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Spin off: Could you live on 50% of your income?

post #1 of 118
Thread Starter 
I read in the Suze Orman post that she recommended that people live on 50% of their income. I'm assuming she means take-home pay.

I just checked our budget and we aren't even close... and that's after spending the last year getting on a really tight budget to get out of debt and save money. If I take all savings out of our budget (with the exception of sink funds for known expenses, like car and renter's insurance, etc.), we are currently spending 72% of our take-home pay every month. Even if I cut everything down to bare bones (no blow money, no clothing budget, cut $150 from food budget etc.), we're still at about 65%. I just don't see how we could do it without moving in with my folks or going without health insurance. Neither of which seems too tenable.

What about you? Could you/do you do it?
post #2 of 118


Um no.
post #3 of 118
Not even close! If I could put that much toward paying off school loans and car payment and investing I'd be a really happy camper!

With the exception of DSL and our van, we're living about as frugally as we can. We have to so I can be a SAHM and it's worth it!
post #4 of 118
Not only could I, but I already do.

I currently live on 48% of my net income (after taxes and 6% 401K). If I truly got aggressive and cut back on eating out and grocery budget, I could decrease that further.
post #5 of 118
We're doing it right now. Well, close to half. We are agressively trying to pay off debt.
post #6 of 118
Nope no way but only dh is working right now so in essence we are living on 1/3 of what we use to make.
post #7 of 118
We do, barring frivolous expenses.
post #8 of 118
we currently live on about 60% of our income (rest goes to retirement, college and targeted savings like vacation, etc), so we could squeeze it down to 50%, but not happily.
post #9 of 118
Nope, we couldn't without making some MAJOR changes.
post #10 of 118
Quote:
Originally Posted by maryjane View Post

What about you? Could you/do you do it?

Heck no. We already live in poverty and I spend NOTHING on me ever. My husband buys cigarettes, soda, coffee and other things during his work days, which adds up being a waste of around $250 a month that we need to be spending on paying off our bills. I'd love to buy healthier food if he'd quit smoking!
post #11 of 118
well, we took a pay cut of 40% when we moved to Manitoba from Alberta - and we will have the same debts as we did in Alberta - so we almost ARE on 50%. I do NOT know how we could make it any lower without selling our vehicle for starters
post #12 of 118
We live on 80% and send 20% to debt. I think if I squeezed, squeezed, squeezed I could get it down to 60%.

My goal is to live on 50% of our income, but we are not there yet.

ETA -- I reran the number and if we paid off our van and student loan and lived crazy lean, we could survive on 50% or our take home pay. It wouldn't be pretty, but we could do it.
post #13 of 118
That is my goal but 50% of nothing is well, no not at the moment.
post #14 of 118
If we sold both cars and bought a cheaper house, yes.
post #15 of 118
We could but only b/c we are debt free except the house ....

It would include cable & cell which are under contract, all sink funds for insurance and taxes, and home & auto repairs

It would not include 401K/roth, 529s, fun money, eating out, etc.
post #16 of 118
Not right now. My income is zero.
Dh's income just covers our bills and we are fairly frugal.
post #17 of 118
Heck, no. We can't really even live on 100% of our income.
post #18 of 118
I make ~1000 a month and have the two kids. No way. Maybe if I had a better paying job (I graduate from college in a year with a Geology degree).
post #19 of 118
heck no.
i wish we could, but it's not a possibility on dh's current income. would be nice, though! maybe someday
post #20 of 118
HAHAHAHAHAHA no way. We are juggling necessities right now, using 100% of our income. I can barely buy enough groceries to get thru the month AND pay the bills on time. At least brighter times are on the horizon.
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