Could you live on $420 a month?

[gavinmccallister]

Could you live on $420.00 a month?

If you have $100,000 earning the current rate of 5% for a 6 month CD, you would earn in interest $2531.00 that equals to $421.83 a month. Could live off the interest? If you need to work add the extra income, does anyone know of anyway to acquire $100,000 at a fairly low interest rate? CD Calculator

[Ima saver]

I have $100,000 sitting in a local savings account earning 4.14% There is no way I could live on $420 a month, even tho my house is paid for.

[gavinmccallister]

Originally Posted by gavinmccallister

If you need to work add the extra income.

What would that bring your total too? Would you be able to live off $420.00 plus what one job brings in?

[Ima saver]

Right now, I am just trying to let the interest accrue. My husband makes about $4000 a month. I guess if I had a million, I could live off the interest. That would be $4166 a month.

[Ima saver]

It would pay the taxes on my house and the house insurance.

[gavinmccallister]

By keeping your job, I think $420.00 would help out alot (remember the $420.00 is in addition to your job. Figure you get paid $800 a month you could use the $420.00 for your every day needs.

[abowers]

Last year I was paying $200/mo for 1 BR in a 3BR apartment with 2 roommates in Rochester, I owned my car, and I was in the grace period for my student loans. I maybe could have eked by -- that would have left $220/month for car insurance ($50/month), gas ($60-70/month), and groceries for myself ($20/week), and probably eating out at an inexpensive restaurant one to two times a month.

$420 pays half the rent on my current apartment in Princeton.
Plus now I am repaying edu loans at $123/month, I am paying for a new car ($260/month) because the car I owned was totalled while parked on the street over night 2 months before I moved to NJ. Car insurance here is more like $100/month, gas ($40/month), Groceries ($90/month for my share, splitting with my boyfriend).

[gavinmccallister]

Originally Posted by abowers

$420 pays half the rent on my current apartment in Princeton.

Don't forget to include what you make at your job. Now, if we could only find a way to get $100,000 and a really low rate.

[Ima saver]

I know how to get the $100,000. I saved it. Every time we make a profit on a house, we save the entire amount!! ( My husband also works60-70 hours a week)

[lrjohnson]

Good gravy. Last time I read a Thread like this I decided to live on minimum wage. I was feeling pretty proud. But $420? Whew. With free rent (or a paid off house) and single payer Canadian style health care I'd still be over a hundred short.

[TBH]

If you're working anyway, why not try to live off your income and invest the 100k in something less stable but more lucrative over the long term? Like, oh, say, the stock market?

Just wondering. I don't understand the point of the exercise.

[Bluezy]

Originally Posted by gavinmccallister

Could you live on $420.00 a month?

If you have $100,000 earning the current rate of 5% for a 6 month CD, you would earn in interest $2531.00 that equals to $421.83 a month. Could live off the interest? If you need to work add the extra income, does anyone know of anyway to acquire $100,000 at a fairly low interest rate? CD Calculator

I'd continue to invest the $421.83 until I had much more to work with. $421.83 is not enough to live on these days.

[JBinKC]

I probably could in Panama.

[sweeps]

Originally Posted by JBinKC

I probably could in Panama.

Oh great, now I'm going to have Van Halen stuck in my head all day.

[Ima saver]

Is it that cheap to live in Panama. I read a book about one couple that retired at age 35 and lived off the interest on their money and they lived in Mexico!

[NoWayNovember]

I could not live on that amount. Remotely. I don't think even if I could live on that amount that I would want to. . . that's way too much of a sacrifice to me.

[PRICEPLUS]

I could not survive on that amount in the community where I live.

[debtfreeme]

my rent is 30 dollars more a month. i think i would just reinvest it into tthe account.

[Ima saver]

I just found the book, the couple that retired at 35, had $500,000 in cd's paying 8% interest. This was in the late eighties!! Wonder if they are still retired.??

[gavinmccallister]

What is the name of the Book Ima? I would love to read it, living off interest is something that has always been interesting. We now have the lottery in North Carolina and I am choosing not to play it, I had played Powerball in South Carolina but had to make an effort to drive down there. Now the effort will be gone I will have to resist the temptation to play Powerball when the jackpot is in the triple digit millions catergory.