Comments on: Living on $46,000 a Year – Where it Goes http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: Jenna http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-352844 Jenna Thu, 28 Aug 2008 23:15:24 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-352844 I make 46K right now and am single and live in a 1bedroom apt and most of my money goes towards figure skating training and my apt. i save no money and am losing money monthly. I make 46K right now and am single and live in a 1bedroom apt and most of my money goes towards figure skating training and my apt. i save no money and am losing money monthly.

]]> By: Quickies: The Power Of Choice, Umbrella Bank 5.50%, Spending Breakdowns » My Money Blog http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-99340 Quickies: The Power Of Choice, Umbrella Bank 5.50%, Spending Breakdowns » My Money Blog Tue, 24 Apr 2007 00:09:29 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-99340 [...] » JLP points to an article that profiles families earning $46k a year and where it all goes. The pie chart was what caught my eye. What would my spending chart look like? Or yours? [...] [...] » JLP points to an article that profiles families earning $46k a year and where it all goes. The pie chart was what caught my eye. What would my spending chart look like? Or yours? [...]

]]> By: Cents You Asked http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-99005 Cents You Asked Sat, 21 Apr 2007 13:06:51 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-99005 looks like they updated the last pie chart to correct the 675/month = 47% issue. looks like they updated the last pie chart to correct the 675/month = 47% issue.

]]> By: thefeeonlyplanner http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98908 thefeeonlyplanner Fri, 20 Apr 2007 23:20:17 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98908 JLP, Money also had an article on a family with two daughters who are way into music (and raising horses too) and who are slowly but surely are on their way into becoming financial basket cases! I would love to read comments from other readers on that family and how far should parents go for their kids...I love my kids but if they ever came to me with a request to buy a violin costing six digits I would tell them to take a hike:-) JLP,

Money also had an article on a family with two daughters who are way into music (and raising horses too) and who are slowly but surely are on their way into becoming financial basket cases!

I would love to read comments from other readers on that family and how far should parents go for their kids…I love my kids but if they ever came to me with a request to buy a violin costing six digits I would tell them to take a hike:-)

]]> By: Foobarista http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98891 Foobarista Fri, 20 Apr 2007 19:23:35 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98891 Yeah - for us, our "expenses" could actually look somewhat similar, if you only consider expenses and ignore savings and taxes. If you go by total gross, our savings is about 50% and taxes of all kinds are another 30%. We live on the remaining 20% of our gross. Yeah – for us, our “expenses” could actually look somewhat similar, if you only consider expenses and ignore savings and taxes. If you go by total gross, our savings is about 50% and taxes of all kinds are another 30%. We live on the remaining 20% of our gross.

]]> By: eR0CK http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98873 eR0CK Fri, 20 Apr 2007 17:47:18 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98873 Wow, cost of living must be cheap for some of the posters. I live outside of Philly and there is no way I can afford even a condo at my current salary (close to $46K, but not for long). Here are my costs of living, after taxes and 6% of salary removed. Cable 2.48% Rent 29.78% Heating Oil 1.60% Other 2.98% Car loan 10.99% Student Loan 13.12% 46" TV 1.42% Electric 1.42% Gas 2.13% Food 4.61% Cash 3.55% Gym 1.06% Insurance 5.32% Apart. Ins 0.71% Credit Card 3.55% I never looked at my finances in terms of percentage, but as you can see it would be difficult for my to cover a mortgage considering TCO. The ~20% left over is usually spent on dinner, extra gas, and other item(s) I'm not aware of (oops!) I think I need to get some spending under control, ouch! Wow, cost of living must be cheap for some of the posters. I live outside of Philly and there is no way I can afford even a condo at my current salary (close to $46K, but not for long).

Here are my costs of living, after taxes and 6% of salary removed.

Cable 2.48%
Rent 29.78%
Heating Oil 1.60%
Other 2.98%
Car loan 10.99%
Student Loan 13.12%
46″ TV 1.42%
Electric 1.42%
Gas 2.13%
Food 4.61%
Cash 3.55%
Gym 1.06%
Insurance 5.32%
Apart. Ins 0.71%
Credit Card 3.55%

I never looked at my finances in terms of percentage, but as you can see it would be difficult for my to cover a mortgage considering TCO. The ~20% left over is usually spent on dinner, extra gas, and other item(s) I’m not aware of (oops!)

I think I need to get some spending under control, ouch!

]]> By: JLP http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98871 JLP Fri, 20 Apr 2007 17:37:20 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98871 Cheng-Jih Chen, Yeah, you're right. The author could have done a better job explaining how they arrived at their numbers. Cheng-Jih Chen,

Yeah, you’re right. The author could have done a better job explaining how they arrived at their numbers.

]]> By: Cheng-Jih Chen http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98870 Cheng-Jih Chen Fri, 20 Apr 2007 17:31:15 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98870 What does it mean that 21% is for "credit cards"? Interest service, or "I buy stuff on my credit card worth 21% of my income, and pay it off every month"? There's also no indication of taxes, so I have to assume this is all after-tax income. Which makes the 15% to the 401(k) not add up correctly in this example because of categorization issues. I also take issue with the health care costs. It's clearly out of pocket costs, but that's not really how much it costs her to get health care. Yeah, the reporter writing this piece, or the guy doing the charts in Excel: innumerate. What does it mean that 21% is for “credit cards”? Interest service, or “I buy stuff on my credit card worth 21% of my income, and pay it off every month”?

There’s also no indication of taxes, so I have to assume this is all after-tax income. Which makes the 15% to the 401(k) not add up correctly in this example because of categorization issues.

I also take issue with the health care costs. It’s clearly out of pocket costs, but that’s not really how much it costs her to get health care.

Yeah, the reporter writing this piece, or the guy doing the charts in Excel: innumerate.

]]> By: Chris http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98862 Chris Fri, 20 Apr 2007 16:42:42 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98862 My wife and I are right in this 46k/yr income. We have the "big mortgage" relative to our income (its a 120k home) and our monthly expenses look something like this: Savings: 15% Investments: 5% Living Expenses: 80% Out of the living expenses, it ends up like this: Mortgage (including insurance/taxes): 43% Groceries: 14% Dining Out: 8% Entertainment: 3% Utilities: 5% Auto Loan: 3% Phone/Internet (cell+land): 2% Auto Insurance: 2% Auto Fuel: 10% Maintenance: 2% Misc: 8% My wife and I are right in this 46k/yr income. We have the “big mortgage” relative to our income (its a 120k home) and our monthly expenses look something like this:

Savings: 15%
Investments: 5%
Living Expenses: 80%

Out of the living expenses, it ends up like this:

Mortgage (including insurance/taxes): 43%
Groceries: 14%
Dining Out: 8%
Entertainment: 3%
Utilities: 5%
Auto Loan: 3%
Phone/Internet (cell+land): 2%
Auto Insurance: 2%
Auto Fuel: 10%
Maintenance: 2%
Misc: 8%

]]> By: Russell Bailyn http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/comment-page-1/#comment-98853 Russell Bailyn Fri, 20 Apr 2007 15:54:29 +0000 http://allfinancialmatters.com/2007/04/19/living-on-46000-a-year-where-it-goes/#comment-98853 My impression is that housing, transportation, and food generally consume about 75% of the average person's income. That housing number at 47% is definitely on the high side. But, better housing be the high number (potential savings vehicle) than transportation or food, which have no appreciation potential at all. I wonder what's in those credit card bills?? I would be quite impressed if the average person was tucking 10% or more of pre-tax income into a retirement plan. I'd say that number is closer to 5%, or maybe 2%. My impression is that housing, transportation, and food generally consume about 75% of the average person’s income. That housing number at 47% is definitely on the high side. But, better housing be the high number (potential savings vehicle) than transportation or food, which have no appreciation potential at all. I wonder what’s in those credit card bills?? I would be quite impressed if the average person was tucking 10% or more of pre-tax income into a retirement plan. I’d say that number is closer to 5%, or maybe 2%.

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