How much $$$ do you need to earn to live well? (San Antonio: lease, car insurance)

[fauve]

Originally Posted by mes271

I guess I needed to qualify my above statement--"no outstanding debt" included no car or house payment (i.e. owning both outright). Under those circumstances, 40k is fine.

Agreed...we're about to start doing just that.

[eger]

$40,000 = around $1150-$1200 bi-weekly depending what your deductions are for insurance and other things through work.

When you factor in rent or mortgage, and let's just say rent generally averages around a $900 decent one bedroom apartment, then factor in FPL's expensive rates for electricity ($150), then your cable and internet ($125 per mo) you've just spent 2 weeks of pay.

Now factor in any credit card debt you may have, car payments and car insurance that is going to eat up another 50% of your check.

So now your left with about $600 for 4 weeks to buy your food, gas, entertainment, your Starbucks Latte addiction would you really consider that living well or just getting by? I would consider it just getting by.

[fauve]

eger, read what mes271 said carefully - she said no car or house payments...

[mes271]

Thanks...it's a "he", but no offense haha

I come from a background that is extremely debt-averse. Everyone in my family has always owned their homes outright (no mortgage) as well as their cars. Never had any credit card debt (though I do have a credit card). It was always emphasized by my relatives to only spend what you have (and not all of that). Of course, I realize that for most people, this doesn't seem feasible--but the "solution" (easy credit) has just led to an increasingly onerous form of slavery...

[fauve]

lol, sorry mes - always 50/50 guessing...

I agree...debt makes no sense for someone who has to work to pay it...btw, I would disagree about mortgage debt however. I think there's going to be an ugly awakening for all these 'smart renters' when they wake up retired someday (either forced or unforced) without a paid for roof over their heads. If a mortgage is the only way to get it, than it has to be.

[eger]

Originally Posted by fauve

eger, read what mes271 said carefully - she said no car or house payments...

Ahhh sorry, I was at work so I zoomed though it. $40k per year, no house or car payments you're on easy street.

[eger]

Originally Posted by fauve

lol, sorry mes - always 50/50 guessing...

I agree...debt makes no sense for someone who has to work to pay it...btw, I would disagree about mortgage debt however. I think there's going to be an ugly awakening for all these 'smart renters' when they wake up retired someday (either forced or unforced) without a paid for roof over their heads. If a mortgage is the only way to get it, than it has to be.

I'm 33 and still renting, and I am keeping my fingers crossed this Obama tax credit that is avail to Nov will be extended another year to help some of us out.

While I do have a decent savings and could afford a down payment on a house, I would rather use the 8k I get from the Gov and sock away my savings for a rainy day.

[MisterNY]

Originally Posted by fauve

lol, sorry mes - always 50/50 guessing...

I agree...debt makes no sense for someone who has to work to pay it...btw, I would disagree about mortgage debt however. I think there's going to be an ugly awakening for all these 'smart renters' when they wake up retired someday (either forced or unforced) without a paid for roof over their heads. If a mortgage is the only way to get it, than it has to be.

Agreed to a certain extent. (Also, people will do what they can to put a roof over their heads), as long as they can afford to. Everyone's situation is different. I'm renting one of my parents' houses (at a rate too low to post ).

Also don't you think it's smart not having to worry about a high mortgage, insurance and property taxes in South Florida at the moment? I'm not expecting to be a renter for long. Once we leave the state of Florida, we're going to buy a house...In the meantime, I'll enjoy being the "smart renter"

[fauve]

It's such a tough time. I agree now may *feel like* a lousy time to be holding a mortgage, and paying taxes, but getting off that train can also be dangerous because of the years lost. I am 48 and already have peers discussing retirement target dates of 55 in part thanks to 30 year mortgages begun at 25. Having more options the older you get rather than less is preferable. And, obviously people in unique positions as yourself are the few and fortunate.

On a personal note - I never expected I'd not be able to find a job when I was ready, so I'm in a forced retirement of my own. If not for a house w/o a mortgage, we could potentially be in deep trouble.

[crisan]

Originally Posted by fauve

I am 48 and already have peers discussing retirement target dates of 55 in part thanks to 30 year mortgages begun at 25. Having more options the older you get rather than less is preferable.

I am not sure where I read this quote, maybe on a magazine on a plane ride. These are not the exact because it has been so long...

"You can be young without a lot of money but you can't be old." I used to think retirement age was a long way off but it is coming fast.

Only now am I realizing the choices we made in our twenties are greatly influencing our retirement. We will probably own our townhouse in 8 years but I wish we would have bought a single family house. Oh well, that was all we could afford right before the housing boom.