How much money is sufficient for you?

[Saint]

To live a luxurious life, how much do you need to make each month?
10,000 USD?

In malaysia, a family with 2 children like mine, need 3000USD (12,000 ringgit) to live without worry!

 

[theCandyman]

I don't know, just enough to keep my wife (when/if i get married), myself and our children happy. But if I don't have a family, I could live easily with $36000 (~$3000 each month, around what you said would be easy living) annual income. Maybe even less, I don't exactly treat myself very much.

Of course, I am takng about happy/content not exactly 'luxurious'. There probably is a limit to how much money you can get before it stops life from being luxurious, consider doing taxes for Bill Gates...

 

[Evo]

For me, with a teenage daughter, in the midwest, $10,000 a month average net take home pay just barely cuts it. Ok, she's spoiled. She's going to Switzerland in January. She has a much grander lifestyle than I do.

But yesterday I told her I was cold (the weather is getting chilly) and she bought me a bunch of incredible warm clothes (from her own earnings) so I would be comfortable.

 

[Moonbear]

Well, I managed to survive as a grad student on $14,000/year, but I ate a lot of Ramen noodles and lived in a 3 room apartment over a bar because that's all I could afford. I think, when I was earning a little over $20,000/year (before taxes) as a post-doc (not that long ago), that was at the level of sufficient. I had nothing extra, but was able to pay the rent, maintenance on my 10 yr old car to get back and forth to the lab, ate real food, not Ramen noodles, but still no steaks or snack food very often. And I had enough to once in a while go out to dinner. I'd have been more comfortable if I didn't have to spend so much on airfares and gifts for all the family weddings I had to attend in that timeframe.

 

[Saint]

Evo, $USD10,000 a month, that is nearly my one year salary, you are so rich !

 

[Evo]

Evo, $USD10,000 a month, that is nearly my one year salary, you are so rich !

No, I have a lot of expenses. My daughter can go through money faster than I can make it.

 

[russ_watters]

Evo, $USD10,000 a month, that is nearly my one year salary, you are so rich !

You have to remember that cost of living is different everywhere. My last apartment (suburban philly) cost about $1000 a month plus utilities. My sister's smaller apartment in Boston cost $3000. A buddy's bigger apartment in southern Mississippi cost $600.

For me at just under 30 and expecting to have a 2-3 bedroom condo in a year, a half decent car, and enough money to play with it a little takes about $3,000 a month (after taxes) - $2,500 without much play-money.

The problem with setting a "comfort level" though is your spending will virtually always inflate to equal (or exceed) your income.

 

[Gokul43201]

Well, I managed to survive as a grad student on $14,000/year, but I ate a lot of Ramen noodles and lived in a 3 room apartment over a bar because that's all I could afford. I think, when I was earning a little over $20,000/year (before taxes) as a post-doc (not that long ago), that was at the level of sufficient. I had nothing extra, but was able to pay the rent, maintenance on my 10 yr old car to get back and forth to the lab, ate real food, not Ramen noodles, but still no steaks or snack food very often. And I had enough to once in a while go out to dinner. I'd have been more comfortable if I didn't have to spend so much on airfares and gifts for all the family weddings I had to attend in that timeframe.

I eat Ramen noodles.

 

[Zantra]

that's a loaded question, because what's a fortune in one place, is a pittance in another, as illustrated by some of the responses. I can get away with $500/month rent in the midwest and have a decent sized 1 bedroom 700 will get 2 bdrms. But try that on the west or east coast and the price litterally doubles.

I have to agree with Russ- you will spend what you make. So if you make 1k/month, your "comfort level" adjusts to that. If it's 10k/month, likewise. Short of being a millionaire, you will learn to live within whatever means you have, and adjust accordingly.

 

[Chrono]

I seem to be doing quite well at $5.70 an hour with about 20 - 30 hours a week. I guess it helps that I like to save my money. However, I've been known to be a bit of a spendthrift every now and then. Of course, that cash flow won't be like that for long. Just until I graduate.

 

[Kerrie]

i had an easier time living on a take home pay of $2000 with a family of four then I do now with just two people and that number significanly higher. your expenses go up when you make more.

 

[chroot]

No, I have a lot of expenses. My daughter can go through money faster than I can make it.

Uh, no offense Evo (I can't tell if you're joking or not) but no teenaged girl needs to be spending thousands of dollars a month, no matter where you live.

- Warren

 

[JasonRox]

Expenses go up when you make more, but are those expenses necessary.

I am making 8.50/hour and working 24 hours a week. If I had to live on my own, I would say it is still possible because I would choose not to drive to school. Insurance is very high, so it is almost equivalent to rent. (I just spent $1500 to fix it.)

Personally, I think you can live with 8.50/hour, but you'll have worries. If I made $10/hour, that would perfect.

Note: I read that the average debt in the US is $450 000 per family of 4. This includes the mortgage. Is this a sign that everyone wants to live the dream they can't afford? There must be a lot of people in need for a reality check.

 

[dekoi]

120 thousand dollars a year (USD) ?! That is higher than some doctors get paid in Canada.

What is your profession Evo, if you do not mind sharing.

 

[Moonbear]

Yes, it's true, the amount you need depends on where you live. When I lived in MI, if you lived near campus, you could get an efficiency apartment for about $600/mo, and a one bedroom for $800/mo. Being willing to commute a half hour to another town meant I could get a two bedroom apartment with my own washer and dryer and a swimming pool in the complex for about $850/mo (the washer and dryer alone made it worth the commute for me...I hated laundromats or shared washers in basements). Where I live now, you can get a fairly large 1 br apartment for about $450/mo, and I have a comfortably sized 4 br house (more bedrooms than I need, but it sure helps when I have out-of-town company) with a mortgage payment only slightly over $1000/mo. I think I live quite comfortably, but yes, my expenses have grown with my salary. I used to manage just fine on $20,000/yr, and now I earn substantially more and still find I have little left at the end of the month. And I still live more frugally than a lot of people I know. It's also why I'm not overly sympathetic to people who complain they can't pay their bills, etc. I've lived at that poverty line and you just have to be frugal. I wasn't miserable by any means, but I also didn't include ice cream and potato chips on my grocery list.

 

[Moonbear]

Note: I read that the average debt in the US is $450 000 per family of 4. This includes the mortgage. Is this a sign that everyone wants to live the dream they can't afford? There must be a lot of people in need for a reality check.

Yes, there are. I used to wonder how my neighbors, who I know earn less than I do, can always be driving around a new SUV every few years, or have that huge TV, etc. Then it occurred to me, they are in hock up to their eyeballs. It's all on credit, and they'll never get out of debt. I have cousins who spent $20,000 on their wedding receptions and then had to live in a tiny apartment for years because they couldn't afford to put a downpayment on a house. You're just as married if you have a potluck dinner in a barn for the reception as you are if you have a formal sit-down dinner in a fancy banquet hall on the beach, so I thought they were crazy to spend so far beyond their means on that.

 

[Evo]

Uh, no offense Evo (I can't tell if you're joking or not) but no teenaged girl needs to be spending thousands of dollars a month, no matter where you live.

- Warren

When you count her car, gas, car insurance, clothing, cosmetics, food (she eats out all of the time), that's my fault, I work long hours, so food for her runs $700-900 a month, movies, books, CD's, DVD's. It's amazing how quickly it adds up each month.

She only gets money from me as long as she works. She is required to hand her paychecks over to me, but she only makes a couple of hundred a month.

 

[Zantra]

When you count her car, gas, car insurance, clothing, cosmetics, food (she eats out all of the time), that's my fault, I work long hours, so food for her runs $700-900 a month, movies, books, CD's, DVD's. It's amazing how quickly it adds up each month.

She only gets money from me as long as she works. She is required to hand her paychecks over to me, but she only makes a couple of hundred a month.

Jesus H>..ok I won't say it.. but you know.. how do you spend 1k/month on food every month for 1 young girl? I could have steak and lobster every single day for half that...

I have a daughter myself, but I'd venture to say that your daughter lives better than most working adults.

 

[Zantra]

Yes, there are. I used to wonder how my neighbors, who I know earn less than I do, can always be driving around a new SUV every few years, or have that huge TV, etc. Then it occurred to me, they are in hock up to their eyeballs. It's all on credit, and they'll never get out of debt. I have cousins who spent $20,000 on their wedding receptions and then had to live in a tiny apartment for years because they couldn't afford to put a downpayment on a house. You're just as married if you have a potluck dinner in a barn for the reception as you are if you have a formal sit-down dinner in a fancy banquet hall on the beach, so I thought they were crazy to spend so far beyond their means on that.

It's like that commercial.. "I've got a new car, a new house, a new pool... I'm in debt up to my eyeballs- someone help me.. please.."

The ugly american truth is that most of what we have is borrowed. Play today pay tomorrow is the credo..

When people say that they "used to make less and thought it was a lot, but now they make a lot more, but they're still broke-whose fault is it? You have less because you spend more. You spend more because you CAN. just because you get a raise you don't HAVE to drive a new car. Just becausae you make 3 times as much as you used to, doesn't mean you HAVE to spend 3 times as much. It's all a status thing. Personally I'd rather have savings then status. So if you're making a decent living and you're broke- don't complain, make a budget and stick to it

 

[chroot]

Jesus H>..ok I won't say it.. but you know.. how do you spend 1k/month on food every month for 1 young girl? I could have steak and lobster every single day for half that...

I have a daughter myself, but I'd venture to say that your daughter lives better than most working adults.

I have to agree. $30 a day on food? Give me a break!

I take home about $4k a month after taxes, and I pay for an expensive apartment, a very nice car, all my food, gases, clothing, and even expensive hobbies with no problem at all. I also support my girlfriend to some extent.

- Warren

 

[Saint]

For a fresh graduate, let say he/she work as an engineer, how much can he/she earn per month?

 

[chroot]

Saint,

It depends very strongly on where you work geographically, and also strongly on which engineering discipline you're doing. I would say about $50k per year for an electrical engineer in a modest city is not unusual.

- Warren

 

[Evo]

I have to agree. $30 a day on food? Give me a break!

I take home about $4k a month after taxes, and I pay for an expensive apartment, a very nice car, all my food, gases, clothing, and even expensive hobbies with no problem at all. I also support my girlfriend to some extent.

- Warren

It's very easy to spend that much on food eating out. Even if she only eats 2 meals a day, staying under $30 a day is difficult. Let's say she eats lunch at Hardee's, a hamburger, fries and drink are going to cost around $6. For dinner, let's say she eats at Olive Garden (cheap), $16.95 for the entree, $1.25 for an iced tea, she splits an appetizer with a friend ($3.50 for her half), that's $21.70 BEFORE tax and tip. Minimum tip (15%) is $3.26, but like me, she always leaves a minimum $5 tip for dinner, so before tax, and no dessert, that's $26.70 just for dinner. Plus lunch that's $32.70. Of course this doesn't include a few sodas during the day, at $1.25 for a small drink at a fast food place that can easily add another $5, if she wants a snack during the day, that's even more.

So, realistically, eating only two meals a day at $37.70 a day x 30 days a month, her food costs are $1,131.00.

Where the heck do you people eat??

 

[Gokul43201]

Where the heck do you people eat??

I haven't eaten a 25 buck dinner in months now.

 

[Evo]

I haven't eaten a 25 buck dinner in months now.

Aww Gokul, I will take you out for dinner.

Honestly, I work long hours, I often have to attend cocktail parties after work (for work), have to go out of town, etc...

One area I will not cut back on is nutritious meals for my daughter. If it costs me a bit more, I really do not care.

 

[Moonbear]

It's very easy to spend that much on food eating out. Even if she only eats 2 meals a day, staying under $30 a day is difficult. Let's say she eats lunch at Hardee's, a hamburger, fries and drink are going to cost around $6. For dinner, let's say she eats at Olive Garden (cheap), $16.95 for the entree, $1.25 for an iced tea, she splits an appetizer with a friend ($3.50 for her half), that's $21.70 BEFORE tax and tip. Minimum tip (15%) is $3.26, but like me, she always leaves a minimum $5 tip for dinner, so before tax, and no dessert, that's $26.70 just for dinner. Plus lunch that's $32.70. Of course this doesn't include a few sodas during the day, at $1.25 for a small drink at a fast food place that can easily add another $5, if she wants a snack during the day, that's even more.

So, realistically, eating only two meals a day at $37.70 a day x 30 days a month, her food costs are $1,131.00.

Where the heck do you people eat??

That's a lot of eating out! Teach that young woman how to cook! It's a LOT more expensive to eat out than to cook for yourself. And not nearly as healthy. I used to eat out a lot when I first moved here (suddenly being able to afford it made it very tempting, and it was a good way to get to know people and places around here to meet for dinner at various restaurants)...I gained 20 lbs! It took a lot of effort to lose it again.

Yes, when you eat out, $30 a day just isn't enough. Our university seems to think a $30 per diem is sufficient to cover meals while traveling. Usually dinner alone costs that much, especially when traveling to large cities, where most of the conferences I attend are held.

 

[JasonRox]

Aww Gokul, I will take you out for dinner.

Honestly, I work long hours, I often have to attend cocktail parties after work (for work), have to go out of town, etc...

One area I will not cut back on is nutritious meals for my daughter. If it costs me a bit more, I really do not care.

Nutritious food is cheap and not more expensive. Go to the grocery store and find out for yourself.

Where do people get this? I hear it every single day. Eating nutritiously and going out on the other hand is a different story.

In my opinion, you are doing your daughter more harm than good. If you think about it, statistics show that everyone spoils themselves (from above post). It is also a hard habit to get over as well, and adding to the problem isn't going to help. Your daughter might (I said MIGHT and NOT will) find herself taking from the banking in the future, and in my eyes, this is not a good thing.

I'm 21 and I still wear clothes that I wore when I was in Grade 10, which is when I was 15-16. This is not because I'm poor, but merely because I choose certain things to treat myself. I don't choose everything like most people do because, like most people, I can't afford everything. I have a season pass at a ski resort this winter, and that is a treat. To spend a few weekends there would be great! I'll sacrifice clothes for this, but some others won't. For some of the others who won't sacrifice clothes for little trips, etc..., they also get the clothes. Hmm... I know they can't afford it.

In the end, if you can manage to buy her everything without the bank, that's great, but the habit she's getting into isn't.

Note: This is pure opinion, and you may object to anything.

 

[Evo]

Nutritious food is cheap and not more expensive. Go to the grocery store and find out for yourself.

I totally agree with everything you say.

Let me give you some background.

I have two daughters. My older daughter is now trying to learn to cook from me. My younger daughter (still at home) hates to cook. I LOVE cooking. Neither of my girls ever had any interest in it.

I spoiled them when they were growing up by cooking great meals for them. My younger daughter especially loves the fresh vegetables I cooked. I always had my own vegetable garden in the summer.

Since my divorce, I no longer have the luxury of staying home to cook. Sure, I could quit my job, but that isn't going to happen.

I don't mind paying for my daughter to go to a decent restaurant in order to get fresh vegetables, seafood, etc... that's not thrown into a pit of grease and fried.

She would much rather eat my home cooking. Both of my daughters complain all the time that I no longer have time for this. My older daughter is trying to learn now, she never wanted to learn before. My younger daughter just hasn't gotten the hang of it.

It's not an ideal situation, but then life rarely is.

Personally, I skimp on my food, I hate shopping, I RARELY buy myself anything. When I got married I told my parents instead of wasting money on a wedding, I would prefer the money to help buy a house and furnish it. My husband's parents were furious that I wanted to "rob" them of a party. Whatever.

 

[Evo]

That's a lot of eating out! Teach that young woman how to cook!

I've tried.

She has many talents, cooking isn't one of them.

I hope whoever she marries can cook.

This reminds of a story a woman I used to work with told me. (She didn't even know how to turn her stove on).

She was watching TV with her two young sons when a commercial came on showing a woman cooking chocolate chip cookies. Her son looked up at her and said "you're not that type of woman are you mommy?

 

[Moonbear]

She would much rather eat my home cooking. Both of my daughters complain all the time that I no longer have time for this. My older daughter is trying to learn now, she never wanted to learn before. My younger daughter just hasn't gotten the hang of it.

Well, maybe your older daughter will really pick up on cooking and make meals for the both of them! That would be the ideal situation. As for your younger daughter, it's okay to not like cooking, as long as she knows how to cook enough to survive when she's on her own someday.

Personally, I skimp on my food, I hate shopping, I RARELY buy myself anything. When I got married I told my parents instead of wasting money on a wedding, I would prefer the money to help buy a house and furnish it. My husband's parents were furious that I wanted to "rob" them of a party. Whatever.

I like your attitude about that! I'm still looking for a guy who will let me do the whole wedding registry at Home Depot. You wouldn't think this would be so difficult.

 

[Gokul43201]

What kinda guy would refuse that !

 

[Evo]

As for your younger daughter, it's okay to not like cooking, as long as she knows how to cook enough to survive when she's on her own someday.

I think she might manage to throw a tv dinner into the microwave, except she hates frozen food. I guess if it was a life or death situation...

I like your attitude about that! I'm still looking for a guy who will let me do the whole wedding registry at Home Depot. You wouldn't think this would be so difficult.

Moonbear, we are incredibly alike! But I guess that's because we're identical twins.

 

[Kerrie]

Jesus H>..ok I won't say it.. but you know.. how do you spend 1k/month on food every month for 1 young girl? I could have steak and lobster every single day for half that...

I have a daughter myself, but I'd venture to say that your daughter lives better than most working adults.

i spend less the $500 on food for a my husband and i, and half the time when my two kids are with me. we go out for dinner once, maybe twice a month, and everything else is made at home. i used to be able to spend $300 a month on food for four, but not anymore.

 

[Evo]

I guess I should also mention that my younger daughter volunteers at a local nursing home, it really saddens her that they are so alone and that any little thing she does makes them so happy.

She also volunteers in a high school peer program where she helps kids that have been arrested and/or do drugs. She wants to be a psychologist when she grows up so she can help people. She is very good at this.

She is also the type to give someone the "shirt off her back"...literally, another reason her clothing costs are high.

She doesn't do drugs, she doesn't drink, she isn't wild and crazy, she calls me constantly to let me know where she is so I don't worry, she runs errands for me, she buys me little gifts where ever she goes to let me know she's thinking of me. Her school went to the zoo last week and she knows I love hippos, she bought me a little stuffed hippo. She always does things like this. Her friends adore her because she is so selfless and caring.

Unfortunately she loves to shop.

 

[BobG]

I think she might manage to throw a tv dinner into the microwave, except she hates frozen food. I guess if it was a life or death situation...

That sounds like me before I moved out on my own and got my first apartment. The rent wound up being a little hard to meet, but, luckily, a friend of mine decided he wanted to move away from home, too. The first day, I made spaghetti and he wasn't very hungry. But, then, about an hour later, he ordered a large pizza and finished it off single-handed. The second day, he moved back home to his family.

For awhile, I tried renting basement rooms from families so maybe I could eat with them. Usually, they got pretty tired of me and decided they didn't need the extra money as bad as they thought they did. I hated that. It usually took a couple of weeks for my body to adjust to my own cooking.

Hitting fast foods didn't work out very well, either. Finally, after being diagnosed as suffering from malnutrition, I gave in and learned how to cook. In fact, by time I married, I was a better cook than my wife.

So, there's hope for her, yet.