Friday, December 05, 2008

What Is The Cost Of Living?



Have you ever done the math?

My bills are between $3,000 and $4,000 each month. Add to that $2,500 in monthly rent.

$3,500 x 12 months = $42,000

$2,500 x 12 months = $30,000

Total Annual Expenses = $72,000

At a 50% tax bracket, that would imply we need $144,000 of gross income JUST TO BREAK EVEN on the year.

Round down to say $130,000 - which I submit is what it costs in gross income to raise a family of four in 2008 Boston, Massachusetts.

Look at this chart below that I found. It pretty much corroborates my contention:



Now, mind you, we don't have any student loans, no car payments, no childcare expenses. I mow my own lawn, shovel my own driveway, and clean my own house. And what clothes I do own come from the sale racks at Old Navy.

I just don't know how EVERYONE can spend the money they spend.

There'll be no pensions when we retire. Social Security will be bankrupt - as will Medicare.

Y'all need to stop wasting money and start thinking long term.

Make poverty history?

Hah! We really ought to take a bite out of *luxury* as well.

4 comments:

John said...

I completely agree with you. I just look at people in stores, see what people are driving and just can't figure it out. Either they are way more successful than me or something. I don't know how people do it, I wish I did so I could do it too.

Anonymous said...

I am with you. My wife and I make a very good living. We are far from the bottom, yet we aren't rich. And you damn well know many people think we are. They are crazy. I have friends who make roughly half what we do and they seem to spend nearly as much. They have 2 car payments, the same size mortgage, student loans, and CC debt. We have none of that (but the mortgage=to your rent), yet we spend a smidge more. WTF?

Slow out.

CaptiousNut said...

Slow,

YOU ARE RICH.

Didn't you once tell me that you won't drink wine of vintages younger than the mid 1990s?

Anonymous said...

No no no no, I won't drink Budweiser with a born on date more recent than Kurt Cobain's death.

Wine, who drinks wine anymore? That is sooo 2003. I drink whiskey. moderately-most of the time.

And I want to be rich. And am actively trying to become rich. And I hope you are/or become rich too. In fact, I want all people to be successful as long as they don't take from me in the process.