What would you do if you earned $10,000 per month?

neverstray

Everyone keeps saying they would pay off bills. That's not how it works. Your bills would get bigger. That's all.

LatinaButterfly

Every month I would choose one of my friends to help out. I would give generously to the causes I believe in. I would travel... a lot!

kazzari

Me, too. My mortgage is just under $600/month, (3 bedrooms, 1300 sq. ft., 1/3 acre) which is 3x my net income. I spend about $150 on groceries. Probably that much per year on clothing. I have no car payment. I once turned down a proposal that would have netted me an additional $5,000 per month, and I still fantasize about what I could have done with that money. I don't need a bigger house. I love my car...I wouldn't want a nicer car. I'm happy to have a reliable car that nobody wants to steal. So, I could have quit my job and lived well on $5,000...and still have enough left to help out my kids. I do process payments for doctors where I work and I know many who can't live within their means. It is baffling.

I'm not sure anyone said they are not living within their means. What people are saying is that it's relative. How much is a gallon of milk where you live? Everything is more here. Every where I go, I have to pay to park, or take a taxi. You get the idea. It's just generally very expensive to live. So, yes, the income looks big, but it's pretty average, to be honest. I live within my means, and I'm good at managing my money. I don't have cable tv, I watch what I do and keep a close eye on my money. But, it just costs a lot. Clothing is very expensive. Try clothing and feeding two growing kids in this city.

If I was single, it would be different because I could rent a small apartment in a kind of not bad/not great part of town for pretty cheap. I could not have kids and save a ton. I could do a lot of things that would get my in a place of having quite a lot of cash on hand. In fact, I could probably save quite a lot and retire early. But, that's not my life. I have responsibilities and those cost money.

Don't judge.

I'm not judging...I was agreeing. People are saying that$10,000 just pays the bills, that sounds like they are living paycheck to paycheck no matter how big that is. Okay, so let's call that living within your means. And when I have doctor's calling me telling me they need their check ASAP because they are going to be overdrawn, if they are living within their means, that shouldn't happen. And yes, it is hard for me to understand. We live in the same neighborhood, shop at the same stores, pay exactly the same for a gallon of milk.

All I said is my needs are few, I'm frugal to begin with, and I have no desire for things. So, more money wouldn't mean a lot of bigger bills. Three extra 10,000 checks would pay off all my current bills and, sans 70,000 mortgage, I would be debt free. I'd be living well on my current salary. And I wouldn't have a mortgage over $1,000, I wouldn't move to the city. I am just speaking for my personal situation. BTW, I did raise 4 kids and when I did we lived in a bigger house, same neighborhood. My husband made $80,000 but he was terrible with money, maxed out credit cards, ruined our credit. I left him and I make much less but I'm better off financially and I have excellent credit.

Bahet

Now here's a post I can agree with! No one goes from making min wage to making $10,000/month. You make min wage then you get a few raises and work through college, get more raises, maybe change jobs for better pay or benefits a few times, pay down any debt, move to a nicer apartment then buy a starter home then upgrade that then trade in the old car for a newer one, etc. It's really very gradual.

It is possible to go from barely making it to 6 figures in a blink -- without hitting the lotto. I'm living proof. It may not be possible to do it in the comfort of an office or even in the good ol' US of A but it is still possible. I went to Iraq as a contractor and made that kind of money. And 2 years later I was ecstatic to give up my 6 figure job and go back to making $30K a year.

True. Overseas contractors do have that huge jump. I know - hubby was one and I specialize in overseas ex-pats in my tax bsiness. I've seen more than a few people go from an income of $30,000/yr to $130,000/yr literally overnight. It's not an easy job but it is very financially rewarding - especially if you stay over 330 days in a year and can get it mostly if not all tax free.

mikeyboy

I would cut back on my lifestyle a little.

k900

I would be able to afford to move out.
I would help my family with bills if they needed it.
I would eat better.
I would buy a few more pieces of fitness equipment.
I would donate to charity.

ampa916

I would pay off my bills definitely...buy a newer car (after paying off mine of course)...I would save up to buy my own home straight out so I wouldn't have a loan to worry about. I would help my mom buy a home and probably send them x amount of money every month. My mom is on disability and they have to work hard for what they get, so if I made that much I would want to help her.

I would still probably live like we live now (under our means) and just try to save whatever was left for my son's college

Bahet

"I'm cracking up at some of the posts here. People bragging that they have a mortgage of $550/month because they have a 700sqft house in a bad neighborhood. OK, that's fine if you are just starting out but that's still ridiculously high. "

I was not 'bragging." I was stating a fact. And if you think that amount is "high," I think you need to have a reality check. I live in Dallas area, and it's not so simple and easy to "just move."

But, since, apparently what I pay is so "high," I'd like to let you kynow that when I rented an apartment that was also 700 sq ft, my rent was $800/month.

So, I did move...and I now own a home that is a lot cheaper. How dare I be so stupid as to pay so much? *sarcasm*

$500/month in general is not high. $500/month for a 700 sqft home in a bad neighborhood IS high. I just ran a search on Trulia. There are nearly 1000 homes in the Dallas area for sale for under $50,000. That's an estimated mortgage of about $300/month with taxes and insurance. Most of them are over 1000 sqft. So you pay more for less home in a bad area.

Don't get me wrong, I'm not saying you shouldn't own. It's wonderful that you are a home owner. I credit our first home with being a primary reason why we are where we are now. We paid $83,000 for a 1600 sqft house in a decent area but not a place we wanted to send our kids to school. Our mortgage with taxes and insurance was $755 (7.5% interest back then.) We sold 5 years later for $135,000. Once I figured in the tax benefits and profit we made I realized that owning that house not only didn't cost us anything but we actually MADE $100/month living there. You cannot rent anywhere and have the landlord pay you $100/month to do so. My only point was that your mortgage for your home isn't really brag worthy. The fact that you are a home owner at 24yrs old - now that's something to be proud of!! That's how old I was when we bought our first house. That's a HUGE accomplishment. If I had to pick someone who would be successful in life based just on the posts in this thread you would probably be my top pick. Mind you, I'm a financial advisor too so I know what I'm talking about. You obviously have a good head on your shoulders and are financially savvier than the average person. Most people in their young 20s are living at home or too far in debt to even qualify for a mortgage. You obviously made some smart financial moves already. That's something to be VERY proud of.

As an aside, shortly after we bought our first house one of those door to door magazine sellers came by and when I answered she asked if my mom was home. Boy was she stunned when I said I was the owner. :laugh:

neverstray

Me, too. My mortgage is just under $600/month, (3 bedrooms, 1300 sq. ft., 1/3 acre) which is 3x my net income. I spend about $150 on groceries. Probably that much per year on clothing. I have no car payment. I once turned down a proposal that would have netted me an additional $5,000 per month, and I still fantasize about what I could have done with that money. I don't need a bigger house. I love my car...I wouldn't want a nicer car. I'm happy to have a reliable car that nobody wants to steal. So, I could have quit my job and lived well on $5,000...and still have enough left to help out my kids. I do process payments for doctors where I work and I know many who can't live within their means. It is baffling.

I'm not sure anyone said they are not living within their means. What people are saying is that it's relative. How much is a gallon of milk where you live? Everything is more here. Every where I go, I have to pay to park, or take a taxi. You get the idea. It's just generally very expensive to live. So, yes, the income looks big, but it's pretty average, to be honest. I live within my means, and I'm good at managing my money. I don't have cable tv, I watch what I do and keep a close eye on my money. But, it just costs a lot. Clothing is very expensive. Try clothing and feeding two growing kids in this city.

If I was single, it would be different because I could rent a small apartment in a kind of not bad/not great part of town for pretty cheap. I could not have kids and save a ton. I could do a lot of things that would get my in a place of having quite a lot of cash on hand. In fact, I could probably save quite a lot and retire early. But, that's not my life. I have responsibilities and those cost money.

Don't judge.

I'm not judging...I was agreeing. People are saying that$10,000 just pays the bills, that sounds like they are living paycheck to paycheck no matter how big that is. Okay, so let's call that living within your means. And when I have doctor's calling me telling me they need their check ASAP because they are going to be overdrawn, if they are living within their means, that shouldn't happen. And yes, it is hard for me to understand. We live in the same neighborhood, shop at the same stores, pay exactly the same for a gallon of milk.

All I said is my needs are few, I'm frugal to begin with, and I have no desire for things. So, more money wouldn't mean a lot of bigger bills. Three extra 10,000 checks would pay off all my current bills and, sans 70,000 mortgage, I would be debt free. I'd be living well on my current salary. And I wouldn't have a mortgage over $1,000, I wouldn't move to the city. I am just speaking for my personal situation. BTW, I did raise 4 kids and when I did we lived in a bigger house, same neighborhood. My husband made $80,000 but he was terrible with money, maxed out credit cards, ruined our credit. I left him and I make much less but I'm better off financially and I have excellent credit.

I get that, but just remember, the stakes are higher. You can live well, but you can also lose big. during my divorce, I lost my business and my house. That cost us a lot. Much of those loses were the result of living right up to the edge of what we could afford. Had we lived frugally and not maxxed out, then much of the financial troubles I am still suffering through right now could have been avoided. However, there was a time when we were seriously what I would consider very well off, due to business income, out of state rentals, and other things where we paid almost no income tax. I mean it was really good. When you get there, you push for more. It's kind of a weird state. I'll remember never to go there again because you keep wanting more, bigger, better, and it's like a self-perpetuating thing. And, it souless. That's the main lesson from it all for me.

Anyways, pushing through that and trying to correct takes some time because I don't have the financial leverage I used to have, and I pay a huge share of taxes, plus back taxes from the failing business.

One day, once out from under this mess, I might be able to enjoy life a little more, take a vacation once in a while, and have some fun. But, I guess I'm just saying that it's not all THAT much money. The government is the great equalizer. I bet if I made half as much, my take home would be similar to what it is now. I have no doubts about that.

One thing this thread has done is make me realize that maybe I'm a bit above the fray (sometimes you forget), and that I should take time out to enjoy it. Even though I'm just paying bills and not really living with chefs cooking for me, house cleaners, and all that, I should still focus on the fact that my earning power is outstanding, and I should do a few things in the coming years to capitalize on that as much as possible, without adding to the lifestyle of it.

i have been thinking a lot about downsizing everything in my life and getting back to a really basic lifestyle. It sounds ridiculous, but cutting cable TV was a start for me when I did that last summer. I've cancelled practically every service I have except Netflix and Internet. Netflix I kind of feel like is a nice luxury and it's inexpensive enough, and Internet is also a nice luxury that I'm not willing to live without at the present time. But, other than that, I've cut out everything...gym, newspapers, all subscriptions to anything. i dont buy new clothes unless I really need them, I don't go out much, I never eat out, etc, and I'm still barely able to pay bills. But, that's due to the stuff I mentioned above. Once all that is settled, then it probably will be smoother sailing for me.

My goal is to live more simply than I have in the past and not get caught up in having things. Because those things wind up with additional costs. For example, I really want a Harley, but I keep thinking about the added insurance and maintenance, along with the other stuff that goes with it. I may get one someday, but thinking about what I want more...early retirement and money in the bank, it trumps haing another thing in my life.

Anyway, this thread has helped me re-energize and think more about some of this stuff. So, thanks,.

BirchBayLady

I would be hating the tax man

Yes...exactly. I do earn a bit more than this a month but we barely scrape by after paying taxes and bills...life in San Francisco is muy expensivo.

cnnguyen2

$10,000 a month is ridiculous. I work part-time hours while I go to school, and $10,000 is my annual salary! Let's see, if I had that much money coming in a month, I would first PAY OFF MY STUDENT LOANS! After damage control has been done to that, I'd help my parents and other close friends with whatever they're having trouble paying off. Save some money to buy a nice house and donate some to food pantries around the area and homeless shelters.

wally1uk

Cocaine and hookers...nuff said

smantha32

Buy a house.

SPBROOKS68

I only bring home $1800.00 a month and never have enough to pay all the bills, so I would PAY my bills...

neverstray

I would be hating the tax man

Yes...exactly. I do earn a bit more than this a month but we barely scrape by after paying taxes and bills...life in San Francisco is muy expensivo.

Yeah, thank you.

hedgiie

continue working as usual, i work because i like the job i don't think too much about the money. and also do the usual like having vacation from time to time, investing and buying necessities.

i don't let money drive my decision, i just look at it as a barter for what can able to do based on skills and interest

Saruman_w

I'd setup a savings account. Figure up the amount of money I'll need to take care of necessities. From that I"ll allot some money for personal enjoyment and the rest goes toward savings.

chickabee5

First, I'd pay off my student loan, my credit card, hire purchase credit, and tertiary overdraft from my bank. Haha I have WAY too much debt for a 20 year old! Then, I would set up a dd to my favorite charities, and give some to my family/friends. Then I would go shopping! Then I would put the rest into a high interest savings account, not touch it (minus necessities, btw of which I will be living a very simple life so I can save as much as possible), for a few years, and then go off and travel the world for a year. :-D

BondBomb

I would put money aside for my son. I probably wouldn't buy much as far as new stuff because I'm pretty happy just having a wife and kid and a gym membership and a couple of fishing poles and a bunch of bowling balls.

You know, one thing I would do is eat a lot more big-*kitten* steaks and some crab legs.

Man why do you have to be married. You are like my perfect guy!

I am not going to pretend I make that much money but I do very well. And honestly my life is no different than when I made 50K a year. I save more yes. I will occassionally splurge on something nice. But I still shop at Target and Walmart. I still drive to Indiana to get cheaper gas. I do tend to pick up the check more often with my younger friends. And I stalk slickdeals all day

Onesnap

We have 3 homes. We both work full time and run a side business.

One of the homes we rent out on a weekly basis.

The other we built with our own hands (took 5 years, and it's 100% solar powered so we don't get bills in the mail).

As for cars we have a used Jeep and a Nissan Juke. We also have a 1997 Range Rover Defender (my husband's project car). We do everything ourselves, we don't hire help. My husband has been outside doing projects all weekend.

We work hard. We go out with friends maybe 1x/week. We cook our meals in and maybe get takeout once every other week. We go out to a nice dinner once in a while.

This amt of $$ is not unusual in our area (Boston suburbs) and in fact it's pretty typical (gotta pay taxes, mortgage, 2 car payments). We go on one vacation per year (typically out of the country). Like your average American we carry debt (mostly business related).

Most couples we know have a vacation home or property they rent out.

We're just *average* in our part of the US. Not wealthy by this area's standards. Shopping at Target and Marshall's like the rest of the people. Wearing clothes from TJ Maxx.

I think $10,000 per month when you have two working people (and a side business) and you've been working since age 15 is not too rare at least in my area. We put in our time, that's for damn sure. Also, the house we built does not have a mortgage.