UNDATED, (WTVB)- A new study is revealing how much money is needed to live comfortably in Michigan.
The SmartAsset study considered the 50/30/20 rule, which recommends residents put 50 percent of their income towards needs like food and housing, 30 percent toward wants, and 20 percent toward debt.
Based on that calculation, a family of four would need to earn about 207-thousand dollars per year in the state. A single-working adult would need to earn about 87-thousand annually to live comfortably.
A 50/30/20 rule doesn’t account for retirement or short term savings, rainy day funds, tsking your kid to the doctor or replacing a burst water tank. It doesn’t account for losing you job and having a few months of mortage or rent float to land somewhere else.
Also, you need to put 10% into retirement, if youre debtfree, make it 20
So 40/20/20/10/10, Needs, Debt, Short Term Savings, Retirement, Wants. That 10% aint to comfortable. Other advice is avoid renting as early as you can.
At the end of renting in 30 years you have zero equity, vs owning that 70K Mobile home, or 200K small old home, or w/e.
If you are shopping for a home, definitely go way below your budget, because your taxes will likely be out of like with the previous owner’s. 1/3 or my payment goes to taxes and insurance when i though it be more like 1/5th
This formula is way off.
Wife and I haven’t broke 140 together and even with a 2k mortgage payment we are very comfortable.
I don’t know what math they are using, but it is totally wrong.
We have 4 kids.
I know a family of 5 making 100k and they are quite comfortable.
Its almost like they want people to never think they make enough.
Did the study forget savings!?? Why so much debt?
You don’t need $87,000 to live in Michigan unless you just have no idea how to live. Yall recommend spending 30% of your income on wants instead of just saving it. And then turn around and say you can’t afford to live.. like no shit! You waste 30% of your money and shit you don’t actually need.
And you want 20% of your income towards debt that you shouldn’t even have to begin with. Can’t afford something then don’t put yourself in debt for it. That’s just stupid.
The author of this article just simply has no idea how to live properly. You don’t need $200,000 to live in Michigan.