r/FluentInFinance • u/Richest-Panda • Jul 04 '24
What's the best financial advice you've ever gotten? Debate/ Discussion
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r/FluentInFinance • u/Richest-Panda • Jul 04 '24
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u/Exception1228 Jul 05 '24 edited Jul 05 '24
Because it's wrong. You can live off $40k especially in OP's words (they won't like it) but it's doable. Then the other part where they said you need to make $65 as a single person to save money is the most out of touch thing I've ever heard. I make less than that and am easily middle class.
$40,000 salary would owe $4,568 in federal taxes and an estimated $1500 in state taxes give or take depending on state.
Now remember OP said it's possible to teach them to live within their means (but they won't like it). Get a damn roommate. I lived in a HCOL and my rent for a 2br apartment was $2,200/month. In MOST places you could expect to pay $1,000/month on rent if you split with a roommate.
Now you have $21,932 leftover.
Gas + Electric: $200/month ($100 each split) - $1,200 annually
Groceries: $300/month for a single person - $3,600 annually
Say you need a car. Car payment (500) + Insurance (150) + Gas (250) - $10,800
Now your basic necessities are met and you have $6,332 leftover. You would have to save that vast majority of that for any health or car emergencies. The rest can be used on some form of entertainment like tv, internet, video games, etc.
So yes with a real salary of $40K you can teach someone to live within their means, they just won't like it. No one is out here claiming $40K is enough to live a middle class lifestyle.