husband earns around $800,000 annually as a corporate executive managing a large team, and the wife brings in another $250,000 from her job. 

This success has allowed them to accumulate a net worth of $15 million. However, there are some concerns over their spending habits, around $500,000 annually. To hit this number, they are spending $100,000 on what we assume is a private school, $80,000 on childcare, $20,000 on after-school activities, and $150,000 on rent. 

An additional $25,000 (still included in the $500K monthly spend) is also spent on asset management, accounting work, etc. The crux is whether he can step away from his job and maintain the family’s high cost of living while his partner continues to work. 

The Recommendation 

I’ll caveat this by saying that I’m not a financial advisor, so any recommendations should be made with a grain of salt. While some Redditors in the comments were shocked at how much they spend on their kids, I, for one, am not. Knowing the cost of local private schools and after-school activities in my area, $200,000 annually isn’t so crazy. 

As the father wants to not look back on his life with regret that he spent all of his time working and not enough time as a father and partner, a change has to happen. We know he doesn’t enjoy his job, even with all the financial perks, so it will be okay to walk away. The larger concern, if he stays, is potential burnout, which is another reason to step away from the job. 

He could attempt to find another position to make commensurate income without the stress level. However, this may not be immediately practical as high six-figure incomes are competitive and quickly snapped up. 

What’s most notable is that he is still in his late 30s, so there is time to right this ship. Get off the crazy work train and figure out how much you need to earn to keep your lifestyle while still allowing yourself more time at home. 

The Takeaway

This is a particularly tough post to navigate because, on the one hand, you have someone with a net worth that is high enough to retire. With a 4% return, they should be able to make $600,000 in interest plus the wife’s income. However, it’s their high spending rate that is room for concern. 

Taking the kids out of private school is probably not on the table, so the best solution is to find another job that pays well enough without the stress level. This seems like the only viable path forward, outside of taking a sabbatical, which the Redditor’s company may not even allow. 

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