4 ms·

> If you can only save a few thousand a year then you fall firmly into the "living above their means" category in my personal opinion. The living wage project

> If you can only save a few thousand a year then you fall firmly into the "living above their means" category in my personal opinion. The living wage project from MIT is designed to be the minimum viable estimate with no savings and living paycheck to paycheck. http://livingwage.mit.edu/counties/06037 http://livingwage.mit.edu/counties/06037 $23,640/year http://livingwage.mit.edu/places/1308904000 http://livingwage.mit.edu/places/1308904000 $21,007/year http://www.census.gov/hhes/www/cpstables/032011/perinc/new01_001.htm http://www.census.gov/hhes/www/cpstables/032011/perinc/new01... http://livingwage.mit.edu/places/1324504204 http://livingwage.mit.edu/places/1324504204 > $17,640 Btw, Augusta, Georgia is literally one of the 10 cheapest cities [and if you read the Household Income as a "well they can do it!", remember the living wage is a single adult, two adults is double and they can't again]: http://www.kiplinger.com/slideshow/real-estate/T006-S001-10-cheapest-u-s-cities-to-live-in/index.html http://www.kiplinger.com/slideshow/real-estate/T006-S001-10-... ~36% of the population is below the living wage number in major metro areas. 52.16% make less than $30,000.00 > My anecdotal experience working alongside lower class workers is that most of them run into trouble through trying to live a middle class lifestyle without the income to support it. They buy new cars, they eat out often, they refuse to work more than 40 hrs/wk, and they live in pricier apartments without roommates. All of these mistakes tie into the financial illiteracy that plagues people who were never exposed to those with good money habits. > The basic framework of early retirement is pretty simple: cut way down on your spending, then invest your savings. High savings rates can lead to surprisingly fast retirements. For example, if you save half your income, you'll be ready to retire in around 17 years. http://www.vox.com/2015/5/1/8518455/extreme-early-retirement http://www.vox.com/2015/5/1/8518455/extreme-early-retirement The majority of the population can't save half of their income like Mr Money Mustache and other FI people suggest. It isn't even mathematically possible for most of the country. Your moralizing is proof you are ignorant and don't have a real argument.

Omniusaspirer 11y ago
I like the personal attack at the end. The figures given by the living wage calculator are assuming a middle class lifestyle which is obviously ignorant when discussing lower class economics. Plugging in my own city of Ann Arbor, Michigan gives wildly inflated figures that fall in line exactly with my claims up above. The rent figure given is for having your own one bedroom apartment with no roommates, the food figure is hilariously overstated ($242/month), transportation assumes a pretty new car or very long commutes ($306/month). These figures simply are not realistic for a lower class individual. I am living a lower class lifestyle right now as I type this. I live in a shared home with 2 other people. I drive an older but reliable car I purchased for $2.2k cash (a luxury expense, I could have kept taking the bus/biking to work). I rarely eat out, and I avoid expensive items at the grocery store barring a few healthy choices like nuts. I split a $45/month 50 mbit internet connection with both my roommates. No cable. $30/month cell phone bill (another luxury). I have health and auto insurance. Overall, I have a pretty comfortable life for less than <$10k/yr. Nothing is stopping genuinely poor people from doing the same except extraordinary misfortunes (birth defects, severe disabilities). There is no moralizing here, just the cold hard numbers and experience from someone actually living this life and interacting daily with others at the bottom of the workforce. EDIT: After seeing your comment above I want to point out that at no point did I assert you could retire by 30 years old on this kind of income. If you're trying to argue that point then it's a strawman. I will also add that if you're still making ~20k/yr all of your life then you've made some financial mistakes in regards to your actual career choices, even janitorial staff end up around 35k/yr after a while.
- fweespeech 11y ago
  Okay, so your argument is you know better than a professor at MIT who studies this stuff. K. You may want to consider: 1) If I had to rely on a bus/bike for work, I would not have a job. 2) If I did have a reliable cell phone with data capable of providing a wifi hotspot in an emergency, I would not have a job. 3) If I did not have a solid internet connection, I would not have a job. A number of things you claim are luxuries, really are not luxuries if you want to be employed in a number of fields. Even the guy that does the basic helpdesk stuff needs that and he only is paid $30k a year. You also are ignoring one-off costs like repairs and medical costs when you quote these numbers and thump your chest. I have annual medical costs [beyond insurance] of 10% of your claimed spending. For fuck's sake. http://www.nasdaq.com/article/mcdonalds-sample-budget-sheet-is-laughable-but-its-implications-are-not-cm261920 http://www.nasdaq.com/article/mcdonalds-sample-budget-sheet-... http://www.theatlantic.com/business/archive/2013/07/mcdonalds-cant-figure-out-how-its-workers-survive-on-minimum-wage/277845/ http://www.theatlantic.com/business/archive/2013/07/mcdonald... > McDonald's Can't Figure Out How Its Workers Survive on Minimum Wage Hell, even the McDonald's Sample Budget everyone calls a joke has over $12,000 in annual expenses. http://livingwage.mit.edu/places/2616103000 http://livingwage.mit.edu/places/2616103000 > The rent figure given is for having your own one bedroom apartment with no roommates > I am living a lower class lifestyle right now as I type this. I live in a shared home with 2 other people. $649 is the housing budget including utilities, cleaning supplies, and all other related expenses not just rent. https://annarbor.craigslist.org/sha/5024320646.html https://annarbor.craigslist.org/sha/5024320646.html - $500 https://annarbor.craigslist.org/hou/5025045124.html https://annarbor.craigslist.org/hou/5025045124.html - $400 https://annarbor.craigslist.org/sha/5024006969.html https://annarbor.craigslist.org/sha/5024006969.html - $400 Yeah, these people are renting one bedrooms. Sure buddy. $400+money for utilities,etc. puts them safely within the $649 budget and they aren't renting one bedroom apartments now are they? I honestly don't even believe you at this point because you are clearly oblivious to the going rental rate in your own f'n city. > EDIT: After seeing your comment above I want to point out that at no point did I assert you could retire by 30 years old on this kind of income. If you're trying to argue that point then it's a strawman. I will also add that if you're still making ~20k/yr all of your life then you've made some financial mistakes in regards to your actual career choices, even janitorial staff end up around 35k/yr after a while. You support the prevailing view of /r/FinancialIndependence and their idols who make claims about retiring in their 30s like that. That isn't a strawman and I quoted an article where they did exactly that. How am I supposed to read your mind and realize the very group you chose to use as a benchmark to discuss: > If you manage not to fall victim to either of those then you can save a substantial portion of your income towards a very early retirement should you choose to do so. Maybe you should be more specific then rather than cry strawman when those FI folks talking about "very early retirement", its retirement in their 30s. Cry strawman if you want but by the standards of the community you were talking about, 30s is what that phrase means and I can point to a ton of posts/blogs in relation to that group of people.

Omniusaspirer 11y ago

I like the personal attack at the end. The figures given by the living wage calculator are assuming a middle class lifestyle which is obviously ignorant when discussing lower class economics. Plugging in my own city of Ann Arbor, Michigan gives wildly inflated figures that fall in line exactly with my claims up above. The rent figure given is for having your own one bedroom apartment with no roommates, the food figure is hilariously overstated ($242/month), transportation assumes a pretty new car or very long commutes ($306/month). These figures simply are not realistic for a lower class individual. I am living a lower class lifestyle right now as I type this. I live in a shared home with 2 other people. I drive an older but reliable car I purchased for $2.2k cash (a luxury expense, I could have kept taking the bus/biking to work). I rarely eat out, and I avoid expensive items at the grocery store barring a few healthy choices like nuts. I split a $45/month 50 mbit internet connection with both my roommates. No cable. $30/month cell phone bill (another luxury). I have health and auto insurance. Overall, I have a pretty comfortable life for less than <$10k/yr. Nothing is stopping genuinely poor people from doing the same except extraordinary misfortunes (birth defects, severe disabilities). There is no moralizing here, just the cold hard numbers and experience from someone actually living this life and interacting daily with others at the bottom of the workforce. EDIT: After seeing your comment above I want to point out that at no point did I assert you could retire by 30 years old on this kind of income. If you're trying to argue that point then it's a strawman. I will also add that if you're still making ~20k/yr all of your life then you've made some financial mistakes in regards to your actual career choices, even janitorial staff end up around 35k/yr after a while.

fweespeech 11y ago
Okay, so your argument is you know better than a professor at MIT who studies this stuff. K. You may want to consider: 1) If I had to rely on a bus/bike for work, I would not have a job. 2) If I did have a reliable cell phone with data capable of providing a wifi hotspot in an emergency, I would not have a job. 3) If I did not have a solid internet connection, I would not have a job. A number of things you claim are luxuries, really are not luxuries if you want to be employed in a number of fields. Even the guy that does the basic helpdesk stuff needs that and he only is paid $30k a year. You also are ignoring one-off costs like repairs and medical costs when you quote these numbers and thump your chest. I have annual medical costs [beyond insurance] of 10% of your claimed spending. For fuck's sake. http://www.nasdaq.com/article/mcdonalds-sample-budget-sheet-is-laughable-but-its-implications-are-not-cm261920 http://www.nasdaq.com/article/mcdonalds-sample-budget-sheet-... http://www.theatlantic.com/business/archive/2013/07/mcdonalds-cant-figure-out-how-its-workers-survive-on-minimum-wage/277845/ http://www.theatlantic.com/business/archive/2013/07/mcdonald... > McDonald's Can't Figure Out How Its Workers Survive on Minimum Wage Hell, even the McDonald's Sample Budget everyone calls a joke has over $12,000 in annual expenses. http://livingwage.mit.edu/places/2616103000 http://livingwage.mit.edu/places/2616103000 > The rent figure given is for having your own one bedroom apartment with no roommates > I am living a lower class lifestyle right now as I type this. I live in a shared home with 2 other people. $649 is the housing budget including utilities, cleaning supplies, and all other related expenses not just rent. https://annarbor.craigslist.org/sha/5024320646.html https://annarbor.craigslist.org/sha/5024320646.html - $500 https://annarbor.craigslist.org/hou/5025045124.html https://annarbor.craigslist.org/hou/5025045124.html - $400 https://annarbor.craigslist.org/sha/5024006969.html https://annarbor.craigslist.org/sha/5024006969.html - $400 Yeah, these people are renting one bedrooms. Sure buddy. $400+money for utilities,etc. puts them safely within the $649 budget and they aren't renting one bedroom apartments now are they? I honestly don't even believe you at this point because you are clearly oblivious to the going rental rate in your own f'n city. > EDIT: After seeing your comment above I want to point out that at no point did I assert you could retire by 30 years old on this kind of income. If you're trying to argue that point then it's a strawman. I will also add that if you're still making ~20k/yr all of your life then you've made some financial mistakes in regards to your actual career choices, even janitorial staff end up around 35k/yr after a while. You support the prevailing view of /r/FinancialIndependence and their idols who make claims about retiring in their 30s like that. That isn't a strawman and I quoted an article where they did exactly that. How am I supposed to read your mind and realize the very group you chose to use as a benchmark to discuss: > If you manage not to fall victim to either of those then you can save a substantial portion of your income towards a very early retirement should you choose to do so. Maybe you should be more specific then rather than cry strawman when those FI folks talking about "very early retirement", its retirement in their 30s. Cry strawman if you want but by the standards of the community you were talking about, 30s is what that phrase means and I can point to a ton of posts/blogs in relation to that group of people.