Anonymous User wrote:Do the math of complete budget sometime. $2500 is doable, but if you read the note about it depending on raises, you'd get what I said - the studio situation you point out in NY for about $1000 is fine, for a year, a couple, but not for 10. And yes, poorish, living in a studio is not living large or even as preferred for most, it's getting by, and there won't be much discretionary fun money left over, after suits, dry cleaning, transport, food, etc. If there are sizeable raises possible, then sucking it up for a few years until those provide some breathing room may be ok. But if it's 2% raises, then 10 years of that type of studio/just able to make it living will absolutely get "very rough" after a bit.
Dude, you're going to focus on the size of the studio? In NY, most people don't care about the size of their place, they care about the location and the amenities. Living in a studio isn't a big deal, everyone does it. They don't try to find a bigger place, they try to find a new studio in a cooler neighborhood. What might get tired after 10 years is living in Queens or Brooklyn when all your friends live in Manhattan. I can see that happening, sure, but having to take the subway to see people doesn't qualify you as "poor" or living "rough".
Outside of NY, you can get much more than a studio for $1k/mo.
Maybe we're meant to be tax atty's, everytime there's a "how much will it cost/how long to pay down debt" you and I are at the numbers...
My point is generally this: it's important to flesh out the numbers. $100K sounds like a lot. It's good to get it down to the $2500/month takehome. Then, a lot of people just do general numbers, as in: Rent is $1000, that leaves $1500, sounds like plenty. The numbers really add up though:
electric/gas/water/sometimes sewer/trash/internet/cable/cellphone: $200ish
then transportation: if car, say lowish $200 payment (we won't discuss downpayment), then lowish insurance: 50/month, gas, 300-400/month, depending. Total 550-650/month - or alternate subway/cabs: Just to average car/other, we'll call it 500/month car/gas/or other transport.
So, now that 1000 rent is 1700 rent/untils/cell phone/internet/transportation.
That only leaves 800 for the month, 200/week, and we haven't gotten to dry cleaning/laundry, which if you want your suits not to stink isn't nothing, I got by about 25/wk=100/month.
So only 700 left before you get to food, HBAs (health and beauty of course), anything you want/need to buy (undewear/suits/furniture/a blender) - that is only about $23 a day, (or about 160/week) for food, everything you need to buy, anything you want to do like movies, etc.
Yes, you can do that. Like I said, I did this exact type budget for I think about two years. But there's not a lot of cushion, not a lot of room to buy/do stuff. Expenses come up you didn't expect, a couple/few hundred here or there. You're living so a parking ticket breaks you budget, never mind an accident. It can be done for a short while, but it's not cushy, it gets rather rough in not too long. Certainly not a big spender on dates.
So that's the general point. Not that someone dies, but don't underestimate debt or overestimate earnings. If you earn 100K and take that much debt, after basic expenses you'll be living on about $160/week to cover all food, clothes, HBAs, fun, etc. Each person can judge for themselves how they feel about that.