Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Whether or not it is possible depends on the person. Can a frugal person who does not go out and only needs the bare neccessities live on $40K a year? I would say Yes. Can someone who likes to enjoy certain things like going out with friends on the weekends, trying out new restaurants, going on vacations, and still be able to save for a rainy day or the future? Then probably No. We're all different people, so the OP or the person making the $40K needs to ask themselves that question. What is important to them?
$300 a month for food averages out to about $10/day for breakfast/lunch/dinner. Possible? Yes. Will it work for me? No. I rarely cook and working in midtown, going out to lunch is about $8-$10 easy. But that is what I enjoy.
So the question is pretty subjective. As some people has mentioned, they feel cable is a waste of money. But I enjoy my sports, so I pay extra for HDTV and DVR service too. But that is an extra $22 (avg) that I choose to spend.
Also to give an example, I have a friend that lives in a $800/month Studio in Astoria and he makes about $42K/annual. He goes out occassionally for drinks, but only local spots so prices are reasonable. He cooks a little, so does not eat out often. He has a company car and gas is reimbursed, so no transportation fees. He lives ok, but barely saves since he only has a couple of hundred leftover at the end of the month. He always says, he is screwed if a large expense (even $1,000) comes along his way.
So, no health or dental insurance, no clothing allowance, no laundry, no dry cleaning, no renter's insurance, no 401K contribution? And $300/month for food isn't much at ALL: no meals eaten out at work (like lunch) would be needed to meet this goal.
Sorry, but I think you're way too optimistic.
health or dental is taken out of your paycheck before you receive it though (generally), so it's not like this money is hurting you any b/c you are not really missing it- it's not coming directly out of your pocket so-to-speak. Perhaps same with the 401k. I don't consider those to be "monthly expenses" for me.
What this poster also forgot to mention was any credit card payments, fun expenses, cell phone, perscriptions that you may have to pay a co-pay for etc. etc.
There is probably so much more than that. $40k is tough to live on.
health or dental is taken out of your paycheck before you receive it though (generally), so it's not like this money is hurting you any b/c you are not really missing it- it's not coming directly out of your pocket so-to-speak. Perhaps same with the 401k. I don't consider those to be "monthly expenses" for me.
What this poster also forgot to mention was any credit card payments, fun expenses, cell phone, perscriptions that you may have to pay a co-pay for etc. etc.
There is probably so much more than that. $40k is tough to live on.
No, I think you're confused. Health/dental and 401K come out of your paycheck IN ADDITION to the taxes. So it's FAR less than the $2500/month that was estimated would be in the paycheck. And if you've got a Roth 401K, then that's an AFTER tax expense, also taken out of your paycheck so the paycheck would still be less than the estimate.
The 32,500 was AFTER taxes but didn't include the health/dental/40K, etc., which would be MORE money taken from that 32,500. So it'd be far less than 32,500 that would be available for spending.
No, I think you're confused. Health/dental and 401K come out of your paycheck IN ADDITION to the taxes. So it's FAR less than the $2500/month that was estimated would be in the paycheck. And if you've got a Roth 401K, then that's an AFTER tax expense, also taken out of your paycheck so the paycheck would still be less than the estimate.
The 32,500 was AFTER taxes but didn't include the health/dental/40K, etc., which would be MORE money taken from that 32,500. So it'd be far less than 32,500 that would be available for spending.
I got that...what i meant is when you get your check, the health & dental and taxes have already been deducted from it...it's not like this becomes an additional out-of-pocket expense after the fact. Based on the first post, I figured the $40k was his take-home pay after all the stuff was taken out of it.
I do it. Of course it's possible, but it's inevitably hand-to-mouth. The biggest issues are: (1) it very difficult/impossible to live alone unless you have long commute; (2) no significant saving/investment and (3) nothing resembling a vacation.
It depends on what's important to you. I could make far more money than I do, but then I wouldn't have time to pursue other things. I could live far more cheaply elsewhere, but then I wouldn't have the opportunities/experiences that I have in New York.
It would be especially problematic if you didn't receive some added benefit, be it professional or emotional, from living in New York. In that case, I don't think it would be worth it.
The 32,500 was AFTER taxes but didn't include the health/dental/40K, etc., which would be MORE money taken from that 32,500. So it'd be far less than 32,500 that would be available for spending.
It would be more deductions, but it's not that big of a difference. My benefit deductions at my first job was about $100 for the month ($40-$50 each paycheck). 401K is adjustable and optional, he can put 2% (which is barely anything at $40K) or even choose to contribute $0, so that can be a non-issue.
Yes, I realize that. But overall this is a completely unrealistic budget. The lunch is a minor issue.
I don't know, making and bringing your own lunch every day can save you lots of money. Especially if you know how to do it on the cheap. I've seen some masters of this craft--they know how to save every last ketchup packet. Of course, I could never do this. When I made this much money I lived on my credit cards. I would have been dressed in clothes from the Salvation Army without credit. I never went on a vacation or made any major purchases, just barely got by and never saved a dime.
Hell to the no! It's just not feasible in this economy. $40k in NYC, you can live, but you just will not be happy after everything is paid and you have no money left over.
The best post Guaranteed in the forum well atleast so far
Folks don't be fooled, there are tons of people living quite comfortably in new york city under 40k. Why, hmmmm
lest people forget , there are people in rent stabilized and rent controlled apartments and housing projects, BUT NOT ALL housing projects are bad, but that's just the tip of iceberg
Does anyone realize that not all new yorkers have a mortgage on their residence, even some that do may have a lower percentage left. 2-3 Family dwellings are common , a senior citizen can live in a unit, and use public transportation.
Let me tell you something, many new yorkers leave in stable/decent neighboorhoods , they bought their homes for 200-300k adjusted for inflation , 4-5 bedroom homes, suburban lots, decent schools or less money.
Some people living in rent control/rent stabilized apts, cooops , public housing, townhouse style, they shop at costco/bj's - they live a very well middle class lifestyle.
Now 40k is a bit low, but 50-60k, new york housing policy tends to favor the people already here for the most part. Don't forget medicare/medicaid and subsidies.
The question is what is your circumstance, speaking of 2-3 family dwellings its not uncommon for a person's family member to live in one of the units at reduce rent, the cost of living in nyc is often exaggerated in certain respects.
There are articles on what will happen, but don't be fooled long term residents in queens, brooklyn, parts of the bronx , are doing quite fine, usually most of here for 15-20 years or more.
When I come back from college I am pretty sure I will make around 40k. Which to me doesn't seem as that much so I will suck my pride and live with my parents for a year or two. That way I would be able to buy a car, and save enough to be comfortable in a 1200 apartment (with roommates). Seems like everyone I know who graduated college still live with their parents till mid 20s in the NYC metro area.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
