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My take home pay, while earning $135k per years was about $3800 every two weeks after taxes and benefits were paid. Let's set aside the two extra paychecks for a moment and go with the realistic position that I was clearing $7600 a month.
My monthly nut:
My mortgage payment was just under $3k.
Two car payments were about $700 per month totals ($3600 total)
Utilities were about $500 per month ($4100 total)
Cell phone cost about $150 back then ($4250)
Auto insurance was about $200 per month ($4450)
Internet/phone/television was about $250 ($4700)
Commuting costs were about $300 ($5000)
Gasoline cost about $180 per month ($5180)
Religion, including membership and education was about $250 per month ($5430)
Groceries ran about $250 per week, so let's say $1000 per month ($6430)
Equity loan to pay for emergency repairs cost about $600 per month ($7030)
Now throw in clothing, medical expenses, car repairs, birthdays, holidays, home maintenance and the so called extra two paychecks are gone. If there was enough left that meant we could do a bargain vacation.
We had almost no wiggle room most of the time and couldn't make much of a dent saving for college for two children.
All of this was while making $135k per year. If I wanted to be able to breath and afford our life without being afraid of an unexpected repair, I needed to make at least another $15k annually but ideally double that amount.
And as I pointed out, I could have made that amount work by trimming out many of the luxuries we truly enjoyed (we love our television, we preferred to feed our children more than pasta and bologna) but that wasn't going to be worth it for us. And I truly believe that living someplace where $135k isn't enough to cover a basic lifestyle is insane.
We moved instead to a place with a lower cost of living where I could earn to my potential and support a family.
$88k annually is not possible in Suffolk County unless you were given a house to live in.
We almost made the move to NC. How are you coping with not being by family? Did the county schools bother you? Very anxious to hear your take on the pros/cons. Thanks!
My monthly nut:
My mortgage payment was just under $3k.
Two car payments were about $700 per month totals ($3600 total)
Utilities were about $500 per month ($4100 total)
Cell phone cost about $150 back then ($4250)
Auto insurance was about $200 per month ($4450)
Internet/phone/television was about $250 ($4700)
Commuting costs were about $300 ($5000)
Gasoline cost about $180 per month ($5180)
Religion, including membership and education was about $250 per month ($5430)
Groceries ran about $250 per week, so let's say $1000 per month ($6430)
Equity loan to pay for emergency repairs cost about $600 per month ($7030)
Now throw in clothing, medical expenses, car repairs, birthdays, holidays, home maintenance and the so called extra two paychecks are gone. If there was enough left that meant we could do a bargain vacation.
We had almost no wiggle room most of the time and couldn't make much of a dent saving for college for two children.
You're splurging on two $350/mo. new cars, $600 monthly repairs for god-knows-what, entertainment at twice the avg, groceries at twice what we pay, $500 utilities, and extras like religion and you're saying no wiggle room. That is not a "basic lifestyle" as you call it.
I've wanted to say this a few times in this thread... the more you make (which happens in NY), the more you want to spend. Resist. Look at cost of living comparisons and the majority of the extra cost in NY is only housing. http://money.cnn.com/calculator/pf/cost-of-living/
You're splurging on $350/mo. new cars, $600 monthly repairs for god-knows-what, entertainment at twice the avg, groceries at twice what we pay, and extras like religion and you're saying no wiggle room...
I've wanted to say this a few times in this thread... the more you make, the more you want to spend. Resist.
They have the car loans and equity loans for repairs because they're not liquid and have nothing saved. That's why savings are imperative!! If you're not saving each month, you're not doing well. Their groceries are average (grown children, mind you). Religion is not a splurge for some people.
They have the car loans and equity loans for repairs because they're not liquid and have nothing saved.
I rest my case with regard to splurging with everything you have. I thought he was going to make a point on how people can't hack it even with $135k. What's to say he wouldn't do the same thing with $150k?
A 50 year old married man who is not in a job with a union and had kids and a stay at home wife should be putting the $24,000 max in the 401K plan, then $10,000 for kids 529 plan. Add in flex spending, transit check, medical insurance, unemployment insurance, disability insurance plus SS and Medicare and fed and nys taxes a 100K income is eaten up before you get the paycheck
A 50 year old married man who is not in a job with a union and had kids and a stay at home wife should be putting the $24,000 max in the 401K plan, then $10,000 for kids 529 plan. Add in flex spending, transit check, medical insurance, unemployment insurance, disability insurance plus SS and Medicare and fed and nys taxes a 100K income is eaten up before you get the paycheck
I rest my case with regard to splurging with everything you have. I thought he was going to make a point on how people can't hack it even with $135k. What's to say he wouldn't do the same thing with $150k?
You likely took what I posted out of context on purpose. The $600 per month was for a home equity loan that was used for a new roof and to repair a bathroom that had serious structural issues. We had savings at one point, though nothing significant - that was used to cover some unexpected expenses along the way. And having two cars on Long Island with one parent working and one taking care of children is hardly a luxury. We had two very basic cars at just over $300 per month per car, what can you get for much less?
And to answer your question, with an appropriate amount of money I can save quite nicely.
And again, you can't live a middle class life in Suffolk County on $88k per year.
^ What I said probably sounded more personal to you than it should have. If it's not clear by now, I wanted to show how people can do it on $125k/yr. When you spend $700/mo. on 2 cars, that's a luxury. You can get an Audi A4 for $350/mo. A Honda can be had for $150/mo. Why even do new cars when you can't save or have no savings? Too much house with too much taxes, etc. decisions like these... with better planning and choices - you can make do with your salary and live a basic middle class lifestyle (most things you want, just in less quantities). We did it with a 1300sqft starter house and $80k ($5k/mo. net) combined starting salaries in Nassau, before a ~$2100 mortgage. The only difference was we didn't have kids back then, but we certainly didn't have to skimp having $3k to spend then either. Even with my expenses of $1600 today with kids and a bigger house, we'd still have savings.
You likely took what I posted out of context on purpose. The $600 per month was for a home equity loan that was used for a new roof and to repair a bathroom that had serious structural issues. We had savings at one point, though nothing significant - that was used to cover some unexpected expenses along the way. And having two cars on Long Island with one parent working and one taking care of children is hardly a luxury. We had two very basic cars at just over $300 per month per car, what can you get for much less?
And to answer your question, with an appropriate amount of money I can save quite nicely.
And again, you can't live a middle class life in Suffolk County on $88k per year.
depends on your healthcare insurance today. holy cow , we are retiring this year and we are getting our health insurance in order.
cobra for me since i am 63 and medicare for my wife with a medigap plan f , a part D prescription plan and long term care insurance will run us 17-18k a year and we are very healthy ..
insurance costs especilly medicare gap plans are location sensitive. long island is thousands a year per person more than say georgia. for the exact same medigap f-plan.
unlike when we were working this is all after tax dollars too.
this includes no dental , vision , hearing aids , etc.
what is left over to live that middle class lifestyle can be quite alot less than you think on 88k especialy after taxes too..
in fact think about the fact that someone with poverty level income , earned income tax credits ,section 8 housing , food stamps and medicaid is likely in better shape than you with your 88k pre medical ,pre tax income.
Last edited by mathjak107; 04-05-2015 at 09:10 AM..
You likely took what I posted out of context on purpose. The $600 per month was for a home equity loan that was used for a new roof and to repair a bathroom that had serious structural issues. We had savings at one point, though nothing significant - that was used to cover some unexpected expenses along the way. And having two cars on Long Island with one parent working and one taking care of children is hardly a luxury. We had two very basic cars at just over $300 per month per car, what can you get for much less?
And to answer your question, with an appropriate amount of money I can save quite nicely.
And again, you can't live a middle class life in Suffolk County on $88k per year.
And, as I keep saying, there are obviously many people living in Suffolk County on less than $88k per year. Whether or not they are middle class is subjective.
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