How I live on $7,000 per year • Hacker News Board

Re: How I live on $7,000 per year

#101

Post by erejacob » Sat, Oct 15, 2011, 4:13 AM UTC

sage_joch wrote: post #94

erejacob wrote: post #79

Earlier quoted context omitted.

I pretty much spend my time trying to "educate" unaware, materialistic consumers. I've affected more people than I can count (those who've told me) and presumable more beyond those (who didn't tell me). So I have a blog, a book, a forum, and now a wiki. There's not really a rat race option for what I do, but if there was, maybe I'd take it. Incidentally, I don't really have a problem with people using the freedom the…

As someone who has started down the path of growing a passive income stream, your article really resonated with me. I found myself nodding along to the points you were making, since I have had similar thoughts many times before. But the parent comment made a good point: that money can be a powerful mechanism for shaping the world you want to see. I don't know the answer, but I will have time to think about it as I bu…

Yes, money can be an agent of change. Time also. Some may do best working in a traditional structure. Others do better on their own. I helped found a nonprofit organization during my first year of "retirement". However, I found that I could be far more effective on my blog talking directly to people instead of spending time writing grant proposals, so I quit the nonprofit.

Re: How I live on $7,000 per year

#102

Post by erejacob » Sat, Oct 15, 2011, 4:23 AM UTC

barryfandango wrote: post #99

I agree with the author that there's much to be gained by shrugging off the consumerist expectation that we spend all of our income on junk. The next step in that progression though, in my opinion, is to learn to obsess over money exactly as much as is necessary, then start paying attention to what really matters in life. This guy's OCD approach to money sounds exhausting.

I agree with you to an extent. However, it's a lot easier to think about the money you do have than it is to work for the money you don't have. My attitude towards spending is more of a game to see what I can get away with, e.g. getting the same thing for much less than just ordering it on amazon with next day shipping. I find this entertaining much like some people find shopping entertaining.

Re: How I live on $7,000 per year

#103

Post by daniel-san » Sat, Oct 15, 2011, 4:35 AM UTC

sage_joch wrote: post #94

erejacob wrote: post #79

Earlier quoted context omitted.

I pretty much spend my time trying to "educate" unaware, materialistic consumers. I've affected more people than I can count (those who've told me) and presumable more beyond those (who didn't tell me). So I have a blog, a book, a forum, and now a wiki. There's not really a rat race option for what I do, but if there was, maybe I'd take it. Incidentally, I don't really have a problem with people using the freedom the…

As someone who has started down the path of growing a passive income stream, your article really resonated with me. I found myself nodding along to the points you were making, since I have had similar thoughts many times before. But the parent comment made a good point: that money can be a powerful mechanism for shaping the world you want to see. I don't know the answer, but I will have time to think about it as I bu…

Out of curiosity, what does/will your passive income stream consist of? I have recently recognized how important passive income is to enabling my goal of fewer hours of labor, but I am frankly new to the idea and just getting started.

Re: How I live on $7,000 per year

#104

Post by nirvana » Sat, Oct 15, 2011, 4:48 AM UTC

jim_h wrote: post #86

nirvana wrote: post #10

I've been living on $13,754 per year for the past 4 years. (Average as of last month.) There are two of us, so, double that and you have the average cost over that period. While we've been doing it, we've been traveling full time, spent the last year in europe living in AirBNB pads, and doing our startup. We buy a MacBook Pro each year and an iPad or iPhone each year as needed, with the old one going to the other per…

It's awesome that you lived on a boat and only paid $300/month on marina fees. How much did the boat cost?

I bought the boat with grander ambitions than to use it as a place to live, and so I spent more on it than I would have if I was just looking for housing. Worse, in the last years I had it, the marina really jacked up the rates.

If you're looking to save as much as possible, you can get boats for $1,000-$7,000 that a single person can live aboard fine (or two people towards the higher end of that scale)... and by going out of the urban area to more remote locations you can get cheaper marina slips.

Re: How I live on $7,000 per year

#105

Post by Mizza » Sat, Oct 15, 2011, 4:49 AM UTC

nirvana wrote: post #10

I've been living on $13,754 per year for the past 4 years. (Average as of last month.) There are two of us, so, double that and you have the average cost over that period. While we've been doing it, we've been traveling full time, spent the last year in europe living in AirBNB pads, and doing our startup. We buy a MacBook Pro each year and an iPad or iPhone each year as needed, with the old one going to the other per…

This is the same kind of lifestyle I lead, and am continuously striving to lead. I love it. I am working on a project to help people become nomadic hackers like yourself.

Can I interview you for my website? Shoot me a line: rich@gun.io

EDIT: I've written my thoughts on the subject here: http://gun.io/philosophy/

Re: How I live on $7,000 per year

#106

Post by phlyingpenguin » Sat, Oct 15, 2011, 4:58 AM UTC

erejacob wrote: post #83

tryitnow wrote: post #50

Earlier quoted context omitted.

That's a good point and one of the frustrating things I find about an otherwise awesome blog. Living with a significant other is cheaper than living by yourself because I really doubt you're going to want to live in really close quarter with someone your not sleeping with.

I was living on 5-7k for five years before I got married. Being single or married doesn't materially affect the math. If you're single, you can live in a smaller space, but you'll spend slightly more on rent. This is nearly a wash. However, if you're single you don't have to go along/compromise with your partners less than frugal choices.

My rent (which is the cheapest possible in town) is $6,000 (not including heating oil, which is ~$75/mo in the winter) a year for a very small room of a duplex in which each half is shared by 4 people. In a very different real estate market I've been in within the last two years (KY houses are on the order of 1/2 the cost of houses in NH), it's still about the same price for rent. You won't make it on the $1-2k that's left over from that. How long ago were you living on <$7k?

Re: How I live on $7,000 per year

#107

Post by sage_joch » Sat, Oct 15, 2011, 5:03 AM UTC

daniel-san wrote: post #103

sage_joch wrote: post #94

Earlier quoted context omitted.

As someone who has started down the path of growing a passive income stream, your article really resonated with me. I found myself nodding along to the points you were making, since I have had similar thoughts many times before. But the parent comment made a good point: that money can be a powerful mechanism for shaping the world you want to see. I don't know the answer, but I will have time to think about it as I bu…

Out of curiosity, what does/will your passive income stream consist of? I have recently recognized how important passive income is to enabling my goal of fewer hours of labor, but I am frankly new to the idea and just getting started.

Dividend growth stocks, like PG, MCD, PEP, KO, LMT, KMB, WM, etc. They don't swing too wildly with the market (they even stayed steady during the recent down/upswings), and they generally increase their dividends at a faster rate than inflation. It's a sort of "get rich slowly" scheme, but it's fun to see a growing share of my expenses being handled by passive income.

Re: How I live on $7,000 per year

#108

Post by wnight » Sat, Oct 15, 2011, 5:10 AM UTC

erejacob wrote: post #87

scarmig wrote: post #28

Depends on your goals in life. $7,000 is definitely doable. But I don't want to live in an RV. Indeed, I want to live in a walkable neighborhood with groceries, low crime, and easily accessible entertainment. The site probably isn't a convincing case for a general audience. Which is a real pity, because a lifestyle of $10,000 to $12,000 a year is very doable, even for a single person, even in the Bay Area, even with…

It is really a pity. If I had just claimed that I spend twice as much as I actually do, people wouldn't be so quick to discard the idea. However, it really is a matter of efficiency. It wouldn't surprise me at all if my neighbors spent 50%, 100%, 200% or even 400% more than me despite living in essentially similar structures and enjoying similar things. As mentioned elsewhere, it's mostly an attitude towards what mon…

Thanks for telling the truth. I'm at around $18k/y and it's good to have motivation to do better.

Rent is $6k right there. Ouch. And this is a small town.

Food only gets cheaper the more we do our own, and after becoming vegan. I spent $20 on food in the last week on the fridge is stocked for another week to come. Squash is just cheap, etc. We've gardened before but have nowhere to do it right at our place, though hopefully will soon on the deck.

Re: How I live on $7,000 per year

#109

Post by gregatragenet » Sat, Oct 15, 2011, 5:20 AM UTC

rorrr wrote: post #25

Sorry, but this story is garbage. Rent/mortgage, retirement completely ignored. Plus he has the shittiest $82 health insurance plan he could find, and he doesn't calculate the costs of what will happen if he gets sick. On average people after 65 spend $2,920 per year on medical out of pocket expenses (Source: http://www.newretirement.com/Planning101/Rising_Medical_Cost... ) Then his food comes from his garden, which…

Hi rorrr, You are clearly on the treadmill. Yeah if you want to buy a new car every X years, and get a mortgage for an overpriced house you are not going to be able to live this lifestyle. You will probably have the lifestyle most enjoy. Maxed out credit cards, no savings, that big oh-shit moment in your mid-fifty's when you realize you've nothing saved for retirement...

Not to burst your bubble, but his health plan is pretty good. I have a very similar one. It's shocked me too that you can get a good plan if you are willing to take a very high deductible..

And ironically if I took my deductible each year I didn't need it and burned it (or gave it to charity) I'd almost break even on my low-deductible 'old plan'. When I left employment the Cobra for my plan (2 people) was 980/month. I now have a HSA-style plan that's $170/mo. It has a ~5K-per-person deductible (x2 for two people). 100% coverage after the deductible is met. I'd about break even each year if we both simultaneously came down with cancer. But since we're healthy I get to pocket the 10K or so I save each year.

Most cities you can get by without a car. I prefer it, actually, it is a lot less stress than driving and a lot healthier. But, yeah, if you are like the folks who got a 'great deal' on a house in Stockton in 2007 and are now commuting from there to Santa Clara, I guess bikes are out of the question. It's all about live-near-where-you-work (or vice versa).

The author states he's got a $100K in savings - That's a lot more safety net than your average American. Do you have that kind of safety net?

Re: How I live on $7,000 per year

#110

Post by erejacob » Sat, Oct 15, 2011, 5:27 AM UTC

phlyingpenguin wrote: post #106

erejacob wrote: post #83

Earlier quoted context omitted.

I was living on 5-7k for five years before I got married. Being single or married doesn't materially affect the math. If you're single, you can live in a smaller space, but you'll spend slightly more on rent. This is nearly a wash. However, if you're single you don't have to go along/compromise with your partners less than frugal choices.

My rent (which is the cheapest possible in town) is $6,000 (not including heating oil, which is ~$75/mo in the winter) a year for a very small room of a duplex in which each half is shared by 4 people. In a very different real estate market I've been in within the last two years (KY houses are on the order of 1/2 the cost of houses in NH), it's still about the same price for rent. You won't make it on the $1-2k that'…

Since 2001 and up to now.

Are you positively sure you have the cheapest rent in town? We lived in the same city for two years before we found a place that was 30% cheaper. Go to craigslist and set up an RSS feed. The underpriced places don't stay on the market for more than a day before someone snatches them up.