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Who is able to live on $40,000 a year or less including taxes, and paying your own health insurance? If so, what part of the country do you live in? Are you single or a couple or a family? Do you rent or have a mortgage? Do you feel that you do without a lot in order to manage?
i make more than that but i live on less than that since i save a decent chunk. its not hard at all for a single person in an area with an average cost of living, but i couldnt imagine raising a family on that income.
I know a college student who lived on $400 a month for quite awhile (not including college loans). He has two other roommates in a low rent apartment, he eats cheaply, and walks or rides a bike.
Someone else I know has not had a job in several years - no income. He "couch surfs" and no car. And he is young and good looking. I suppose if he was old, fat, and bald, he might not have so many offers?
Some people I hear of live on 10k a year.
One lady I heard about had to choose between heating for her home and food. She had a job, but I think it was part time.
A LOT of people live on less than that in the U.S. Even moreso with the economy the way it has been the past few years. If your family can't live on that then you have budgeting issues.
Live on less than that in one of the most expensive cities in the country. It was quite doable with roommates (though I had no student loans, I walked and took public transportation).
When you have serious health issues, though, that doesn't go far. I have to forgo a lot of follow-up cancer treatment appointments and suggested complementary care (mental health specifically) because I cannot afford the copays on my salary.
I lived on $1500/mo when I made less than $40K/yr (and still live on that even after getting raise to over $40K/yr.) This is in Southern California.
A friend of mine when looking for jobs lived in San Francisco on less than $1000/mo. I'm serious! He rented a room in a home in the Sunset district for $600/mo, got a bus pass for less than $80/mo and cooked at home. Those were pretty much his only major expenses.
I lived on $23k last year, but I had quite a few non typical expenses. A trip that cost me 1.2 k, car repairs that cost over 1k, I did some landscaping (before I knew that I would need car stuff) for about 1k and a few other minor things. Most years, for the past 7(the time I haven't worked) I come in around 18-19k. I own a modest home, pay for my own high deductible health insurance. Live in the midwest, but other than housing I don't see a whole lot of difference price wise from other areas. We sure pay more for fresh veggies and fruits etc.
I think I have quite a good quality life, I have all my needs met and some of my wants. I really don't even want for much, I am a person of few wants. I can curl up with a good library book and a cup of tea just as well as some other more expensive thing. I have activity limiting health issues which I would love to not have, but don't think that is going to disappear.
Well, I'm talking about living on your own in either an apartment or a small house. Not having roommates. Having a car you have to pay insurance for and gas. Don't forget about $6,700 of that income is going to Uncle Sam, so in reality you are left with $32,300 a year or $2,691 a month (provided you don't have to pay state taxes too)
So you have either
Rent or mortgage or mortgage free: $
Home Insurance $
HOA Fees $
RE Taxes $
Electric $
Water $
Sewer & garbage $
Lawn maintenance (if your disabled)
Auto Insurance
Cable (if you have TV)
Telephone
Internet
Health Insurance
Prescriptions and co-pays
Food
Repairs
Misc. (All the rest: Hair cuts, dog food and vets, dental, car registrations, Christmas, Birthday gifts, clothing, new computer or printer, paper, ink etc, etc, etc.
I know you can rent a room from someone and not even pay utilities sometime, and not drive. I understand that. In those cases you can live on way less. But I not talking that kind of choice. I'm talking about wanting to live on your own in your own place, have some kind of transportation.
I was more curious about those who have their own home or apt, and pay all these considered normal expenses. Can you do it? What state do you live in, if so. For example, I live in an upscale town, but live in the cheapest possible place which is a very small 2 bedroom, one bath duplex in a senior development. It's a nice well kept older neighborhood. Now with the drastic fall in real estate prices worth only about $70,000. Car insurance is very expensive here. About $1,300 a yr. Internet alone (no tv) is about $65 a mo. Health insurance is higher here. Property insurance is higher here. Electric is quite high because of the need for AC. (average about $200 a month) Water is high $70 mo.
I live in Southern Florida. So I can't help wonder how much less some of these costs might be in other parts of the country. Besides the cost of real estates, are all these other costs lower (internet, electric, water, insurance, etc) What makes them lower cost of living? Is food cheaper? Is electric and water bill cheaper. Is insurance cheaper? If your up north, than you have heating costs as well. In other words, where do you benefit from lower costs without living in a bad neighborhood or crime ridden area or totally isolated from major stores, doctors, hospitals etc.
AquaBlue: Would you mind sharing some of your monthly costs? Like what you pay for RE Taxes, home insurance, utilities, med insurance, internet, car insurance. You know all those things we have to pay each month no matter where we live. I'll share mine as well for comparison sake.
Last edited by modhatter; 03-09-2012 at 09:09 AM..
When I graduated college I got a job downtown Chicago that was paying me 38K a year. But, I didnt have a car and I had roommates. I had quite the luxurious lifestyle, $100 bar tabs were common. Haha. Anyway, like the OP said, to have a car and your own place, and your own bills. No thank you. Especially not if you live in Chicago. 40K a year is nothing for supporting yourself without help, at least in any major city. I am sure in rural areas 40K is quite a bit.
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