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One of the things that struck me when calculating my daily expenses was that my cost to run ONE lightly-driven, 11-year-old, paid-off car was 2/3 the cost of all the basic utilities and services my home requires (i.e., water, electric, natural gas, trash, and phone).
We forget many expenses when we estimate our cost of living. I changed my plan for one car (already have) and one truck when I realized the cost of operating a second vehicle in license and insurance costs. I decide on a two-wheel trailer and a tow hitch instead.
The big, big factor is health insurance costs. If you have that covered you're already way ahead of the game. If you don't, you're going to have to have a lot more income. A lot more.
100k? 35% Fed tax leaves 65k, more than $1000 a month for private health insurance (if you're not 55 yet) leaves 53k. State income tax varies, so we'll leave it off and just add 3% prop tax on a 250k de-valued McMansion ($7500) leaves $44,500.
Huh? None of this is even close to being accurate.... Even an individual with an income of $100k is going to pay noticeably less than $35k in federal taxes, they'd pay around $16k in income tax and $7k in FICA. Families are going to pay a lot less. $1000 for private insurance?! I pay $140/month for my premium...
There aren't many more high cost areas then CT, where did you have in mind, New York City? You can cite the most expensive place in the world but you can't use that to justify middle class america. Actually right now I am spending 1500 in rent that will get you by in most cities even NY.
CT, like any state, is not universally expensive. $1,500/month for what? For a studio? A house?
Quote:
Originally Posted by hartford_renter
Sorry most people spend about 20K and live quite happily. You might know one person with a BMW, that doesn't mean you need 100K to be middle class.
I'm not talking about "most people", I'm talking about wealthy people. One person with a BMW? Seriously? Anyhow, if you don't know anybody that spends $100k/year then you don't know anybody that is wealthy.... $100k/year is nothing, people around here spend that much on their cars.
But his TINY shack in San Fran cost over 1/2 a mil....
Just in case you weren't aware, San Fransisco represents a very small fraction of California. Its one of the most expensive places in California and the US.
In terms of California being artificial, well, the $1.8 trillion in GDP it produces every year seems pretty real to me.
Quote:
Originally Posted by Themanwithnoname
I AGAIN recommend the book "The Millionaire Next Door"
100k? 35% Fed tax leaves 65k, more than $1000 a month for private health insurance (if you're not 55 yet) leaves 53k. State income tax varies, so we'll leave it off and just add 3% prop tax on a 250k de-valued McMansion ($7500) leaves $44,500. Do you still want that 10k vacation? 34k now. A new car every 3 years? Goodness, we're running a little low on reserves to put the kids through college now, and it's a shame we had so much income because food stamps would sure come in handy! Wow! Look at the electric bill on this McMansion! How are we going to afford to fill up our new car? We're "upper middle class" and broke! The HOA fee is due! Help!
You're off on just about everything. user_id covered it much better than you, but even his estimate will very significantly person to person. I make more than $100k and havent paid any income taxes since 2005 or 2006.
You're off on just about everything. user_id covered it much better than you, but even his estimate will very significantly person to person. I make more than $100k and havent paid any income taxes since 2005 or 2006.
And I suppose your health insurance is subsidized by the company you work for, or you're a government worker? My example was fairly accurate for a typical private individual who has to pay for his own insurance out of pocket and has 100k of taxable income. It varies widely from state to state of course. 3% prop tax would be , for example, in Texas, but no state income tax. 1% would be closer in Colorado, but there you do have state income tax. My example was a homogenized ballpark example. I left out many expenses that would add to the burden in reality. Go on though. Imagine that your doing fine on 100k a year living like a millionaire. I'm trying to figure out how to just survive on Social Security.
And I suppose your health insurance is subsidized by the company you work for, or you're a government worker? My example was fairly accurate for a typical private individual who has to pay for his own insurance out of pocket and has 100k of taxable income. It varies widely from state to state of course. 3% prop tax would be , for example, in Texas, but no state income tax. 1% would be closer in Colorado, but there you do have state income tax. My example was a homogenized ballpark example. I left out many expenses that would add to the burden in reality. Go on though. Imagine that your doing fine on 100k a month living like a millionaire. I'm trying to figure out how to just survive on Social Security.
I am self employed. I don't make $100k/month... Where'd you get that figure?
I am self employed. I don't make $100k/month... Where'd you get that figure?
If you get SS, don't you get medicare as well?
Big oops! I edited it to 100k a year. Thanks for bringing it to my obviously distracted attention.
Yes, but I was not supposing the OP is me, or in my position. I was trying for a "typical" scenario which I am realizing more and more is impossible given all the variables and unknowns. If it was me in that situation I would do fine. My kids are already through school, I wouldn't live in a McMansion, don't take 10k vacations and we drive a 20 year old minivan. 100k would be more than enough for us and our lifestyle. It's a little tight on 24k however...
Big oops! I edited it to 100k a year. Thanks for bringing it to my obviously distracted attention.
Yes, but I was not supposing the OP is me, or in my position. I was trying for a "typical" scenario which I am realizing more and more is impossible given all the variables and unknowns. If it was me in that situation I would do fine. My kids are already through school, I wouldn't live in a McMansion, don't take 10k vacations and we drive a 20 year old minivan. 100k would be more than enough for us and our lifestyle. It's a little tight on 24k however...
Yes. The OP is delusional with his middle class requirements.
Huh? None of this is even close to being accurate.... Even an individual with an income of $100k is going to pay noticeably less than $35k in federal taxes, they'd pay around $16k in income tax and $7k in FICA. Families are going to pay a lot less. $1000 for private insurance?! I pay $140/month for my premium...
speaking of close to being accurate what tax system are you on? 16k federal on 100k income. ????????????? .... tax on 100k for a single filer less the standard deduction and 1 exemption is roughly 20k federal and about 5k state and local here in nyc. with fica i get 32k ..
health insurance for my wife and i is 9k a year through work and that is subsidized. ,closer to 10-11k on our own . even a high deductable plan with 2500 per person and 5k deductable clocks in at 700 per month for the 2 of us on our own and we are perfectly healthy. we started doing our homework on medical insurance in case we retire early well before medicare .
140 a month sounds like its a medicaid type plan like healthy new york or its a college plan with minimal coverage if its on your own. if its through a company its subsidized and thats why its 140 a month..
Last edited by mathjak107; 04-18-2011 at 03:47 AM..
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