You have $5,000 a month in the USA

[Cryingdick]

You have $5,000 a month which I think is almost doable. Where do you go and why? Also can you live in the place you were raised on that amount?

[ChaiyaTH]

I need 4,000$ a month in Thailand already, assuming I save up for a pension and save up in general, and live a very basic middle class life with 1 child in Thailand... Guess if you say it is just for a single person, well, were would you not go in the world. The school fees alone are 8K a year (some on this forum live on that annually, hard to believe).

[Cryingdick]

2 minutes ago, ChaiyaTH said:

I need 4,000$ a month in Thailand already, assuming I save up for a pension and save up in general, and live a very basic middle class life with 1 child in Thailand... Guess if you say it is just for a single person, well, were would you not go in the world. 

I am single but if you had to go to the USA with $5,000 a month where would you go is the question.  Ugh I am married lol my husband just reminded me. But we don't have kids we are dinkwads. Double income with a dog.

[ChaiyaTH]

Just now, Cryingdick said:

I am single but if you had to go to the USA with $5,000 a month where would you go is the question. 

I would go to somewhere where the weather is good, I think florida.

[Cryingdick]

Just now, ChaiyaTH said:

I would go to somewhere where the weather is good, I think florida.

Okay tell me where and how yo7 do that with $5,000 a month. What's the plan?

[ChaiyaTH]

1 minute ago, Cryingdick said:

Okay tell me where and how yo7 do that with $5,000 a month. What's the plan?

Assuming you have either serious capital or else this is likely income, and being American, you could get some credit right. So I would buy a 40-50K USD sailboat, then start living on that boat in one of the cheaper mooring areas in florida, aside from doing the trips to the bahamas and beyond in the season. 

Out of the season I would maybe store the boat if possible and then visit Thailand during hurricane season. Know a few doing this there right now and they have only 2.5-3K a month.

[Cryingdick]

Just now, ChaiyaTH said:

Assuming you have either serious capital or else this is likely income, and being American, you could get some credit right. So I would buy a 40-50K USD sailboat, then start living on that boat in one of the cheaper mooring areas in florida, aside from doing the trips to the bahamas and beyond in the season. 

Out of the season I would maybe store the boat if possible and then visit Thailand during hurricane season.

 

That's interesting and you think that it is sustainable on $60k a year? 

[Smokin Joe]

20 minutes ago, Cryingdick said:

Okay tell me where and how yo7 do that with $5,000 a month. What's the plan?

It wouldn't be difficult. The further from the water you are the cheaper it is for renting or buying. I own a home close to the water and I maintain it, in addition to my Thai condo, for less than 5k USD per month.

 

I could also live where I grew up easily on that amount. I came from a mid-size town in Missouri with a 2020 population of 20,000.

 

Until retirement most people have to live where they can find employment. If that is not a consideration then you have many more options. The places with the high paying jobs also have higher living expenses.

[Gecko123]

You don't say whether $5,000 is your individual income or combined household income with your partner. A lot about the advisability of repatriation would depend on your age, ability to supplement income with employment, projected medical and long-term care needs, etc. $5K is on the low end for individual income; way below average if combined household income. Avg USA retiree supposedly has $4345/month in expenses, but keep in mind that includes people who own their home and aren't paying rent/mortgage. As far as "where", you are probably talking rural, midwest or southeastern destinations.

[Gecko123]

Another thing to consider is that many landlords now require that you show your household income when making a rental application and impose an income to rental cost ratio which you have to meet. Seems to vary by locale, but using a 3:1 ratio, this would mean you would only be eligible to spend $1,667/month in rent, unless landlord agreed to make an exception. Median monthly rent May, 2024 in US is $2,123.

[KhunLA]

Buying or renting ?

Always liked the Delaware Water Gap (PA) area. 

Rent $500 & up

Buy $50k & up

So $5000 a month would be easy.

[Jingthing]

2 hours ago, Cryingdick said:

Okay tell me where and how yo7 do that with $5,000 a month. What's the plan?

Have a look at Pinellas County, St. Petersburg or Clearwater if you want more Republicans.

[Jingthing]

You have a lot of options short of super expensive places like NYC.

What are you looking for?

Mountains, oceans, lakes, deserts, certain sports, cultural amenities, town or city, size of city etc 

Name your priorities and I can make good suggestions.

[Gecko123]

I get that on paper you can live on $5K/mo in the US, but when you start contemplating the need for setting aside funds for potential contingencies down the road, your free cash flow is a lot less than it looks on paper and the picture starts looking a lot less rosy. Potential liabilities for medical, long term care, assisted living, etc. Potential cuts in ss benefits. Variability in your portfolio return, interest rates, inflation rates (especially for housing, food, and fuel). See sample monthly budget and punch in your own numbers.

 

[Jingthing]

Plus taxes.

[Cryingdick]

On 5/21/2024 at 10:09 PM, Gecko123 said:

Another thing to consider is that many landlords now require that you show your household income when making a rental application and impose an income to rental cost ratio which you have to meet. Seems to vary by locale, but using a 3:1 ratio, this would mean you would only be eligible to spend $1,667/month in rent, unless landlord agreed to make an exception. Median monthly rent May, 2024 in US is $2,123.

 5k a month. Ni more or less. Doesn't matter your household. I tried to make it clear but you have $5k a month. 

[Cryingdick]

On 5/22/2024 at 12:17 AM, Gecko123 said:

I get that on paper you can live on $5K/mo in the US, but when you start contemplating the need for setting aside funds for potential contingencies down the road, your free cash flow is a lot less than it looks on paper and the picture starts looking a lot less rosy. Potential liabilities for medical, long term care, assisted living, etc. Potential cuts in ss benefits. Variability in your portfolio return, interest rates, inflation rates (especially for housing, food, and fuel). See sample monthly budget and punch in your own numbers.

 

 Yes, it can be tricky thats why i picked that amount. I think you can live okay on that but it is sort of what I consider the bottom end these days. So how do your stretch your money if that's what you have? 

 

 

[jas007]

Is $5k a month after tax income? For two people? Even for one person, that’s not enough if you want a normal existence. But let’s assume inflation subsides. Assume things stay just the way they are.  Can you exist?  Yes. You might not like the location,  but you can absolutely do it. And if you’re old enough, having Medicare coverage is a big plus.

 

The first order of business is to forget the big cities. You can’t afford that. Focus on the smaller rural areas. If you’ve ever driven across America, you’ve seen the places. Small towns seemingly in the middle of nowhere.  I’d focus on the Midwest or the South. Not that those are the only areas, but those are good areas to search, for sure.  Pay attention to the weather. Heating and cooling expenses. Internet availability. Insurance rates.  Taxes.  It all adds up, and the last thing you want to do is throw money away unnecessarily.

 

Also consider having enough land to grow some of your own food. 
 

 

 

 

 

 

[Yellowtail]

I grew up in SoCal and I could still live there on $5K a month, but I would not move back there on a bet. 

 

I'd look at Chattanooga. 

[Jingthing]

23 minutes ago, jas007 said:

Is $5k a month after tax income? For two people? Even for one person, that’s not enough if you want a normal existence. But let’s assume inflation subsides. Assume things stay just the way they are.  Can you exist?  Yes. You might not like the location,  but you can absolutely do it. And if you’re old enough, having Medicare coverage is a big plus.

 

The first order of business is to forget the big cities. You can’t afford that. Focus on the smaller rural areas. If you’ve ever driven across America, you’ve seen the places. Small towns seemingly in the middle of nowhere.  I’d focus on the Midwest or the South. Not that those are the only areas, but those are good areas to search, for sure.  Pay attention to the weather. Heating and cooling expenses. Internet availability. Insurance rates.  Taxes.  It all adds up, and the last thing you want to do is throw money away unnecessarily.

 

Also consider having enough land to grow some of your own food. 
 

 

 

 

 

 

Nah, there are a number of big cities that could work depending of course on the specific details of needs and wants.

Yes, need to eliminate top tier cities like Seattle, SF, NYC, Boston, Washington D.C., etc.

So many options it isn't even funny.

If you like the Bay Area, maybe Oakland.

If you like Northwest culture, maybe Spokane.

Like Texas? Check of San Antonio instead of Austin. 

There are places like St. Louis which many avoid because of high crime, which means opportunity for many to live in the better neighborhoods there for a bargain price.

5k could work in so many places.

A person with that budget first needs to make a priority list, must haves, good to have, can't have, etc. list.

[jas007]

Sure, a lot of places could work. But I’m assuming people might want to have a “normal “ existence.  What’s the point of just surviving? 

[Yellowtail]

5 minutes ago, jas007 said:

Sure, a lot of places could work. But I’m assuming people might want to have a “normal “ existence.  What’s the point of just surviving? 

What's normal? 

[jas007]

18 minutes ago, Yellowtail said:

What's normal? 

 Normal?  
 

Something more than bare survival.  Think of all the things you spend money on that you never thought to budget for. People surely don’t want to keep track of every penny.

[Yellowtail]

1 minute ago, jas007 said:

 Normal?  
 

Something more than bare survival.  Think of all the things you spend money on that you never thought to budget for. People surely don’t want to keep track of every penny.

Well, the median family income is about $75K a year, and $60K after taxes puts you right there, and most of those people have a couple cars and are buying homes. 

 

 

 

[Jingthing]

So do one car and rent something modest in a lower cost city. Easy.

[Cryingdick]

On 5/21/2024 at 11:49 PM, Jingthing said:

You have a lot of options short of super expensive places like NYC.

What are you looking for?

Mountains, oceans, lakes, deserts, certain sports, cultural amenities, town or city, size of city etc 

Name your priorities and I can make good suggestions.

 

i have basically picked my spots already. I was curious what others would do. Not looking for advice so much as opinions. I chose outside of Pittsburgh in the countryside and do summers up at my lake place on Drummond Island in Michigan. I also have much more than $5,000 a month to do it but picked that figure as it gives some choices but you still have to be careful. If there was no limit you would just hear about Hawaii or some such place. 

 

i am looking for a place down south so I can just follow the seasons. You could do what i am doing on $5,000 a month but it would be somewhat tight. I happen to own my places so rent doesn't figure in. I think with $5,000 a month it would be wise to own but that's just

my opinion. 

 

You mention Florida, i am not so sure $5k would cut it there. 

[jas007]

9 minutes ago, Yellowtail said:

Well, the median family income is about $75K a year, and $60K after taxes puts you right there, and most of those people have a couple cars and are buying homes. 

 

 

 

 

Many people have homes that they bought at much lower interest rates. Many people have homes that were paid off long ago. And many people are driving cars they can’t afford, even with an 84 month loan.
 

What’s the price of the typical home today? What would it cost to buy that home at today’s rate? Ditto for the typical new car. By the time you pay for those item plus insurance (which happens to be skyrocketing) do you even have money for food? My guess is that a family with only $5k a month would have a hard time.

 

I’m probably a bad person to have this discussion with, as I’ve never made much of an effort to curb spending.  For most of my life, I had more money than I knew what to do with.  

 

 

[Cryingdick]

33 minutes ago, Yellowtail said:

Well, the median family income is about $75K a year, and $60K after taxes puts you right there, and most of those people have a couple cars and are buying homes. 

 

 

 

Those people are having a harder time these days. That's why i dint think $5k a month is not as easy as it sounds on paper. 

[Cryingdick]

3 minutes ago, jas007 said:

 

Many people have homes that they bought at much lower interest rates. Many people have homes that were paid off long ago. And many people are driving cars they can’t afford, even with an 84 month loan.
 

What’s the price of the typical home today? What would it cost to buy that home at today’s rate? Ditto for the typical new car. By the time you pay for those item plus insurance (which happens to be skyrocketing) do you even have money for food? My guess is that a family with only $5k a month would have a hard time.

 

I’m probably a bad person to have this discussion with, as I’ve never made much of an effort to curb spending.  For most of my life, I had more money than I knew what to do with.  

 

 

 

That's what i am getting at. $50k a year no longer buys all that much beer. I remember actually not so long ago thinking if you had $100 a day you had it made. $5k a month is near the median and they are beginning to struggle. It's not enough for even many what used to be second or third tier cities. Places that used to be cheap like Austin, Nashville, Boise, Phoenix, Minneapolis.etc. you would probably now struggle to live there. A few suggestions are interesting. It can be done if you choose carefully though.

 

 

[Yellowtail]

10 minutes ago, jas007 said:

 

Many people have homes that they bought at much lower interest rates. Many people have homes that were paid off long ago. And many people are driving cars they can’t afford, even with an 84 month loan.

And many people buy homes every day. 

10 minutes ago, jas007 said:

What’s the price of the typical home today? What would it cost to buy that home at today’s rate? Ditto for the typical new car. By the time you pay for those item plus insurance (which happens to be skyrocketing) do you even have money for food? My guess is that a family with only $5k a month would have a hard time.

You can buy new homes in some states below $300K. At 7.75%, and 20% down, that's about $2,100 a month. 

10 minutes ago, jas007 said:

 

I’m probably a bad person to have this discussion with, as I’ve never made much of an effort to curb spending.  For most of my life, I had more money than I knew what to do with.  

Yeah, never in my life have I had more money than I knew what to do with, and I've never met anyone who has.