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Old 12-08-2007, 04:39 PM   #101
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Originally Posted by Spanky View Post
I agree with you. It's amazing how they manage to live under a tight budget. We are debt free (no loans or mortgage). We hardly eat out. We take one vacation a year (less the $4K). We hardly spend much on anything else. Our expenses are in the $50s.
It's all relative. I make 43K per year pre tax but I live on only $1500/month the rest is saved. My borther, 7 years out of college, has never made more than $24,000 in a year. He says if he made my money he'd "live like a king". Seems like most people on here spend my yearly income on just the mortgage and eating out. My parents never made more than 30K year until after I was 18 my dad finaly got a job in the 50K range. So we never knew anything but how to live on under 30K so it doesn't feel like deprivation to us. It almost seems easy. I would have a hard time finding ways to spend $80K per year. Although I wouldn't mind trying!
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Old 12-08-2007, 04:40 PM   #102
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I don't know how people can live under 30k a year either. I'm at 86k to date with no mortgage and no kids. I have to get this under control within the next few years before I fully ER.

Category
———————————————————————
Auto Fuel $4,642
Auto nsurance $1,486
Auto Registration $171
Auto Service $4,189
Charity $632
Clothing $3,336
Condo Association Fees $2,764
Condo Electric $745
Condo Gas $255
Condo Maintenance $725
Condo Phone $229
Condo Real Estate Taxes $1,452
Condo Insurance $350
Wife Misc $7,320
Me Misc $7,703
Gifts Given $1,238
Groceries $6,808
ATV Insurance $173
Home Insurance $1,718
Dining $3,204
Entertainment $3,915
Fitness $2,394
Lodging $2,120
Travel $5,289
Dental $662
Doctor $40
Glasses,contacts $394
Medicine $15
Professional fees $620
Home Repair $4,584
Homeowners Assoc $126
Household $2,749
Landscaping $1,714
Real Estate Taxes $6,093
Electric $1,778
Garbage $303
Gas $1,254
Internet $769
Security $559
Telephone $658
TV $944
————————————
Total Outflows $86,117
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Old 12-08-2007, 04:46 PM   #103
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I had never heard of property taxes this low so I had to check it out .Louisiana is the cheapest state for property taxes .Nice place to visit but I don't want to live there .Alabama and Arkansas are next .
I remember my dads real estate tax bill in gulf shore al in 1997 451 dollars for a great house on a golf course. I said whats that for a month? He says oh no a year!! But you wouldn't want to send your kids to the public schools!!
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Old 12-08-2007, 04:58 PM   #104
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I remember my dads real estate tax bill in gulf shore al in 1997 451 dollars for a great house on a golf course. I said whats that for a month? He says oh no a year!! But you wouldn't want to send your kids to the public schools!!
No kids at home, in my case! But, you're right. Many public schools are below par here and most educated people choose private/parochial schools for their kids, or at the very least, the magnet schools within the public school system.
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Old 12-08-2007, 05:16 PM   #105
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I had never heard of property taxes this low so I had to check it out .Louisiana is the cheapest state for property taxes .Nice place to visit but I don't want to live there .Alabama and Arkansas are next .
My property taxes for 2007: $827.30
(Ohio)
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Old 12-08-2007, 05:22 PM   #106
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My property taxes for 2007: $827.30
(Ohio)
That is really low! Mine were usually a little higher than that, before Hurricane Katrina. After Katrina, our Parish (=county) council gave everyone a break on property assessments, trying to encourage people to stay and rebuild.

My assessment went way down even though I did not have flood damage and only some wind damage. We were told that this year our assessments would be back as before Katrina, but my assessment was just partially raised and is still not back to where it was. Same for Frank's assessment, so I guess they had a change of heart.
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Old 12-08-2007, 05:23 PM   #107
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Others would really rather be hung by their fingernails, diced, and fed to livestock for breakfast than to work even one hour longer than they need to work. They might be more willing to retire to a low cost of living area and live a more frugal lifestyle in order to have as much free time in their remaining years as possible.

I have been in the latter category for a long time. Lately, it looks like I may have more money in ER than I had expected, though I must work two more years for my lifetime health benefits. Anyway, right now I am at a loss as to how I would spend much more than I have always spent.
I was spending less than $25K/year my last three years at work (grossing $75K).

My CD ladder is going to start generating $4K or $5K per year starting 2009; not sure what I'll do with it. Maybe I'll replace the (then) 32 year old heating system.
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Old 12-08-2007, 05:34 PM   #108
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I remember my dads real estate tax bill in gulf shore al in 1997 451 dollars for a great house on a golf course. I said whats that for a month? He says oh no a year!! But you wouldn't want to send your kids to the public schools!!
My parents lived in Gulf Shores; I swear they said $100/year property tax (but 10% sales tax, including food).
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Old 12-08-2007, 05:46 PM   #109
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I live near Boise, Idaho. My property taxes for 2007 are $1053.58, for a 1450 sq ft 3/2 home (built in 1996) in a nice neighborhood.

My average monthly expenses this year will be around $900 ($10,800/yr). I telecommute which saves a lot on both the auto expenses and I don't need to buy office-friendly clothes. If I did not eat out so much I could get the monthly total down by another $200. Also, I had to buy new tires for the car and repair the furnace this year, the total for those two items is about $1,100.

My biggest single expense is beer...followed closely by food.
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Old 12-08-2007, 05:48 PM   #110
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Many folks are specifying that they could survive the $30K budget IF they have a paid off house. So, It sounds like one of the admission fees into the "Do It On $30K Club" is having $150K or more for a house in top notch condition requiring no expensive repairs or updates.

More generally, it sounds like many of the folks saying yes to $30K are assuming they're fully capitalized with paid off house and car in good condition, furniture, appliances, etc.

I suppose it would be a lot tougher if you only had the $30K income without a pre-existing set of infrastructure!

Having a "pre-existing set of infrastructure"
should be part of retirement planning.
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Old 12-08-2007, 06:03 PM   #111
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Having a "pre-existing set of infrastructure"
should be part of retirement planning.
It was part of my Folk's retirement plan, as well as my Grandparent's. It was part of the retirement plan for most of my folks' peers also. I learned by example, and took care of the biggies while I was still w*rking, so I wouldn't have a lot of 'infrastructure' expenses after ER.
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Old 12-08-2007, 11:00 PM   #112
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Having a "pre-existing set of infrastructure"
should be part of retirement planning.
I absolutely agree with Helena. I would never consider retiring if I had still a mortgage on my house.

Look my mom managed to retire on $18,000 a year in Geneva, Switzerland, the 6th most expensive city in the world. She would have never been able to make it if her condo (a large 4 bedroom condo I might add) had not been completely paid for. Owning your home outright when retiring is in my opinion a must.
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Old 12-09-2007, 03:16 AM   #113
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I think even living in one of the most expensive in place in the country, Honolulu, I could live on 30K a year assuming a paid off house. Now I'd cheat and include the $800/month rent I collect from my roommate. I think I could do it without her contribution but it would require some adjustment. Growing more vegatables, firing the gardener, eating out less frequently etc.

Still for all the people that find it hard imagine living on $30K a year. Think of this fact $30K a year is $15 hour it actually closer to $18-$19 to account for payroll tax ~4K in income tax and some minimal state tax) . There are heck of lot of people in this country that make less than $19/hour. In fact, virtually everybody that I work with as a volunteer including security guards, cashier, park rangers, tour guides, admin, makes less than $20 hour. Many have some other support system (working spouse, parents) etc. but some are single with kids...
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Old 12-09-2007, 04:19 AM   #114
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RE Taxes are the largest expense we have. Last year about $7,300, this year even with the residence cut (2.5%) and the new Homestead for over 65 ($25,000 decrease in assessment) I anticipate it being in the $6.6 to 6.8 range. This is a nice condo in central Ohio and I really do not see the value in this RE tax system. Almost 2/3d of the money goes to schools. We have not had kids in school for over 20 years and almost always my kids were not in public schools either. I just love the schools here tho, all of the plasma screens used to replace the old paper bulletin boards, landscaped grounds that are 10 times or more of the foot print of the school buildings, build a new one or two every year, the maintenance must cost as much as the teachers salaries. If it were not for RE taxes our $30K budget would be in the $24K range.
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Old 12-09-2007, 04:41 AM   #115
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Quote:
Originally Posted by Ronstar View Post
I don't know how people can live under 30k a year either. I'm at 86k to date with no mortgage and no kids. I have to get this under control within the next few years before I fully ER.

Category
———————————————————————
Auto Fuel $4,642
Auto nsurance $1,486
Auto Registration $171
Auto Service $4,189
Charity $632
Clothing $3,336
Condo Association Fees $2,764
Condo Electric $745
Condo Gas $255
Condo Maintenance $725
Condo Phone $229
Condo Real Estate Taxes $1,452
Condo Insurance $350
Wife Misc $7,320
Me Misc $7,703
Gifts Given $1,238
Groceries $6,808
ATV Insurance $173
Home Insurance $1,718
Dining $3,204
Entertainment $3,915
Fitness $2,394
Lodging $2,120
Travel $5,289
Dental $662
Doctor $40
Glasses,contacts $394
Medicine $15
Professional fees $620
Home Repair $4,584
Homeowners Assoc $126
Household $2,749
Landscaping $1,714
Real Estate Taxes $6,093
Electric $1,778
Garbage $303
Gas $1,254
Internet $769
Security $559
Telephone $658
TV $944
————————————
Total Outflows $86,117
Ronstar, nearly everything on your list is more than I spend, except charity . In the years I see the eye doctor, the doctor total would be higher than yours. (I have bare bones health insurance.) Gift total and telephone is close to mine. And I pay for exams by the vet (for a young healthy dog). I have an old house and some years I pay more for repairs, but they're planned in advance. I own a small place in the mountains too, with total annual expenses of $3,000. I'm well under $30,000 each year without trying. I think I got it from my parents. -kate
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Old 12-09-2007, 07:06 AM   #116
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My question is whether there is anyone out there living comfortably on 30K in this forum. If so, is it difficult or not? Do you spend more or less than when you were working?
I do not live on $30k per year and still work. All assets are paid for including house, cars, etc. We are DINKS.

That said, I'm more in the $40-45K range each year. The $40-45k includes all "needs" and "wants". If I go to a "need" budget (no wants), I can go down to around $35k. At that point ($35k), I imagine that the DW will be handing me the daily job postings in the local paper for additional income .



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Old 12-09-2007, 07:21 AM   #117
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Those of us who have to pay $1049 a month for health insurance (my family COBRA payment) plus another $100 a month in copays would have a hard time living on $30,000 a year, even with no mortgage.
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Old 12-09-2007, 07:32 AM   #118
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Those of us who have to pay $1049 a month for health insurance (my family COBRA payment) plus another $100 a month in copays would have a hard time living on $30,000 a year, even with no mortgage.
Good lord have mercy!
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Old 12-09-2007, 08:55 AM   #119
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Those of us who have to pay $1049 a month for health insurance (my family COBRA payment) plus another $100 a month in copays would have a hard time living on $30,000 a year, even with no mortgage.

Health insurance is the real stumbling block for a lot of people .
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Old 12-09-2007, 09:24 AM   #120
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Those of us who have to pay $1049 a month for health insurance (my family COBRA payment) plus another $100 a month in copays would have a hard time living on $30,000 a year, even with no mortgage.

COBRA is expensive and it's only temporary.
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