8 ms·
5. Don't forget about taxes 100k a year will probably end up being ~65k after taxes, which means living on 32.5k a year to save 50%. For a frugal single person
by GuiA 10y ago
5. Don't forget about taxes
100k a year will probably end up being ~65k after taxes, which means living on 32.5k a year to save 50%. For a frugal single person that's doable, beyond that it gets tricky (if you're in the kind of city where 100k and above salaries are common, you're probably paying 30k a year in rent alone).
And even then, that only nets you $195k, not $300k.
- wahern 10y agoBy my calculation I get $74k filing single or $78k filing jointly, using a marginal rate of 9% (California) and 25% (Federal), but that's if you're married. It pays to be married. Sales tax won't substantially change things because housing is usually the biggest expense and isn't taxed. And if you're saving and being frugal you're not buying many taxable items. People tend to overestimate their tax burden. The difference between your gut figure and the actual numbers is almost 10% of income, which is a huge difference.