Thriving on $30,000 a year gross income

A good rule of thumb in budgeting is that gross means big. Therefore gross income is more than net income--or what you have after Uncle Sam takes his share of the bacon.


$30,000 annually is what you have before taxes! Remember that..


Nevertheless, it is possible to do well on $22,000 net income.


I will enumerate a sample budget. It is a one-size fits all. Those with radically different needs should look into www.mint.com. The service is secure--and free.

1. 10% to various charities and nonprofits. Somehow when I pay this first thing, I always have more than enough left over. $176 or $250 if you claim your deduction.
2. 30% for housing. $528. Nothing fancy, but it can rent a modest apartment in most parts of the country.
3. 15% for transportation. $264. With the heavy fuel costs, you might want to consider a car-lite lifestyle. As an added bonus, if you drive less than 20 miles per week, you may be eligible for lower insurance in some states.
4. 15% for groceries. Less if you live alone or with only one other person. $264.
5. 10% for insurance. $176.
6. 10% for clothing, personal care, internet, phone, etc. $176.
7. 10% left over for savings. $176.

Granted this is far from lavish. If you live in a place like New York or California it may not be doable. (Come to Indi-ana!) Nevertheless, there are people in this world--and country--with far less to live on.


The fact is, I live on far less than this. And I'm well-fed. Trust me; I am.