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I agree with the article. However, people should be able and willing to make the appropriate sacrifices commensurate with their future expectations. If someone
by tabeth 10y ago
I agree with the article. However, people should be able and willing to make the appropriate sacrifices commensurate with their future expectations.
If someone is 22 and is making 35k a year, and can keep all of their expenses at 15k per year (it's easy to find places in Dorchester 850 rent all inclusive for a room plus 150 food and 3k year entertainment), save 5k per year for retirement and emergencies and finally save 10k for a house they'll be have 100k when they're 32. With 100k in boston that's 25 percent on a 400k house in a suburb or parts of Dorchester. Worst case, move somewhere cheaper and that can be as much as 50% down.
Keep in mind this assumes no salary increases and no spouse. It's very doable, but people want to live a lavish life. Can you live a lavish life in Boston for 35k? Nope.
- paulddraper 10y ago$5/day for food...you're a very long way from lavish.
- Glyptodon 10y agoYour numbers are entirely unreasonable unless they're after tax. Maybe in Arizona and not saving 5k for retirement. But even there $150/week for food is like Ramen, Beans, and Rice, you're not accounting for transportation or medical costs, etc. You can live on 35k for sure, but saving 10k of it every year is pretty optimistic.
- tabeth 10y ago35k after tax is about 28k [1]. What's wrong with rice and beans and occasional meat? An average 22 year old doesn't need medical insurance. Given that many people don't save at all this would be pretty good. Also the plan I described already had leeway for unexpected expenses. 12k housing and food 3k entertainment 10k house 5k saving I agree that it would be a boring life. That being said, this is using 35k and not the 50k minimum being defined as middle class, per the article. 1. http://taxformcalculator.com/state_tax/massachusetts/35000.html http://taxformcalculator.com/state_tax/massachusetts/35000.h...
- KallDrexx 10y agoI know plenty of people in their 20s that thought they were too healthy to need medical insurance, until something happened and they had to have their appendix taken out and now have $50k plus in medical debt.
- Glyptodon 10y agoAs on otherwise healthy person who had to go to urgent care/ER twice this year (nothing that serious, ultimately)... not having health care is something that you'll really regret. Almost anything that puts you in the hospital for any amount of time will cost thousands of dollars. If you need anything major it will be tens of thousands of dollars. Unlucky enough to get cancer or something similarly bad and you could be out more than your lifetime earnings. And you have almost zero control over if/when something happens.