Examples of monthly budget please (Memphis, Millington: real estate market, rentals, car insurance)

[ynel]

Hi all,

If this is a repeat of a previous post, I am sorry! I have done a few searches and could not find anything similar.

My husband is considering applying for a job in Memphis, but having never lived in the US (we live in South Africa), we have absolutely no idea what a typical family monthly budget would look like - so we don't know what the minimum salary is that we could accept, or what we would be able to afford for monthly house rental, etc., once we know what salary would be on offer.

We live a fairly frugal life, although we like to eat takeouts once or twice a month here in SA.

I would higly appreciate some examples of monthly budgets - including e.g. groceries, water, electricity, gas to commute to work (say approx. 30 miles one way), broadband, telephone, medical insurance, clothes, car and household insurance, life insurance, 2 cell phones, music lessons, car maintenance, etc.

We are a family of 4 (children 11 and 8) and will be looking to rent a 4 bedroom home in a safe area.

Apparently we would also have to replace our electrical appliances!
What would the following cost (approximate figures are fine!):
Microwave, Kettle, Fridge & Freezer, Washing Machine, Dishwasher, Iron, Kettle, Hairdryer, Vacuum Cleaner, Food processor, etc. (Our SA appliances need 220V to work.)

Looking forward to any helpful replies, we have a HUGE decision to make. And yes, I did read through all the reasons to NOT live in Memphis, but I am almost certain it is still better than South Africa where you have to live behind locked security gates in your own home during broad daylight - in the 'nice neighbourhoods'.

[Pearlbob]

Your questions are almost impossible to answer. If your husband is going to be pulling in a $100,000 a year job, then the questions aren't too important, right? The salaries you will be making is going to be the only determenants of how well you can live here.
Microwave is about $50. Fridge can be anything, say $1000. W/D would be about $800 each, but again...it totally varies. Iron? $20? Hairdyer is about $15. Vaccuum varies widely, but maybe $50 for a cheap one.

I don't have young kids right now, so I don't know about family budgets. Anytime kids are involved, your monthly spending is going to go up dramatically.

Also keep in mind, that if you live in Memphis, you most likely will have to send both children to private school. This can run upwards of $20,000 a year for each child, at the better schools. But prepare for at least $10,000 per kid, especially as they get older.

[Cellist]

I am astonished at the prices of washers and dryers because I will have to buy them in May when I move to Millington. I haven't bought them since 1983 when they were about $200 apiece.

[Pearlbob]

A lot has changed in....26 years!

Originally Posted by Cellist

I am astonished at the prices of washers and dryers because I will have to buy them in May when I move to Millington. I haven't bought them since 1983 when they were about $200 apiece.

[ynel]

Thanx Pearlbob

If I convert some of those prices to Rands, it is HECTICALLY expensive.

I wish he would be landing a 100k job! Alas, it would be more in the region of 60-70k. Will we be able to rent a 4 bed house (somewhere safe but not in the expensive areas), and pay everything else with that? I homeschool, and already bought the year's curriculum here in SA, so won't be doing the private school thing.

We will probably buy me a cheap car to get us from point A to point B, and so that we don't have the burden of a monthly payment for a car.

Then I need to know about internet access, insurances, utilities and food I guess? And clothes for 2 growing kids...

[Pearlbob]

Internet would be about $50 a month. Insurance on what - house, rental, car, family? That depends on so many factors. Utilities also depends on how big of a home you buy. It could be $300 a month in the summer on a home, but if you don't run the A/C it would be less, it completely depends on the size of home and your choices. Clothes for kids? It's impossible to say how much things like that cost. Some people spend no money on clothes for their kids, some spend thousands. It is all dependant on you and your choices. Same with food...you could spend hundreds or thousands a month for a family of 4. There is such a variety here, if you want to pinch pennies and spend as little as possible, but even then - it's impossible to give an estimate.

A 4 bedroom house is going to cost a lot to rent. $2000 a month? 4 beds is huge, if you want somewhere safe. It would probably be cheaper to buy, or at least about the same price.

[ynel]

Wow, in SA it will cost you about double per month to buy vs renting.

OK, I see your point - I guess the question would be then - if he earns e.g. 60k, would we be able to survive (no fancy food, no fancy clothes - just replacing basics as they grow out of their jeans and sweaters and shoes - and I don't buy 'brand names', I go for the the more 'value for money' type stores).

If we only use A/C when it is really unbearable, and have a 4 bed house (1 is for a study or our school room), but not a mansion by far, just a normal (is there such a thing? :-) ) house.

I guess it would help if someone with 2 kids could just post an example of their monthly budget? See - I don't know where to start. I don't know whether an electricity bill will be $100 or $500 or what. We need to be able to work out whether we can survive on one income or not, i.e. live with the 'basics' of a decent meal every night, the kids will have fairly decent clothes that are not above the ankles and wrists, we will be able to have takeout every 2nd week or something, I will have a cell phone so that I can be contactable (not to chat for hours to friends), and we can have broadband internet connection.

Then life insurance incase something happens to us so that the kids will be taken care of, and I guess insurance incase a car gets stolen.

I know this is a lot to ask - and I realise it is difficult - but I have already tried google, and couldn't find anything.

[Pearlbob]

You can't own a car without having insurance on it Well, legally. It depends on your driving record, and if you are new to the USA, it would probably be more than normal. $100-150 a month? I have no idea. Insurance is for when an uninsured Memphis resident slams into you while texting on their cell and eating a Big Mac...not really for it getting stolen

Life insurance would be through your husband's job, unless you wanted private insurance. Private insurance in the USA is extremely expensive.

$60k is much more than most Memphis residents make a year, so it's do-able, however if that is lone income and you want to live a good life, it could be difficult. The renting of a 4 bedroom home in a good area of town is going to be your biggest cost. Rent would be high, and utilities on something that large would also be very high. If you could stick to a 3 bedroom home, that would be much more feasible and much easier to find. 4 bedroom rentals are hard to find.

You can shop for clothes at Old Navy and buy t-shirts for $10 and pants for $20. That could be an example of a lower expense budget for kids clothes.

The real estate market here now is worse than ever, and has bottomed out. You can get loans for never before seen rates, but you have to have great credit and backgrounds. Not sure if someone coming from another country would ever qualify for that, but it would be worth it to look.

[ynel]

Thanks Pearlbob :-)

[Ginsaw]

Most of your answers I think you've already gotten, but here are a few more fwiw costs -

Regular gasoline is now $1.79 at many places. Car repairs if you have an older car are expensive. If you are buying a new or used car I'd get whatever the best extended warranty they have. In Memphis cars have to be inspected once a yr and there's a $108 charge each time. Car insurance costs depend on many things. It is for liability, medical, uninsured motorist (insurance is required but many here ignore that), tow in charges, collision and compehensive (theft, accidental damage, vandalism). The biggest factor on cost is what kind of car. You pay twice a yr. On an old car it might be $100-200; on a nice new one it might be $300 or more semi-annually. You probably will get a multi-car or multi-line discount by using the same insuror for all cars and for your house.

If you own a home you will have property taxes, city and county. On a $200K home expect in round numbers about $4,000 per yr combined. Your insurance costs of a home are broken down between the dwelling and belongings. On nicer homes expect in rough, round numbers between $500-$1000 a yr. There are a lot of add-on optional coverages available.

Groceries and related items for a family of three runs in rough, rough figures about $500 a month.

Utilities depends on use. You learn quickly to be frugal on using heat or A/C. For a medium size home expect in round numbers something like $200 in temperate months and up to $400 in peak months as minimums. But, it can be much higher depending on size of home and so forth.

Medical insurance is taken out of your pay at work. It can be gotten individually but when a person gets old it becomes real hard to find and almost prohibitively expensive, until they eventually reach age 65 and go on government Medicare. Life insurance comes in two kinds, term and whole life. Term life will probably be available thru work, but if I recall right, it's optional. I'd pick up the dental coverage if it's offered.

Many here have cable TV and the internet as a package. Together that is now exactly $122.66 per month. You can get your TV by dish and internet by dial up also. I don't know those prices but they are probably not real different.

Phone service is handled in different ways and there are numerous providers with different package deals. If you use long distance to any degree shop for a calling plan that allows so many minutes a month. The one we use allows 200 minutes of LD and is $62.13 a month. I'm told it can be done cheaper.

Don't know how this compares with SA, but I hope it helps.