The 60% solution doesn’t work when you’re in the 49% tax bracket
Sunday, February 20th, 2005I know I should be sympathetic and all, but:
Lyndsey graduated from college in 2000 with no debt whatsoever. But a funny thing happened on the way to adulthood.
Despite an enviable salary of $43,000 a year and paying only $600 a month in rent for the Arlington, Va., house she shares with three roommates, she’s now $12,000 in the hole and not quite sure how she got there. She doesn’t have a car, a mortgage, a child or even a pet to cut into her cash flow.
[ . . . ]
Lyndsey spent $442 for the week — and $250 of it was spent on meals and “hanging out with my girlfriends”. When she did some more math on the situation, she realized that a whopping $1,000 a month was going to eating out and hanging out.
I mean, with a similar salary I’m spending in a month what she spends in a week, and feeling guilty when I go out for lunch twice in a week, especially if I also go out for dinner once (I don’t know: maybe I should feel guilty, maybe I do overspend). My girlfriends don’t charge me to hang out with them, so I’m saving money there, too.