Quote:
Originally Posted by LynnDeb
Wondering if 1 person can afford to live in TV on $25,000 a year?
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The thing to do right now is set up a basic spreadsheet and enter in every penny you spend today. And I mean every penny. Now keep this ongoing and you will have a very clear picture what all your expenses currently are. After a period of time you will have a very good picture just where you stand and can plan for the future.
You will also have to plan on how your lifestyle in TV will compare to your current lifestyle and what things will change and what will stay the same. For example eating out, will it be about the same as today or will it be eating out 4 or 5 nights a week?
From looking at the expense spreadsheet you will also be able to spot things you may otherwise have forgotten. You can also spot things that will not be needed or may be cheaper in TV.
One thing not to over look are the two biggest unknown expenses that you will run across and that is food and medical. Quite a few years ago I attended a retirement planning program given by on of the major financial firms to the employees of the company I was working for. In the presentation it was stated that food and not medical will be your largest expense after retirement. I think everyone in the room would have bet on medical as being tops.
In your planning don't forget to add in an extra contingency to cover unforeseen expenses. If the contingency is not used one year that money can be placed into savings. The key is to continue to set it aside every month and used in later years for say the big ticket items like replacing the car.
Living in TV at that level of income can be done but it just takes some planning. It also helps if home and car are paid for.
Good luck
VG