I saw an article the other day on Yahoo! Finance about living well on $20,000. And then I noticed the 4 Hats and Frugal did a related post on the article. I think the Yahoo! Finance article is a poor idea of how to live on $20,000. As this guy doesn’t have kids, has no savings, has no money pretty much, doesn’t have a mortgage and so on. If you check out the comments, you’ll see that everyone else pretty much agrees with me also.
Anyways, I thought I’d answer these questions also. Here I go:
Do you avoid a lot of the expenses that many of your peers spend money on, such as technology and meals out?
I spend a decent amount on technology and meals out. I used to be worse (as most of you know) and now I’m trying to eat in everyday. I have a car because there is no reliable transportation where I live. I also have internet and cable. I do have almost the cheapest packages for internet and cable though.
What’s your typical meal?
It changes constantly. Me and the BF love Mexican food, so I make tacos, fajitas and so on a lot! Our grocery budget is around $250 a month.
What about clothes?
I shop whenever I feel like I need something. But lately it takes a lot for me to think I actually need something. I used to work in a clothing store, so I have enough clothes to last me about 20 years.
What about going on dates?
Me and the BF don’t really go on any “real” dates. We go to the movies and stuff, but we don’t dress up or anything or say that we’re going on a date. I do wish we would dress up together more often and go to a nice dinner though.
Do you indulge in any luxuries?
My luxuries are going out every weekend, and this adds up. But it is a lot of fun and I love hanging out with friends.
Do you have health insurance?
Me and the BF both work for companies that offer completely free health insurance, so this makes everything much easier.
Do you have any savings for emergencies?
Yes, our emergency fund is currently at $6,000.
Do you anticipate or look forward to having a higher salary one day?
I do anticipate having a higher salary one day (that’s why I’m getting my MBA right? 🙂 )
What about retirement–do you plan on ever saving enough to retire?
Yes, me and the BF hope to retire early, but who knows how that will turn out.