Personal Finance

Can I live off $35K a year?

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Deal Fanatic
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Oct 24, 2004
8568 posts
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Toronto (Central)

Can I live off $35K a year?

I'm trying to see if I can accomplish a personal goal - I want to live off $35K/year (I make $135K)

Is this possible?

My monthly bills are as such:

Home insurance - $75
Car insurance - $116
Gas (car) - $150
Mortgage - $990
Property taxes - $350
Internet - $55
Cell - $80
Utilities - $50
Gas (home) - $70 (average)
Electricity - $150 (average)
Food - $200 (average)

TOTAL - $2286

Other than what I have left on my house's mortgage ($190K), I don't have any debt.

I don't drink, go out to eat 2 times/month to average priced places, and get around most places by walking/bicycle (the car is just a fun thing for me to enjoy on weekends/evenings).

Is getting by on $35K/year doable?
Any thoughts on making this a reality?

Thanks
26 replies
Newbie
Apr 17, 2010
53 posts
18 upvotes
really? you really need to ask that? shut up, people live off far less and way less then what you have
Deal Fanatic
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Oct 24, 2004
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Toronto (Central)
partlist wrote: really? you really need to ask that? shut up, people live off far less and way less then what you have
I'm not asking this to be an ass.
If I was making $35K a year, I wouldn't own a car, house, etc.. and my living expenses would be very different.
Remember - Like many people, I once also make $12/hour and rented a room in a house with a bunch of other people, but things can change through chance and sacrifices.

I'm asking this because interest rates have been so low for so long (but they will eventually rise up), so I'm trying to be mortgage free ASAP and looking for guidance.
Deal Expert
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Mar 9, 2007
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Think of the Childre…
Yes, you should be fine. I would set aside some savings for emergency.
newt_101 wrote: I'm trying to see if I can accomplish a personal goal - I want to live off $35K/year (I make $135K)

Is this possible?

My monthly bills are as such:

Home insurance - $75
Car insurance - $116
Gas (car) - $150
Mortgage - $990
Property taxes - $350
Internet - $55
Cell - $80
Utilities - $50
Gas (home) - $70 (average)
Electricity - $150 (average)
Food - $200 (average)

TOTAL - $2286

Other than what I have left on my house's mortgage ($190K), I don't have any debt.

I don't drink, go out to eat 2 times/month to average priced places, and get around most places by walking/bicycle (the car is just a fun thing for me to enjoy on weekends/evenings).

Is getting by on $35K/year doable?
Any thoughts on making this a reality?

Thanks
partlist wrote: really? you really need to ask that? shut up, people live off far less and way less then what you have
Why so serious? Op just curious.

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Deal Fanatic
Feb 15, 2012
5092 posts
5534 upvotes
Toronto
at first, i thought you make 35k a year. now you are just asking to be grilled :twisted:

but to answer your question, yes you can
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Oct 24, 2004
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Cheapo-Findo wrote: Yes, you should be fine. I would set aside some savings for emergency.
dracolnyte wrote: but to answer your question, yes you can
I'm assuming it's a reality, but I'm looking for advice as to what I can do to help achieve this.
In terms of emergency funds, I used to keep my mortgage payments higher to put more towards the principle, but since rates are so low (I'm paying 2.08% currently on my variable rate), I've been putting the extra money into a 2.25% savings account.
Other than my pension and TFSA mutual funds (these are maxed out), I have $18K in savings (I'm not touching this - it's just there for a 'just in case' scenario)
Deal Expert
Aug 2, 2001
18944 posts
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Is that a $35,000 per year salary before tax, or is that a lump sum of $35,000 per year? If it's the lump sum I don't even see a challenge with your bills.


If it's before tax, the easiest solution for most people to live off that kind of money ($16-$17/hr wage) is to reduce their housing cost - and one way to do it is with a room mate. They will be paying a portion of your highest bills. And, the money will most likely be tax free (if you are charging less than market rate, which many do for room mates because they usually move a friend in at a reduced rate so they are comfortable with the person living there). Or are you looking to do the $35,000 per year "challenge" in a more traditional sense that doesn't involve these sort of scenarios?
Banned
Mar 11, 2016
2081 posts
893 upvotes
get the F out of the city, no mtg. no car pmt...easy......I do it...know tons of retirees who do it...still travel twice per yr and lease a caddy ATS
Sr. Member
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Feb 28, 2010
668 posts
340 upvotes
Flying over Canada
Expenses are always underestimated - don't forget occasional "capital" stuff, like a new fridge or washing machine. If your $1000 washer lasts 10 years, allocation 1/10th of the cost to your annual budget. You may not spend it the $100, but eventually you'll have that $1000 bill. There's also occasional expenses, like clothing. I don't see maint/repairs for the car on the list, or things like new tires every X years. Take a look at the more significant things you have now (cell phone, good boots, whatever), and get a rough sense of their cost and lifetime, and have a "misc" category that funds them.
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Oct 24, 2004
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Toronto (Central)
TrevorK wrote: Is that a $35,000 per year salary before tax, or is that a lump sum of $35,000 per year? If it's the lump sum I don't even see a challenge with your bills.

If it's before tax, the easiest solution for most people to live off that kind of money ($16-$17/hr wage) is to reduce their housing cost - and one way to do it is with a room mate. They will be paying a portion of your highest bills. And, the money will most likely be tax free (if you are charging less than market rate, which many do for room mates because they usually move a friend in at a reduced rate so they are comfortable with the person living there). Or are you looking to do the $35,000 per year "challenge" in a more traditional sense that doesn't involve these sort of scenarios?
Thanks.
I was thinking of doing it after taxes. Maybe even reduce it to $30K if that's something I can manage.
Fjr2005 wrote: get the F out of the city, no mtg. no car pmt...easy......I do it...know tons of retirees who do it...still travel twice per yr and lease a caddy ATS
I can't give up the city life right now. I bought a house for an excellent price in an area of Toronto that has grown like mad - right now, I just want to pay that mortgage off and then figure out what to do with living.
I have 2 cars and don't have payments on either, and travel quite a bit but am very careful when I do so (super cheap flights, AirBnB for accommodations, cooking instead of restaurants, etc...).
I'm 36, so retirement isn't coming soon but when it does, then leveraging what I've done to go somewhere else would be an option to definitely consider.
NorthernRaven wrote: Expenses are always underestimated - don't forget occasional "capital" stuff, like a new fridge or washing machine. If your $1000 washer lasts 10 years, allocation 1/10th of the cost to your annual budget. You may not spend it the $100, but eventually you'll have that $1000 bill. There's also occasional expenses, like clothing. I don't see maint/repairs for the car on the list, or things like new tires every X years. Take a look at the more significant things you have now (cell phone, good boots, whatever), and get a rough sense of their cost and lifetime, and have a "misc" category that funds them.
Very well said. I appreciate how you did the breaking things down over how many years and so on. Thank-you.
That would be above and beyond what I'm allocating for my $30-35K/year plan.
Deal Guru
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Mar 23, 2008
13006 posts
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Edmonton
You're not budgeting anything for home/auto repairs and maintenance. Even things like oil changes, tires, licensing, etc. You don't have any "entertainment" budget (like movies, going out with friends, etc), or personal care (drug store trips, hair cuts, prescriptions, dental co-pay, etc). Or gifts (Christmas, birthdays, etc).

Not all those things are applicable to everyone. And I'm not saying you can't do it. Good luck in trying!

C
Sr. Member
Mar 9, 2009
662 posts
773 upvotes
Its all about the expenses...I plan to downsize, pay off my mortgage and all debt and work part time making around that number.
Member
Jan 10, 2016
328 posts
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Markham, ON
RFDers make around 100k minimum. So you should not be asking such question here.
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Jul 17, 2008
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I lived on a 33k a year in lower mainland and I still manage to max out my TFSA all the time.

There are people who live off minimum wage.
Deal Addict
Feb 17, 2015
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Windsor, ON
I make anywhere from 40K to 41K w/2200 a month of expenses, essentially my mortgage is a lot cheaper per month but I spend more of food/starbucks/other misc toys etc etc, I get by perfectly fine still able to contribute to RRSP's and pay off up to 1200 in CC debt per month if I choose to borrow any money, food and car gas are two main opportunities to work on for everyone I am sure but the ones I am trying to focus on myself for now
Deal Guru
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Mar 31, 2008
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Toronto
Sick of your job? If you eliminate the mortgage, it'll give you breathing room. But you won't save much on retirement and any major house expenses can definitely set you back almost permanently.

You can rent out to a tenant or roommate, get married to share costs. Plan to have any kids?
Member
Oct 30, 2013
302 posts
37 upvotes
GTA
Yes you absolutely can.

It is a great thing if you ask me, live frugally, don't enjoy materialism, drive an old car or take the transit, don't dine much and eat some boring food, think twice before buying anything premium - from clothes to foods - and go on the cheapest vacation when possible, living on can foods at a shady motel type of deal.

Also rent a basement or an apartment in a sketchy area, no need to own a house, don't get married either, those pesky wives and kids are after your money anyways.

Then when you retire, you will reflect of a golden time filled with missed opportunities while you drink away your sorrows.

On the plus side, you'll always have pre-approved offers and maxed out registered accounts for your benefit when you are an old grumpy fart.
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Mar 31, 2009
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Making $35,000 /yr is like $2900 /month gross.

$2900 gross works out to slightly under $2400 net.

So the obvious answer is, yes, since your expenses add up to less than the net pay of $35,000 /yr, you could theoretically live off $35,000 yearly salary.

In reality, I think you'll end up spending more than $35,000 'gross' though because you're not really factoring in any discretionary or additional expenses other than mentioning that you go out to eat twice /month. Theoretically that would probably still fit in at $35,000, but you're leaving nothing for house repairs, renovations, maintenance, etc. So inevitably, some large'ish expense would come up and you'd go over your $35,000 worth of gross income spending.

More realistically, I think you'd end up living off $40,000. I think that extra few thousand could cover the random items that are likely to come up. I'd probably cut out the eating out and bank that money as part of the contingency fund. Eating out is just such a horrible deal, and you're trying to skimp, so I'd cut that to ensure that there's money to cover unplanned expenditures.
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Dec 27, 2009
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Messerschmitt wrote: I lived on a 33k a year in lower mainland and I still manage to max out my TFSA all the time.

There are people who live off minimum wage.
How did you manage that? Were you living in free accomodations, etc? Just curious.
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Dec 5, 2003
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newt_101 wrote: I'm trying to see if I can accomplish a personal goal - I want to live off $35K/year (I make $135K)

Is this possible?

My monthly bills are as such:

Home insurance - $75
Car insurance - $116
Gas (car) - $150
Mortgage - $990
Property taxes - $350
Internet - $55
Cell - $80
Utilities - $50
Gas (home) - $70 (average)
Electricity - $150 (average)
Food - $200 (average)

TOTAL - $2286

Other than what I have left on my house's mortgage ($190K), I don't have any debt.

I don't drink, go out to eat 2 times/month to average priced places, and get around most places by walking/bicycle (the car is just a fun thing for me to enjoy on weekends/evenings).

Is getting by on $35K/year doable?
Any thoughts on making this a reality?

Thanks
Seems reasonable. What are you saving for or using your other 50k after tax money on? You have a pretty nice place based on property taxes.

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