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Everyone's situation is different; I spend 4X more than what you spend on fuel while you spend more on health insurance than I do. It's all relative to priorities and lifestyle.
I'm a realist and I just think it'd be difficult to live on $50K/ year. I enjoy boating and my boat expenses would eat up 1/4 of my salary if I made $50K/ year without taxes. Some probably have a car payment that is more than their apartment rent.
And notice I said a comfortable lifestyle. Comfort has a different meaning to every person, it's simply not enough to "live"...who wants to be barely scraping by and not have any enjoyment out of life?
Well let's be honest here. 9/10 people will never make 6 figures. In fact, 7/10 people will never make more than $50K per year.
But it is all relative.
For me personally, I want to build up my net worth, because I don't want to be caught with nothing to fall back on during the next recession. I don't like being at the whim of other people (I.E. living paycheck to paycheck). Thus, I am willing to live well below my means for a few years to accumulate enough money and put it in good investment opportunities. They'll be plenty of time for me to live comfortably and enjoy any hobbies or leisurely activities I like later.
It does depend on where you live, but I saw that one poster stated that you can't live anywhere "good" on that. That is even more relative than the salary itself. I would much rather live on 50k a year where I am now than 5 times that in NYC.
It does depend on where you live, but I saw that one poster stated that you can't live anywhere "good" on that. That is even more relative than the salary itself. I would much rather live on 50k a year where I am now than 5 times that in NYC.
Definitely agree with this. I'm from GA by the way. NYC is a great place, but it's not for me. Where I live, 50k is a great salary. And with the right investments and financial knowledge, will allow you to retire comfortably.
I guess I might be in the minority but $50K/ year would be difficult to live comfortably on any many major metro areas. With taxes taken out and broken down, a $50k salary would yield about $3200/ month more or less. Then start deducting-
Mortgage payment/Apartment Rent
Car payment?
School loans?
Health insurance
Car insurance
Homeowners insurance
HOA fees?
Electric
Cell phone
Cable/Satellite?
Internet
Food
Fuel
Incidentals
Credit Card bills?
Clothing?
Entertainment
Savings
Investments?
401k contributions?
I mean I hate to sound pessimistic, but it costs a LOT to live nowadays! 20 years ago, $50K/ year was a nice salary and you could live a solid, middle-class lifestyle on it. This day and age...I'm really not so certain. If you plan on living a middle-class lifestyle while saving and investments some income for retirement; I would say $50K would be a very difficult salary to accomplish this. And I'm talking this person being single. If you have a family to support, you better have a six figure salary if you plan on having a decent lifestyle. I know families that spend $20K/ year on private school education for their grade-school children! Can't do that on a $50K/ year salary.
I made about 50K for a number of years living in the NYC area, around 6-8 years ago.
All of what you listed above can be covered easily.
The thing that gets you is going out ... dinners, drinks, and shows. Especially drinks.
THE DIFFERENCE between living in NYC and Bumblef@ck, USA is that a night out in NYC could cost you $225 and that a night out in the latter probably costs you $30, if you even go out.
Well let's be honest here. 9/10 people will never make 6 figures. In fact, 7/10 people will never make more than $50K per year.
But it is all relative.
For me personally, I want to build up my net worth, because I don't want to be caught with nothing to fall back on during the next recession. I don't like being at the whim of other people (I.E. living paycheck to paycheck). Thus, I am willing to live well below my means for a few years to accumulate enough money and put it in good investment opportunities. They'll be plenty of time for me to live comfortably and enjoy any hobbies or leisurely activities I like later.
I don't know if I necessarily agree with your assertions. If you work in a professional job- accounting, law, medical, corporate business, etc etc- you really should be making a six figure salary at some point in your career. People that have a college education, work for a corporate entity in a professional capacity, and/or have a specialized skill set should reach six figures within a period of 5-7 years with necessary advancement in the company.
I don't know if I necessarily agree with your assertions. If you work in a professional job- accounting, law, medical, corporate business, etc etc- you really should be making a six figure salary at some point in your career. People that have a college education, work for a corporate entity in a professional capacity, and/or have a specialized skill set should reach six figures within a period of 5-7 years with necessary advancement in the company.
I agree about professionals.
But the majority of Americans aren't professionals (which is why they're paid the wages they are in the first place), and with the exception of law and medicine, most professionals never reach six figures until they're at the high-management or executive level.
Keep in mind the median wage for all American (individual) is 25K.
I guess I might be in the minority but $50K/ year would be difficult to live comfortably on any many major metro areas. With taxes taken out and broken down, a $50k salary would yield about $3200/ month more or less. Then start deducting-
Mortgage payment/Apartment Rent
Car payment?
School loans?
Health insurance
Car insurance
Homeowners insurance
HOA fees?
Electric
Cell phone
Cable/Satellite?
Internet
Food
Fuel
Incidentals
Credit Card bills?
Clothing?
Entertainment
Savings
Investments?
401k contributions?
I mean I hate to sound pessimistic, but it costs a LOT to live nowadays! 20 years ago, $50K/ year was a nice salary and you could live a solid, middle-class lifestyle on it. This day and age...I'm really not so certain. If you plan on living a middle-class lifestyle while saving and investments some income for retirement; I would say $50K would be a very difficult salary to accomplish this. And I'm talking this person being single. If you have a family to support, you better have a six figure salary if you plan on having a decent lifestyle. I know families that spend $20K/ year on private school education for their grade-school children! Can't do that on a $50K/ year salary.
While I agree that 50K was worth more 20 years ago and a family probably couldn't live on that, a single person can do just fine on it, even in a more expensive metro. I live in the SF Bay Area (not in SF itself, but the area I'm in isn't exactly cheap either) and make about that before taxes, live by myself, spend a ton on food (partially by necessity/partially by choice), live very comfortably, and still put a decent away in savings each month. Maybe because I've always been a big believer in not buying things I don't need when I don't have the money.
Many of these things it just isn't necessary to spend a lot on, or at all. No single person needs mortgage payments/HOAs to live comfortably. Cable is not a requirement. Most people seem to pay too much for cell too, you can get unlimited minutes/text/web for $60 from a major provider. Entertainment should not eat up a big portion of the budget--I agree with jobaba that it's the drinks that can really add up. I've seen some of my friends spend about $50/night, multiple nights a week, on drinks alone while going out. Nobody needs that. (That's where BYOB comes in... or have YOB @ home before going out. ) Clothing--buying a shirt OR a pair of pants once a month would be a lot for me. Credit card bills? Unless you have a lot of debt--which isn't your current salary's fault--you shouldn't have to worry about that.
If someone wants to be able to spend money without thinking, (like many these days seem to do ) then 50K would be difficult. But then so would 100K.
This is crazy. I have a Master's and started out making 38K. I bought a house (mortgage of 105K after 20% down payment), paid of my car, etc., and was just fine. I even had enough to go to Vegas every year. Now I make just over the $50K amount and max out my Roth. My wife is a teacher and makes about $35K. Many of her teacher friends seem to do just fine on that amount, too.
People saying you should make 6 figures 5-7 years into their career don't realize how most of the country works. In finance, law, and medicine, yes, but for most people $50K is the ceiling not the floor.
The average American household makes about $57K and has children. Think about that!
While I agree that 50K was worth more 20 years ago and a family probably couldn't live on that, a single person can do just fine on it, even in a more expensive metro. I live in the SF Bay Area (not in SF itself, but the area I'm in isn't exactly cheap either) and make about that before taxes, live by myself, spend a ton on food (partially by necessity/partially by choice), live very comfortably, and still put a decent away in savings each month. Maybe because I've always been a big believer in not buying things I don't need when I don't have the money.
Many of these things it just isn't necessary to spend a lot on, or at all. No single person needs mortgage payments/HOAs to live comfortably. Cable is not a requirement. Most people seem to pay too much for cell too, you can get unlimited minutes/text/web for $60 from a major provider. Entertainment should not eat up a big portion of the budget--I agree with jobaba that it's the drinks that can really add up. I've seen some of my friends spend about $50/night, multiple nights a week, on drinks alone while going out. Nobody needs that. (That's where BYOB comes in... or have YOB @ home before going out. ) Clothing--buying a shirt OR a pair of pants once a month would be a lot for me. Credit card bills? Unless you have a lot of debt--which isn't your current salary's fault--you shouldn't have to worry about that.
If someone wants to be able to spend money without thinking, (like many these days seem to do ) then 50K would be difficult. But then so would 100K.
I would agree that food and entertainment (drinks/shows/etc) can consume a huge portion of anyone's budget. I eat out every night because I'm single and have no desire to make a large meal for myself and contend with pre work and clean-up. I've gotten past the stage in my life where I feel the need to go hit the bars hard every weekend; now my weekends consist of maybe taking the boat up to Lake Havasu, spending time with my niece and nephew, or hanging out with a girl-friend.
Quote:
This is crazy. I have a Master's and started out making 38K. I bought a house (mortgage of 105K after 20% down payment), paid of my car, etc., and was just fine. I even had enough to go to Vegas every year. Now I make just over the $50K amount and max out my Roth. My wife is a teacher and makes about $35K. Many of her teacher friends seem to do just fine on that amount, too.
People saying you should make 6 figures 5-7 years into their career don't realize how most of the country works. In finance, law, and medicine, yes, but for most people $50K is the ceiling not the floor.
The average American household makes about $57K and has children. Think about that!
But you two have a combined income between $85K-$90K/ year which is quite a bit different than living on a $50K/ salary. When two people are married WITHOUT children, the amount of monthly income can rise substantially but monthly expenses usually remain relatively stagnant for the most part. Of course they go up but they aren't as drastic as the rise in income potential.
For a white-collar professional, $50K/ year should NOT be the ceiling. Teaching is a respectable profession that has a salary which is entirely too low for many states. I feel any teacher should make AT LEAST $45K/ year and my state of Arizona has one of the lowest teaching scales in the nation which is why I'd never send my own kids to a public school here...ever. When I was in high school, my dream was actually to become a History teacher; I loved history, respected history, had a passion for learning and teaching history...but my dad abolished that dream quite quickly telling me I could never make a living wage teaching. This was back in the mid 90's and even back then, he said I would be destitute and live in poverty if I pursued my dream of teaching and pushed me into either going into law or the engineering field. As they say, the rest is history.
The idea that the average American household makes $57K/ year is...scary. Every parent wants the best for their children, wants them to succeed, wants to give them every advantage they possibly can on that income. Historically speaking, the best indicator of a young person's income is the income of their parents. If your parents make gobs of money, chances are you'll make gobs of money. If your parents struggle to survive, chances are you'll follow suit. We talk about the rich getting richer and poor getting poorer in this nation and it's true...but it's directly correlated to the income distribution throughout society. Donald Trump's children will NEVER know what "want" is and they'll be successful because their father is successful. Joe Schmo will provide his children with everything he can on a middle-class salary but it's highly unlikely his children will ever rise to the prominence of a billionaire tycoon's children.
Sorry for drifting off topic a bit but this subject has always been fascinating to me.
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) Clothing--buying a shirt OR a pair of pants once a month would be a lot for me. Credit card bills? Unless you have a lot of debt--which isn't your current salary's fault--you shouldn't have to worry about that.
) then 50K would be difficult. But then so would 100K.
