About Me - Homemade Wanderlust. Hey there! My name is Jessica Mills, but in the hiking world people call me “Dixie.” Although I was born in Florida, I . I spent the majority of my summers with my grandparents who were backyard gardeners that grew up on farms. At a young age, I developed a love for the outdoors.
Watching TV is never a desire of mine, unless it is football season–War Eagle! I graduated from Auburn University in 2. Biosystems Engineering and a minor in Agronomy and Soils. For a year and a half I was a resident of Colorado and it was an amazing experience!
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I resigned from my job there and began my thru- hike of the Appalachian Trail in March 2. Although that journey ended in October 2.
I summited Mt. Katahdin, it was only the beginning to a new chapter of my life. I am currently thru- hiking the Pacific Crest Trail and have my sights set on the Continental Divide Trail next year in 2. I am an advocate of being outdoors as I feel we can learn a lot about ourselves and life in general while out in nature. Whether it’s taking an evening stroll, catching lightning bugs or gardening, I think everyone can benefit from smelling the roses now and then! If you have any questions about hiking/backpacking, check out my informational videos on You. Tube! Happy Trails.
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Scraping By On 5. K A Year. Help! I’m drowning from all my money! I’ve highlighted in a previous article how living off $2. In this article, I’ll discuss how one couple is living paycheck to paycheck while making a combined $5. They are a real couple who shared with me their financial details to anonymously share with you. Judging others, after all, is an American pastime! I think is considered rich.
Anybody who thinks otherwise has no concept of financial reality. Even the government almost agrees after compromising by raising the income level for when the highest marginal tax bracket kicks in to ~$4. Although making $5. Herculean task, you’ll be surprised to know there are plenty of regular folks who hit the half million mark every year. I literally get e- mails and comments from similar income- earning couples every week asking for financial help. This article will discuss why many folks who earn a large income won’t be retiring any time soon.
Various Combinations Of $5. Households. 1) A couple 3. A couple 3. 2 year old second year associates at an investment bank after business school.
A single 3. 1 year old VP at a private equity shop two years out of business school. A 3. 5 year old senior project leader at a management consulting firm and her schoolteacher husband. A couple 3. 5 year old doctors (cardiologist and anesthesiologist) three years after their fellowships.
A 4. 6 year old Chief Marketing Officer and her 5. A couple online marketing consultants in their mid- 3. The Pardon (2015) Online English. A 4. 1 year old super frugal personal finance blogger who preaches riding a bike, doing your own home construction, and living off $3. An engineer at Google who has been there eight years and his partner at Salesforce. A 2. 2 year old rookie professional basketball or football player and his product manager wife.
A junior partner at a law firm and her Silicon Alley engineer husband. A Bay Area janitor and his elevator technician spouse. As you can see from my examples above, plenty of professions make $5. Finances are much easier when you combine forces! How To Make $5. 00,0.
And Never Escape The Rat Race. People who consistently earn $5. If they do, they aren’t getting sympathy from anybody since they’re making roughly 1.
X the median household income. A very simple solution to growing rich is to simply track your finances for free online like how you’d track your weight by stepping on a scale at least once a week to keep yourself honest. But money can be intoxicatingly evil once the big bucks start rolling in. As soon as you start making multiple six figures, you begin associating yourself with other people who make similar amounts or much more. Remember, it’s nice making max money in the NBA. But it’s even nicer if you are the owner who can cut max money checks! There’s a never ending cycle of financial comparison.
And with comparison comes envy, jealousy, depression, and all sorts of ridiculous feelings that would not be felt if you just took a step back and realized how fortunate you really are. This is why if you do want to beat the Joneses, you should compete on FREEDOM because there’ll always one more dollar to be made. The below chart is an annual spending example of a couple who each make $2. They have two children ages three and five. They are both in their early 3. New York City, the most expensive city in America!
INCOME ANALYSISLargest Expenses. Taxes ($1. 85,6. 00, ~4. The government doesn’t believe in two high- earning working spouses. They want one spouse to stay at home and take care of the kids.
If they didn’t, why did President Obama campaign aggressively for $2. Equality would dictate that $2. Living in NYC is expensive due to Federal (3.
State (1. 0%+), City (4. FICA tax of 6. 4% for the first $1. Unfortunately, NYC is where the jobs are.
This couple is paying roughly $8,0. Furthermore, they have AMT, an extra 0. Medicare tax they have to pay on income over $2. NIIT) of 3. 8% on income over $2. Mortgage ($6. 0,0.
Brooklyn a couple years ago. In other words, they are living comfortably, but not large. Luckily, they bought their apartment a couple years ago because similar apartments are now going for $1. Good thing the coastal city property market is finally slowing down as prices went a little out of control. Money is now flowing to the heartland via real estate crowdfunding, where valuations are much lower, yields are much higher (1.
The $4. 2,0. 00 a year cost can be spent on daycare or a day nanny, although some contend that $4. Student Loans ($3. Law school tuition runs $5. That’s $3. 00,0. 00 in law school tuition plus room and board spent. If they didn’t go to law school, they could have easily made $6. So many people conveniently forget that in order to get a high paying job, it often takes a lot of expensive education. It would be nice if the US education system was practically free as in Canada or Europe, but it’s not.
It’s typical for many doctors and lawyers to have over $1. Debatable Expenses.
Food For Four ($2. Spending $2. 3,0.
I challenge anybody living in a big city to consistently live off $1. Work lunch alone costs $1. Therefore, the solution is to buy in bulk and always bring food to work. Unfortunately, that gets old after a while, especially when you’re working 6. Download End Of The Tour (2015) Hd.
Car Payments ($9,6. With two precious ones, the parents decided to lease two family- friendly vehicles: a BMW 5 series and a Toyota SUV with third row seating. They like the convenience of covered maintenance and the peace of mind by having a warranty. They are busy professionals with kids. Car problems are the last things they want to deal with. Three Vacations A Year ($1. Let’s say each vacation is one week long and costs $6,0.
Is that so unreasonable for four people? Seven nights at a 3- 4 start hotel costs $3. Roundtrip airfare for four to debt- laden Puerto Rico costs another $2,4. The family is left with $1,3. Charity And Alumni Giving ($1. National Center For Charitable statistics.
They each give $7,0. Children’s Lessons ($1. It’s a competitive world out there and these parents want the best for their kids.
The kids are taking violin lessons, Mandarin lessons, and tennis lessons throughout the year. At an average cost of $1,0. How else are they going to be able to get into private grade school that costs up to $5.
They’re feeling the pressure at work, so their kids might as will feel the pressure in school. Miscellaneous ($1. Unless you track your finances like the CIA, which you should, something always comes up. If nothing ever came up, you wouldn’t have people with less than $5,0. If nothing ever came up, there wouldn’t be so many budget deficits. If nothing ever came up, we’d live our lives as planned. All The Push- backs Addressed.
I’m sure by now many of you are wondering what the heck is wrong with this couple? How could they earn so much money and be left with so little. As someone who started his career working in Manhattan in 1. I’ve wondered the same thing.
But let’s see if we can understand this couple’s point of view. Here are your most common responses and some further thoughts: Pushback #1: A 4. It does seem a little high given the charitable givings and mortgage interest expense. But due to AMT and mortgage interest deduction phaseouts, this couple isn’t getting as big of a deduction as you might think. There’s probably room to lower the couples effective tax rat by 5% with some aggressive accounting. It all depends on how much risk you want to take.
Here’s some quick math from an astute reader. Do your own! NY State tax : (5. K- 1. 8K- 1. 8K- 1. NY City tax: (5. 00. K- 1. 8K- 1. 8K- 9. K)*0. 3. 64. 8+3.
Social Security tax (FICA): 7. Medicare: 5. 00. K*. Federal tax: Deductions: (4. K state local), 2. K real estate tax, 1. K charity, 4. 1K mortgage interest (This is the third year of the amortization as per your information). Child care tax credit: 1.
KObamacare tax: (5. K- 2. 50. K)*. 0. Total taxes of $1. The child tax credit phases out after a married couple starts earning more than $1.
Therefore, my ~4. Run the numbers if you don’t believe. Pushback #2: A $1,5.