Property taxes are low, real low compared to where I came from. You will have a $50 water bill at a minimum and trash service is at least $40. Even with Obamacare if you want decent healthcare here be prepped for $500 a month. I dont think that this would be a very exciting retirement, but it would be comfortable. It is doable as my wife and I lived on basically that much when we first were married (living in a suburb of Atlanta). Your ailments are more numerous requiring more prescriptions as well as the drug companies are having a heyday raising prices at will. PGE? If you own your home and have no debt, why cant you live on that? Southern Edison keeps raising the Kilowatt price and they bill in tiers. ask not for more riches, but more wisdom with which to make wiser use of the riches given to you at birth, consisting in the power to control and direct your own mind to whatever ends you might desire.. I have a family of four (soon to be 5) and live off of $2,800/month with a mortgage. All the people bitching having a very narrow mind or are not living within their means. Hopefully the kids will contribute to the household expense. Key Takeaways 31 K is what I make now after taxes and deducts. I think you made the right choice to move north so you have more healthcare options. If i lived in LA, i'd prefer somewhere safe--doesnt have to be anything fancy-- which kind of says high-ish rent. Cost of living in some cities will be higher than others, but some items of that cost of living may not apply to you either. I guess it all depends upon your expectations for life. Health care is the big caveat to the equation, but you listed out all other assumptions and I dont see how one will scream about living with $2643 a month. You cant get ahead too easily when you had a rundown 1960s house that costs $8,000+ a year in property taxes. $200 Prescription, co pay, and other medical needs, $588.50 Entertainment and misc. You were so correct when you said to pay off your mortgage. You should easily find via Google search. But even still, you can live a full and active life on 32k per year after taxes. In 27 years the house will be his :P. And life goes on.. love Megans comment. My husband only makes $56,000/year. Re: Yahoo. Oops, I forgot about the state tax. I need to finance a car. Its just about thinking outside the box and following your intuition But since many people struggle with both of these, I wrote the book. Learn how your comment data is processed. Its a huge contrast to what others are saying. Does this look unreasonable to you? It can be a distraction. Just last week I switched over a little less than $700K to a money manager. If you are making a lot of money, then its your prerogative to spend what you want. For me the hardest part was not investing money or building a portfolio, it being comfortable with the exact time when to put a withdrawal plan in effect. How much rent and how much car can i truly afford? I live on Long Island,NYour cost of living is quite high. items only, no repairs of any kind, Healthcare is light unless you never get sick (that rules out kids), as the budget stands, entertainment and savings will always suffer the ravages of reality. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Mortgage you cant save for the down. If you are living in California and earning a gross annual salary of $72,020 , or $6,002 per month, the total amount of taxes and contributions that will be deducted from your salary is $16,442 . Thats out for us. So that should make up for extra expenses. If you just put away money into an account, then you might struggle. I have. Only people with paid off houses and no debts have any business retiring. In my country, it costs an ordinary person(a person who has no skills with low income)around two Is 80000 dollars salary a year enough for one person to buy a house and a nice car in the us in m Is $40k dollars/year (around 3.3k dollars/month) considered a good income in the US? The average income in the U.S. is only a little over $40,000. I lived comfortably in Texas for half that. Do you have a relative that will allow you to live rent free? Retire earlier and dont wait till your old and ill. You can do this! The following table lists flat monthly incomes based on a 2,000 hour work year . Thanks for sharing your property tax. People here really dont talk about politics and it is rare to see a bumper sticker professing anything. Healthcare costs are indeed the wildcard, but I agree, that income is not what Id consider poverty level. What is realistic for how much Im spending? (Getty Images) Sure, water is important . I definitely think we could do $31K, we might have to cut out around $200 or $300 in expenses every month, but it is definitely doable. Fort Smith, Arkansas. Can confirm. We dont eat out every night of the year. But dont tell me a single retiree with no debt cant live on $2,643.50/month. Savings: Need to build that buffer. Sock away $200 in an emergency fund. In less than two weeks, for a project that most educated estimates projected would take months, three temporary lanes opened in each direction on June 23. If you have children, you need life insurance. $800 Housing property tax, HOA, maintenance, repair, insurance, etc. I spend around $1,000/mo. If they instead make investments that give a 6% yearly return . $30 a month for clothing for two adults? @danvao apartments are about between 700-900 for the normal ones, and depending on the area and size, but the price goes up if you get one near the center of the city. Now deduct SSI and all the other bullshit things they take out. Thank you for your service. $1,000/month is great! . Personally, I watch every penny we spend, and we couldnt live any other way. Oh wow, thats quite expensive. And they now live at home. $200 Utilities Food? I see no reason why most people cant live under that threshold. Can you live comfortably in California making $60,000 a year? It really depends on what you define as comfortably. We should note that the median household income in the US is $50,000 and in California it isnt much higher. California gets a notorious rap of being an expensive state but this is if the entire focus is on coastal regions. There are many areas where homes are actually affordable given current interest rates. Yet many people struggle to get by. You have many households pulling in $100,000 or more a year and they speak as if it were an act of poverty. Yet they choose to live in areas like San Francisco and spend up to their income levels. It is very feasible to live in California on $60,000 a year but not how many would expect. People are feeling the withdrawals of our debt based addiction and California is a prime example of this. Grew up here, still here. They barely qualified for a loan for the remaining $100,000k. Its tough to cut down that much when you have a family. Using the standard deduction and exemption, you will only pay $778. Can you live a decent life on $60k, yes. I enjoy sleeping in, hearing the waves come in at the beach, breaking a sweat in the afternoon, cuddling, spending time with family, late night conversation, board games, video games, riding on my 49cc scooter, writingand the list goes on. We moved out of CA and wouldnt want to go back. We live in a city. It goes without saying that it is possible! I didnt see that factored in. New comments cannot be posted and votes cannot be cast. Basically, if you receive $15,000 of Social Security benefit and withdraw $17,500 from your IRA, then you will pay very little income tax. Where are you buying your clothes from Tijuana Hookers R Us? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Tens of millions of people in this country live on less each month. Apple's cleaner tvOS makes sense in a way, as it charges $30 more for the Apple TV 4K. As others have indicated, a lot of this budget will depend upon where you live. Anyway $32K a year is enough provided a person owes nothing and is willing to live in a small town in certain states. What each budget shows me is how careful one must be with the major expenses like housing and transportation. We downsized to a smaller house and its paid off. My husband and I live in Savannah, GA. We earn $4,338 a month combined right now. Some of the comments on Yahoo, were pretty idiotic. Well, digress. Caught wind of a semi-exciting entry-level job today, but its pay is kind of shit for LA. O and I live in a state with high taxes. Would it be possible to live above poverty on $4000 a month after taxes anywhere in southern/central California? For a married couple, even if one never worked, they could collect a spousal benefit of 50% of the primary earners amount. Then add the federal 25%. Along with sales and income taxes, California also has one of the highest gasoline taxes in the country. 4k a month after taxes. In S. Florida, our hurricane insurance alone is over $600 a MONTH, as are our property taxes (well over $13k a year for the two). Also, I agree with some of the other comments about the location being a big factor in terms of how this effects your living expenses post-retirement. One lady posted that its below the poverty line. This also doesnt account for any other savings a person/couple might have. lol. it depends, in major cities it might not be enough. As a couple, Id say the cost goes up, it doesnt go down! Scan this QR code to download the app now. Once you made the qualifications about owning your own home and not having debt it should have become cleared up for everyone. But regardless, I think you make a better point ignore the Yahoo! The other way around is common. (Please note: If you are having trouble clicking on calendar links with the . Great job holding your expense down. I take several out of state mini vacations each and every year. Hopefully there will be more generic medication by the time were retired. The problem isnt the pay in California, its everyones incessant need to live beyond their means. I never moved away from my parents house and they havent been charging me rent since things are so bloody expensive in this state! Most people want to retire in the middle to upper class category . Perhaps if you shopped Goodwill? For me its perfect because I can take my dog out the back door and go pheasant hunting. Makes me sick to my stomach. Moving is still a good option for many people though. Its a huge difference when there are kids involve. Income tax calculator California Find out how much your salary is after tax Enter your gross income Per Where do you work? A lot of it depends where you live and how much healthcare you need. My wife is nearly 65 so will soon get Medicare. Well they happen.but you prob shouldnt have them unless you are rich. Health care is a joker in the deck. "People" say you shouldn't spend more than 30% of your take home on housing if you don't want to be overburdened. Thanks for commenting. Thats pretty low with 2 brand new cars. Once my mortgage is paid off, it would not be a problem to live comfortably on $31,000 a year. Hope someone does the same for us when that time comes. Need a reality check. Related post: Do we really need $6,340,998 to retire? You dont bring $3,935 home after all the taxes and deductions for $60,000 salary in California. If you live in an expensive part of the country and have limited income, why not move to a more affordable city? Enjoy the auto-translate feature when searching for answers. This is definitely NOT a poverty income: I spend 3 months every winter in Mexico on my sailboat, and 2-3 months every summer traveling around in my camper van, hiking, rock climbing, and rafting. We are at around $3,000 right now, and that is with 2 brand new cars. And if anyone thinks that is poverty, let them spend a month or two in places like Equador or Rwanda. I am 50 years old and have been retired for nearly 12 years. EPI's Family Budget Calculator measures the income a family needs in order to attain a modest yet adequate standard of living. You didnt mention car tags either and most people have kids. What is the difference between Ich habe Probleme zu gehen. Try more like $200 average, keeping it at about 62degrees in the winter, In the summer 76degrees. I guess well just have to live a healthy lifestyle and hope for the best. 40 bucks a month for electricity? The cost of living is too high and there are just too many people there. Lowering expense is a necessary first step to financial independent. $200 month for gasoline? Im overfed. 62 years California born and raised Moving forward, rent for $1500? What is that? Paying off that mortgage only takes money out of our portfolio early thereby eliminating the earnings that would have accumulated if we continued to pay our monthly low-interest mortgage payment. In fact, if we remove the mortgage payment from our monthly expense, we already spend quite a bit less than $2,643.50 per month. Living part time in another country can make a huge difference. You young people dont understand how your senior living will be. It is time to enjoy nature and simple things in life, Once you hit your sixties $200/month for prescriptions just wont cut it. So can I live on $30,000 a year? I guess it also depends on where in Southern CA. Health concerns and insurance issues are a huge factor, at the same time. Different companies have different payments but you will more or less end up with about $3,450 according to the paycheck calculator (link below). For those who live and California and are unwilling to move to a cheaper state, you can pretty much count on not retiring early. I didnt calculate the number for a couple. One of my classmates in college got a condo because their rich dad gave them $270,000. You can survive in NY , but I don't think you can live in NYC rent fee is too high. You are right. I live in Virginia and add 100.00 to everything you have there except medical bills. The commentators on Yahoo dont realize that 75% of American Households live on less . Yeah, you are smoking weed too. It keeps you active. As most people have discussed, location is the primary factor in making this work. $600 is do-able, lots of soups and stir-frys. Youd want to earn at least $170,000 if you even remotely think about buying any property, and even then its prob going to be in the ghetto and you better have 8 months of savings in the event of a lay off, which seem to happen pretty often here, and the automation of 50% of the workforce by 2035. No winters in Florida for me, driving cars until they die and I will have to sell my house at some as so far undecided point to free up that money. If I dont count our mortgage, student loan, IRA contributions, etc, our budget is $2700 a month for everything else (gas, groceries, eating out, car insurance, entertainment and shopping, charity, bills and utilities, medical bills (but not the premium) included). Thank you for reminding us Drew and not letting that dismal fact be lost in the dustbin of history. Thats a 2% effective tax rate and youll have $31,722/year of after-tax income to spend in retirement. Add in a child or two that grow constantly, and its an impossibility. Cost of living is low in this cozy city that's home to just shy of a hundred thousand residents. Thanks for the laugh, though. I am 30, own my house and truck free-and-clear, traveled several times throughout the year, did things I enjoy, and eat very healthy. I am in the California with the Golden Gate Bridge? But hey, Im alive arent I??? The job would likely be near dodger stadium. Cable/DSL? 4k monthly is definitely enough in Washington state, @ChocoMonstah great, so I imagine that 4k would also be enough for a quick trip (3 weeks) to Austin. As for location, you have to go where the jobs are and hope you can find something reasonable without spending everything you earn on gasoline and not having to worry for your safety or the safety of your kids at home or at school. The budgets estimate community-specific costs for 10 family types (one or two adults with zero to four children) in all counties and metro areas in the United States. Others look for 30% of your monthly income, but in reality, these two methods are just two different mathematical ways to get to the same place. I am not so sure about renting a place for $1500 a month and if you find a place, theres a good chance its in a good neighborhood. Most Americans spend waaay more than they need to and a very bad about saving money. The owner of it will not be notified. You turkey!. Again, shopping at an average store like Sears that should be $60 per pair x 8 = $480. For more information, please see our Is there any update? America is the land of opportunity, not entitlement. 4. Same with water. Kids? Big bucks. I dont know anyone who has successfully moved away from home, even half a decade after graduating. I live in the worst apts on the planet have not had a decent night sleep sense the day I moved here. And Im not moving. Its called save for the next 4 months for what you really need extra. In Texas for a single person without kids, you will live very comfortably. Also dont count on Social Security because that program will be changed drastically real soon. http://www.adp.com/tools-and-resources/calculators-and-tools/payroll-calculators/salary-paycheck-calculator.aspx. I think working a bit post retirement is a good thing. I'd also have to factor in food, bills, student loan payments. Play at home! I know a gentleman aged 77 with no prescriptions. If your motivation is to pay the least in taxes, you can do almost anything. You probably are renting a studio apartment! Speaking of commutes, how is public transportation? $30 for clothing?! Assuming your health is reasonably good, I think its just fine. We would like to show you a description here but the site won't allow us. Some people will always find excuses and bash things that they just cant figure out. The choice that we have is to move out of state to a more tax-friendly location. You can, with the exception of New York. A lot of people are doing it I suppose but they are usually one accident away from disaster. Note: I have been working for 50 years and still not 65. Anyway, I think people need to examine their expenses and see what they are really spending money on. and yes, they are one step away from disaster and its the ugliest thing youll ever see if kids have to be involved. Assuming you're single with no dependents and you're contributing 6% gross pay to a 401k, your monthly take-home on exactly $4k a month will be $2,856. I don't have exact numbers in terms of my planned budget but I already kind of feel like i'd be pushing it a bit. Rental $1900 for a simple, no thrills, minimal convenience 3 bedroom house, and that is CHEAP for my area. I live in a 300sqft studio that looks like an the projects and I pay $1600 plus utilities!. readers are complaining about. 8 posts, read 59,526 times. This means that your net income, or salary after tax, will be $55,578 per year, $4,632 per month, or $1,069 per week. I dont know where this dude gets his health insurance but he must have a $10,000 deductible. Some RV owners do this. You make a solid academic case Joe, but one key to your piece is your disclaimer assuming your health is reasonably good. Because of this, and lots of other uncertainties, its probably unwise to plan to retire comfortably on $31,722 per year, me thinks.
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