Can a family of 3 make ends meet with this much income?

Question

If there is a net (after taxes) income of $3100/month (about $37,000 / year), and the family has no debt except a mortgage, can they survive on this income? The mortgage payment is about $670/ month and they live in the Southeastern United States.

Thanks for your opinion! If you can elaborate on why you think what you do, that would be helpful.

1) I didn't say this was about me.
2) Who said anything about a baby?
3) Why are you so patronizing? What makes you think there is no budget?

Answer 1

I would definitey have to say yes. That mortgage payment is only 22% of their net income, which is low even if it was their gross income. And if they have no auto loans or credit card debt, I would actually say they are in great shape, and should be able to save each month!

Answer 2

Of course more money is always going to be helpful, but you can survive on any amount (realistic, that is) of money as long as you can budget yourself. I live in the southeast, and it's probably one of the most relatively cheaper places to live. There's all kinds of bills and factors you take into play too, cell phone, cable, internet, electric, water, etc.. Comparing to usual, that's probably around 350-400. Another factor is the eating habits. Eating out is expensive and costs can be cut significantly by cooking at home. Make sure you put some money in a savings each month. Maybe each year you take 3000 or so from that savings account you've saved up and put it in a high-interest CD. Each year when you re-new it, just add the additional costs to it, so if something happens, you have something to fall back to, plus it yields a higher interests than a savings account.

Answer 3

Many larger families get by with less. But getting by & living are 2 different things. Without knowing the spending habbits & tax situation, I would just have to assume, but I think that it is very doable. Especially with such a small mortgage. If $37k is the take home pay, then barring any lavish & over the top spending habits, I dont see why it is not possible at all & to be fairly comfortable.

Answer 4

You can live on that but certainly not extragavantly. You have about 29,000 after paying the mortgage.

Expenses might include:

Food $7,500
Clothing/Personal Items $3,000
Real Estate Taxes $2,000 (unless included in mortgage)
Medical Insurance $2,300 (unless already deducted from paycheck)
Gas/Electric $2,000
Gasoline $1,000
Auto Insurance $500
Medical Expenses $600
Water $400
Auto Maintenance $360
Homeowners Insurance $300 (unless included in mortgage payment)
Dental Insurance $300 (unless already deducted from paycheck)
House Maintenane $240
Phone $300

That still leaves $8,200.

That's no vacations, no entertainment expenses, no internet, no cellphones, no savings, little or no eating out, etc.

Answer 5

Frugenity has given you a good break down on what you should keep your expenses at. I just wanted to say that if you sacrafice for one year.

You could use the revenue Frugenity has deduced you would have to buy a property at sherif sale, or tax sale, or forclosure. Offer only the opening bid, if someone bid higher, let it go.

If you win, most banks will loan you the money to fix up the property. Personal experience: I bought a property for $800, It was a complete dump. It would cost $30,000 to repair it, I sold it to a building contractor for $3,900. There is money laying in the streets. Investigate and win.

E-mail me if you need help.

Answer 6

It's hard to elaborate because not knowing what their spending habits are. Since the family have no debts, they still have utilities, insurance, cell phone, cable, entertainment and many other miscellaneous expenses that might arise. They should be okay and they should be able to save some money, if, they how to manage their money properly.

Answer 7

Yes, you can make it. It depends on your lifestyle. Things might have to change a little. I would think that is very reasonable. Don't you have yourself a budget set? You know when you get paid and you know when bills are due. See what you have left - take in account daycare fees, diapers, formula, extra doctor bills, etc.

Answer 8

I don't see why you can, I know people that have lived on much less........you have to be very careful how you spend your money and make smart decisions. going out to dinner is very expensive, you can cook many meals at home for the price of one night to dinner..........things like that