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Author Topic: Cost Of Living Expenses Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-04-2003 08:12 PM                     In another thread, I mentioned something about those workers "not being able to make it" on a $10.00 per hour job. I think you will find there is more truth to it than BS. I made some rough calculations and they look very grim. Here they are: At $10.00 per hour based on a 2080-hours per year (260 working days per year), the worker makes $20,800. Of that, $1,654 has to be held to pay Federal Income Tax on their earnings. That leaves $19,146. Presuming a person rents a modest home for $600.00 per month. Rent paid towards that will be $7,200.00 per year leaving the worker with $11,946.00. Let's say it costs about 100 bucks per month for utilities (heat, lights, water, and sewer). That will cost an additional $1,200.00 per year, leaving the worker $10,746.00. Most States have a State Income Tax. Based on probably about 2%, that would be $416.00 per year based on a $20,800 income. This leaves the worker with $10,330.00. Automobile insurance - about $500.00 per year, just a guess. This leaves $9,380.00. Social Security Taxes run 6.2% of the gross earnings and an additional 1.45% is withheld for Medicare. This total is 7.65% - which calculates to $1591.20 per year, leaving the worker with $7,788.00 per year. If the worker has a good reliable running car (that has a clear title) it might cost about $.17 per mile to drive it. That might include fuel and maintenance for an average of 12,000 miles per year. That comes up to $2,040 per year, leaving the worker trying to survive with $5,758.00 per year. Now, add in your phone bill and garbage bill. It would be close to maybe $40.00 per month, (if you don’t make any long distance calls) or $480.00 per year. This leaves the worker with $5,278 per year. Now, let's divide that by 12, and that gives the worker $439.83 in his/her pocket per month, or $109.95 per week to spend on items such as food, clothes, health insurance, life insurance, renter’s insurance, replacement of broken or worn out furniture, appliances, unexpected additional expenses, car payments (if any) and entertainment. Congratulations - you just about "broke the bank!" Now we know why the average credit card holder is $7,000 in debt. Now we know why there are so many personal bankruptcy claims. The overall situation does not look very good at all! To add a slight twist, there is an old saying: Two can live as cheaply as one." But I have to add this: "For half as long." OK, this is an edit to correct my orginal calculation. The bottom line was only $25.89 in error in your favor. Orginally, I posted $84.06. [ 04-06-2003, 01:11 AM: Message edited by: Paul G. Thompson ]  |  IP: Logged Aaron Mehocic Jedi Master Film Handler Posts: 804 From: New Castle, PA, USA Registered: Jun 99 posted 04-04-2003 09:08 PM                     In my area average income is $26,500. Lawrence County (Pennsylvania) ranks #10 out of 66 counties in total number of people on state assistance. Last year I made $17,365 working two jobs with no fringe benefits at either one. My tax preparer tells me I'm the rule and not the exception among her customers. And as you read this, bear in mind I graduated from an accredited university!  |  IP: Logged Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-04-2003 09:22 PM                     Aaron, I am sure there are millions of others in the same shoes you are. Just roll up your sleeves, continue to search for a job that pays well. Easier said than done, but perseverance and attitude will be the major keys. Been there. You have one other important plus in your favor. That is your college degree, and there should be no question about it.  |  IP: Logged David Stambaugh Film God Posts: 4021 From: Eugene, Oregon Registered: Jan 2002 posted 04-04-2003 09:43 PM                        The average household income in this area is around $27,000. I have no idea how a family can make it on that.  |  IP: Logged Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-04-2003 09:48 PM                     David, they probably don't. I'll bet they are butthole deep in debt, and many of them are making minimum payments on their credit card balances (if they have any credit cards left) just to keep the bill collectors off their doorstep.  |  IP: Logged David Stambaugh Film God Posts: 4021 From: Eugene, Oregon Registered: Jan 2002 posted 04-04-2003 10:02 PM                        In the last 5 days here: Sony abruptly closed its CD manufacturing plant, putting 277 people out of work. Ironically, this plant in Springfield had a lower per-unit manufacturing cost than the larger Sony facility in Terre Haute, IN. Sony was considered one of the best employers in the area and jobs were highly coveted there. Sony also contributed generously to schools and the arts here. Monaco Coach abruptly laid off 400 of its 1600 workers, citing slowdowns in sales of high-end RVs. Seneca Sawmill laid off a bunch of employees, citing competition from cheaper imported plywood coming from Canada, and general weak demand. Also, just as a point of information, Oregon's personal income tax rate peaks at 9%! Ouch. Property taxes are very high too. The only tax we don't have is sales tax (yet).  |  IP: Logged Aaron Mehocic Jedi Master Film Handler Posts: 804 From: New Castle, PA, USA Registered: Jun 99 posted 04-04-2003 10:59 PM                     I don't want to cross the political boundary so I will relate what I say back to theatres. Our new governor, Ed Rendell is proposing cutting property taxes, but increasing sales tax to make up the difference. Guess you win some and lose some - but mostly lose . How does that relate to theatres? You guessed it, higher prices at the stand  |  IP: Logged Bobby Henderson "Ask me about Trajan." Posts: 10973 From: Lawton, OK, USA Registered: Apr 2001 posted 04-04-2003 11:19 PM                     I don't know how many out there follow various economic reports, but in the last two months more than 400,000 people have been put out of work and every economic indicator is down with the exception of new home construction. It is very obvious businesses worldwide are maximizing their profit margins on the backs of their workers instead of improving their business. They lay off or retire full time workers and replace them with "part time" workers with no benefits and then don't pay the part-timers a livable wage. Big business has made so many cuts that most people across the nation have very little disposable income --and disposable income is what drives 80% of our economy. In a few years when all those short-term bullshit methods on improving business has been evaporated and the Fed can no longer afford to keep the prime rate down to 50 year lows things are going to get very ugly.  |  IP: Logged Mark Ogden Jedi Master Film Handler Posts: 943 From: Little Falls, N.J. Registered: Jun 99 posted 04-05-2003 03:43 AM                     ______ Automobile insurance - about $500.00 per year, just a guess. ______ Oh man, is THAT ever getting away cheap! Here in New Jersey, with a 100% no points clean license, the insurance on my 2001 Ford Escape, with fairly high deductables AND a 15% steady customer bonus AND a 10% bonus for having my homeowners's insurance thru the same company is still $1645 per year. OUCH! (and it's probably worse in California).  |  IP: Logged Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-05-2003 01:29 PM                     Mark, I was left almost speechless when I read what it costs for insurnace in New Jersey. It prompted me to look at mine again. I have a multi-vehicle policy. The insurance on my 1993 Mercury Topaz is $366.38. My 1986 Ford F-250 has an insurance cost of $481.70. My 1995 C-20 Chevrolet Van has an insurance cost of $499.64 per year. All three vehicles cost me $1371.72 total for one year. Since I am a cheap SOB, I'll probably kick one of the vehicles off the policy next renewal time. If I have to drive it, I'll re-instate it, naturally. I have done things like this in the past, and it drives the insurance company nuts! (edited for a typo) [ 04-05-2003, 07:52 PM: Message edited by: Paul G. Thompson ]  |  IP: Logged Ian Price Phenomenal Film Handler Posts: 1714 From: Denver, CO Registered: Jun 99 posted 04-05-2003 03:41 PM                     Ok, I'm going to look at this a different way. The communists said "each according to their need." The following example uses me as a model. I'm 40-years-old, single and live in Santa Rosa, CA, where costs are a bit higher than the national average. These are not my actual numbers, but a solid representation of present conditions. My rent is a bit less, I don't pay for phone, health insurance, movies, retirement and my car is 9-years-old and paid for. Monthly $1,000 Rent (one bedroom apartment in a nice place.) $100 Utilities (Heat, Garbage, Water) $40 Cable $25 Phone $300 Car ($15,000 financed for 60 months) $170 Auto running costs ($.17 mile for 12,000 miles per year.) $80 Auto Insurance $300 Health Insurance $300 Food, (I like to eat out a bit.) $25 Clothing $70 Entertainment (One movie with popcorn and soda per week) $90 Vacation $300 Retirement (10% Net) $1,650 Tax load (+50% for Fed, State, SS, Medicare) $4,950 Monthly $59,400 Annual Salary $28.56 Per Hour! Note: You should buy a house instead of rent. But the average house in Sonoma County is $400,000! So if you gave up the new car and mom gave you the down payment, you might be able to afford a $200,000 house.  |  IP: Logged Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-05-2003 06:53 PM                     Hmmm...I didn't base my figures on 2080 work hours per year, so that threw off my orginal calculations by $1600. [ 04-05-2003, 08:21 PM: Message edited by: Paul G. Thompson ]  |  IP: Logged Ian Price Phenomenal Film Handler Posts: 1714 From: Denver, CO Registered: Jun 99 posted 04-05-2003 07:14 PM                     Let's look at the extremes. Ok, lets try to pare this down a bit to local minimums. Monthly $600 Rent (Very modest or crappy one bedroom apartment or studio, or two bedroom with roommate.) $50 Utilities (Heat, Garbage, Water) $0 Cable $25 Phone $0 Car (Paid off) $170 Auto running costs ($.17 mile for 12,000 miles per year.) $80 Auto Insurance $0 Health Insurance (Either paid for by the employer or not at all.) $200 Food, (Brown Bag it) $25 Clothing $25 Entertainment (One movie per week bargain show) $0 Vacation $0 Retirement (10% Net) $590 Tax load (+50% for Fed, State, SS, Medicare) $1,765 Monthly $21,180 Annual Salary $10.18 Per Hour! Now lets look at how I should be living. This assumes single income, married, and 2 children. Monthly $5,600 Mortgage ($700,000 home, in Sonoma County this gets you a 4 bedroom 4 bath 2,500 sq foot house.) $200 Utilities (Heat, Garbage, Water) $350 Cleaning Lady (I'm not vacuuming a 2,500 sq foot house) $180 Yard Service $180 Pool Service (Wishful thinking on my part, but hey, it's a fantasy.) $100 Cable $300 Phone (She likes to talk to her mom in Connecticut every day.) $300 Cell Phone (One per family member) $1,550 Cars (Two car leases, mine is a BMW 525 and Hers is a Lexus Sport Utility) $500 Auto running costs ($.25 mile for 12,000 miles per year.) $300 Auto Insurance $1,000 Health Insurance $1,000 Food, $200 Clothing $300 Entertainment (One Movie per week for a family of 4 with one play per month for the parents) $500 Vacation $2,000 School (I'm not sending the kids to public school) $1,456 Retirement (10% Net) $8,008 Tax load (+50% for Fed, State, SS, Medicare) $24,024 Monthly $288,288 Annual Salary (Let's just say $350,000 to start) $168.30 Per Hour!  |  IP: Logged Paul G. Thompson The Weenie Man Posts: 4718 From: Mount Vernon WA USA Registered: Nov 2000 posted 04-05-2003 07:29 PM                     Ian, that is definately a "wake-up call" for all to study..  |  IP: Logged Phil Hill I love my cootie bug Posts: 7595 From: Hollywood, CA USA Registered: Mar 2000 posted 04-05-2003 08:17 PM                  Ian, If you're a relatively financially secure single guy living in a "preferred" place in Los Angeles, here is a rough guide as to what it costs... Monthly: $3,600 Mortgage ($800,000 home with $300,000 down payment. In Hollywood Hills this gets you a 2 bedroom 3 bath 1,900 sq foot house.) $300 Utilities (Elect, Gas, Water) $000 Cleaning Lady (I'm remolding and I let the place look like shit!) $100 Yard Service $000 Pool Service (Don't have a pool any longer….) $90 Satellite HD TV ...Cable sucks $200 Phone & DSL $120 Cell Phone $000 Cars … Explorer Sport Utility - paid for. (ex STILL!!!!! Has my Corvette!) $500 Auto running costs ($.25 mile for 24,000 miles per year.) $105 Auto Insurance $400 Health Insurance $1,500 Food … in & out $200 Clothing & personal items $1000 Discretionary and Entertainment (All forms) $000 Vacation…Didn't have one for 14 years, now I'm on a permanent vacation! $000 School (Been there, did that) $1,100 Retirement $6,500 Income Tax load...FIT, SIT, FICA, SDI, etc. (Singles really take it up the ass!) $600 Property taxes About $16,315 Monthly Gross $196k Annual Salary $94.00 Per Hour By the time you look at all the hidden taxes, like city services, phone services, sales tax, etc, …we are being double and triple taxed to hell! At least as far as income goes, I wish the hell they would do the flat tax thing where EVERYONE pays a fixed percentage of their income….fair to ALL! >>> Phil  |  IP: Logged

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