How do people live alone with a car payment, insurance, cell phone,?
Rent : $1850/month (average 1 bed apartment where I live)Utilities : $200/month (includes internet)Car : $450/month (New car every 2 years, trade in the old one)Gas etc for the car : $100/monthInsurance : $100/monthCell Phone: $50/month Food : $450/month (~$15/day)Student Loan : $400/month (USA average)Income and payroll taxes : $500/monthOdds and ends : $150/month Total : $4250/month = $51,000/year So looks like they dont. At least not where I live, while spending beyond their means, like the example person above. Really, who makes $45K and buys a new car every 2 years? More realistically :Rent : $1200/month (low end, but not scarily so, apartment where I live)Utilities : $120/month (dont heat or cool. Wear a sweater or dont. includes internet)Car : $100/month (Save up for another heavily used car and/or repairs)Gas etc : $50/month (Minimize driving to truly necessary)Insurance : $100/monthCell Phone : $30/month (2 GB plan. Cell is for calls/texts, occasional internet)Food : $300/month ($10/day buy things on sale, dont eat out)Student Loan : $400/month (Why did I rack up all this debt just to get a 45k job?)Income and payroll taxes : $500/monthOdds and ends : $100/month Total : $2900/month = $34,800/year. Now they have ~$10,000/year to do other things with, like pay off that damn student loan ahead of time (depending on its interest rate) or save up for a house, or invest, if they think that will be a better payoff. Rinse and repeat for 10 years, and you have $100,000 to use as a down payment on a house, for example.