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Well who knows how much college will cost down the road, but who knows if we will all be alive and on this planet by then? So that's not a worthwhile discussion.
Ah but speculation is the whole point of this thread...
Unless your a Veteran forget the federal job... Almost all federal jobs now require you to claim veterans preference or be a current federal employee to apply. I'm going through the process and had multiple interviews for GS-11 and 12 jobs within the last 2 months. It's extremely competitive.
$65 a year for the rest of your life? What is the guarantee? Your wife works?
Quote:
Originally Posted by the city
Say I am going to make $65,000 for the rest of my life, and I have a wife, and 2 kids:
Can I buy groceries from a natural food market like Trader Joes and Whole Foods-like markets?
Can I be able to get clothes once or twice a year from Macy's, Gap, Express, Banana Republic, and Men's Warehouse? And a wife who can shop at Macy's, Chico's, Banana Republic, Gap, and Sephora?
Can I able to take vacations to Hawaii once a year or every other year?
There's nothing here we don't understand. I just think you have no concept what it takes to run a household. I mean, did you expect us to strew rose petals in your path and say, "Bravo! Great Plan"?
We've looked over your numbers and found them to be wholly unrealistic. You asked, "Can I live this lifestyle on this income?" and we pretty emphatically told you 'no.' And regurgitating up the same basic numbers over and over again with minor variations won't make them any more workable. You need to make, at bare minimum, $80,000 to make this work. Even then, you'll undergo some serious hardships.
You, yourself, said that with $65,000 I would be getting by. $50,000 less on my home and tithing would make it still doable as you said.
Ah but speculation is the whole point of this thread...
Not like 20 years down the road. I am talking like 2 years ahead.
And ask for the federal job. The prison I am looking at for the job veteran's status, ha ha, doesn't mean much. You need some one with good strong education, and experience, and not only that but the guts.
But I get the point on this thread, unless my wife works, I should go for a higher payed job otherwise I will be on a very tight budget.
And I'm not looking for a "congratz, you made a great plan" I am looking at HOW I can make a great plan and people can't seem to help make a great plan since only one person who posted here is from California.
And Im not looking for a full on budget, but a general plan.
You, yourself, said that with $65,000 I would be getting by. $50,000 less on my home and tithing would make it still doable as you said.
No, I didn't. I ran down your list of expenses and said that you would have next to nothing left over, and that's assuming that you can actually get by on a $416 monthly food budget. That's a grand total of $13 a day. Divided by four, that's $3.25 a day per person to feed your family. That's $1.08 per meal per person. And that's before you start adding up the dozens of minor expenses that you have to expect every single month. What's more, you haven't bought the first stick of furniture, the first dishtowel, the first toilet brush. All those little things that you need for a house to even function add up to the bucks.
Man, you're what age? I'm guessing early to mid-twenties. When a bunch of thirty- and forty-somethings are all unanimously telling you that it can't be done, then maybe you need to listen. Heck, many of us have gone through the trouble to figure out your take-home, your property taxes, etc. What? You think nobody on the planet before you ever figured out how to live on a shoestring? You think you're the first person to create a household budget? All of us have done it, and we're telling you that there's no. freaking. way.
I mean, why the hell did you ask our opinions in the first place if you were just going to blow us off? We're just trying to tell you that you are living in your own little world if you think this is going to work. You are courting disaster. You, at best, will be able to afford a 10th anniversary trip to San Diego. If you save really hard and providing the furnace or the transmission doesn't die on you.
Right off the bat, I'd like to tell you how WONDERFUL I think it is that you are planning ahead and trying to get a handle on your financial future! Great job.
I have a couple of suggestions to help you get off to a good start on your budget. Years ago, when my husband and I were a young couple starting a family and moving to California on one salary, we too struggled to figure out how we would make it work. I happened upon the Crown Financial Services website and found some tools and calculators that helped us tremendously.
Here's an article that gives some very basic information about budget building, including percentages to allocate per category.
One thing that jumped out at me when reviewing your working budget is home insurance. Despite what your father is paying, I think your costs will be much higher. In 2005, we were paying $1200 a year through USAA for a house with a replacement cost of about $120,000. We were also paying approximately $500 per year for earthquake insurance. Currently, the California Earthquake Authority gives the average cost of coverage at $600 per year. We did not require flood insurance, but you might depending on the location of your house.
You mentioned that you are expecting help on your down-payment. Remember that any money you receive has tax implications. It gets pretty complicated, but it appears that as of 2009, the annual exclusion allows each of your parents to gift you up to $13k ($26k total) without incurring taxes. Here's an IRS link with more information.
A 20% down-payment will get you out of paying PMI (private mortgage insurance), the second "I" in PITI. On a $300k mortgage, you will need to bring at least $60k to the closing table.
Also, I feel as if I should warn you about buying foreclosures. Been there, done that. Repair and maintenance on a foreclosure can be substantial. Be sure to have a VERY good home inspection and leave yourself a bit of breathing room in your budget for problems that crop up after you've moved in.
That's all I have for now, but once again, kudos on planning for the future!
And ask for the federal job. The prison I am looking at for the job veteran's status, ha ha, doesn't mean much. You need some one with good strong education, and experience, and not only that but the guts.
You know when the resume's are screened they are sorted into categories, then veteran points and federal employees eligible for their programs are given additional points that almost always move them ahead of outside candidates. Having spent over 6 months on this process and having multiple interviews and feedback for 2 jobs that I finished in the top 3 for doesn't make me an expert but does give me a little bit of knowledge about it. If you go head to head with people in these categories they win 99% of the time because they get extra points. They earned them by the way...
When agencies use a numerical rating and ranking system to determine the best qualified applicants for a position, an additional 5 or 10 points are added to the numerical score of qualified preference eligible veterans
When an agency does not use a numerical rating system, preference eligibles who have a compensable service-connected disability of 10 percent or more (CPS, CP) are placed at the top of the highest category on the referral list (except for scientific or professional positions at the GS-9 level or higher). XP and TP preference eligibles are placed above non-preference eligibles within their assigned category.
So are we assuming that this guy will have 100% employer-paid health insurance with zero deductibles?
You need to factor in monthly payroll deductions AND hefty co-pays and out of pockets.
Also, the last time I checked, both the state of CA and the federal government were in deep trouble budget wise. I wouldn't plan on anything being written stone, esp. generous healthcare benefits for state jobs.
Life insurance will also run you around $50 a month for husband/wife to have $500k each. That's what we are paying (total for both of us). You definately need that after you have a child, and if you have a huge mortgage. (which you are factoring in) $300k home on $65k wage is way out of control, just FYI. I also think your food budget is way low.
The OP looks like a financial wreck waiting to happen.
-What about federal/state income tax? FICA tax? State SDI tax? Those alone add up to over $10,000 annually.
-What about toys and diapers and bicycles for the kids? A new computer every few years? etc
-A $300k house in SLO will be in an area with bad schools. Are you sure you want your kids going there?
-Where will you get the money to furnish your house with furniture, window coverings, and appliances?
-And You're planning to save $2500 per year for retirement and emergencies? Lol . You need to multiply that by 10, at least.
-What about saving to move to a better neighborhood down the road, or do you plan to live there for 50 yrs?
-What if you get laid off?
In a nutshell, you sound like those people I read about on yahoo finance -- the ones who lose their jobs and get foreclosed on because they were one paycheck away from disaster.
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. You need to multiply that by 10, at least. 
