Can an American reasonably live on $20,000/yr or less?

Question

In my opinion, Americans consume more than we need. But many of us have convinced ourselves that we "need" all that money or stuff. Most of us don't. So I wonder, is it possible that each American could reasonably live on $20,000/yr? If so, how would you do it? If not, why not?

Answer 1

Yes, they could. This dosen't mean they have to have cable tv and a dishwasher, mind you. You could live on $18000 a year even. It's all about making every penny count.

Answer 2

I do it on less than that. I am psycho and live on disability insurance which is hardly half of what I used to earn as a productive citizen. I can afford most of what I want, but then again there is not much that I DO want. It would be nice to have medical care though. I need that because like I said I am psycho and could use some help from a doctor.

Answer 3

Maybe one person could resonably live on 20,000 a year but it would be very tough.

Let say the average one bedroom apartment costs about 500-550 a month. In a year a person spends about 6000-6600 a year on housing alone. To go with the average 6300 on rent in a year that leaves about 13,700 dollars to play with. Next people have to have car insurance. If you have a decent record and go with the minimum amount that you need and you have a middle of the line car. Insurance is about 70 bucks a month. So car insurance in a year is 840 dollars. That leaves 12,860 dollars. Most apartments do not pay electric so therefore a person is responsible for electric. For one person electric could be about 40 dollars a month. So in a year a person might pay 480 dollars. This leaves 12,380 dollars left. Lets be honest people can not live without a phone. Whether it is a cell phone or a landline. That is about 50 bucks a month. That is about 600 per year. Which leaves us with 11,780. Food let say one person can spend 100 dollars a month on food alone. In a year that is 1200 on food. That leaves 10,580 dollars. Household supplies a person can probably spend about 40 dollars a month on those. Which is 480 a year. Which leaves 10,100 dollars. Tolietries about 50 dollars a month, 600 a year. That leaves 9,500 a year. Gas, you have a car you have to put gas in it. People probably spend 30 bucks a week. In a year that is 1560 dollars. Which leaves 7,940. Now in a paycheck say a person has health insurance, dental, and vision taken out of every pay check. That is about 100 dollars a pay check. Which is 1,200 a year which leaves 6740. Which breaks down to 560 dollars a month a person has left to play with. Maybe about 300 per pay check But I didn't factor in doctor visits, car upkeep, if your car breaks down, many people also have student loans, car payments, medication, some people have to pay union dues, some apartments require that you pay renter's insurance, some apartments make you pay water or gas, etc. Not to mention you have to buy clothes.

If you look at everything I mentioned everything was a necessity. I didn't mention cable, internet, or dinners out. I think a person can resonably live on 30,000 or 40,000 a year but 20,000 a year or less is just too little.

Say you have a person who makes 20,000 a year who marries a person who makes 20,000 a year. Sure two people can probably manage on 40,000. What if they decide to have kids. Their rent will go up or they will buy a house which includes a heck of lot more in terms of money to have. Plus kids are expensive too.

Sure a person can probably live on 20,000 or less. But it gets frustrating that you don't have the money to go out with your friends on occasion. It gets frustrating that you can buy your family birthday presents or christmas presents because you are short on money. You can't go on vacations because it is impossible to save money because you are living pay check to pay check. There is more to life than just the necessities. All work and no play makes Jack a dull boy.

Answer 4

Come on, who just wants what they need to get by? If it is atainable why should you hold yourself back. If people were not spending money on things they don't need, you wouldn't have a choice but to live on 20k or less. That is why we have what we have in america, because we spend and when you spend, someone else makes money and spends more. No one spends money in poor countries, that is why they are poor and will stay that way. Do what the settlers did, move somewhere better!!

Matter cannot be created or destroyed. Elements are elements period. Are you afraid the we will use all the matter in the world up til it is gone?

Mother nature is much more destrutive to itself than we are. Think of the dinosaurs. It was all massively and instantly destroyed. Man wasnt even involved.

Answer 5

It is possible to live on about 15k in some states in the US if you have no debts, mortgage, or auto loans, and dont drive your car often. You will also have to keep a garden and fruit trees and all your non meat food will have to come from it. You may be able to live on even less if you keep chickens and eat the eggs. Also, dont get any designer clothes. you dont need those. You also don't need any help from the government. We don't need any more moochers.

Answer 6

Yes, I'm a college students and I only get 11,000 in aid. I would be better off with 20,000. But, I still managed to live with 11,000

Answer 7

Sadly, No. Our Rent alone runs us $900.00 a month. Trying to live on 20k wouldn't leave anything left over for a vehicle/ fuel/ insurance/gas/electricity/food/water, etc.

Answer 8

If you lived in certain rural parts of the country and did away with some of the nicities, it could be pulled off.

Answer 9

Yes, IF you have no mortgage, no bills to pay, are willing to drive around in a good used car, learn to prepare and fix things for yourself and have a thrifty nature. Sure.

Answer 10

i believe it is possible. by getting only thing you 100 precent need and getting a lil help from the gov youd be in good shape.