## View Poll Results: How much money (in US Dolars) do you need for a year?

Voters
14. You may not vote on this poll
• Under \$20K a year (you are awsome)

6 42.86%
• \$20K/yr-\$30K/yr

3 21.43%
• \$30K/yr-\$40K/yr

2 14.29%
• \$40K/yr-\$50K/yr

0 0%
• \$50K/yr-\$60K/yr

1 7.14%
• \$60K/yr-\$70K/yr

0 0%
• \$70K/yr-\$80K/yr (getting into big family territory, I think)

0 0%
• \$80K/yr-\$90K/yr

1 7.14%
• \$90K/yr-\$100K/yr

0 0%
• \$100K/yr-\$110K/yr

0 0%
• \$110K/yr-\$120K/yr

0 0%
• \$120K/yr-\$130K/yr

1 7.14%
• \$130K/yr-\$140K/yr

0 0%
• more than \$140K/yr

0 0%

# Thread: Learning to be Frugal:How much do you need per year?

1. ## Learning to be Frugal:How much do you need per year?

If you're goal is to be financially free, then being frugal is the more sure path that earning lots of money per year.

A formula:
expected net worth = [age X (pre-tax income)/10]

This assumes, no ingeritance. If you have twice that, you are a prodigous accumulator of wealth.

Another way to think about it is:
How much money would you need a year to live your lifestyle (assuming you like that life style)?

How many years of that amount do you have saved?

That is the amount of finacial freedom you have (measured in years).

I know most people are students, so the basic question is:
"how little can you manage to live on for a year?"

For the poll: I should point out, that this is for the lifestyle you want, not your current lifestyle (unless it is the one you want).

2. I did mine for a family of four living rather comforably.

The indication is that a two-income situation is almost a must (unless I get some great promitions, or something equivalent) by the time I get married, w/ kids.

The other thing is food is a little more than 50% of the expense here. So it seems like frugal families are the ones who can eat the way they like on the cheap.

It seems reasonable to reduce how much my virtual family spends on food by 50% somehow, but I really don't know too many ticks myself.

Any pointers?

3. If \$120k/yr is frugal, then there shall be some spoilt children in that family.

4. Originally Posted by Dana
If \$120k/yr is frugal, then there shall be some spoilt children in that family.
If you're fattening the children up for later devouring, I think you should spare no expense! (garbage in, garbage out)

5. currently im living comfortably at budgetary needs under \$10k/yr... my investments, savings, and endeavors take up the excess.

admittedly, others have remarked that this is out of proportion to my income, but a dollar is a dollar, and everything i dont waste can be put towards something of value, like traveling.

6. Originally Posted by ygolo
I know most people are students, so the basic question is:
"how little can you manage to live on for a year?"

For the poll: I should point out, that this is for the lifestyle you want, not your current lifestyle (unless it is the one you want).
I answered for how much it would take for me to live frugally and out of the red. I'm no expert on income, but I can look at family members to get an idea of what "does it".

I didn't answer for desired lifestyle, as.. I don't really know what it costs to live a desired lifestyle.

7. Originally Posted by Grayscale
currently im living comfortably at budgetary needs under \$10k/yr... my investments, savings, and endeavors take up the excess.

admittedly, others have remarked that this is out of proportion to my income, but a dollar is a dollar, and everything i dont waste can be put towards something of value, like traveling.
You're awsome!

Originally Posted by Dana
I answered for how much it would take for me to live frugally and out of the red. I'm no expert on income, but I can look at family members to get an idea of what "does it".

I didn't answer for desired lifestyle, as.. I don't really know what it costs to live a desired lifestyle.
Agreed, that comment causes confusion.

But the idea is to be honest about what you want while living "frugally." Not making yourself (or family member) miserable in the process.

What I put down is nowhere near frugal.

That's why it is a "learning to be frugal" thread.

I made the luxurious assumption that the whole family eats out every meal...because my cooking is horrible.

The medical, college, and entertainment parts were also liberal. But on par with the way I treat meself now.

So unless I see how I will change when I have kids, I suppose they will be spoiled too.

But food is the most ridiculous part.

Any tips? How much does preparing all your own food save for people?

8. In my house, we spend \$100 a week on groceries. At a restaurant with the family... you will spend \$100 in one night.

9. Hmm, I think I live on \$25,000 a year, including all housing costs and bills. Lucky for me, I earn more

10. Originally Posted by Dana
If \$120k/yr is frugal, then there shall be some spoilt children in that family.
Yeah, I am quite spoiled when it comes to food:
http://www.typologycentral.com/forum...ating-out.html

But, I was hoping other people would share their own budgetary-discipline problems, too.

#### Posting Permissions

• You may not post new threads
• You may not post replies
• You may not post attachments
• You may not edit your posts
Single Sign On provided by vBSSO