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Too many variables in your itinerary. All it would take to crumble your house of cards would be one major event happen to you. I am a retiree, and will tell you, getting that check once a month can be a lot different than getting one bi-weekly, or weekly for that matter. One isn't as cavalier with their spending habits knowing the money has to last the month. Good luck.
In all honesty, I have been living this way for a while now. To me, once the major life expenses are covered, there isn't much that's uncontrollable aside from the rare long term medical condition (cancer, HIV, paralysis, etc).
Also, when one doesn't work and doesn't worry about bills, they have lower stress, more time for exercise and eating healthy (no Mcdonalds when in a rush).
If you live in a cheap area, you usually get what you pay for. I doubt schools in such a cheap area are very good. Public services like police and firefighting may not receive the support they should. You can live inexpensively in Detroit, but do you really want to live there?
The $325/month on food seems low if you like to eat out. A simple sandwich, chips, and drink costs me $7.61 with tax at my local Jersey Mike's. Eating healthy is not cheap.
What if you get in a traffic accident or slip and fall and break a leg? Under the bronze plans you are out around $2.5k-5k on the deductible plus whatever your coinsurance is. These plans are little better than the skimpy canceled policies being replaced. I am on a BC/BS Silver plan that is much better than old Humana individual plan, am 27, make about $24k, and live in a fairly low cost state. It's $120/month but at least I have quality coverage.
This budget might work on paper, but it seems a little naive for real life.
I believe schooling has more to do with the parent than the school. Every public high school in my area has kids that go top-10 universities in the US. There is nothing special about my rather rural southern city so I would not expect to see parents of average intelligence dropping their kids off and getting Ivy League potential in 12 years. However, good parents tend to produce good kids using the public schools around here. But yeah, I wouldn't suggest moving to the ghetto for super low cost. You have to find a good mix of low cost/safety/schools, etc.
I find that eating healthy is often cheaper than eating unhealthy. A meal consisting of fruits and veggies can be had for much less than $7.61. $325 may sound low, but do consider that the average American is borderline obese - it takes a lot of calories for someone to maintain 225lbs vs 150lbs or 120lbs for a healthy woman. Also, most people have diets high in meats (unhealthy and more expensive).
As far as out of pocket medical expenses - one doesn't expect to break a leg or have a major fall every year do they? LOUD KNOCK ON WOOD, but I play sports and they only thing I've ever broken was my nose. For things that do pop up every 3-4 yrs, a person should have money in savings to cover it. On my proposed budget, there is no reason not to save 2-3k every year.
- $20,000/yr passive income (increasing with inflation)
- modest home paid off (1000-1500sq ft)
- fuel efficient car paid off
- no debt
- low cost of living part of the US
With an income of $20k/year, health insurance can be had for free (Obamacare).
A modestly sized home of say 1000 sq ft (not small in most countries or even the US 40+ yrs ago) will allow for low utility cost, low property tax and lower maintenance cost.
If a person locates near a decent sized city (50k+) they may even be able to walk/bike/use public transportation.
Here is my personal expenses:
Rent $0
car payment $0 (for the next 7-8 years)
Food $325/month (includes eating out a lot)
Utilities $225/month (includes required $50 cable tv package)
Gasoline $60/month
Cell with unlimited data $40/month
Gym $20/month
Car insurance $60/month
Property tax $67/month
Health insurance $38/month (could get a bronze plan for $0)
home insurance $50/month
clothes/haircuts $30/month
home/car maintenance $??/month
travel/vacations ??
total: $915/month -- as low as $850 if needed.
That's about $11k/year which gives me a cushion of about $9k/year. I also have savings which can be tapped in an emergency.
I don't like work, schedules, mornings, bosses, responsibility, feeling replaceable, consumerism, etc, etc.
I do like coming and going as I please, sleeping until noon, hanging out at the pool, traveling, women, reading BS on the internet, playing basketball, working with my hands once in a while, etc.
Anyone else want to join me?
You're joining me, because I've lived this way for years on a similar budget. I don't like working for a living, either. I like coming and going as I please, working out, reading books, taking walks, surfing, etc.
There a few differences in my budget, though. I have no cable TV. I have Netflix for $16 a month, a landline phone w/DSL for $72, and I have a cheap Tracfone cellphone for $100/year. Other than that, my budget is nearly identical to yours.
I'm in my 50s, so I'll be getting a Silver ACA plan for $54/month.
I recommend that you have a good savings account with $20 or $30K rainy day money set aside.
You're joining me, because I've lived this way for years on a similar budget. I don't like working for a living, either. I like coming and going as I please, working out, reading books, taking walks, surfing, etc.
There a few differences in my budget, though. I have no cable TV. I have Netflix for $16 a month, a landline phone w/DSL for $72, and I have a cheap Tracfone cellphone for $100/year. Other than that, my budget is nearly identical to yours.
I'm in my 50s, so I'll be getting a Silver ACA plan for $54/month.
I recommend that you have a good savings account with $20 or $30K rainy day money set aside.
Good luck.
Sounds good sir. Good to hear someone else is making it work. Like I told others, I want to have a monopoly on my time (our most precious asset), thoughts and actions. I don't want to be a slave to my possessions.
Actually, with an income of $16k, a silver plan is $38. This includes a $1k deductible, $10 doctor visits and $1k max out of pocket.
For the most part, a silver plan is overkill for most 20-40 yr olds. Like I mentioned, a bronze plan with a max OOP of $3500-$4000 is basically free. How many 20-40 yr olds will come close to $3500 on a regular basis?
well go on the kaiser calculator and put in 20k for a single.
report back your results. i don't know where your numbers are coming from but they don't look right. as they say , show us.
You're joining me, because I've lived this way for years on a similar budget. I don't like working for a living, either. I like coming and going as I please, working out, reading books, taking walks, surfing, etc.
There a few differences in my budget, though. I have no cable TV. I have Netflix for $16 a month, a landline phone w/DSL for $72, and I have a cheap Tracfone cellphone for $100/year. Other than that, my budget is nearly identical to yours.
I'm in my 50s, so I'll be getting a Silver ACA plan for $54/month.
I recommend that you have a good savings account with $20 or $30K rainy day money set aside.
- $20,000/yr passive income (increasing with inflation)
- modest home paid off (1000-1500sq ft)
- fuel efficient car paid off
- no debt
- low cost of living part of the US
With an income of $20k/year, health insurance can be had for free (Obamacare).
A modestly sized home of say 1000 sq ft (not small in most countries or even the US 40+ yrs ago) will allow for low utility cost, low property tax and lower maintenance cost.
If a person locates near a decent sized city (50k+) they may even be able to walk/bike/use public transportation.
Here is my personal expenses:
Rent $0
car payment $0 (for the next 7-8 years)
Food $325/month (includes eating out a lot)
Utilities $225/month (includes required $50 cable tv package)
Gasoline $60/month
Cell with unlimited data $40/month
Gym $20/month
Car insurance $60/month
Property tax $67/month
Health insurance $38/month (could get a bronze plan for $0)
home insurance $50/month
clothes/haircuts $30/month
home/car maintenance $??/month
travel/vacations ??
total: $915/month -- as low as $850 if needed.
That's about $11k/year which gives me a cushion of about $9k/year. I also have savings which can be tapped in an emergency.
I don't like work, schedules, mornings, bosses, responsibility, feeling replaceable, consumerism, etc, etc.
I do like coming and going as I please, sleeping until noon, hanging out at the pool, traveling, women, reading BS on the internet, playing basketball, working with my hands once in a while, etc.
Anyone else want to join me?
After I retire. My retirement income should be a bit above that. Might consider renting. Even though it may cost more there is no worry about the furnace breaking down or the roof needing replacement. Not having to work, no need to live near work, which can cut down housing costs.
eddiehaskell and Ellise - I have to admit, I'm a little envious of y'all.
You remind me of my cousin's wife's brother.
He lives in a little beat up RV near the beach and has never worked more than part-time (painting houses or waiting tables).
Prior to getting the RV, he couch-surfed or even lived in a tent behind the sand dunes.
He's been doing this almost all his adult life, he's in his late 50's and lives sort of a bohemian lifestyle, partying and fishing.
Every time I start to stress about bills and meeting the mortgage I think of him and how it really doesn't take much to live.
I think some posters are basing their naysaying as if he was living in Ne York City.
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