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#1 of 118 Old 04-02-2009, 10:06 PM - Thread Starter
 
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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?
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#2 of 118 Old 04-02-2009, 10:07 PM
 
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Um no.
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#3 of 118 Old 04-02-2009, 10:11 PM
 
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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!

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#4 of 118 Old 04-02-2009, 10:13 PM
 
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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.
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#5 of 118 Old 04-02-2009, 10:13 PM
 
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We're doing it right now. Well, close to half. We are agressively trying to pay off debt.
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#6 of 118 Old 04-02-2009, 10:36 PM
 
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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.

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#7 of 118 Old 04-02-2009, 10:36 PM
 
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We do, barring frivolous expenses.
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#8 of 118 Old 04-02-2009, 10:37 PM
 
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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.
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#9 of 118 Old 04-02-2009, 10:41 PM
 
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Nope, we couldn't without making some MAJOR changes.

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#10 of 118 Old 04-02-2009, 10:46 PM
 
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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!

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#11 of 118 Old 04-02-2009, 10:47 PM
 
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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

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#12 of 118 Old 04-02-2009, 10:49 PM
 
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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.

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#13 of 118 Old 04-02-2009, 10:50 PM
 
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That is my goal but 50% of nothing is well, no not at the moment.
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#14 of 118 Old 04-02-2009, 10:57 PM
 
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If we sold both cars and bought a cheaper house, yes.
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#15 of 118 Old 04-02-2009, 10:59 PM
 
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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.
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#16 of 118 Old 04-02-2009, 11:01 PM
 
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Not right now. My income is zero.
Dh's income just covers our bills and we are fairly frugal.

Kim ~mom to one awesome dd (12)

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#17 of 118 Old 04-02-2009, 11:02 PM
 
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Heck, no. We can't really even live on 100% of our income.
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#18 of 118 Old 04-02-2009, 11:09 PM
 
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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).
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#19 of 118 Old 04-02-2009, 11:17 PM
 
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heck no.
i wish we could, but it's not a possibility on dh's current income. would be nice, though! maybe someday

Erin, 33, salty southern mama, sitting by the sea with my DH35, DD10, DS4, &DD2!
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#20 of 118 Old 04-02-2009, 11:18 PM
 
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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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#21 of 118 Old 04-02-2009, 11:18 PM
 
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: Yeah, can't live on 100% here either.

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#22 of 118 Old 04-02-2009, 11:20 PM
 
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Not right now, no. If DH were making what he *should* be making for his experience level and industry, then maybe. But only once we got my car and his student loans paid off.

When I was salaried, then yes, we could have, but we didn't.

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#23 of 118 Old 04-02-2009, 11:28 PM
 
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Quote:
Originally Posted by ~Purity♥Lake~ View Post
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!
Haha, my husband just stopped home after work and announced that he's going to try to quit smoking, again, because he heard the prices are now going up from $7.92 per pack to $9.15 a pack and he smokes a whole pack or more every single day! So perhaps we will be able to buy those things I wrote on our grocery shopping list after all.

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#24 of 118 Old 04-02-2009, 11:33 PM
 
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Pre-kids we did that and paid off all our debt.
Post kids we live on one income only (50K) and no we couldn't. We spend too much in medical expenses.

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#25 of 118 Old 04-02-2009, 11:44 PM
 
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Hahahahaha - heck no. If I take out tithe and savings we live on ~85% of our income.

But then again, I'm a SAHM so in that sense being able to afford that means that we're living on a lot less than we would be if I worked (I wouldn't have to pay for daycare b/c we have family who would watch our children).

We're not paying on any debt except a mortgage and $98/month on a student loan.
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#26 of 118 Old 04-03-2009, 12:20 AM
 
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No way! We'd be $16,000 in the hole every year and we are debt free except the house. That's just for mortgage and bills - not even groceries or anything else!

Now, I guess if we moved back into an 800 sq.ft. apartment and sold my car we could do that, but why the heck would we? Even when my DH's salary almost doubles in two years and we could live off half, I don't see why I would. As long as we are appropriately saving for the future (and we are - we'll make more retired than we ever will working), have a great EF, ESAs, and are debt free, that money is for living. I see no way in which living on half our income would be of any benefit whatsoever. I mean sure, that money could earn more invested, but there are only so many millions the average person needs to retire in luxury and leave a few to the kids.

As long as we're financially secure, we're going to enjoy the living that we make.

I'm Kellie :, married to Chris , and mom to one baby girl (7/12/09).
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#27 of 118 Old 04-03-2009, 12:39 AM
 
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Not right now, but it's my goal to be able to do it in about 2 years.
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#28 of 118 Old 04-03-2009, 12:46 AM
 
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Yikes!! Half??? Maybe for the rich people, like herself maybe?
We have a little over 2 grand per month, with things like the mortgage, insurence, electric, phone, internet, groceries, tithe, fuel, car payment, a little tiny bit of cc debt and our one little extra, the $10 per month netflix account.

Suzie could tell us to live on half till she was blue in the face, but no matter how you crunch the numbers, its not possible to live any cheaper. Even our mortgage is several hundred less then the average rental payment and things are tight.
I don't work, because that would actually raise our outgoing cash even more. Extra vehicle, insurence and fuel, etc.
The dream of going tot he dr. to find out why I mc all of my pregnancies, is just that, a dream. We have to save our pennies in hopes of being able to do it. DH can't get insurence, because he developed type 1 ( due to a drs stupidity(broke his back a few years ago, and instead of giving him the oral stuff he was taking for type 2 , they pumped him up with insulin ) while he was without.

Paula, wife to Steve, mother hen to 38 , busy doing : TTC after 6
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#29 of 118 Old 04-03-2009, 01:22 AM
 
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*snorts* Not a chance! We live off of probably 99% of our income. Living on half would mean $15k for our family of 4.

A, wife to R and mom to 3 boys: D~ 10/05, J~ 8/07, and B~ 12/09 jumpers.gif

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#30 of 118 Old 04-03-2009, 01:54 AM
 
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Quote:
Originally Posted by BellinghamCrunchie View Post
Heck, no. We can't really even live on 100% of our income.
Well.. the COL on alpha centauri IS notoriously high

After we finish moving in 2 weeks we are going to be doing just that... and really we already could. DH got a new job late last year making nearly double what he did previously. I have a very important trip to make mid year or so and the funds MUST be there for it so we'll live on half his pay while the other half goes into his tax acct (he's self employed so that's his withholding plus my savings to see my grown up boys ) It'll definitely be snug since the new job came with a 310 a month van payment and business insurance etc...but I figure we've lived on FAR less.

Pagan  lovin'  WOW playing mum to 5 boys in the wonderful land of Oz ... FOR THE HORDE! hehehe
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