Sunday, May 08, 2005

Living On $500 a Day

A very wise person suggested that we rich Americans should establish a maximum budget that we would be happy with . . . then give the rest to Jesus. You might be surprised how little that amount is. Years ago I tried to figure out what it would cost per day per person to travel full time. The following daily budget is for two people traveling together and staying in one room.

1. Accommodations at nice motel or condo Average $125.
2. Food - All meals out, but only extravagant two times per week. $60
3. Transportation - Rental car or airplane, but not airplane every day. $70
4. Entertainment of some kind every day - Average $35
5. Clothes, laundry, personal, hairdo’s etc. $30
6. Cell phone, web services, etc. $5
7. Health and Life Insurance $30
8. Gifts $10

That totals $365 per day or about $10,000 per month. If this was all earned income, you would need to earn about $14,000 to have this as after tax income. If you tithe on the gross, you would need to make about $15,500. $500 per day.

So, assuming you can live at a much smaller amount by owning a home and a car or two, eating meals that you prepare and such, this should be the most you would ever need to earn. It is a lot, but for those who are in pursuit of large incomes, it could be one way of determining a cap. Any other “needs” above this list would be for jewelry, extravagance, or investments.

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