Let’s Build a Budget Together

[presonorek]

The salary is $30,000. Let’s create a budget that gives this person survival.

FICA taxes $2,295
Federal Taxes $1,500
State Taxes $1,500
Rent $9,600
Electricity $2,400
Water $600
Health Insurance $18,000
Food $7,200
Car Insurance $1,200
Gasoline $2,400
Surprises $3,000

What other expenses should be tweaked, added or removed to make this realistic? In this scenario we are $19,695 over budget. Let’s work together and make this work my friends. People do it all the time. Some on less than this.

 

[presonorek]

At first glance does this person need health insurance? He pays rent so owns no house. He has no car payment so probably has a crappy car. Why is he paying $18,000 a year to protect assets much less than $18,000? Can’t his employer pay the insurance, or the government pay it for him? Only a complete and utter dumb ass would pay what health insurance really costs. That still makes this person $1,695 over budget if he drops the health insurance policy.

 

[Thunk]

Save $6,000 a year in rent and electricity alone by getting a room mate.

I know room mates suck...but I did it when I needed to. It beats living under a bridge!

 

[presonorek]

Save $6,000 a year in rent and electricity alone by getting a room mate.

I know room mates suck...but I did it when I needed to. It beats living under a bridge!

Updated consider your feedback and dropping the health insurance.

FICA taxes $2,295
Federal Taxes $1,500
State Taxes $1,500
Rent $3,600
Electricity $2,400
Water $600
Health Insurance $0.00
Food $7,200
Car Insurance $1,200
Gasoline $2,400
Surprises $7,305

Total $30,000

 

[CrusaderFrank]

The salary is $30,000. Let’s create a budget that gives this person survival.

FICA taxes $2,295
Federal Taxes $1,500
State Taxes $1,500
Rent $9,600
Electricity $2,400
Water $600
Health Insurance $18,000
Food $7,200
Car Insurance $1,200
Gasoline $2,400
Surprises $3,000

What other expenses should be tweaked, added or removed to make this realistic? In this scenario we are $19,695 over budget. Let’s work together and make this work my friends. People do it all the time. Some on less than this.

Move to Singapore or Costa Rica

 

[Thunk]

Health Insurance $18,000

Why so high?

My H-Ins is 7 grand a year and 7 grand deductable. So I max out at 14 grand and EVERYTHING is paid for after that.

 

[Harpy Eagle]

The salary is $30,000. Let’s create a budget that gives this person survival.

FICA taxes $2,295
Federal Taxes $1,500
State Taxes $1,500
Rent $9,600
Electricity $2,400
Water $600
Health Insurance $18,000
Food $7,200
Car Insurance $1,200
Gasoline $2,400
Surprises $3,000

What other expenses should be tweaked, added or removed to make this realistic? In this scenario we are $19,695 over budget. Let’s work together and make this work my friends. People do it all the time. Some on less than this.

Person just needs to get a better job

 

[Thunk]

Person just needs to get a better job

Like choosing a trade & getting the 1-2 years of school needed.

Hell, I've heard you can learn basic welding in 6 months.

 

[Harpy Eagle]

Like choosing a trade & getting the 1-2 years of school needed.

Hell, I've heard you can learn basic welding in 6 months.

Not even that long. I was a welder before joining the Marine Corps. Was hired as a grinder and got to be friends with some of the welders and they taught me to weld and when a position on the line came open I got move up to welder. Was the only one on the line not school trained.

 

[presonorek]

Why so high?

My H-Ins is 7 grand a year and 7 grand deductable. So I max out at 14 grand and EVERYTHING is paid for after that.

You just think that is what it costs.

 

[initforme]

30 grand is a joke. Surely no so called dream. More like an awful nightmare.

 

[Thunk]

You just think that is what it costs.

Nope...it got put to the test this year with open heart surgery and multitudes of procedures and dr. appts.

For me it's been 7 and 7. Then EVERYTHING has been paid for (except tylenol).

 

[presonorek]

Nope...it got put to the test this year with open heart surgery and multitudes of procedures and dr. appts.

For me it's been 7 and 7. Then EVERYTHING has been paid for (except tylenol).

So you write a check to the insurance company and it fully pays for your policy? Your employer nor the government is pitching in?

The true cost of a health insurance policy is hidden to most people. I pay like $32 a month but the federal government is paying the difference. That doesn’t mean my health insurance policy costs $32 a month.

 

[Thunk]

Your employer nor the government is pitching in?

That is correct.

The premiums are $600 per month and a $7,000 maximum out of pocket cost.

That's what you really need to look for in a policy...what is the max out of pocket cost.

 

[presonorek]

That is correct.

The premiums are $600 per month and a $7,000 maximum out of pocket cost.

That's what you really need to look for in a policy...what is the max out of pocket cost.

I’ll amend the budget. Give me a few hours.

 

[Flash]

Does anybody making $30K a year really have to pay any income tax? Aren't they in that 52% that don't pay any income tax?

 

[Thunk]

I’ll amend the budget. Give me a few hours.

If you don't need any med's or doctors visits it would be $7,200 per year.

 

[presonorek]

That is correct.

The premiums are $600 per month and a $7,000 maximum out of pocket cost.

That's what you really need to look for in a policy...what is the max out of pocket cost.

FICA taxes $2,295
Federal Taxes $1,500
State Taxes $1,500
Rent $3,600
Electricity $2,400
Water $600
Health Insurance $7,200
Food $7,200
Car Insurance $1,200
Gasoline $2,400
Surprises $105

Total $30,000

 

[presonorek]

Does anybody making $30K a year really have to pay any income tax? Aren't they in that 52% that don't pay any income tax?

Do you recommend taking out the federal income tax? What about the FICA taxes and the state taxes?

 

[presonorek]

30 grand is a joke. Surely no so called dream. More like an awful nightmare.

Minimum wage is $7.25 an hour. That equates to $15,080 per year. In this scenario the person is making almost double the minimum wage. A budget is about living within your means. Hoping for higher pay doesn’t create higher pay. Should we amend the total income to make it easier?