Is it even possible to live off $27.5k/year? - Business, Finances and Investing Forum

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Is it even possible to live off $27.5k/year?

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01-28-2015 , 04:47 PM

blakeatron

old hand

Join Date: Nov 2012 Posts: 1,214

I just graduated college and just got a job at a marketing firm which will pay $27.5k/yr once I go full time. After playing poker and living college life to its fullest with poker money, I have tried to budget a reasonable lifestyle with this jobs income and I can't seem to do it. It seems that I would have to live a ridiculously frugal lifestyle to make this work. Am I wrong? Have any 2+2ers made 27.5k/yr work out fine?

Of course I am aware that this is an entry level position and the pay is goi g to start low, but this salary leaves me no room for investing or saving it seems.

inb4 welcome to the real world, go **** yourself.

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01-28-2015 , 05:04 PM

TheHoss

journeyman

Join Date: Jul 2005 Posts: 313

obviously depends on where you live (assuming this is in US, but which part). it's possible to live a modest lifestyle with that in some places, others not so much.

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01-28-2015 , 05:13 PM

blakeatron

old hand

Join Date: Nov 2012 Posts: 1,214

i live in central florida atm

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01-28-2015 , 05:38 PM

DickFuld

Pooh-Bah

Join Date: Sep 2007 Posts: 4,113

Doesn't seem very difficult, so long as you are accepting of the fact that it's not going to be much fun. Don't worry about saving or investing in the near term, other than taking advantage of any matching/benefits if offered. Your percentage of taxes will be really low with no state taxes and a pretty low federal tax bracket. Find a cheap apartment or a roommate and grind it out.

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01-28-2015 , 06:01 PM

cwar

Carpal \'Tunnel

Join Date: Dec 2005 Posts: 11,127

Absolutely yes, you aren't expected to live on this forever just getting in the door.

I had an old coworker who lived on $12k in NYC + some food stamps so yes. I believe the keys are living with a lot of people, not going out ever and having 0 discretionary spending things like clothes.

Probably not doable for longer than a year at that low level.

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01-28-2015 , 06:05 PM

nyc999

Carpal \'Tunnel

Join Date: Sep 2004 Posts: 18,688

If you have roommates and live a fairly frugal lifestyle it's possible. Although it was 15 years ago, I started at 23K while living in NYC. It sucked, but you learn to survive and still have fun - and as previously said, it's most likely temporary.

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01-28-2015 , 06:05 PM

Booker Wolfbox

Carpal \'Tunnel

Join Date: Aug 2012 Posts: 38,421

Of course it's possible.

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Of those individuals with income who were older than 15 years of age, slightly under 45% had incomes below $25,000

Keep your expenses in check - especially housing, eating out and transportation imo - and you'll be fine. And you'll get into good habits that will serve you well when you make more money, permitting more saving and investment.

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01-28-2015 , 07:45 PM

maxtower

Carpal \'Tunnel

Join Date: Sep 2005 Posts: 7,996

It's incredibly easy to live on this amount. Some people do far less. You will barely pay any taxes. So you have about $2000/mon to spend. Find a room in a house to rent that includes utilities for $500-600/month. You have $1500 leftover, or about $50/day. That should be plenty for food and other things.

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01-28-2015 , 07:49 PM

jb514

veteran

Join Date: Oct 2009 Posts: 2,837

Quote:

Originally Posted by maxtower

You have $1500 leftover, or about $50/day. That should be plenty for hookers and blow.

fyp

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01-28-2015 , 08:03 PM

#10

blakeatron

old hand

Join Date: Nov 2012 Posts: 1,214

Great. Thanks for the advice everyone.

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01-28-2015 , 10:20 PM

#11

mmbt0ne

Carpal \'Tunnel

Join Date: Aug 2004 Posts: 22,077

Here's a dude who spent $25,330 in 2014 for his family of 4 to live just outside Boulder.

http://www.mrmoneymustache.com/2015/...2014-spending/

Obviously this isn't possible for everyone in their current states, but not having house/car payments goes a long way.

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01-28-2015 , 11:59 PM

#12

Tyrannic

old hand

Join Date: Jul 2006 Posts: 1,896

Look at it like a paid internship. They pay you a little, not enough to live on but to help cover some of your expenses. In return you get a foot in the door. Look to move up or get a new gig ASAP.

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01-29-2015 , 12:51 AM

#13

jb514

veteran

Join Date: Oct 2009 Posts: 2,837

Quote:

Originally Posted by mmbt0ne

It's pretty amazing four people only spent $7500 on food. That guy does kind of spend a lot of time and effort on being cheap and not materialistic, which is kind of counter-intuitive.

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01-29-2015 , 03:19 AM

#14

CBorders

Carpal \'Tunnel

Join Date: Feb 2008 Posts: 16,500

Quote:

Originally Posted by blakeatron

I make a little less than double your salary and spend about half of what you do. What is a "reasonable lifestyle"? Post a breakdown of your expenses and maybe someone will be able to find leaks.

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Originally Posted by jb514

It's pretty amazing four people only spent $7500 on food.

What's amazing about it?

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That guy does kind of spend a lot of time and effort on being cheap and not materialistic, which is kind of counter-intuitive.

How is he being cheap?

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01-29-2015 , 05:30 AM

#15

Bulrathi

centurion

Join Date: Nov 2014 Posts: 182

Yes. A lot of the world less off less than $1 day

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01-29-2015 , 08:29 AM

#16

dalerobk2

veteran

Join Date: May 2012 Posts: 2,569

I hope the job has a lot of upside potential, b/c that seems like a really low salary for a college grad. That comes out to about $13 an hour.

As others have said, you can live on it, but it's not going to be fun. How miserable it's going to be depends on how much debt you have.

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01-29-2015 , 08:38 AM

#17

MadTiger

old hand

Join Date: Dec 2005 Posts: 1,404

Quote:

Originally Posted by CBorders

How is he being cheap?

"Thrifty" might be a better word in this instance.

Budget.
Budget.
Budget.

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01-29-2015 , 08:08 PM

#18

CharlieDontSurf

Blessed by Pope

Join Date: Apr 2006 Posts: 14,811

When i worked as an ent. assistant in LA after college I lived on 20K, 25K, and 28K a year and enjoyed life. Saving for retirement or investing, no so much thou. doh!

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01-29-2015 , 09:04 PM

#19

JPantz

veteran

Join Date: May 2007 Posts: 2,144

I was making like 21K when I joined the Army. Some guys were making like 18k but they provide housing so it's basically the same as making 27k if you are paying 500 in rent. With roommates 500 a month should be very easy.

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01-29-2015 , 10:27 PM

#20

ff2017

centurion

Join Date: Jul 2010 Posts: 199

Quote:

Originally Posted by JPantz

more than 27k, maybe 30k, because the rent is an after tax expense.

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01-30-2015 , 12:23 PM

#21

DuckU

old hand

Join Date: Feb 2009 Posts: 1,369

Quote:

Originally Posted by Tyrannic

Look at it like a paid internship. They pay you a little, not enough to live on but to help cover some of your expenses. In return you get a foot in the door. Look to move up or get a new gig ASAP.

This ^^^ +1

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01-30-2015 , 01:24 PM

#22

Bulrathi

centurion

Join Date: Nov 2014 Posts: 182

Sell old things on ebay to supplement your income

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01-30-2015 , 01:41 PM

#23

IAMthepokerhack

adept

Join Date: Dec 2013 Posts: 1,125

From my experience-roommates are the key to living better at this end of the earning curve-anything you can do to lower your primary living expenses will help you have some money for whiskey and women (or men if thats your thing)