What's the smallest income you can live on right now? | TigerDroppings.com

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lilsnappa
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Member since Mar 2006
711 posts

What's the smallest income you can live on right now?



I recently interviewed with a small startup and was asked this question.

They can barely afford to pay me a quarter of what I make now, but its a chance for me to get off of the road (I travel 48 wks/yr) and it's a really cool concept that has potential.

How would you react to that question?







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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
57201 posts

re: What's the smallest income you can live on right now?


I think you need to analyze this as if you are an outside consultant and see if the company has actual promise and not just a "cool" concept.

There is something that can be said for less travel, but is it worth that much less in pay? If you do take the new job would you have any ownership in the start-up? How is the start-up currently financed?







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lilsnappa
Shreeeseport
Member since Mar 2006
711 posts

re: What's the smallest income you can live on right now?


quote:

I think you need to analyze this as if you are an outside consultant


ISWYDT.. Me being an analyst for a consulting firm and all.

I more than likely will not pursue it as I won't have any ownership and am probably not what they are looking for right now, but the question made me think.






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Slickback
New Orleans Pelicans Fan
Deer Stand
Member since Mar 2008
26159 posts

re: What's the smallest income you can live on right now?


Create a budget.

Line out everything you spent money on the last few months and see where you can make cuts.






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Meauxjeaux
Memphis Fan
I have 89,367 posts with my alters
Member since Jun 2005
17182 posts

re: What's the smallest income you can live on right now?


quote:

What's the smallest income you can live on right now?


For how long? That would be a factor in thinking about that question.






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TH03
Notre Dame Fan
Member since Dec 2008
96027 posts

re: What's the smallest income you can live on right now?


I could probably take a substantial pay cut if a new job opportunity came up that offered me employee status. that's one thing I didn't consider when I was planning to move. I saw a bunch of jobs at $15-$20k less than what I make, but it would even out by actually having healthcare and the like.







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Zach
LSU Fan
Member since May 2005
64442 posts

re: What's the smallest income you can live on right now?


Since my house and cars are paid for I could live on $20,000 for a year. After that it would depend on inflation.





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lilsnappa
Shreeeseport
Member since Mar 2006
711 posts

re: What's the smallest income you can live on right now?


quote:

Since my house and cars are paid for I could live on $20,000 for a year.


This is kind of where I was going with this thread. It was more of an intellectual exercise rather than an inquiry for advice.
I know I could live comfortably and support my soon to be wife on alot less than I make now, but the question in the interview made me reassess my financial situation somewhat.

If that high risk "dream job" type opportunity came along, how would you answer that question?

Everyone's situation is different and it depends on where you are in your career/life.







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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
57201 posts

re: What's the smallest income you can live on right now?


Right now I'm not making enough

That($145,000) in net worth is really killing me.






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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41004 posts

re: What's the smallest income you can live on right now?


I know them feels.

It seems like I'll be "rich" in short order once I get out from under the unsecured debt and pretty much all of my paycheck goes towards building equity in some form.



This post was edited on 10/8 at 3:41 pm


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Epic Cajun
New Orleans Pelicans Fan
New Orleans, LA
Member since Feb 2013
4580 posts

re: What's the smallest income you can live on right now?


Without taking out any loans, probably 60k or so. My wife and I are both in graduate school, paying out of pocket; it would be pretty hard to live on much less than that.





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hiltacular
Georgia Tech Fan
FILA
Member since Jan 2011
8950 posts

re: What's the smallest income you can live on right now?


$20K is probably about the absolute lowest I could go.... I would never accept that job but I think I could spread "the essentials" (rent, car, gas, food, etc) to $20k.








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lilsnappa
Shreeeseport
Member since Mar 2006
711 posts

re: What's the smallest income you can live on right now?


quote:

probably 60k or so


Thats actually the number I gave when asked the question. I'm attempting to cash flow my fiance' in Med school right now. At my current income its possible, at $60k our lifestyle wouldn't change but her(our) loan burden would increase.

Golfer, whats your "get out of debt" plan for that $145k? I'll taking on about six figures in student loans when the fiance' (wife by then) finishes skrool, and her residency income is going 100% toward it till its gone...






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Teddy Ruxpin
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New Orleans, LA
Member since Oct 2006
19374 posts
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re: What's the smallest income you can live on right now?


quote:

Thats actually the number I gave when asked the question. I'm attempting to cash flow my fiance' in Med school right now. At my current income its possible, at $60k our lifestyle wouldn't change but her(our) loan burden would increase.

Golfer, whats your "get out of debt" plan for that $145k? I'll taking on about six figures in student loans when the fiance' (wife by then) finishes skrool, and her residency income is going 100% toward it till its gone...


As someone with massive six figure debt with a decently sized income, my plan is to IBR it out to forgiveness and pay the tax. It looks like I could make more money saving the difference (and investing) and paying the tax than trying to pay it down, which would be almost impossible to do in that time frame as it is.

Oh, and my answer would have been $20,000, since that is what you live off of while in school.



This post was edited on 10/8 at 4:40 pm


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Cold Cous Cous
LSU Fan
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Member since Oct 2003
13714 posts

re: What's the smallest income you can live on right now?


I was going to say $1,600 a month, for me alone. Then I realized that every day I see dudes on the street who I'm pretty sure have an annual income of $0.00, and they somehow manage to be alive. So I guess that's my answer.





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Lloyd Christmas
New Orleans Pelicans Fan
Baton Rouge
Member since Aug 2005
4034 posts

re: What's the smallest income you can live on right now?


quote:

but its a chance for me to get off of the road (I travel 48 wks/yr)


Ha, I am looking for jobs to get on the road more

As to original question, I think it would require more analysis, I never looked at things like that






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
57201 posts

re: What's the smallest income you can live on right now?


quote:

Golfer, whats your "get out of debt" plan for that $145k? I'll taking on about six figures in student loans when the fiance' (wife by then) finishes skrool, and her residency income is going 100% toward it till its gone...


Same here. Live off my income solely for 3 more years and 100% of her take home goes to our debt reduction. All goes as planned, we will only have mortgage debt in 4 years.






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
57201 posts

re: What's the smallest income you can live on right now?


quote:

As someone with massive six figure debt with a decently sized income, my plan is to IBR it out to forgiveness and pay the tax. It looks like I could make more money saving the difference (and investing) and paying the tax than trying to pay it down, which would be almost impossible to do in that time frame as it is.


Can you expand on this? So even if our take home is north of $100k, IBR is still viable?






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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41004 posts

re: What's the smallest income you can live on right now?


IBR is based off of 15% of discretionary.

So I somehow doubt it.

Unless your interest rates are crazy.






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
57201 posts

re: What's the smallest income you can live on right now?


Yea. My back of the envelope math says that does nothing for us.





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