Fortunately, I am able to relate to this article somewhat and shed some real life experience as to basic costs required to live an ample life. I’m sure there are many opinions as to what “ample” is, but unless you have tried to live on an ample budget, you probably have no idea of the discipline it requires.
As I have done for myself, I will prioritize expenses and provide as much detail as possible. The numbers I’m providing are based in Denver, CO.
Monthly budget:
$ 900 – Shelter: Renting a 500-square-foot studio apartment.
$ 300 — Food: Daily needs based on 50/25/25 (125 grams of protein, 55 grams of fats, and 250 grams of carbohydrates for a total of 2000 calories) 25-30 grams of protein is usually around $1.00, and 25 grams of good fats is around 30 cents, and 25 grams of good carbohydrates is around 40 cents. Vitamin supplements at $1.00 per day should be sufficient. At $10 total per day, a $300 monthly budget is doable, but tight for food only.
$ 100 – Non-food groceries.
$ 50 – Gas and electric.
$ 75 – Car payment (somewhat reliable $2500 car).
$ 30 – Car insurance (liability only).
$ 30 – Car maintenance (2 oil changes per year, repairs, tires).
$ 90 – Gas (figuring a gallon of gas per day at $3.00).
$ 400 – Health insurance (not taking into consideration subsidies from gov’t).
$ 100 – Clothing (doesn’t buy much these days so take care of your clothes).
$ 30 – Cell phone.
$ 25 – Credit card (unexpected repairs, etc..)
$ 30 – Internet only and Netflix (need a little entertainment and a way to learn).
___________
$2160 – Total
Gross amount you would need to make:
$33,000
2,500 for Fica (approximate)
2,950 for Federal income tax (approximate)
1,550 for State income tax (approximate)
________
$26,000 take home
52 weeks x 40 hours per week = 2080 hours per year.
33,000 (income) divided by 2080 hours = $15.87 per hour.