Asked in Salary and Pay Rates
What kind of lifestyle would 20000 a year give you?
July 13, 2009 4:38AM
Poor. And that is assuming that is net (i.e. after taxes).
It is technically not poor according to the government, and it would depend on hat your family status is. If you think, lets say you pay $850 per month rent, that is 10200 (over half your net income). food at 200/month is 2400 bringing our total to 12600. Then you've got some form of communication, so lets say just a cellphone and it is 50 dollars a month, so 600 now we are at 13200 dollars.
That doesn't include transportation. A nice car will run you 450/mo (more if you drive a lot, or if you have high insurance rates) so that is 5400/year and we are at $18600.
That leave $116 per month for entertainment and unexpected expenses such as vechical repairs, gifts, travel, longdistance bills, clothing, shopping in general, etc.
Then, on top of that you should be saving for retirement, so really, you can't afford that car. take the bus.
If you are single and live with mom and dad that is a decent wage.
I think 16k per year is poor by government standards.