Yet, this age-old advice may not be accurate after all. A little side income can make a huge difference when youre retired. Can ask simple questions and can understand simple answers. See what today's average and top rates are for 3-month, 6-month, 1-year, 24-month and 36-month CDs. 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. 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. By the way, we are talking medical insurance AND healthcare. 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. To me its the opposite. And Im not moving. Gas is 3.00 a gallon no question about it. I live on way less than that now. Certain cities (take NYC, Portland, Seattle, San Francisco) you may not want to have a car and instead use public transport. Calculate Salary rate Annual Month Biweekly Weekly Day Hour Withholding Salary $55,000 Federal Income Tax - $4,868 State Income Tax - $1,995 Social Security - $3,410 Medicare - $798 SDI (State Disability Insurance) - $605 A 25-year-old making investments that yield a 3% yearly return would have to invest $1100 per month for 40 years to reach $1 million. Anyway, this article was syndicated on Yahoo! My husband and I live in Savannah, GA. We earn $4,338 a month combined right now. 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. Yeah you are way off base on SS being changed drastically soon. The biggest bill is my wifes COBRA, but thats coming out of savings and will go away soon. $200 Prescription, co pay, and other medical needs, $588.50 Entertainment and misc. I think some people forget that as we age, we tend to spend less so we dont need as much money as in our 30s and 40s. According to the Social Security Administration, your number is very close to the real-life average: The SSA Chartbook also reveals, he said, that only 13% of senior Americans are spending $35,000 a year or more in retirementa level which permits a greater opportunity to pursue long-awaited lifetime goals. If you installed earlier updates, only the new updates contained in this package will be downloaded and installed on your device. Same with water. Considering median household income in U.S is 50k$ pretax and that 80k pretax is about top 25% in US households, then I would think $63k after tax for a couple would be a comfortable life. With a state sales tax of 7.25% and income tax of 1-12.3%, California has the highest tax rate in the nation. This is all assuming you fully own your house, have adequate health insurance, etc. $200 Utilities (No mortgage), will have almost $50,000 left over. But these days, older people are having their kids or grandkids move back in and that can have a huge impact on cash flow. Its amazing how dense some people (often very vocal critics) are about money. I admit that I tend to be a bit more opinionated should I decide to comment n a Yahoo article, but things distributed so widely should be held to a somewhat higher degree of accuracy than a personal blog, no? How Much Water Should I Drink in a Day? | U.S. News Health Different companies have different payments but you will more or less end up with about $3,450 according to the paycheck calculator (link below). This is completely inaccurate. Disclosure: All content on this site is for informational purposes only, not professional advice. What is listed are the big, non negotiable expenses. How about $1100 a month for health insurance for 2 adults? Which one is gramatically correct? This also doesnt account for any other savings a person/couple might have. I have had beautiful homes, large income and I moved to a small town that is delightful, small taxes and face it , if someone in retirement needs to buy, shop they do not have their priorites in order. My grandmother is retired and receives social security and my deceased grandfathers pension. I averaged $1,464/mo. r/personalfinance on Reddit: Is $4,000 a Month Normal? So based on that you can kiss your entertainments and savings good bye! But at a 3% drawdown that will only give you a $15000.00 a year supplement. I retired at 45 (currently 53) and happily live on $1500 a month ($18,000/year). You wouldnt want to draw down more than 3% the first year, adjust for inflation after that, so that will yield you $30,000.00 annual supplemental in todays dollars. I also owner financed secondary property so have good additional taxable income flow via with 20 year notes with 10.25% binding interest rate. //www.city-data.com/forum/los-aeach-area.html, is california a good place to live witout any real family in the state and what are the best places to live, Notice required for yearly lease converting to month-to-month, is california a good place to live without any real family in the state and what are the best places to live, The following errors occurred with your submission. Its a beautiful town with many activities to partake in. I haven't started a 401K yet because I feel I don't have enough of an emergency fund yet. What range for price should I look for in apartments? Near their workplace rents are $3500 (yes you read that right). Well, Thanks for the reminder about health. There are so many cheap places to live in America. I take several out of state mini vacations each and every year. Once my mortgage is paid off, it would not be a problem to live comfortably on $31,000 a year. Yeah, it would have been nice but I didnt need it. So solution? Savings: Need to build that buffer. Sock away $200 in an emergency fund. Phone: $20 is on the high mark but well just add this here for another cell plan. What surprised me were the vehement comments about how $31,722 means you have to live in a cave, boil moss for dinner, wear rags, and are in abject poverty. Thats $32,500 minus $778 federal income tax. Investing is one of the best ways to make passive income and grow multiple income streams to make $4000 a month. I think a big problem with your calculations is that the cost of living is much more expensive in some areas of the country, as many other readers have pointed out. I agree with the writer who does not want to work so long in her sixties and not enjoy retirement. I think your assumptions are completely possible, but maybe not in Southern California. So I see us living very comfortable. Why do you want to retire to an expensive suburb? All three of those will drop dramatically by the time we retire. Here's how much money 25-year-olds need to invest every month to become If middle class means making barely enough to make it paycheck to paycheck without saving any for a rainy day (or car repairs on that 20 year old car you keep nursing and hoping it doesnt finally crap out on you altogether) and skipping any family vacations, then Im living the middle class American dream! For me its perfect because I can take my dog out the back door and go pheasant hunting. You need to carve out at least 25% (if not more) of your monthly take home for things that arent on your budget, as life has a way of handing you a $1000 setback at least once a year if not twice (sure you could use your savings and entertainment budget, but then why call them that at all). We don't drink alcohol that much, but we still enjoy eating out ~3 times a week, we have one car, and we . In a big city like NYC or LA or something, living off 48K would be really hard, if not impossible. Being a lifetime backpacker and actually *enjoying* budget travel and cheap outdoor hobbies helps, as does living in a 4-plex I own that pays all my housing expenses. I make $50k a year and its in San Diego and I have 740 credit score with no debt. $200 month for gasoline? I'm 22 years old and I make 4k per month. How much should I put in my Granted I have other money but I want to see if I can live on just my SS, sort of like I refused to turn on the air conditioning all summer out of stubbornness. HiNative can help you find that answer you're looking for. Also gives me hope that indeed at 48 years old this wont be so hard after all. (Getty Images) Sure, water is important . It seems that this concept is radical, even though it works out very well for me, hence why I authored the book Living Big & Traveling Far on $8,000 A Year, Or Less. I say or less, because, actually, I lived on only $5,000 in 2012, and $6,000 in 2013. Retirement in your 60s can be very different than retirement in your 70s. I would love to hear from others in a similar situation. O and I live in a state with high taxes. $800 Housing property tax, HOA, maintenance, repair, insurance, etc. Its more like $3,450. But even still, you can live a full and active life on 32k per year after taxes. Or is way to low to rent a place, buy a car and cover general expenses? Living on 4K monthly? : r/Frugal I live in the worst apts on the planet have not had a decent night sleep sense the day I moved here. I guess well just have to live a healthy lifestyle and hope for the best. If you are paid $60,000 a year then divide that by 12 to get $5,000 per month. Chicago hot dog stand murder charges dropped against mother, teen son I live pretty comfortably on this. and yes, they are one step away from disaster and its the ugliest thing youll ever see if kids have to be involved. We also ( thankfully) have no medical issues , without daily while working both full time. As you point out though, for someone thats single with limited debt in a more inexpensive city this could work. It has a murder rate lower than British Columbia despite loose gun laws. I'd also have to factor in food, bills, student loan payments. Previously I lived in Georgia. As long as you have prepared like you said with no debt and a reasonable budget and spending control I think things should be fine. Used car I had a coil pack go out the wanted to change all of them for 2,000 buck. 4. Prior to WWII residential air conditioning was unheard of and people survived. I probably could do that too if I was single. That will fall over time, but what you need with a family is very different than with kids. 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. The other way around is common. 2020 hindsight. 4k Per Month Jobs, Employment in California | Indeed.com 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. Once you made the qualifications about owning your own home and not having debt it should have become cleared up for everyone. Food: You can get by on $500 a month with food for two people. California is home to many dollar stores and you can find a good amount of cheap vegetables there. You will also have room for meat at your local grocery store. Buy toothbrushes and soap at dollar stores for example. Seriously, a $7 toothbrush does the same as one for $1. You do not have golden teeth. I recommend non-big name stores for discounts. Go to Costco to buy bulk items and plan meals out. But if you go to Costco, go with a plan and dont go lurking since you will blow your entire budget there. I know how tempting these places can be. And they now live at home. Entertainment: $200 a month is enough. You can have a couple of meals out, a movie, or grab some food and go for a hike in many of the nice areas outside of the city. A bike ride is free and it is one of the best things you can do. $200 a month is plenty here. But many people want to go out to fancy restaurants and drop this much in one go around. That is living as if you were making $200,000 (see chart above) and many are not. Thats why I usually just ignore them. So that should make up for extra expenses. Archived post. Then, when you get in, they charge you in addition to your health tax and the reality of cost becomes all too clear. Thanks for the link. Personally, I think the entertainment value is too high. Auto service: Oil changes and regular wear and tear. And in 2013 I spent five months on Kauai island, one of the most expensive places in the country to live. love Megans comment. It seems older folks have a better idea of how much health care and prescriptions will cost. 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.. It goes without saying that it is possible! Wind Gusts. Personally, I live on much less, and I dont feel as if I am sacrificing tremendously in any sense of the word. I'm pretty sure I can live quite comfortably on this level of income. 60,000 before taxes is tough. $300 Transportation car maintenance, gas, and insurance. 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). A lot of it depends where you live and how much healthcare you need. like, w How to answer "Does that work for you?"? I live in a 300sqft studio that looks like an the projects and I pay $1600 plus utilities!. Cable/DSL? I switched from Apple TV 4K to the Roku Ultra for 1 month here's what Well they happen.but you prob shouldnt have them unless you are rich. And no you obsolureky cannot find an apartment that is suitable for two humans for $1500. Lets just assume our imaginary retiree luckily lives in one of the states with no income tax. But you'd be fine, as long as you manage your expenses and don't make a lot of unnecessary purchases.|that is a good amount to . Then enter your current payroll information and. All rights reserved. Anyway, I think people need to examine their expenses and see what they are really spending money on. Its hard for young people to imagine how much health care will cost in old age. Would You Start A Post-Retirement Business? I live in a 2 bedroom apartment with my wife and 2 kids and I pay $1,350 a month and its in Imperial beach a mile away from the beach. Discovered that 45 k in the midwest was a better deal for me. Am I in poverty if I dont spend $12 on a cup of coffee and a muffin every morning? Its called save for the next 4 months for what you really need extra. It seems like there are a lot of misguided assumptions about much money it takes to have a great life. I do many home repairs myself, even HVAC. Do you know how to improve your language skills All you have to do is have your writing corrected by a native speaker! You could take home more than 5.8% APY on a CD right now. Thanks for the input. You're getting another $18,000 a year in Social Security, while the $1 million should be throwing off at least $10,000 a year in interest at 1%. If the goal is to live an almost minimalist life, I think you achieved it. I laugh when I read those Yahoo comments because usually everyone is such a negative naysayer. When I saw what I would get in SS I was surprised that most pundits say you cant live on SS alone. Do you think you can comfortably retire on $31,722/year? The job would likely be near dodger stadium. ya. As a recently 100% disabled veteran that is single, this is perfect. i don't know anyone in LA, so I've got nothing in terms of roomies. Your Camaro looks great though. I lived comfortably in Texas for half that. We live on far less than that now (per capita) while paying rent, giving, and saving, and we do live comfortably. Yes, I can and still live very comfortable with in my means. Its Idaho so there is income tax but SS is exempt. You probably are renting a studio apartment! I can see from most of the comments a peculiar naivete. The best approach is to figure out where you want to live and that you'll be earning that income and determine which of the expenses will apply to you and talk to people who live there to get a better gauge! One drug, Celebrex, that is very effective for arthritis costs OVER $200 per month alone, and no generic yet. Im pretty sure I can live quite comfortably on this level of income. $30 a month for clothing for two adults? Not sure when the housing will burst again, but it is long due for it. Fortunately I started investing at the age of 16 and dollar cost averaged into the market since then mostly using Vanguard Mutual Funds. Most younger people have few medical encounters. Here in the midwest where I live I think it is definately reasonable to think you can live off of $31,700 income a year no problem. I live in Orange County (county next to LA) so housing costs are pretty high. To give you a good idea of how expensive it is here, my friend, who is an engineer with a graduate degree and several years of experience, still lives at home with their parents due to rent cost. According to terms of the deal disclosed in the document . Surprise, the house needs a new roof. Do I even need to point out that you didnt add state tax into your equation?!!!! The exhilaration I feel at finally quitting a job that has been a millstone around my neck for 10 yrs, far outweighs any dismay about living on a good deal less. Keep your 20 dollar a year midwest plates . It feels like there'd be no money for entertainment/savings. We would love to pay our mortgage off early, but those two expenses make it very difficult, so we will definitely be carrying a mortgage with us into retirement until we can sell our home. If they instead make investments that give a 6% yearly return . I may have to go and get a part time job somewhere eventually but for the next 6 months or so , I ll be ok . Retirees who have paid off their mortgages pay a. I spend around $1,000/mo. I think that amount is pretty enough. Net-to-gross paycheck calculator - Bankrate Entertainment? How far your commute from work may be. Salary Calculator Results. http://www.adp.com/tools-and-resources/calculators-and-tools/payroll-calculators/salary-paycheck-calculator.aspx. You cant get ahead too easily when you had a rundown 1960s house that costs $8,000+ a year in property taxes. Anyway $32K a year is enough provided a person owes nothing and is willing to live in a small town in certain states. You dont bring $3,935 home after all the taxes and deductions for $60,000 salary in California. decently reliable? As mentioned my one of the commenters, he doesnt pay any rent or contribute to the general expenses. How much rent and how much car can i truly afford? Also dont count on Social Security because that program will be changed drastically real soon. Its harder when you have a family though. Are you paying them out over 7/8 yrs? Most people pay about $105/month for Medicare Part B. Im also assuming our retireedoesnthave any financial obligations like alimony or child support. But for most of the country 48K would be doable. This month, we hope it helps you spread goodwill and kindness. For my wife and I, our three biggest expenses are day care, mortgage, and taxes. Preparation before retirement is key. Its fine to want more for your lifestyle or to want to live in a higher cost-of-living area, but at the same time its useful to realize that you can live just fine on less with a few different choices. Personally, I watch every penny we spend, and we couldnt live any other way. $30 is light for clothing, $500 food is heavy for two adults, light for family with two kids, $50 for car maint will cover maint. You are absolutely correct. As a couple, Id say the cost goes up, it doesnt go down! 8 posts, read 59,526 times. @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. The one learning a language! It is also pre-tax. $60,000 / 12 is $5,083??? Healthcare is a big wild card. Cell: Seriously, no need for the $100 a month contracts. What are you, JayZ? Get a Virgin Mobile plan for $35 a month and save hundreds of dollars a year. They even offer 4G services. Be smart and add on Skype or Google Voice and use the network to save on minutes if you need to. $100 a month for cell phones is nuts. You can also get prepaid plans for much cheaper like $20 a month. It is all about the choices one makes! the only people who think poverty is $2,700 a month have no grasp of reality. 4K content guide: What to watch in 4K and HDR today - CNET For example, the average cost of living in the Golden State is roughly 50% higher than the national average.. You get substantial savings on groceries . 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. Obviously you have no idea what you are talking about and have done no actual research. Moving to a cheaper area after retirement is definitely something that we will look into, because I for one, do not want to be a slave to high taxes and insurance expenses until the day I die! Last week, I wrote an article about minimizing tax on Social Security income after retirement. So based on that you can kiss your entertainment and savings good bye. My wife is nearly 65 so will soon get Medicare. Everyone will have to figure out their own situation. She still pays a mortgage and buys all organic groceries, yet she still has money left over. I think it is very possible, although I would not choose it. 4k a month after taxes. I think people just got used to their inflated lifestyle. I dont particularly want to. But for most of the country 48K would be doable. For those who live and California and are unwilling to move to a cheaper state, you can pretty much count on not retiring early. Car Insurance: $120 a month should cover two of you. Places like Mercury Insurance offer very low rates. You will get discounts for anti-theft devices or having a good driving record. Hurricane - Category 2 Adrian 2023 | AccuWeather Thanks for your input. My current expenses are approximately $2,000/mth with health insurance being approximately 1/3 of my monthly expenses. I plan to retire within the next month and live solely on my 2K pension. So in order to not pay taxes on my Social Security, you want me to not make money and lower my standard of living? Theyre gradual but eventually I should be making a few more hundreds a month. It can be a distraction. And if anyone thinks that is poverty, let them spend a month or two in places like Equador or Rwanda. Im curious. Monthly expenditures: $2,854.29. A lot of people are downsizing see the tiny home movement? The question is are you a person that feels you wont be happy without things and spending lots of money on entertainment. It can be done, but not if you want to live like the jones. Its easy for us to live on 2800 a month. We would like to show you a description here but the site won't allow us. The Average American Spends Nearly $4,000 Per Month in Retirement Like, I don't think you could live in La Jolla on 4k/month, but you can live in UTC or Clairemont with that. Dont you need a permanent address to get a driver license in the state? If you are 40 years old 40% should be in bonds or equivalent and 60% in equities and rebalanced at certain intervals. Great insight, and agreed for the most part. Today's top CD rate roundup: June 29, 2023 - USA TODAY Blueprint They have never had a spree shooting or a school shooting.
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is 4k a month good in california