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2meirl4meirl (lemmy.world)

submitted 2 months ago by [email protected] to c/[email protected]

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[-] [email protected] 56 points 2 months ago

If we take out 7k of the gross $46,0000/yr for healthcare and retirement....

$5,700 for federal taxes, another k for state taxes...

That's about $2692 a month, net. Subtract the just over $2k a month listed, there's another $400 a month for.... Utilities, phone, transportation, entertainment, savings, emergencies.

Even as rent is under 25% of income, pretty tight. Doable. But very tighter. You will never retire saving $4000 a year. You can never get sick. You apparently walk to work.

Pretty much have to get a roommate until the student loans are paid off.

[-] [email protected] 41 points 2 months ago

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[-] [email protected] 22 points 2 months ago

Talk with the student loan provider. Get on income based repayment plans, you end up paying more in the long run, but less each month (or none at all) so you can at least eat.

[-] [email protected] 6 points 2 months ago

Is $1k/month student loan repayments in America usual?

[-] [email protected] 9 points 2 months ago

That's much higher than normal. A quick google suggests between $200-$500 is more in line with a normal student loan monthly payment, which is still a burden on someone just starting out.

[-] [email protected] 7 points 2 months ago

Only speaking from my own experience, but that sounds in-line with what the monthly payment is for each loan, but when I came out I had 4 separate loans that they came collecting on.

[-] [email protected] 4 points 2 months ago

The IBR plans are aggregated against all your federal loans. So, unless there are some weird private loans in there, that’s the upper limit in sum total based on the income we’re discussing here.

[-] [email protected] 4 points 2 months ago

They aren't on an income based repayment currently (or there is no evidence stating they are or aren't I guess), so he would be dealing with all the separate loans sending him bills currently. Definitely needs to get on one though, it would help a lot, more than likely.

[-] [email protected] 4 points 2 months ago

If you have any hope at all of keeping the interest from ballooning the principal beyond the original loan amount, yes.

[-] [email protected] 3 points 2 months ago

Or do what my cousin did.

Have uncle take out loan entirely under his name.

Make minimum payment on it.

When he dies, the debt dies with him.

[-] [email protected] 2 points 2 months ago

How are they taking out education loans in someone else's name? Sounds like fraud.

[-] [email protected] 3 points 2 months ago

In the United States, there's a federal loan option called Parent Plus loans that can allow parents to take out loans for their children's education. Private loans could be taken out by just about anyone to pay for a student's education, depending on the institution.

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[-] [email protected] 4 points 2 months ago

This was nearly 20 years ago, but when I dropped out (two years in college, so don't even have a degree), it was all spread across 4 loans (something weird, I dunno, I was a kid, but it was like a new loan for each semester? That didn't even count the parent loans my mom took out for my schooling - thank god they just wrote those off entirely when she died). The repayment ticket book I received was $55 per week for each loan. That was $880 a month they wanted. For about a total of $50k of debt. With the sharp increase in tuition costs since I was in school, I wouldn't be surprised if $1000 total per month is on the low end if you just pay what they ask you to. They don't really tell you that you are taking out multiple loans by going to school, not just one big one.

I did as the above comment said and got on an IDR (Income Driven Repayment) plan, it basically refinanced my 4 loans into 1 and my monthly bill was now $57 a month, and it adjusts each year around tax time based on the previous year's income. I'm currently paying about $80 a month.

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[-] [email protected] 11 points 2 months ago

numbers don't check out

lists $2250 expenses.... 100 hours of work per month would cover it

I know they have other expenses, but they failed to list them and failed to make their point.

[-] [email protected] 28 points 2 months ago

100 hours of work if the money is tax free (it's not). Taxes take about 40% of your gross income so on $23/hr hr can't afford the listed bills.

[-] [email protected] 30 points 2 months ago

By my estimation and IRS calculator, his tax liability is probably under 20%. Probably. This assumes about 15% is being taken out for healthcare and retirement however, so yeah, the net paycheck will be approximately 30-40% lower than gross.

I'd estimate OP has $440 a month left over after all the list expenses.

[-] [email protected] 29 points 2 months ago* (last edited 2 months ago)

$440 per month to pay for gas, utilities, phone bill, insurance, incidentals, etc. You can forget about savings completely.

I don’t think OP is too far off the mark.

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[-] [email protected] 1 points 2 months ago* (last edited 2 months ago)

Nowhere in the USA will you be taxed 40% of your income, I’m amazed such a blatantly obvious statement is being so heavily upvoted

[-] [email protected] 2 points 2 months ago

Look through the thread and you will see people showing their work and coming up with similar numbers. 40% was a rough estimate off the top of my head. Figures from a recent paystub of mine: gross income of $2700.80, net income of $1774.41. My deductions are more than just taxes, but regardless that is an effective reduction in pay of %35.31. This is a real life figure that the others may be similarly subjected to, as opposed to the numbers you get out of a calculator.

[-] [email protected] 6 points 2 months ago

I'm realistically in the situation OP is trying to get at. I'm making over $30/hr, I've been in my career a few years. I pay $1500 towards my housing expenses each month (rent/mortgage, electricity, heat, etc). I pay something like $500 in insurance between my vehicle and home, probably a bit less... My debt repayments are well over $1000/month. I pay $100 each for my cellphone and internet....

I have a slew of other expenses I can't really enumerate. When I factor in food and gasoline, etc, I basically have no money left. I might have $200 left each month if I'm very thrifty with food.

You know what I'm doing? I'm in the process of getting my finances into a system that can help me visualize the spending and plan for my month over month budgeting. I'm trying to find where I can find costs I don't need, and cut costs where I can. My work requires me to have a car, and while my vehicle is older, it works great and is pretty good on gas; best of all, I've paid off my car. I'm trying to dig myself out of this situation I'm in, and get in the black eventually. I'm tired of worrying about debt, which I've been in for nearly 20 years, in some way, shape or form.

[-] [email protected] 1 points 2 months ago

I use ynab (you need a budget) to try and help me out. Emphasis on try.

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[-] [email protected] 2 points 2 months ago

Stop buying avocado toast

[-] [email protected] 1 points 2 months ago

Start building guillotines. Convince others why guillotines are necessary. Get to work.

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this post was submitted on 08 Jul 2024

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