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.
Me too but I don't believe it's a lifestyle everyone wants or could live with in the long haul.
It's easy to save money living the way we do. But should we be 'bragging' about the way we do it?
How is $25-30k/yr for one person with no car payment and no mortgage a Spartan lifestyle? Why do people keep saying this?
This makes me think people don't actually know what they spend per month or they are completely out of touch with the way the middle class lives.
The average American spends 37% of their income on housing. So...he still has to pay property taxes,homeowner's insurance, and utilities, so let's say we could add 25% to his income there to cover the mortgage. Then let's add 13% for transportation. Plus factor in he lives in a low cost of living area and let's remove income taxes from the situation as all capital gains would be tax-free at his withdrawal levels. So you'd essentially have to increase his income by about 65-75% to put him on par with the average American.
So..would you say that someone living with a roommate or spouse that pays all of their own expenses with an individual income of roughly $45-50k/yr in a low cost of living area is living a Spartan lifestyle? If you double that (assuming the partner makes the same) you're looking at a DINK household income of ~$100k/yr in a low cost of living area...sure seems Spartan to me.....
People just going to ignore this to argue with OP? In his previous thread he’d said he lives with an SO and they pay for their stuff and OP pays for his own stuff, like 2 roommates living together. It’s no different than a couple with a mortgage and car payment making $60-$65k/yr and one being a stay at home spouse. Not sure why so many people keep saying it’s a poverty lifestyle or somehow OP will run out of money. $25k/yr on $800k in investments is a 3.125% withdrawal rate in any historical simulation of the history of the market or any Monte Carlo simulation that would never leave you with nothing. Plus OP has already said they could cut it even further if they wanted to. It’s literally the lifestyle of the middle class.
She wouldn’t like the word roommate lol. But yeah, she works (less than 40hrs/week), pays for most of her stuff (namely car payment) and pays a few bills - basically like a normal couple with both people having jobs. I assume most women do contribute some portion of their income toward living expenses.
My income alone may be a little over $25k/year...
Some months I spend a lot but I always try to make sure I spend less than I make. Some months I’ll have a surplus of $100 and some months $1500. I figure this is my way of hedging my bets against the unexpected.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,352 posts, read 8,578,998 times
Reputation: 16698
Quote:
Originally Posted by mysticaltyger
It is, but it's very conservative. In most of those 30 year time frames you end up with A LOT MORE than you started with in inflation adjusted terms. It turns out the percentage you take out for a 60 year time frame isn't that much lower than the % you take out for a 30 year time frame.
Based on his previous posts, if Eddie is to be believed, he only spends 20k per year. So if he has 800k, he's well under the 4% rule. He can increase his spending somewhat up to 28k per year and still be very conservative (3.5% withdrawal rate).
I thought he spends 20 k on living and then says he will spend an additional 20k on discretionary items.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,352 posts, read 8,578,998 times
Reputation: 16698
Quote:
Originally Posted by eddiehaskell
Our lives aren’t much different.
I’m a member at the YMCA where I work out, swim and play basketball.
Yesterday I went and picked out a Christmas tree, set it up and decorated it. Today we put lights outside and went to eat at Texas Roadhouse. I also called about estimates to cut a tree down in the front yard.
I wake up at all different times because I never know when I’ll be going to bed.
I don’t know what I’ll be doing tonight or tomorrow other than watching the tree guy I hired when he comes at 10am...ugg I don’t do mornings.
Sure, you drive around in nicer cars, but ehh, I wouldn’t trade *waking up early*/*going to bed when I want* for the pleasure of driving ANY car on earth!! I swear. There aren’t too many material possessions that excite me.
I mentioned cruises not being that fun because it gives insight into the way some people are. Traveling just isn’t something that excites me. I prefer just driving for the occasional spontaneous 1-2 night getaway. Luckily I’m 2 hours from the Smokey Mountains and 3 hours from Myrtle Beach/Charleston/Atlanta.
I am tossing around big vacation ideas for next year, but who knows.
Yet you posted you want to get a new car every 6 to 9 months. That sounds pretty materialistic to me.
I drive nice cars and and still get up when I want. You made a comment about being upper middle class and I’m still waiting to hear your definition of that and being a .000001 person.
I have the car thing figured out, but don’t consider myself anything more than middle class. Nor do I consider myself as enlightened as you.
I considered big travel ideas being materialistic as that generally costs money, more than a 1 night getaway.
She wouldn’t like the word roommate lol. But yeah, she works (less than 40hrs/week), pays for most of her stuff (namely car payment) and pays a few bills - basically like a normal couple with both people having jobs. I assume most women do contribute some portion of their income toward living expenses.
My income alone may be a little over $25k/year...
Some months I spend a lot but I always try to make sure I spend less than I make. Some months I’ll have a surplus of $100 and some months $1500. I figure this is my way of hedging my bets against the unexpected.
It depends on what the couple prefers. We combine all of our income into one account. But I know others that keep it separate and like you said just kind of divvy up the expenses. It's probably easier to do the divvy method when both couples earn similar incomes.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,352 posts, read 8,578,998 times
Reputation: 16698
Quote:
Originally Posted by eddiehaskell
She wouldn’t like the word roommate lol. But yeah, she works (less than 40hrs/week), pays for most of her stuff (namely car payment) and pays a few bills - basically like a normal couple with both people having jobs. I assume most women do contribute some portion of their income toward living expenses.
My income alone may be a little over $25k/year...
Some months I spend a lot but I always try to make sure I spend less than I make. Some months I’ll have a surplus of $100 and some months $1500. I figure this is my way of hedging my bets against the unexpected.
Wait a second. You said you had 20 k a year in discretionary income so how do those numbers work out? If you averaged having an optimum surplus of 1500 a month that’s 18k, but that would mean every month is a 1500 surplus. But you said it varies so just taking an average of a surplus say 700 a month gives you 8400 a year.
Wait a second. You said you had 20 k a year in discretionary income so how do those numbers work out? If you averaged having an optimum surplus of 1500 a month that’s 18k, but that would mean every month is a 1500 surplus. But you said it varies so just taking an average of a surplus say 700 a month gives you 8400 a year.
Some months I may save/invest over $1500...I was just giving an example.
It really just comes down to how much we want to eat at home.
Yet you posted you want to get a new car every 6 to 9 months. That sounds pretty materialistic to me.
I drive nice cars and and still get up when I want. You made a comment about being upper middle class and I’m still waiting to hear your definition of that and being a .000001 person.
I have the car thing figured out, but don’t consider myself anything more than middle class. Nor do I consider myself as enlightened as you.
I considered big travel ideas being materialistic as that generally costs money, more than a 1 night getaway.
It’s called being spontaneous and doing something on a whim. I’m still plodding along in a Prius so obviously I’m not too materialistic. The day is coming though that I buy a new vehicle.
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.
