What's a comfortable salary?

[Zarathustra]

Location location location. I live in San Francisco, and currently drop $1,700 per month on a 300sqft studio. Homes here, as DiscoBiscuit's chart illustrates, are outrageous, thanks to the internet millionaires that fill the area. I don't think I'll be comfortable until I'm making maybe $150k per year in today's dollars.

However, were I to live somewhere with reasonably priced real estate, I'd say $70k would be comfortable.

Don't worry.

Once the app bubble bursts, things should tame down a bit.

 

[Giggly]

Any business has to be created with the intention of making a profit not with the express purpose of being a tax shelter.

But, as long as the business exists to be a real business, you can deduct most things involved with furthering that business.

Operating in good faith as a business is kind of assumed.

It is only assumed if you make a profit in at least 3 of the last 5 tax years. Otherwise, it is considered a hobby and your business expenses can not be deducted.

 

[FDG]

It is only assumed if you make a profit in at least 3 of the last 5 tax years. Otherwise, it is considered a hobby and your business expenses can not be deducted.

Ah, thanks Giggly. I supposed there was a similar law in the US (there is one in Europe).

 

[FDG]

Location location location. I live in San Francisco, and currently drop $1,700 per month on a 300sqft studio. Homes here, as DiscoBiscuit's chart illustrates, are outrageous, thanks to the internet millionaires that fill the area. I don't think I'll be comfortable until I'm making maybe $150k per year in today's dollars.

However, were I to live somewhere with reasonably priced real estate, I'd say $70k would be comfortable.

300 sqft is just enormous, at least for my european standards. 1700 per month seems completely fine.

 

[cascadeco]

300 sqft is just enormous, at least for my european standards. 1700 per month seems completely fine.

You consider 1700/month cost being completely fine? Is that normal rental prices in your area?

 

[Zarathustra]

300 sqft is just enormous, at least for my european standards. 1700 per month seems completely fine.

You consider 1700/month cost being completely fine? Is that normal rental prices in your area?

I'm more shocked that he finds 300 sq ft to be enormous...

I think my place is 800-850, and it felt too small for two people.

FDG, are you sure you're not making an error because of the metric system?

300 sq meters would be something like 10x as big as 300 sq ft, which might make your comment make more sense...

 

[Giggly]

Ah, thanks Giggly. I supposed there was a similar law in the US (there is one in Europe).

You're welcome.

Here is some info for those who are interested.

http://www.nolo.com/legal-encyclopedia/operating-losses-prove-hobby-business-30000.html

 

[cascadeco]

I'm more shocked that he finds 300 sq ft to be enormous...

Ha, yeah, originally I was confused on both statements, but, I do know european apartment standards ARE much much smaller than here in the states, so was giving benefit of the doubt...

 

[kelric]

Location location location.

So true. Like Disco's chart shows, housing prices make a staggering difference. I'm looking to move from a very reasonably priced housing market (St. Louis) to a rather expensive one (Vancouver). In my case, the effect is mitigated somewhat by the fact that I also want to minimize - I'm looking forward to changing from a single-family house w/yard to a small urban apartment. But even so, I'll almost certainly be paying a lot more in rent there than I pay for my mortgage/utilities/principal reduction here.

Honestly, I think my "comfort" number here in St. Louis is quite a bit higher than a lot of folks have mentioned. Probably around 75k. I worry a lot about retirement, and am not "comfortable" unless I'm saving a pretty high percentage of my earnings for that purpose. So while I don't need that much to live on day-to-day, it all adds up. I really don't know where the money all goes... I spend a lot on food at the grocery store, have a pretty expensive gym membership, etc. but other than that my needs are pretty small.

And yet, I'm not rolling in money, even though I make more than 75k. It's a little hard to tell, as over the last year I've spent a lot (closer to 10k than not) on preparing for my pending move, which isn't exactly a regular expense.

Honestly, I wouldn't say "comfortable" unless it was optional. If I could afford to retire now (not that I would, but if I could *afford* to), I'd say I'm comfortable. Until then, not so much.

 

[FDG]

FDG, are you sure you're not making an error because of the metric system?

300 sq meters would be something like 10x as big as 300 sq ft, which might make your comment make more sense...

Lol, yes I am, sorry! Thanks for clearing it up. I too often forget about the different system in the US. So 300 sq ft is 28 m2. Then yes, it´s indeed very pricey. I guess, in my area, you would pay 400/450 dollars a month for a 28 m2 apartment.

 

[DiscoBiscuit]

Once I have a family, the comfort level will prob be around 150k to 200k.

Also, 300sq ft. is not enough. I had a maybe 500 sq. ft. place in DC I was living in for a while. It was OK as a temporary solution, but I could practically extend my arms and touch both walls.

I think about 800sq ft. would be an acceptable minimum. Preferred minimum would be about 1000sq ft.

 

[figsfiggyfigs]

I don't know....

I don't know almost anyone who makes $56k a year, and that's what it says is comfortable for 2 parents and 1 child. And I know people who live pretty comfortably--though I don't know anyone completely worry free bill-wise.

before or after tax? O_O

 

[DiscoBiscuit]

Importantly, there is a big difference between what I would be comfortable with, and what I'm aiming for (would want).

Comfortable is more of a minimum acceptable threshold.

 

[figsfiggyfigs]

In all honesty when I was still in school and my husband was making about $72k, we were fine. Anything beyond that is good too, don't get me wrong but we weren't struggling and I think I read 75K is the happy amount. Then I went to work and he was offered a big promotion at another company. This put us in a different tax bracket and it just sucks balls. I never thought I'd say this but I hope he doesn't get a promotion or a raise or me for that matter. I don't want to go from 28% to 33%.

I WISH I could be taxed as little as 28%.
I'm currently paying 33% tax here in Denmark. I believe its the lowest amount I can be taxed. It doesn't matter how much you make, you're going to be taxed quite high(the average being 25.7%), the highest is 51.something% .

Despite how much 33% is, I am still required to speak to hr and get my taxes in order, because according to some danes, I am being taxed too little.

I also pay ~$1,200 USD a month(all inclusive) on my apartment, which is EXTREMELY CHEAP( I got very very lucky). This time next year I will probably be paying twice as much for the same sized apartment, even further away from the city.

I have no idea how some of you are saying 50K a year is enough to live comfortably. Crazy talk!

 

[King sns]

30,000? per adult? I'm thinking just basics... Lowest rent in a safe neighborhood, being careful with utilities, an economy car, eating healthy at home, benefits at work assuming that you're reasonably healthy, savings, and a small allowance ... I may be overestimating, my areas a bit pricey and I personally have a lot of "necessities" so I bet a really frugal person could go even less.... I'm basing this a lot on myself too, if I scaled back a lot. Rents here would be about 700-800 in the rural or suburbs in a one bedroom or efficiency, by yourself. I mean really one could live happily in a hippy commune and grow their own food and bike everywhere etc.

(Edit: I guess my area is not "pricey" compared to others!)

 

[DiscoBiscuit]

I WISH I could be taxed as little as 28%.
I'm currently paying 33% tax here in Denmark. I believe its the lowest amount you can be taxed. It doesn't matter how much you make, you're going to be taxed quite high(the average being 25.7%), the highest is 51.something% .

Despite how much 33% is, I am still required to speak to hr and get my taxes in order, because according to some danes, I am being taxed too little.

I also pay ~$1,200 USD a month(all inclusive) on my apartment, which is EXTREMELY CHEAP( I got very very lucky). This time next year I will probably be paying twice as much for the same sized apartment, even further away from the city.

I have no idea how some of you are saying 50K a year is enough to live comfortably. Crazy talk!

It's fun figuring out how to minimize ones tax liability. I have a friend named ROTH you should get to know.

 

[FDG]

I have no idea how some of you are saying 50K a year is enough to live comfortably. Crazy talk!

50k euros is enough in most europe for 3 people excepting fairly expensive cities (and danish cities are indeed among them). For example, I have an income of around 43k euros and pay 550 per month of rent for 60 sq meters. My girlfriend makes another 32k euros so overall we can live somewhat comfortably, well, mostly we pay a lot of taxes and save a good amount of money.

Now, if you have a family of four-five and want to live a middle class lifestyle in an expensive city, I believe 80-100k dollars a year are necessary.

 

[cascadeco]

I have no idea how some of you are saying 50K a year is enough to live comfortably. Crazy talk!

50,000 Pre-tax. Single person. America -- thus very different from European costs / taxes/etc.

After taxes, after pre-tax amount going to 401k, and after medical benefits taken out pre-tax, result was approx $2830/month into pocket.

$2830
-$1260/month rent plus utilities (a more expensive apartment ... i.e., one can definitely live cheaper, but, apartments not as nice)
-$300/month groceries
-$40 misc living expenses (i.e. toilet paper, soap)
-$75 entertainment (movies, eating out ----> i.e. I don't spend very much, as a lifestyle choice)
-$90 gas
- $125 auto/renter's insurance
- $70 internet
- $35 phone
- $35 electricity

= $800 / month (->savings/ 'extra' of up to $9,600/year) that can be put into savings or some used to buy some clothing, or 'extras' / hobbies, unexpected things. Also vacations.

So, yeah, $50,000 was sitting pretty for me. As a single person, it was quite comfortable... I mean, given the wiggle room I had. But, everyone has their own level of comfort and luxury they want -- lifestyle choices is what sets your 'comfort level' in salary - well, above and beyond bare bones expenses and survival.

 

[kyuuei]

before or after tax? O_O

Before, I suppose.. I mean, maybe if both parents are working they might get to that $50k range, but I certainly don't know anyone that makes around 60k a year after taxes. At least, not well. Poor people sort of stick to their own, and rich people tend to do the same. I think it helps that Texas has a particularly low cost of living. So you can live pretty comfortably (though not completely worry free by any means) off of $40-45 here.

 

[1487610420]

You're all wrong.