A couple weeks ago I shared with you ten characteristics of debt-free people of modest means.
In that article I specifically asked my readers to consider this question:
“Why is it that there are families out there with household incomes under $40,000 comfortably making ends meet and saving for retirement with no debt on the books – or at worst, a single mortgage payment – while others who make millions per year like Sinbad, Ed McMahon, Mike Tyson, and Stephen Baldwin have trouble keeping their financial heads above water?”
While my list of ten traits was met with general acceptance, I did manage to start up a minor debate between the readers as to whether or not it was really possible for the majority of folks here in the good ol’ United States of America to make ends meet on $40,000 per year.
How can I make such a claim?
Well, I live in Southern California, one of the most expensive places to live in the United States. In its 2009 list of the most expensive cities, Forbes listed Los Angeles second; only New York City had a higher cost of living.
Even so, I know many people living here right now that are making ends meet on $40,000 or less.
Cash in hand is my policy.If I don't have the money for something I don't get it.My home warranty costs less than $40 per month and covers everything.
ReplyDeletei retired at 55 with no mortgage and no debt.... and i never made more than $30K a year..... live off of the land!!!!
ReplyDeleteMy husband and I both are living on less than 40k since he's unemployed.
ReplyDeleteWe still have money to go out for dinner once a week, and we do live off our land, at least to the amount of vegetables from our own garden.
We were both loaded down with debt about 15 years ago before we were married and we worked hard to pay it all off.
Now, we only have a credit card for emergency type purchases and have paid off both vehicles so we have no car payments.
Our mortgage is affordable at 600/month so we're doing fine.
All those people who have loaded up the debt are the ones hurting and most of them I don't feel a bit sorry for!