tag:blogger.com,1999:blog-7821345570811107481.post1207330239521221739..comments2024-03-17T00:13:44.599-07:00Comments on Marty Nemko: How I Could Live Decently on $20,000 a Year (revised, June 27, 2014)Marty Nemkohttp://www.blogger.com/profile/14850388752934193821noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-7821345570811107481.post-55351323603707392042013-04-02T20:35:37.809-07:002013-04-02T20:35:37.809-07:00Hi Marty, I just finished listening to your previo...Hi Marty, I just finished listening to your previous podcast. While I usually earn substantially more than 20K a year, I've budgeted to spend less than 20K a year for many years now. And yes it's doable even for someone like me who owns a small town-home (since 2004) in one of the wealthiest Seattle suburb (Bellevue)<br /> <br />I work a union (but not highly paid) retail job 3 days a week just to keep my health insurance. And the rest of the time I try to make money by reselling through fulfillment by Amazon. By assuming enough risk and having some capital there is a potential to make 6-figure income or more by sending the inventory to Amazon warehouses where it is send on your behalf to costumers. And unlike with eBay, there is so much less work packaging and shipping. And people do pay a lot more for the convenience of Fulfillment by Amazon. However where there is a profit to be made, the competitors come shortly. For example, I was selling a lot of cat toothbrushes through fulfillment by Amazon, even though other were selling them cheaper through non-FBA, people paid a premium. But now other sell through FBA, and at such discount that I can't make any more profit. <br /> <br />The point is that, even though I can find now and then great opportunities to make a very nice profit (sometimes $500+ a day), its ephemeral, so having a very low budget for living expenses helps eliminate the stress that I won't make enough in profit to get by. The unemployment in Seattle area just dropped to 5.9%, and it makes me often think why can't I join a lucrative career (with my three college diplomas for all they are worth), instead of staying as a small-scale speculator (or called more charitably "entrepreneur"), but I feel a form a freedom by working for myself and certainly I have a lot more of free time. <br /> <br />So the two main things I forgo to live comfortably on 20K a year in a high living expense area is:<br /> <br />(1) Forgoing owning a car and associated expense. Not that public transportation is great, in fact they keep cutting it with the budget deficits. But I just can't justify myself for owning own because (a) I get 90% of my shopping done online (b) I am hermit and I don't like visiting people (except Toastmaster club once a week) (c) there is plenty of trails around my house to walk my dogs (d) I have a car share membership (Zip Car) for rare occasions when I need a car<br /> <br />(2) But most importantly I forgo relationships with women. Just because even the so called "liberated" women will want me to pay for a $50+ dinner, and that's just outside my budget.<br /><br />So I may not marry too, since, again, I believe vast majority of women have an ingrained need for their husband to be a provider, work hard and make money (they get stressed-out, disrespectful and confrontational if their husband is not bringing enough "bacon") And vast majority of divorces and family problems are related to finances. <br /><br />Also kids, even by not buying them designer clothes are much more expensive and time consuming than pets. <br /><br />So I filled my house with three cats and two dogs to keep me company. And while perhaps second-rate to a perfect human relationship, walking my dogs through countless trails for two hours a day, does give me some form of comfort and happiness in the absence of a "family wage" job.Sergehttps://www.blogger.com/profile/06786517564287857583noreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-45318120551232819522013-01-08T20:10:39.835-08:002013-01-08T20:10:39.835-08:00This is how I live, for the most part. I make arou...This is how I live, for the most part. I make around 20 K a year, give or take. I found a fairly nice apartment for $450/month WITH UTILITIES (of course, this is in rural Wisconsin, I do realize that that's not the norm in most places). I buy gently used cars to keep the payments low and make them last by taking good care of them. I work as a nursing assistant so insurance is available to me through work. I rarely dine out, I cook at home using economic and wholesome recipes my mom taught me. I buy gently used name brand clothes on ebay for my son and I and we look very chic without spending much at all. My 5 year old son and I entertain ourselves by looking for free or very cheap things nearby to do. It's pretty easy once you get in the mindset that you don't have to spend money to have fun.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-84176066448822917232012-11-14T23:28:52.784-08:002012-11-14T23:28:52.784-08:00Truly, thanks to the wonderful Toyota corp, I have...Truly, thanks to the wonderful Toyota corp, I have never had ANY maintenance expenses other than oil changes. And yes, at 130,000 miles, I changed the timing belt. My current Toyota, a 2004 Prius has 201,000 miles and then only repair has been a water pump and, while he was at it, I had him replace the belts and hoses, just as a precaution. Marty Nemkohttps://www.blogger.com/profile/14850388752934193821noreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-70507608455140373452012-11-14T09:36:00.481-08:002012-11-14T09:36:00.481-08:00I want to see an Edmunds.com TCO -style breakdown ...I want to see an Edmunds.com TCO -style breakdown for your vehicle costs or otherwise I'm skeptical that you can really afford it on $20k a year...Nightvidhttps://www.blogger.com/profile/03320916322586904305noreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-75642016450982268532012-11-14T09:34:38.804-08:002012-11-14T09:34:38.804-08:00A personal vehicle on $20,000 a year? I don't ...A personal vehicle on $20,000 a year? I don't believe you - at least, not unless you take big risks i.e. don't save enough money to comfortably cover expensive repairs or replacement without having to just let it sit there and not drive much...Nightvidhttps://www.blogger.com/profile/03320916322586904305noreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-31389793683188811312012-10-29T14:07:28.721-07:002012-10-29T14:07:28.721-07:00Check out other ways to create a slightly passive ...Check out other ways to create a slightly passive income through sharing! Share your car when you're not using it, with RelayRides.com; or give rides to strangers with SideCar (Side.cr). Borrow tools and equipment instead of buying, with NeighborGoods.net. Use your local timebank to share services instead of paying for them (eg. http://timebank.sfbace.org/ in San Francisco). Find free furniture and items on Craigslist.org and Freecycle.org Lots more options emerging in this new Sharing Economy!<br />~Caterina RindiCaterina Rindihttps://twitter.com/caterinarindinoreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-51191952752077368442012-08-29T16:52:32.835-07:002012-08-29T16:52:32.835-07:00Good advice overall, but remember that the only wa...Good advice overall, but remember that the only way Kaiser (or anybody else) will take you at the rates you quoted is if you're in absolutely perfect health--an iffy proposition at 62. One diagnosis of high blood pressure and you're SOL even if you make $200,000 a year!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7821345570811107481.post-91551528055129589742012-08-28T06:57:28.367-07:002012-08-28T06:57:28.367-07:00When it comes to wheels, I'd also consider Sub...When it comes to wheels, I'd also consider Subarus. I live in a place that's somwehat mountainous and gets snow, so all-wheel drive is more of a need to have than nice to have option.<br /><br />Like Toyotas, Subarus are extremely reliable. 200K miles is no sweat. My Outback station wagon has 115K and still looks great. <br /><br />However, I woul disagree with skipping routine maintenance. Your other fluids break down and get dirty too. But even the "big" maintenance tasks done every 30K miles, cost a lot less than a car payment.Anonymousnoreply@blogger.com