Income

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AnnaBanana

Puritan Board Freshman
Hey old friends, long time no see.

First I want to say the Lord has blessed me beyond measure. He has given and also taken from me for the good of His plan.

With that said, I can never get ahead didn’t mean to rhyme but I’ll just go with it.

I am asking this (not exact) but to just see what others feel regarding their income and if this is just a normal way of life.

I make between 40,000-45,000. I live alone in a modest apartment in Oregon. I work as a librarian assistant and occasionally will splurge on a book or two. Other than that, I cook my own meals at home, I watch movies at home, I exercise at home. No real extra expenses except monthly groceries and bills (electric, water, etc)

By the time the end of the month comes it seems as if there is nothing left for savings. Thankfully, I have no debt. You’d think I’d be able to save a little more than I do but nope.

Anyway- just curious to know. What is your ballpark range of income and do you feel “comfortable” or “strapped”. Reason I am asking is if there will ever be a time to just not even look at the bank account haha.

I know so many things factor in and we all have different budgets.
 
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I find that a real differential these days are choice of supermarkets. ALDI is a game changer. And evaluating rent is also necessary, dont just accept any rent increase. Study the area.
 
Not sure where you are at in Oregon, but I lived in Portland for a number of years. Your dollar doesn't go as far there, and your dollar doesn't go very far in general these days. In fact, my wife was just mentioning how much our car insurance is going up this year. We both have clean driving records, but it went up over $200.

The one bit of advice I can give is to put away for savings upfront (and your tithing, too). You'll find that your spending after that will adjust. Obviously, you need to be realistic with how much you set aside. Start small, even, to get in the habit. Take a look at things you can cutback. For instance, cellphone plans are pretty cheap these days. Whatever you can cut back on, put that amount you saved into a savings account. Also, great job not having debt! Keep it that way!
 
I would say that you are going to want to create a budget, and stick to it. Part of that budget will be a savings category that you expect to make each month. With that being said, you are going to have to adjust your expenses and circumstances to work with that budget. For our family of five, that meant moving two states over. We were in Florida and not saving much each month, then moved to South Carolina. Perhaps you live in a very expensive area?

Although money is not the most important thing in life, having a good savings account really is a blessing and something worth having.
 
While you might be making enough to support your modest lifestyle, the problem will crop up when there is a missed paycheck or an unexpected expense.

Being debt free is a large step ahead of your peers.

I was plugging numbers into an inflation calculator of what I was making and living on as a young single. A little bit more (inflation adjusted) in a lower or much lower cost of living area, and I wasn't gaining any ground, either. I don't see how you can save much (or anything) where you are now. The things that come to mind are either a roomate to lower housing costs (something I was never willing to do), get a part time job and dedicate that net income to savings, or change jobs, whcih can be a very difficult choice if you like the work and your coworkers.

No easy solutions for you.
 
Doing some side gigs like Fiverr can help you get some more income for savings.
What are you saving for? For instance, if it is retirement you can do a pre-tax 401k or IRA, or even better if you are a state employee (but depends on where...) you can do a 457 (401k with no early penalty other than taxes).
An HSA can be helpful as well but if you have little savings pay attention to the deductible.
 
Hey old friends, long time no see.

First I want to say the Lord has blessed me beyond measure. He has given and also taken from me for the good of His plan.

With that said, I can never get ahead didn’t mean to rhyme but I’ll just go with it.

I am asking this (not exact) but to just see what others feel regarding their income and if this is just a normal way of life.

I make between 40,000-45,000. I live alone in a modest apartment in Oregon. I work as a librarian assistant and occasionally will splurge on a book or two. Other than that, I cook my own meals at home, I watch movies at home, I exercise at home. No real extra expenses except monthly groceries and bills (electric, water, etc)

By the time the end of the month comes it seems as if there is nothing left for savings. Thankfully, I have no debt. You’d think I’d be able to save a little more than I do but nope.

Anyway- just curious to know. What is your ballpark range of income and do you feel “comfortable” or “strapped”. Reason I am asking is if there will ever be a time to just not even look at the bank account haha.

I know so many things factor in and we all have different budgets.
You said no extra "expenses" but do you have any debts? And I mean credit cards, car loans, student loans, personal loans, medical bills, etc?
 
I live in SE Washington and had an above average income until 2 years ago. So house and acreage is free and clear, I have three vehicles free and clear.

2 years ago I wrapped up my law practice to care for my declining wife. I credit her with astounding money management skills, because the two of us spent around 2200 per month to live well. We had a garden and chickens. Unlike many, we did not spend money on the birds.

She passed away a bit over a year ago. My current expenses still are around 2200 per month. That includes indulgences like an antique airplane and antique car. I’m no longer in the litigation world, and my income reflects that: approximately $3000 per month. It’s comfortable for now, and because of my wife’s skills, I have a savings buffer.

Budgeting is key. You can do discretionary purchases with a clear conscience if you are confident your needs are met.
 
I saw this thread when it first popped up and debated on whether or not I should respond. Ultimately, I decided to, so here goes.

Our family of six has always been in a sole breadwinner situation, and I make ~4x what you do.

Here's a brief survey of what that looks like:

We're comfortable in many ways, we're absolutely strapped in others. About half of my paycheck disappears after taxes and pre-tax deductions. We've taken many short road trips over the years but have never taken a vacation. I doubt we'll ever be able to take the whole family across the country or to some international destination. We have one vehicle (a minivan), we shop at thrift stores, we made our own laundry detergent for a while, etc. At the same time, we don't have to think much about gas prices or a grocery budget. We do still cringe when we have to buy toiletries or paper products because the prices are insane. We have a certain amount of money from each paycheck that is automatically deposited into a savings account. Sometimes that can grow for a couple months, other times an unexpected emergency will wipe it all out rather than putting it on a credit card. We're also able to give regularly to many causes for Christ as stewards of what He's given us. Those amounts come out each month without a second thought in addition to what we give to the church. We have no 529 plans for the kids (college savings), we don't have six months of living expenses saved, etc. Inflation is a big concern for us, as when we adjust for that I'm making 15% less than I was three years ago working for the same company. That number is only going to increase.

From this you might think if there's always going to be difficulty and you'll be strapped in one way or another, what's the point? If this is you, know that I can definitely relate to that. I think there's a difference between climbing a corporate ladder to stay on a hedonic treadmill versus trying to hedge against inflation. On the flip side, I'd like to also suggest that up to a certain point, making more money makes sense. Allow me to explain.

In 2008, my first salaried gig was ~$45k, and even then as a single man I didn't have the money to pay for everything I [thought I] needed. Certainly not enough to save a meaningful amount of money, even after accounting for compound interest. I think expectations folks have in this country about retirement are very optimistic. Many people have challenges making more money, but very few people have challenges spending more money, so keep that in mind. Your expectations or expenses in life can always rise to meet your income, but the opposite isn't true. Not every career path or skillset has the same top range of earning potential. Anyway, when adjusting for inflation, you're making far less than I was making back in 2008.

$45,000 in 2008 dollars would be $63,405 (+40.9%) in 2023 dollars. You're also making far less than I think Harvard Business Review suggested ($75k in 2019 dollars, or $88,995 in 2023 dollars, +18.7%) for what it would cost on average to have an income that meets all of your needs.

Rather than worry about saving money now, I'd invest in upskilling yourself so that you can save much more money later, or at the very least hedge against inflation. There are websites like Team Treehouse and other organizations that either guarantee they'll find you a job with the skills they're teaching you, or will not require repayment until you're gainfully employed. If you're interested in IT, this option or one like it could be a good fit for you. Otherwise, my suggestion to you would be to try to find something loosely related to what you do now. Years ago I remember giving my wife the same counsel. She had been a teacher of young children for many years and was tinkering with the idea of doing something to bring in a bit of extra money, so I'd suggested something with children. I think she still has plans to write and illustrate a children's book at some point. There can be a real shortage of non-2CV content out there. My point is that resumés at the end of the day are storytelling devices, so be intentional when developing your professional narrative.

Hope this helps.
 
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Where did you spend your money, would most of it be going to rent?
The vast majority back then went to rent and a car payment. I had terrible credit, so I was being charged an usurious amount of money for the '06 Accord I had. I was also not a good steward of my money at that time in any sense, as I didn't come to know the Lord Jesus Christ as my Lord and Saviour until a year later (after I'd been laid off from said job).
 
The vast majority back then went to rent and a car payment. I had terrible credit, so I was being charged an usurious amount of money for the '06 Accord I had. I was also not a good steward of my money at that time in any sense, as I didn't come to know the Lord Jesus Christ as my Lord and Saviour until a year later (after I'd been laid off from said job).
It seems like car finance is a big money hole for a lot of people in the UK.

As you outlined in your first reply it's possible to get very creative to live frugally. One example I've noticed is with food, not just cooking your own, but how you shop. I don't know about the US, but there are certain times in the day over here when supermarkets (sorry.. I mean "grocery stores"..) reduce food to clear before it goes out of date, so you can pick up things maybe 40%, 60% or even 80% off and either freeze it or cook it straight away.

Obviously there are unreasonable extents one can go to, and after all, time is more valuable than money. We trust our Father in heaven will provide according to our needs as we seek to live lives in accordance with His commandments.
 
We have been a single income family since 2006. We have a 21 and 17 year old. We are able to get by nicely on my income. We use coupons. A LOT. We price items at multiple stores. Fortunately I have a company car and personal gas is included. We don’t eat out much at all and vacations are my family accompanying me on business trips in driving distance so the hotel is already paid for. I am very happy with our retirement savings. I say a lot of that, even though we are in different circumstances, to say it is totally possible. When Covid hit, we had a full pantry and lots of TP already because we stocked up on deals. Tithes come out first then bills and savings. We paid off the house early and that was a big way to retain more from the paycheck. Pay cash for large items. Again, coupons and clearance items. We shop the expiring soon section in supermarkets and freeze the meat for later. Lots of times it’s 75% off. Use store programs like Kroger or gas stations to get points for discounted gas etc.

Good luck.
 
My first real job paid $15,500. That would be the equivalant of $51,333.26 now, and was plenty for a single guy with a fairly simple life in a low cost of living area, and suspect the inflation adjusted amount still would be.
 
Oops! Crazy… I meant this for another thread but then thought about appearing to be critical of certain ecclesial officials and wanted to delete it but I couldn’t find it again… thought maybe it had been deleted for me. Nope just in the wrong thread! :D
 
I wrote a leaflet for my daughter when she went off to study nursing , "How to feed yourself on £20 a week". That was a good few years back so I might have have to add a fiver. Sadly it was based on my junk food diet when I was working away from home and needed to send money back home. (Yes it featured Aldi and Lidl)
 
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