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Living on $12k/year
Old 01-21-2007, 01:20 PM   #1
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Living on $12k/year

Quote:
But in order to thrive, you have to hustle, too, always looking for ways to save a dime or to make one. I exchange spent ink cartridges for reams of printer paper at Office Max. Whenever I see a candy dish, I put a piece in my coat pocket; if my energy flags midday, those toffees and peppermints keep me from buying snacks. After I won a basket of specialty coffees at a college event, I immediately sold it on Craigslist.org; I sold a "free after rebate" phone that way, too.
If you can't live on a 4% SWR plus inflation, here's an idea that is surely an alternate to dining on Alpo or Friskies feline diet.

http://www.frugalforlife.blogspot.co...sand-year.html
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Re: Living on $12k/year
Old 01-21-2007, 05:03 PM   #2
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Re: Living on $12k/year

I grew up in Seattle (where the author is living) and this story brings back memories. In 1960, my mom said "enough" and left with a newborn and an 18 month old. No car, no savings, no college education, no family within hundreds of miles, no alimony, no child support, no welfare, no food pantries and my (wealthy) father's IRS debts. Thank goodness Seattle had a good bus system even back then because it got my mom to the job she worked for 35 years (and from which she gets a very nice pension). The past is my motivation to save and live debt free.
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Re: Living on $12k/year
Old 01-21-2007, 05:42 PM   #3
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Re: Living on $12k/year

Blasted BorderManager program!!!

I can't WAIT to get home and read this one!!
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Re: Living on $12k/year
Old 01-22-2007, 01:20 PM   #4
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Re: Living on $12k/year

I ran down a basic "serious problems are occurring" budget and saw how we could get by for a year or two or three on close to the 12k figure. No debt and newer home and car are obviously crucial to the plan, and the only real risky parts would be dropping insurance completely or to a minimum required by law, dropping the satellite tv and cable internet. Maybe simplify the diet a little bit.

Heck, i've been making some nice pocket change returning the kiddie carts at the mall. Believe it or not, people rent these suckers for $5, then leave them at the exit doors. I throw gabe in and motor him around for 5 minutes then return them for the 50c "reward".
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Re: Living on $12k/year
Old 01-22-2007, 01:55 PM   #5
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Re: Living on $12k/year

Quote:
Originally Posted by Cute Fuzzy Bunny
I ran down a basic "serious problems are occurring" budget and saw how we could get by for a year or two or three on close to the 12k fig
CFB: You are definantly cute, and I by and large enjoy your posts.

We (My wife and I, kids are long gone), spend about $12.000.00 on medical and dental alone.

Be that as it may, keep it coming, because you are withought a doubt a welcome relief to the harsh realities we all face in the "North State".
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Re: Living on $12k/year
Old 01-22-2007, 03:25 PM   #6
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Re: Living on $12k/year

Quote:
Originally Posted by Cute Fuzzy Bunny
I ran down a basic "serious problems are occurring" budget and saw how we could get by for a year or two or three on close to the 12k figure.
Cindy did something similar for me last week. At our current standard, if she lost her job after I retire, we could make it on my 30k pension plus about a 2% SWR.

Taking drastic re-alignment measures I think we could probably get below 15k. That's reducing us to one car, one motorcycle, analog comm, no cable, and insurance minimums. Sounds like an interesting theoretical to run on my days off. I'll get back to you on this one.
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Re: Living on $12k/year
Old 01-22-2007, 04:25 PM   #7
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Re: Living on $12k/year

$12k/year is not on our radar scope. The desire to NOT live at that level has been one motivator for feathering the nest at this point. We have a desired standard of living that we want and that takes enough money to fund it. I know if we really wanted to live that inexpensively we could but we clearly do not want to and don't have to. We earned what it takes to live better and gave up a lot of things along to way to pave our road into the future.

We have our minimum life-style number too but it is not what some of you would call "'possum living". Far from it. We have been there, done that, and ain't going back there. The benefit for holding RE out a couple of extra years is not having to dumpster dive or rinse out used plastic bags. We are frugal in many ways but only to be able to spend in other areas. We shop sales, bulk buy at Sam's club, buy some items at Walmart and even Dollar Stores and avoid the big name (big profit) stores. We buy quality but at a good price. We research before we buy and then buy at a discount whenever possible. We could afford to pay full price and to buy at the name brand stores but we choose to not throw our money away that way.

Our retirement plan calls for a step-wise reduction in expenses and income over defined time periods. I have over 10 years of real data in Money to show where it all goes now and to project where it will go over the next several years. Other spreadsheets hold the step-down expenses vs income flows with various projections with variable inflation rates and market rates.

If you want to live on $1k/month then go for it by all means. I just can't imagine going back there again.



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Re: Living on $12k/year
Old 01-22-2007, 11:17 PM   #8
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Re: Living on $12k/year

no thanks
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Re: Living on $12k/year
Old 01-22-2007, 11:39 PM   #9
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Re: Living on $12k/year

Our dining, entertainment and pub tab for last year was about $12K. So, to live on $12K/yr we'd have to give up everything else. No thanks.

MIL tries to live on $12K/yr SS and has her own paid off modest condo and car. I have to supplement her so she doesn't have to split pills. $12K ain't enough for an 82 yo woman with no rent or car payments!



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Re: Living on $12k/year
Old 01-23-2007, 12:19 AM   #10
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Re: Living on $12k/year

Quote:
Originally Posted by SteveR
I have over 10 years of real data in Money to show where it all goes now and to project where it will go over the next several years. Other spreadsheets hold the step-down expenses vs income flows with various projections with variable inflation rates and market rates.
Good news!

Wab and SG say that you can just pull a number out of your ass and add 3.1% to it, then buy some TIPS and not worry about it ever again!

What a time saver, eh? Why, I've knocked...an hour or so out of my annual financial planning cycle.


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Re: Living on $12k/year
Old 01-23-2007, 01:49 PM   #11
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Re: Living on $12k/year

Our motorhome depreciates about $12k per year.

BTW... My wife and I have have split pills for years...whether they are 20mg or 40mg, they are often priced the same. NOTE: not all pills should be split.

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Re: Living on $12k/year
Old 01-23-2007, 02:06 PM   #12
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Re: Living on $12k/year

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Originally Posted by ex_CFO_now_RVer
Our motorhome depreciates about $12k per year.
See......... You should stop driving and start drinking.
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Re: Living on $12k/year
Old 01-23-2007, 02:24 PM   #13
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Re: Living on $12k/year

youbet,

We have cup holders, you mean you cant do both? Actually DW drives while I have a cold one.

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Re: Living on $12k/year
Old 01-23-2007, 09:38 PM   #14
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Re: Living on $12k/year

ex_CFO ... just noticed your forum name ... congrat's on making it. I hope to survive the CFO wars myself, and kayak, ride motorcycles and otherwise never look at a debit, investor or banker ever again ... someday.
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Re: Living on $12k/year
Old 01-24-2007, 12:00 AM   #15
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Re: Living on $12k/year

If I could live on $12K per year, I would have already retired.
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Re: Living on $12k/year
Old 01-24-2007, 08:06 AM   #16
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Re: Living on $12k/year

Charles...the CFO life has so drastically changed with SOX and other Board goverence issues that I just was not enjoying it anymore. Good luck on your battles and don't forget to enjoy life.

Dave
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