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Where I currently live and how our lifestyle is right now I couldn't imagine it. I remember when 40k was enough.
I understand.
When I retired, we had searched long and hard, and put a lot of effort into deciding where to settle, long before we returned stateside, to settle down.
I have lived in many locations where the cost-of-living was much higher.
Amounts are monthly. I am divorced and live alone.
Rent or mortgage or mortgage free: $ zero (townhouse paid off)
Home Insurance $ Exterior insurance paid by HOA
HOA Fees $ 300 (not an extortion, but a very good deal - covers all exterior mainenance, pool, gardener, trash, water, etc.)
RE Taxes $ 215 (per month)
Electric $ 20
Water $ see HOA fee above
Sewer & garbage $ see HOA fee above
Lawn maintenance (if your disabled) see HOA fee above
Auto Insurance $100 (per month)
Cable (if you have TV) zero
Telephone Cell phone $80
Internet $90 includes home phone w/unlimited long distance 24/7
Health Insurance About $100 per month for Medicare Part B premium
Prescriptions and co-pays Probably averages about $20 per month
Food Probably about $500 per month - I eat out a lot, but cheaply.
Repairs Exterior home repairs see HOA fee above. Car repairs almost never.
Misc. (All the rest: Hair cuts, dog food and vets, dental, car registrations, Christmas, Birthday gifts, clothing, new computer or printer, paper, ink etc, etc, etc. Dental is expensive at my age (not covered by Medicare). Clothing very little. Some travel. Attend expensive classical music concerts. Still, I spend about $30K to $35K per year - that low mostly because townhouse is paid off and because I have Medicare.
Interesting responses in this thread. I'm curious what SifuPhil found funny; I must be dense because I didn't get it at all.
Harry ChickPea: Just curious what your internet cost there. Do you have cable or just internet. Also wondering the size and age of your house with only $300 a year taxes. Do you live far out from stores and shopping?
Do you find food costs any different there?
Internet is Hughesnet - $60/mo
20 miles from any real shopping, 40 from serious shopping. Ask yourself - is that a disadvantage or advantage?
Food costs are higher than south Florida because there is regressive sales tax on food around here.
House is new manufactured housing, over 2,000 square feet, plus outbuildings and acres of land. The key to low property taxes is NOT what your dwelling is worth, but how your county does in spending tax money. That isn't what governments want you to hear, so be prepared for vehement denials.
... The key to low property taxes is NOT what your dwelling is worth, but how your county does in spending tax money. That isn't what governments want you to hear, so be prepared for vehement denials.
Good point.
Each township sets it's own Mil-rate by how much their budget is. Which is largely based on how much the town spends in services it provides to it's citizens.
The township to our immediate West has their mil-rate set at exactly double our mil-rate. For every dollar I would spend on R.E. taxes they spend two [assuming the same exact assessment].
Interesting responses in this thread. I'm curious what SifuPhil found funny; I must be dense because I didn't get it at all.
Well, first of course you have to consider my wise-azz nature. But in fairness to the OP and to answer your question:
I'm in my mid-50's, so you have to consider the shock value of the OP's question to my still-fresh memories, where $40k would have been a king's ransom back in the '60's.
Seeing "$40k" in a Frugality thread is a bit of a shock.
I used to live in NYC in the mid-70's. For a large loft in downtown Manhattan I was paying $2k/mn rent; all other expenses were around $1k, so for about $36k/year I was living "high on the hog". Now, the same loft goes for $6k and total annual expenses would be more on the order of $100k.
Since I am now a minimalist with no family, no land, no house, no car etc. "$40k" once again sounds like a king's ransom.
I guess it all comes down to perception and to where and HOW you live. I wasn't laughing at the OP - I think I was laughing at the arbitrariness of the question and how it relates to my present mode of living.
I think it's important to distinguish between areas COL.
In NYC, 40k won't take you far. I'd say that's the minimum for a family of 3. A single person can live a fairly comfortable life but significant savings/investments for the future is out of the question.
I just have to ask what happens when people get older? An income is not only important for the present but also for the future. Are people only relying on SS as a retirement plan? I can't imagine having any decent savings with such incomes. What happens if an emergency comes up and you need thousands of dollars?
I think it's important to distinguish between areas COL.
In NYC, 40k won't take you far. I'd say that's the minimum for a family of 3. A single person can live a fairly comfortable life but significant savings/investments for the future is out of the question.
I just have to ask what happens when people get older? An income is not only important for the present but also for the future. Are people only relying on SS as a retirement plan? I can't imagine having any decent savings with such incomes. What happens if an emergency comes up and you need thousands of dollars?
Same here in California.. if you think like most people, 40K will keep you in poverty. If you can keep your rent at rock bottom and drive an old but reliable and fuel efficient car, that's a step in the right direction. I make a little more than that right now and I regularly save about 1/3 of my pre-tax income.
Well, first of course you have to consider my wise-azz nature. But in fairness to the OP and to answer your question:
I'm in my mid-50's, so you have to consider the shock value of the OP's question to my still-fresh memories, where $40k would have been a king's ransom back in the '60's.
Seeing "$40k" in a Frugality thread is a bit of a shock.
I used to live in NYC in the mid-70's. For a large loft in downtown Manhattan I was paying $2k/mn rent; all other expenses were around $1k, so for about $36k/year I was living "high on the hog". Now, the same loft goes for $6k and total annual expenses would be more on the order of $100k.
Since I am now a minimalist with no family, no land, no house, no car etc. "$40k" once again sounds like a king's ransom.
I guess it all comes down to perception and to where and HOW you live. I wasn't laughing at the OP - I think I was laughing at the arbitrariness of the question and how it relates to my present mode of living.
Just to give you some perspective using '77 as a reference year. 36k is now equivalent to around $128k. Using '73 as the benchmark, the current dollar equivalent is $175k.
For all intents and purposed you were living high on the hog in those years. $125 or $175k nowadays are very good incomes. You were probably paying a bit more for consumer electronics as a percentage of income back in those days but most everything else (energy, real food, medicine, etc) was cheaper.
Last edited by wawaweewa; 03-09-2012 at 11:55 PM..
Same here in California.. if you think like most people, 40K will keep you in poverty. If you can keep your rent at rock bottom and drive an old but reliable and fuel efficient car, that's a step in the right direction. I make a little more than that right now and I regularly save about 1/3 of my pre-tax income.
I made around 41k last year. I'm single and I choose to live with my parents because this way at least I have something to show for my work. I pay rent of around $800/month in the form of paying for the households utility bills and I squirrel as much as I can of the rest away into savings/investments.
I ran the numbers and If I lived on my own, the most I could save while living like a monk and no emergencies would be no more than $500/month. What's 6k anymore? You'd be hard pressed to find even a good used car for 6k anymore. A broken leg or arm will run you at least a few grand. If you have any type of significant emergency you can kiss those savings goo-bye.
It's not the present that I'm apprehensive about. It's the future. If I didn't care about the future, I'd view what I'm making as a gold mine. In fact, many of my peers do.However, taking the future into account, 40k isn't going to cut it.
Just to give you some perspective using '77 as a reference year. 36k is now equivalent to around $128k. Using '73 as the benchmark, the current dollar equivalent is $175k.
For all intents and purposed you were living high on the hog in those years. $125 or $175k nowadays are very good incomes. You probably were a bit more for consumer electronics as a percentage of income back in those days but most everything else (energy, real food, medicine, etc) was cheaper.
Totally agree. I also made more then than I have ever since - sad, perhaps, and against the conventional wisdom, but true. And it bought far, far more.
I had money to burn, money to save and money to pay all the bills. I never had to consider performing the juggling act I do now.
Thanks for the perspective check - it's nice to know that once in my life I was a "rich" man.
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