Is a 3,000 euro net income sufficient to live in Stockholm for 2 people?
Yes, if it is per month.You may need to be a bit cautious, but if you rent incl. utilities for a maximum of about 1.500, you could budget the rest as follows:500: food and drink200: public transport300: going out and shopping, clothes500: savings or other.It’s a very typical income for someone with a university degree in Sweden. We also live like this, but we have no rent to pay. Instead, we have two paid off cars and a cat, which bites off another 600 altogether.
How can someone survive with negative net worth?
Frankly, it's no fun to have negative net worth, but it's not a death sentence.Indeed, from the moment you're born to age 22, you should expect, on average, to have a negative net worth. You're not making any real money and you're either spending your parents’ money or borrowing from your future. Only by about age 26 does the average person have a net worth equivalent to owning a mid-size sedan free and clear. Yay!Or, if we look at the world longitudinally, about 20% of the US population has a negative or near zero net worth and this applies to all ages. Half of retirees depend entirely or substantially on Social Security and Medicare for survival. So, negative net worth is quite common.As long as you have an sufficient income, you can survive without a positive net worth. You just won't get any of the compounding benefits of having performing assets.
Can a couple survive off of one income?
Yes, but why would you want to just survive with all the opportunites available to you.I don’t know your unique situation, but I do know it’s not hard to create a second, or even third income stream with an online business. Takes some hardwork and learning some new skills, but it can and is done.Take a look at my blog for some ideas. Good luck to you.
Can I live off the interest of $4 million?
It depends on where you live and how many people you need to support. You can get a GUARANTEED risk-free rate of return of ~2.8% each year. This rate is based on the 10-year government bond yield, which is sovereign. The US government will pay you your annual coupon. If it doesn’t, it’s likely that alien invaders have taken over the White House.Historical chart of the 10-year government bond yieldWith a 2.8% risk-free rate of return, you will generate a guaranteed $112,000 a year in pre-tax income. $112,000 a year is almost DOUBLE the median household income in the US of $59,000. Therefore, if you live in a non-coastal city, you will be absolutely fine.However, to live a middle class lifestyle in an expensive coastal city like San Francisco or New York, you’ll likely need to earn $200,000 or more. Here’s a chart I put together on how one couple with one child lives a pretty normal life on $300,000 a year.As you can see from the chart, this family isn’t living large. They are comfortable. They’re saving for retirement and their child’s college education.If you’re retired, $4 million is plenty, because living off the risk-free rate of return of 2.8% today isn’t even cutting into principal.What I recommend is for folks to figure out a way to conservatively invest your money to generate a slightly higher rate of return with relatively low risk if you’ve already accumulated a decent sized nut. You will notice from the initial chart that the risk-free rate of return has been coming down for over 30 years, thereby making risk-free income harder.But what has happened due to lower risk-free rates is that asset prices have surged higher. Therefore, it’s a good idea to not just buy government bonds, but diversify into various risk assets that have principal appreciation upside.Here is my passive income portfolio for 2018–2019 that allows me to be a stay at home dad with my wife in San Francisco and not go back to the coal mines ever again.Regards,Sam, Financial Samurai
How are warehouse jobs? Could a single person survive off of it?
I'm currently 15 and i realized I don't have any skills and I hate people. I've been thinking about working at a warehouse after I graduate high school with 12 hour work days and about $13 an hour. Would I be able to support myself and life comfortably with that much money? And how straining is the job?
How long should a business be prepared financially to survive if they do not make a profit?
"4 years. After 4 years, if you haven;t made a profit, the IRS considers it a hobby and you cannot write anything off." Actually, there is no hard and fast rule regarding the length of time. As long as a business can show that it is, indeed, trying to make a profit it is considered a going business concern. "Going" nowhere maybe, but still a business. The hobby rules pertain more to part-time, "side businesses". If I work the business when I feel like it or "when I have time", then the IRs will assess my business as a hobby. But if I am working the business daily and managing to scrape by, even with little or no net profit, then I'm still a business. Also, depending on the structure, a business could conceivably have no "profit" and yet you manage to earn $50, $60 even $100K from it. Corporations require the officer to take a salary commensurate with others in the industry. That salary is an expense to the company and will reduce it's net profit.
How is it possible for one to survive off of just $9.00 per hour alone even with full time employment?
Short answer: you can't. Bottom line: You are not supposed to. You have to take full responsibility for yourself. The wage you are paid is the price of your productivity. If you are doing a job that does not require any specialized skills you will not make much money. Therefore, you have to work multiple jobs in order to make enough to get by. Over time, you build up a skill set that is worth more to employers. As you do that, you should build up your savings so that you can afford more things You are making decisions for your self about things from roommates to cable tv to only working one job that put you in a more uncomfortable position than you can afford. When you make as little as you do, roommates are a reality, not an option; TV itself is a luxury, cable is out of the question; working one job is completely insufficient, at least two are a necessity. Follow the examples of people who really make it work. Adam Shepard has an excellent book: Scratch Beginnings: Me, $25, and the Search for the American Dream. He outlines the strategy he followed in an effort to refute the nay sayers out there like Barbara Ehrenreich who students are constantly forced to read in high school and college. Guess what... IT CAN BE DONE. If you set goals for yourself and follow a strategy that actually is focused on success rather than constant reminders of why you could fail, you can do it. As to your point on divorces: Yes, it plays a role. However, it is likely to push already shaky relationships over the edge. Living together or getting married for financial convenience is #1 illogical and #2 a terrible reason to live together or get married. Just as you said, the inevitable separation resulting from such a poor foundation is expensive and will likely ruin your credit. Divorces cost more money than the couple will save over the short time they are married and leaving one individual with all of the bills and rent of a shared apartment will ruin their credit or force them into bankruptcy.
Can I live off 13 dollars an hour if my apartment cost between $385 and $420?
It would be tight but you can do it if you don't have any expensive habits like smoking cigarettes or spending a lot partying. If you have a car payment it would be even tighter. Also is the job a guaranteed 40 hour week.
What percentage of your net income should you spend on all your bills including mortgage, car, insurance, etc.
For financial solvency, one third of your income is the general rule of thumb for rent/mortgage. Utilities can vary widely and 60% for rent/mortgage and utilities does not seem high to me, especially in an urban environment where they cost of living is high. With housing still overinflated most people do not meet the one third requirement and pay close to or above 50% of their salary on rent/mortgage alone. I think if you are comfortable with your own budgeting and plan ahead that is what is most important.