Banker wrote:
Actual Article wrote:
No it does not get you far. Yes you can obviously budget to live like a poor person if you want. Maybe you should move out of SF and see what it gets you elsewhere.
You have horrible reading comprehension. That is probably linked to your horrible financial management skills. I've lived in rural areas and am familiar with how much less things cost. But that is irrelevant to anything I said here. I do not understand why you brought that into the conversation.
I make 6 figures and budget my money. If you think only poor people budget their money, then you have proved my point that you have poor financial management skills.
It is very reasonable to make 80,000 a year in a big city and feel like you are paycheck to paycheck. You say it is just an inability to budget if somebody feels that way, but that isnt true. Saving anything meaningful would require living like a grad student: getting roomates and boiling rice and beans for dinner, never going in a vacation. But some people want to actually live.
80k minus taxes is about 55k. Minus 2500 per month in rent is 25,000, which is just over 2000 per month remaining after rent. If you want to eat well at home (I am into cooking), that is about 600 per month in a big city. Go out to eat once per week and that costs about 200 per month.
So now after food at housing, you have 1200 per month. Lets assume your car payment and taxes and insurance (I pay cash, but for budgetting, I amortize it out) is a relatively low 300/month (I buy used at around 50k miles and drive it to 150k), gas is another 100. Now you are down to $800 per month after housing, transportation, and food.
If you go on 2 weeks of vacation per year, half to somewhere away (weddings or by choice) half to somewhere you can drive, amortize out that $3000 (1000 and 2000 for local and tropical destinations, respectively) at 400 per month.
Now you are down to 400 per month if you live a basic middle to lower middle class budget.
This covers clothes (I buy most at the thrift store because I dont care about fashion), drinks, and anything else you do for fun.
Suddenly you are living paycheck to paycheck. The easiest way to make a significant cut is to move out of the city and drop your rent in half, but pay for it in the car.