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

[maryjane]

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?

[superstella]

Um no.

[Whistler]

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!

[Denvergirlie]

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.

[KaraBoo]

We're doing it right now. Well, close to half. We are agressively trying to pay off debt.

[mum4boys]

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.

[Delicateflower]

We do, barring frivolous expenses.

[Knittin' in the Shade]

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.

[annethcz]

Nope, we couldn't without making some MAJOR changes.

[~PurityLake~]

Originally Posted by maryjane

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!

[ChaoticMum]

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

[Ruthiegirl]

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.

[fruitfulmomma]

That is my goal but 50% of nothing is well, no not at the moment.

[aircantu1]

If we sold both cars and bought a cheaper house, yes.

[rebeccalynn]

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.

[onlyzombiecat]

Not right now. My income is zero.
Dh's income just covers our bills and we are fairly frugal.

[BellinghamCrunchie]

Heck, no. We can't really even live on 100% of our income.

[vannienicole]

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).

[*Erin*]

heck no.
i wish we could, but it's not a possibility on dh's current income. would be nice, though! maybe someday

[Krystal323]

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.