Can a family of 4 live off of $55k in Austin? (Atlanta: apartment, rent)

[sm.short]

We are paying on a 2010 Corolla at 2% interest. I looked into trading down or selling and getting a smaller payment but nothing has worked out so far. We are running out of time to make a decision and it's a bit scary. I really appreciate all the input.

[Zembonez]

People (not from here) may claim you can live well on 55K but frankly you are going to have to budget very well. 900 for two bedroom living is possible but you are going to have to really look around.

[passionatearts]

I can't imagine anywhere in the U.S. where a family of 4 could live comfortably on only $55,000/year.

[Austin97]

Originally Posted by drshdw

55k is going to be hard. What do y'all do for jobs?

I dont see it as being that hard at all


I strongly disagree. 55K for a family of 4 is plenty if you live frugally. Since you stay at home, cooking most meals from scratch

No state or city taxes


Gross pay $4,583.33
federal income tax $408.45
social security tax $192.50
medicare tax $66.46
state income tax $0.00
city income tax $0.00
deductions $0.00
final pay check $3,915.93

Take home pay 3915
Rent 900
Utilities 60
Phone 100
Cable 50
Car 450
Insurance 120
Food 480 ($4/day per person)
Health 250 (employer pays)
Gas 250 ($60/week)
Entertainment 300
consumables 150
Total expenses 3110
Short term saving 405
Long term saving 400

If you do long term savings into a 401K or something you actually get more take home pay.

[maestro9]

Originally Posted by Austin97

I dont see it as being that hard at all


I strongly disagree. 55K for a family of 4 is plenty if you live frugally. Since you stay at home, cooking most meals from scratch

No state or city taxes


Gross pay $4,583.33
federal income tax $408.45
social security tax $192.50
medicare tax $66.46
state income tax $0.00
city income tax $0.00
deductions $0.00
final pay check $3,915.93

Take home pay 3915
Rent 900
Utilities 60
Phone 100
Cable 50
Car 450
Insurance 120
Food 480 ($4/day per person)
Health 250 (employer pays)
Gas 250 ($60/week)
Entertainment 300
consumables 150
Total expenses 3110
Short term saving 405
Long term saving 400

If you do long term savings into a 401K or something you actually get more take home pay.

Well done...!! I like when you offer opinions and illustrations, plus facts. Unlike others like, what's its name???/ eetstains??? or something like that.

[Tim_Barton]

55k can be done, just like in OH!!

If you can find rent (house or apt) for no more than 900.00 and you take care of your kids (stay @ home mom) it can be done.

The only killer I think is paying over $400 for a darn corolla.
*** Just a thought and I know your only paying 2% apr on it, but would you consider maybe a slightly higher APR rate and going a longer term? If so, I can see you paying only about $200-$250 a month for that little hoot (corolla). Its a great car and on gas and very reliable, but not a $400 car payment . If you could do a refi (check with your bank / CU) and see if they can get your payment lower. if so, this will help your family out.

Come'on out. You can find low cost rental homes in the Kyle / Buda area or if you prefer north, maybe P'Ville, Round Rock and of course Hutto can be on the globe for check out!

Good luck!!

Originally Posted by sm.short

I am moving to Austin from Ohio and need to know if $55k is a reasonable salary. My husband and I have a toddler and a baby on the way. I will not be working so I am wondering if $55k is enough to live on out there. We currently have a car (paying $420 per month including insurance) but are not opposed to selling it. Our cost of living here in Ohio is about $2900 per month including rent, car payment, groceries and all bills (electricity and heat cost around $300 per month total in the winter). Our combined salary right now is $46k. I am really clueless how to make all this work. Here are my questions:

Is $55k enough?
What is the approx bring home for $55k?
Is $900 per month a good rental estimate for a safe neighborhood?
Are utilities expensive?
Is daycare expensive if I needed to get a job?

Any other info would be greatly appreciated as well. I don't want to blindly move out there without a plan. Thanks!

[Austin97]

Originally Posted by Austin97

I dont see it as being that hard at all


I strongly disagree. 55K for a family of 4 is plenty if you live frugally. Since you stay at home, cooking most meals from scratch

No state or city taxes


Gross pay $4,583.33
federal income tax $408.45
social security tax $192.50
medicare tax $66.46
state income tax $0.00
city income tax $0.00
deductions $0.00
final pay check $3,915.93

Take home pay 3915
Rent 900
Utilities 60
Phone 100
Cable 50
Car 450
Insurance 120
Food 480 ($4/day per person)
Health 250 (employer pays)
Gas 250 ($60/week)
Entertainment 300
consumables 150
Total expenses 3110
Short term saving 405
Long term saving 400

If you do long term savings into a 401K or something you actually get more take home pay.

Ok in looking more at what kind of housing is available, my recommendation would be to go to more of the 1000-1100 range which opens up the possiblities a lot. Focus on a duplex south, north central or northwest (there are some in the northwest hills area. But if you are ok with an apartment you have even more choices.

I would cut entertainment by 50. I would try to get a less expensive used car and get my car into the 2000-3000/year range. This would free up 200 or so/month

There is plenty to cut with regards to phone ( I assumed cell phones and land line). No cell phone would get you down to about 50 for just a land line.

If you cut cable that helps even more.

[Tim_Barton]

Hi Austin97,

great concept and seems workable, but one question and something is missing on your calculations.

How about health insurance?? I can assure that the hubby will be offered it and I know he maybe will be 100% , but kids and spouse is going to cost. So lets just say $200 a month for health insurance. Looks like savings is going to be tight, but at least it can be done, right ?

If the family is offered health insurance, don't decline it

Originally Posted by Austin97

I dont see it as being that hard at all


I strongly disagree. 55K for a family of 4 is plenty if you live frugally. Since you stay at home, cooking most meals from scratch

No state or city taxes


Gross pay $4,583.33
federal income tax $408.45
social security tax $192.50
medicare tax $66.46
state income tax $0.00
city income tax $0.00
deductions $0.00
final pay check $3,915.93

Take home pay 3915
Rent 900
Utilities 60
Phone 100
Cable 50
Car 450
Insurance 120
Food 480 ($4/day per person)
Health 250 (employer pays)
Gas 250 ($60/week)
Entertainment 300
consumables 150
Total expenses 3110
Short term saving 405
Long term saving 400

If you do long term savings into a 401K or something you actually get more take home pay.

[tibbar]

Years back when we had access to health insurance from IBM it was closer to $6oo a month for spouse and kids. My Daughter's husband will have to pay close to $1000 a month for spouse and child......needless to say on his city workers salary (different Texas city) they won't be insuring her and the child.

[kbchitown]

To expenses add diapers, clothing, toys....children are not inexpensive. That being said, be very careful. If you are under the assumption (as was I, also being from the midwest) that your cost of living will be drastically lower in Texas...WRONG! I am from the Chicago area and I find Austin to be as, and in some respects more expensive. Utilities costs in particular are a shock...even in an apartment. Summers here are long, hot and brutal...$60 a month for utilities? Expect electricity to be closer to $200 a month when the ac runs constantly (and btw...keep in mind that apartments are notorious for energy INefficiency). Expect to run the ac from April/May to Oct/Nov...and if you or your children have allergies...