Taxes, Insurance, Interest, SSI & more Taxes

[Cadkiller]

Is it just me or is everything just way out of control?

I recently updated my budget and everything just keeps going up.

The following is based on $100,000 per year household income for my area.

$28,000 for federal taxes & SSI
$15,000 for mortgage & interest
$12,000 for health insurance
$10,000 for Keogh savings (retirement plan)
$8,000 for property taxes
$5,000 for car payments
$4,200 for utilities
$3,000 for state taxes
$2,000 for car insurance
$ 800 for home insurance
-------------------------------------
$88,000 just for the basics

I would be left with $12,000 for everything else.

PS: Maybe I should move to another Country like Canada, Australia or the UK?

 

[~Shard~]

Wow, all those seem incredibly high. I'm glad I'm not living wherever you're living. My money goes a lot further where I am. I know of many places like that though...

 

[GoCubsGo]

Such is life. They say americans live well out of their means, which is so very true. But the problem is, we're out of our means before we even spend our money on the finer and more entertaining things in life.
Ever watch Suze Orman? It is possible to beat the system in so many words, but it takes time.

 

[Doctor Q]

Your mortgage and property tax depend on how expensive a house you buy, and in what area. You car payments and car insurance depend on the cars you choose. So those are the primary choices you can make based on your total income.

The fact that you made this list shows that you're paying attention to your budget more than a lot of people do.

 

[saabmp3]

Is it just me or is everything just way out of control?

I recently updated my budget and everything just keeps going up.

The following is based on $100,000 per year household income for my area.

$28,000 for federal taxes & SSI
$15,000 for mortgage & interest
$12,000 for health insurance
$10,000 for Keogh savings (retirement plan)
$8,000 for property taxes
$5,000 for car payments
$4,200 for utilities
$3,000 for state taxes
$2,000 for car insurance
$ 800 for home insurance
-------------------------------------
$88,000 just for the basics

I would be left with $12,000 for everything else.

PS: Maybe I should move to another Country like Canada, Australia or the UK?

Well, maybe I can put a little editing in there, all marked. This is based on how I try to spend my money.


"The following is based on $100,000 per year household income for my area.

$28,000 for federal taxes & SSI
$15,000 for mortgage & interest
B - 1250/month for a house is about right I think, remember you are building equity at the same time, so althought you pay out 1250/month, you gain something quantifiable in the end.
$12,000 for health insurance
B - One of my big requests/requirements as a perk package from work
$10,000 for Keogh savings (retirement plan)
B - Great idea, more people should focus on this
$8,000 for property taxes
$5,000 for car payments
B - approx 420/month on car payments? This is where you are living over your means. I have a beautiful Saab, which I pay much much less than this. A big problem with out society is the obsession with nice new cars.
$4,200 for utilities
$3,000 for state taxes
$2,000 for car insurance
$ 800 for home insurance
-------------------------------------
$88,000 just for the basics"

So... check check check, I'm around 27k give or take a few. That's about 75 bucks a day for gas, food, disposable desires. It may not sound like much to most, but then again, I only have a car payment for 4 out of every 12 years (again approx) and this money compounds if not used. It's not THAT hard to live beyond your means, it just means forgoing some luxuries that are, in essence, luxuries. Everybody doesn't need to, or deserve to, drive a BMW and live in a mansion.

Another note, if you're married, then some of these costs get slashed in half (housing mainly), and you get a nice discount on combined services. Cutting housings (utils, etc) in half puts another 14000 in your pocket.

I like the fact that you are thinking about this so much, I just wish the rest of america would put so much thought into it.

Ben

 

[Cadkiller]

Thanks for the replies.

I'm self employed and most of these are a write off for me; but I still have to spend to save. Health insurance and taxes are the killer for me. I also have to pay the 15% of SSI versus if I worked for someone they would pay half of that. I bought a Chrysler Voyager minivan and the payments are $367.00 per month; which actually comes out to $4,404.00 per year.

It seems like Canada is the cheapest place to live in the world; but it's just too cold for me.

Tax brackets in the USA
In 2005, the tax brackets for a single (unmarried) person were:

10%: from $0 to $7,300
15%: from $7,301 to $29,700
25%: from $29,701 to $71,950
28%: from $71,951 to $150,150
33%: from $150,151 to $326,450
35%: $326,451 and above
For example, a single (unmarried) taxpayer in the USA who earned $100,000 would owe $22,505.82 in taxes, for an effective tax rate of 22.5%.

Tax brackets in the UK
In the 2005-2006 tax year, the tax brackets were:

10%: from £0 to £2,090
22%: from £2,090 to £32,400
40%: from £32,400 and above
This covers income after the personal allowance (£4,895 for single people, meaning that 40% is not paid until more than £37,295 is earned).

This information was from http://www.hmrc.gov.uk/rates/it.htm

Tax brackets in New Zealand
New Zealand has the following income tax brackets (as of May 2005). All values in New Zealand dollars. (With earner levy included[6]):

19.5% up to $38,000
33% from $38,001 to $60,000
39% above $60,001
46.2% when the employee does not complete a declaration form (IR330)

Tax brackets in Canada
Canada's federal government has the following tax brackets for the 2006 tax year:

15% up to $36,378
22% from $36,378.01 to $72,756
26% from $72,756.01 to $118,285
29% above $118,285


I attached a spread sheet for you guys to use.