GoldieSaysMeep2
Earning My Ears
- Joined
- Jun 29, 2009
- Messages
- 35
Ok, I took this post as a challenge. DH and I sat down and decided that hypothetically we are moving to Boston and we have to live off of $30,000 take home pay a year which is $2,500 take home a month.
We had no problem finding cheap places to live via Craigslist and we also found some on other websites like apartments.com. We decided on a nice 1-bed second floor apartment for $695 a month plus utilities (however, hot water is included). It's less than 35 minutes to downtown Boston. (BTW we chose this one because it was really nice and pretty in a cute house that had been converted to apartments and is a 1-bed, if we were really going for the cheapest here we could have gone cheaper.) We figure $200 a month for utilities, $200 for gas, $400 for food, our car insurance is just shy of $34, and $80 for a T-Mobile unlimited family plan. That puts our total monthly bills at $1,609 which leaves $891 left over. That means we can invest or save $250 a month which is 10% of our pay and still have $641 left as a buffer for things like clothes, toiletries, etc. and to cover any underestimates in things like utilities or gas. In reality though we would most likely be saving or investing $500 a month since we are incredibly frugal.
Not only can you live and work in the Boston metropolis for $30,000 take home a year, it's actually easy if it's your first priority. The issue is that the line between needs and wants gets fuzzy at best and completely ignored at worst. You don't need to own a house and you don't need to live a stones throw away from work, those are luxuries for people who can afford them. I also included a family cell phone plan in my calculations, which is in reality a want, not a need. My SIL and BIL managed just fine without a cell phone the entire time they were raising 5 kids and my DH and I have lived without cell phones by choice many of the years we've been together, the world functioned quite well before people were leashed to them.
I also didn't include a car payment because it is quite honestly some of the worst debt to be in since a car immediately depreciates when you drive it off the lot and continues to depreciate. We've always paid cash for our cars. I found a few on the Boston Craigslist for less than $1000.
Needs are a roof over your head, utilities (electric, water, heat), food, and clothing. Everything else is a want. The problem is that most people choose wants over financial stability, which they are more than welcome to do by the way. However, the fact is it is possible to live on $30,000 a year with room to spare and even save, even if you don't want to. Most people will just choose instead to have as many wants as they can possibly cram into their paycheck - hence living paycheck to paycheck. My point is that if someone justifies cramming as many wants into their paycheck as possible at $30,000 a year they will do the same at $100,000 a year. I don't personally know anyone who makes $30,000 a year who doesn't have cable and they'll hold onto that cable bill with two hands even though cable is a completely unnecessary luxury.
If someone is good with money they will always be able to live below their means. My MIL raised 11 kids on $40,000 a year and never went into any kind of debt other than a mortgage. (My DH is telling me now to let you all know they always had everything they needed, every kid had braces, etc. and they were happy and always took a family vacation once a year, usually camping which they love
Oh, and BTW when I was 18 my DH and I were living together on less than $24,000 a year (this was 6 years ago now) and we were able to save enough money to put a down payment on a home, so I'm not just talking from the cheap seats here.
A cast member makes $7.25 an hour, which assuming they work 40 hours a week 52 weeks a year and keep all of it (very unrealistic since taxes are always taken out) they're taking home $15,080 a year or a household $30,160 a year. I know many people that are able to live below their means as cast members and not go into debt. It's all about priorities and realizing that all these things we've been programmed to believe we need are not in fact needs at all, if someone stripped them all away tomorrow you'd still be alive.
GoldieSaysMeep - I hope you aren't taking this as attacking you because I'm not, I'm just using your post as an example to point out certain facts about what is possible. I'm not saying you're irresponsible with money or anything like that. Congrats on your upcoming marriage and good luck with the whole transition, it's an exciting and sometimes stressful time
Not taking it as an attack but I did want to ask a few things and point a few things out.
I make 45K a year, and I don't have cable.
The only reason I have the internet is because my roommate has it and lets me use it.
Having a clunker car is not a good idea when you have to sit in traffic for 2 hours each way per day. Traffic on 93 in Boston moves at about 1 mph during rush hours.
The alternative is a $300 a month train pass and $110 a month in parking.
Where is this 35 minutes from Boston $695 apartment because I have been looking for one for 7 years? Seriously, I'd be curious to see what this is.
I'm guessing what you saw was a scam, or in a bad neighborhood in Fall River, Lowell, Lynn or Fitchburg (all of which are not even close to 35 mins in Boston traffic) or some other such place that you do not want to live in if you want to feel safe and/or get sleep at night.
If you are comfortable living in a loud, obnoxious and dangerous area, I suppose you can find places under $1000 a month. But not many. Being comfortable in the place you consider home and being able to sleep at night are NEEDS not wants.
Also, and this is HUGE in MA, if you live in a place like Fall River or Lowell, your auto insurance quadruples. I work in auto insurance and I know this for a fact because I have to explain it to people every day. If you move to a ghetto, you're going to be paying through the roof for mandatory insurances.
I just ran a search on Craigslist and I saw many in Lowell and Lynn for $695.00. There is no way I'd even consider that because my insurance rate would go up so high it would not be worth it. And fyi, I'm the best rated driver step you can be. In MA, where you live matters a great deal towards your premium, no matter how good a driver you are.
I also saw a few that are obvious scams. If you search apts on CL as often as I do, you can pick out the scammers. Pics that seem too nice, prices that seem amazingly low.
I also saw a few in cities that are waaaaay out in southeaster or western MA saying they are 30 minutes from Boston.
I feel bad for anyone who belives they will have a 30 minute commute to Boston from Attleboro or Clinton. No offense, but you REALLY need to know and be familiar with the state you are searching to determine what a decent place to live will cost. I wouldn't be able to pick a place in your state, because I'm not familiar with it and Craigslist is very deceiving.
I also don't think you have a clue about commuting to Boston. (Consider yourself lucky)
You need a car and you need a winter safe, reliable car. Paying 1K cash for a car would be incredibly stupid around here. I'd only do that if I had no other choice. A car is an asset, depreciated or not, and a reliable car is a NEED not a want when your employment depends on being able to spend 2 hours each way in traffic every day.
You are also thinking of your situation several years ago. It was easier then AND you had a two person income. My situation is very different and happening during the worst recession our country has seen since the 20's. And FI and I will not really have 2 incomes to put towards US.
Unless we wait 7 years or so to get married, which sorry--we're in our mid 30's, we're not waiting 7 years---we will have to rely on my salary alone. *shrug* The way I see it, plenty of people have spouses who don't work. Mine will work, we just can't use his salary for us.
Fi makes a little over 30K but his mortgage on the unsalable house and the car payment on his 7 year old car eat up almost his entire salary. What he has left over goes to oil for his house, gas for the car, old credit cards etc.
For the first 5-7 years of our marriage, he will be unable to contribute to our household because he is on the hook for the unsalable property. And no, I can not move in there as previously discussed. We hope it sells within 7 years but we aren't holding our breath. Within 5 years, he and his brothers could break even. Maybe.
But yeah, I am sure if we had two incomes to put towards our apartment, we could save up 24K in a few years too. But we won't have that luxury due to the economy. Neither will many, many other couples. All over the country. We are lucky we both actually have jobs.
Anyway, sorry to go off on a tangent. Just pointing out that each story is different. Nothing involving people and their finances is black and white.
A reliable car is a need not a want in this area. And by reliable, I mean slightly old, due to skyrocketing insurance. 
Thank you, I was wondering when that was going to come up!
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I just don't understand what makes it worth it to people?
