living costs

celeron_266

so i am fooling around and trying to estimate how much a couple have to earn in order to live without any external support

mortgage: 250k principle, 6% interest, pay off in 5 years (i dont want to work my whole life just to pay off the house):  5k per month = 60k per year

car:  2 cars, $500 monthly for each = 12k per year

car insurance:  2k per car = 4k per year

gas:  $300 per car per month = 3.6k per year

utilities (natural gas, water, electricity):  2.5k per year

phones (one landline, two cell phones), internet, tv:  ~$180 per month = ~2k per year

medical:  $100 per month = 1.2k per year

food:  ~$1000 per month = 12k per year

so minimum a couple have to earn ~ $97.3k a year just to support themselves...

if you want to help your parents (both sides 2k a month = 48k per year), that will be $145.3k per year!!!

and remember...this is the minimum living costs...no incidentals (occasional traveling, shopping) added...

if kids are present...the costs will increase again...

i am not considering monthly savings as well....

this is scary....it seems that if both people are earning equally, they will have to take in 100k per year AFTER TAX in order to live relatively comfortably....

the only thing that i can think of to reduce the living cost is to stretch the mortgage to 10 years, that you  pay 2k less per month (12k per year)...but you will have to suffer twice as long to pay off the house....

how can a couple achieve this????

[ 本帖最後由 celeron_266 於 2008-5-24 13:48 編輯 ]

SAZABI

Are we talking about minimum, ok living condidtion, or more luxury life?
I mean.. if we are talking about minimum, a lot of couples out there just have one car neh.

The mortgage part is unrealistic too.  
1. 5-yr term may be stressing it a bit? and that doesn't qualified to be taken into account for a *minimum*.
2. 250k principle?  how you do that?  I thought you were talking about not getting any external support.  A decent apartment is at least what? 400k? So the condition is that you have 150k saving already?  Or buy a "house" around 250k?  According to your final number, I doubt a family with 100k net income would choose to live in a 250k crappy house LOL

celeron_266

原帖由 SAZABI 於 2008-5-24 13:50 發表
Are we talking about minimum, ok living condidtion, or more luxury life?
I mean.. if we are talking about minimum, a lot of couples out there just have one car neh.

The mortgage part is unrealistic t ...

ok so lets modify a bit for the mortgage part and the car part

$400k principle (i prefer apartments btw), 6% interest, 15 years

still goes to about 3.5k a month = 42k a year (18k less compared to my initial estimate)

and with only one car, all car-related expenses are divided by 2, you save about 10k per year

total savings with these modifications is about 28k, so each person can earn 14k less per year...not very significant IMO

[ 本帖最後由 celeron_266 於 2008-5-24 14:03 編輯 ]

LOK

agree with SAZABI, the mortgage part is unrealistic...
If you could able to pay off a 250K crappy house for 5 yrs... I think 90% of ppl would buy maybe a 600K house for a 15 or 20 yrs term instead.

and if you live in a crappy house, i don't think you will need to drive 2 cars which for $500/ month each... maybe two $300/month car match that situation better

[ 本帖最後由 LOK 於 2008-5-24 14:01 編輯 ]

yungfourfour

$60K a year just for mortgage means you pay $60K before you salary got taxed away.  

1.  Say you don't buy any RRSP for tax break you still get ~30 % being taxed away
So both of your income has to be at least $50K just to support a mortgage like this.

2.  $500 a month for a car mortgage (excluding insurance) is a lot! you're doing zero down?

3.  $100 for medical? I think a lot of companies get your MSP and health coverage covered.... $20 MAX is all you pay per month.

4.  $1000 a month sounds reasonable.... a couple work with this wage deserves to eat out sometimes.

the other stuff sounds okay..... I only have comments on 1-3 i listed.....

celeron_266

LOK:

i have made modifications on the mortgage at the thread just above you

yungfourfour:

1.  thats why i said each person have to earn about 100k after tax to support themselves

2.  done modifying the car-related cost at the thread above LOK

3.  ok so you save 80 bucks a month, thats goes to $960 per year, only ~0.7% change to the total living cost

SAZABI

原帖由 celeron_266 於 2008-5-24 13:58 發表

ok so lets modify a bit for the mortgage part and the car part

$400k principle (i prefer apartments btw), 6% interest, 15 years

still goes to about 3.5k a month = 42k a year (18k less compared to m ...

快樂牛郎

You can always tailor your expenses to what you could afford
so unless you are on welfare
there's no such thing as minimum costs

Guy

, pay off in 5 years (i dont want to work my whole life just to pay off the house)

YOU WISH


car: Own a car, 15k pay once for all, own it or don't lease it

bus: $100 per month = 1.2k per year

car insurance:  2k per year

gas:  $6 per working day + ($20)go out two days every month = $160 per month =$1920/yr

utilities (natural gas, water, electricity):  save electricity save heat $200 average per month =2.4k per year

phones (NO landline, just two cell phones [family plan]), just internet, NO tv:  $130 per month $1560/yr
(not sure how you got this value, TV internet and cell phone are expensive
the cheapest service i can find is (tax includsive) $30 internet $20 TV $30 landline  $50 a couple plan, or you can have two $10 prepaid)

medical: touch wood..none
(you have medical condition?)

food:  $20 per day for two person (EAT HOME MAN) + 3extra eat out meals ($20/each) = 680 per month $8160/yr


$17.24k/year expensive + mortage

assume mortage cost you $2000 per month 24k/yr

$41.24k/year + income tax + land tax= Total earning before tax with no savings

income tax 30% of income n' land tax ~$2000

Total earning before tax = $63.86k/year.......... with no savings left



so minimum a couple have to earn ~ $31.9k a year just to support themselves...

Support my parents?  no money involve.. but will cook food n'give housing for them such such
should take $1000 together extra per month (with no medical conditions)

and YES..this is the minimum living costs...no incidentals (occasional traveling, shopping) added...

for kids are present..(a frd told me ..maybe BS).the costs will be $25k/yr for the 1st three years. $20k/yr +RESP until gr 12


mortage 10 years...forget it.....must make a lot before you buy a house

or you can buy a house and rent half of it..that will ease a lot..

now are you still scare?.. you simply spent way too much as if you are living with your parents

LOK

anyways, I agree that a couple will need to make at least 100K before tax  to have a OK life.   (if 100K after tax, that's very good)
To some ppl, maybe they will think it's not too hard to have a 50K job for each person.  However, if one is just making $35K a yr, that means the other one has to make $65k a yr.  Sometimes, when your salary reach a certain level, it might not increase too much every year.