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You would need to know the value of their house to fully judge their situation. If we assume they live in a reasonable house that would cost $1,500 per month to

You would need to know the value of their house to fully judge their situation. If we assume they live in a reasonable house that would cost $1,500 per month to rent / mortgage and we assume they save $750 per month on the costs of working (commuting, baby sitting, eating out) they have an effective income of... $52,000. The median household income in the U.S is $51,000 and that's for households that will often have debt too and not be very good at spending little money.

brown9-2 14y ago
Why does the value of their home factor into their annual income? You can't pay for healthcare with pieces of your house.
- citricsquid 14y ago
  The value of their home factors into their annual income when comparing to other household incomes. The grandparent said that $25,000 is a level of income someone would expect on welfare, however MMM does not have costs that people on welfare have. For example I spend $18,000 per year on my rent, I would need to earn $25,000 + $18,000 to have the same effective income as MMM. For most households housing costs are one of the largest (if not the largest) ongoing cost, when comparing MMM and others (as the grandparent did) you need to take that into account.
- deleted 14y ago
  [deleted]
neohaven 14y ago
I'll just chip in here. I don't know where the guy lives, but in some places, living is inexpensive. The rent you quoted (1500$/month) is the entirety of my living expenses where I am. I pay ~600$/month to have a 4 1/2 apartment close to a big-chain supermarket and all necessary amenities. This includes the Hydro bill, the fridge and oven-stove. I have an interior pool. Yes, at that price. Food is about 500$ a month. Internet a further 60$, for a 30/8 Cable pipe. I'm about 200km from Montreal, close to a university.
chris11 14y ago
Edit: He actually states his house is worth around $400k, which would make it a nice house for the area. http://www.mrmoneymustache.com/2012/06/01/raising-a-family-on-under-2000-per-year/ http://www.mrmoneymustache.com/2012/06/01/raising-a-family-o... He says he lives in a four bedroom four bathroom house. And he says he lives in what he believes to be one of the nicest neighborhoods in Longmont. His wife also states that the house has around 2600 square feet. That means the house is worth at least $200k. I would suggest that it would be worth at least $300k if it was older. You could get a little bit bigger house for $400k though. I wouldn't say that Longmont is an expensive place to live, it is definitely a lot cheaper than its neighbor Boulder, but I would say there are a lot of cheaper places to live. http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-the-room-housing/ http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-th...
- secabeen 14y ago
  True, but fewer places as naturally beautiful or outdoor-friendly that Boulder Valley. There's a reason that Colorado has the lowest obesity rate in the country. There's just so many great athletic activites.
  - chris11 14y ago
    I agree, Boulder is an amazing place to be. World class outdoor activities like climbing and skiing are close by. Plus CU-Boulder is there, so you get the benefits of a big University. Richard Dawkins and Brian Greene both gave talks this year. And housing is reasonable once you get outside of the city of Boulder.

brown9-2 14y ago

Why does the value of their home factor into their annual income? You can't pay for healthcare with pieces of your house.

citricsquid 14y ago
The value of their home factors into their annual income when comparing to other household incomes. The grandparent said that $25,000 is a level of income someone would expect on welfare, however MMM does not have costs that people on welfare have. For example I spend $18,000 per year on my rent, I would need to earn $25,000 + $18,000 to have the same effective income as MMM. For most households housing costs are one of the largest (if not the largest) ongoing cost, when comparing MMM and others (as the grandparent did) you need to take that into account.
deleted 14y ago
[deleted]

neohaven 14y ago

I'll just chip in here. I don't know where the guy lives, but in some places, living is inexpensive. The rent you quoted (1500$/month) is the entirety of my living expenses where I am. I pay ~600$/month to have a 4 1/2 apartment close to a big-chain supermarket and all necessary amenities. This includes the Hydro bill, the fridge and oven-stove. I have an interior pool. Yes, at that price. Food is about 500$ a month. Internet a further 60$, for a 30/8 Cable pipe. I'm about 200km from Montreal, close to a university.

chris11 14y ago

Edit: He actually states his house is worth around $400k, which would make it a nice house for the area. http://www.mrmoneymustache.com/2012/06/01/raising-a-family-on-under-2000-per-year/ http://www.mrmoneymustache.com/2012/06/01/raising-a-family-o... He says he lives in a four bedroom four bathroom house. And he says he lives in what he believes to be one of the nicest neighborhoods in Longmont. His wife also states that the house has around 2600 square feet. That means the house is worth at least $200k. I would suggest that it would be worth at least $300k if it was older. You could get a little bit bigger house for $400k though. I wouldn't say that Longmont is an expensive place to live, it is definitely a lot cheaper than its neighbor Boulder, but I would say there are a lot of cheaper places to live. http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-the-room-housing/ http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-th...

secabeen 14y ago
True, but fewer places as naturally beautiful or outdoor-friendly that Boulder Valley. There's a reason that Colorado has the lowest obesity rate in the country. There's just so many great athletic activites.
- chris11 14y ago
  I agree, Boulder is an amazing place to be. World class outdoor activities like climbing and skiing are close by. Plus CU-Boulder is there, so you get the benefits of a big University. Richard Dawkins and Brian Greene both gave talks this year. And housing is reasonable once you get outside of the city of Boulder.