Money to make a living?

[Sheepwheat]

What do you think is a minimum monthly budget to get by in today’s world that is western Canada? I am asking simply to gauge opinion and see if I am as far out to lunch as I think. It also may be telling as to why farming has gotten so out of hand, the living expectations we have these days are unreal.

Not asking for personal numbers here, just thoughts.

Some ppl get by with 3000. Some can’t seem to stretch 8000 far enough. What say you?

[15444]

Just a rough rounding in my head I would say about $2000, but say $2500 to be safe. The size of a mortgage would be the biggest influence to this number and if you have new vehicle payments. But media says under $30K per year is poverty, so I guess I am not living right. Many people say they can't survive on less than $50k a year, so I would guess for most people, the average is probably around $4k a month.

[Braveheart]

What constitutes a living? How many kids and what age?

Most families with school age kids probably should like to see 7,000 per month.

[Sheepwheat]

A living constitutes paying all bills on time, setting aside a bit of money for rainy day and/or retirement. Ie. you have enough to replace water heater or tires if it happens without using credit card.

Say three kids under 18.

On the farm. No stupid debt. Ie snowmobiles or new truck debt. No non farm mortgage.

[jazz]

You have to qualify that a bit. City or country, debt or no debt.

Assume no debt, home in a city, own your vehicle. Your groceries bill for a family is easily $1000 per month, probably more. Water, power, gas and fuel, insurance misc repairs another $1000. Add in a few bucks a month entertainment, say $500 isn't out of the question, clothes and spending on kids and wife, another min $500. For saving investment, make the min investment monthly to your TFSA which is $900 for husband and wife. Your 3 kids RESP is $600 per month, but your child allowance might cover that. Property taxes in my city are 300-400 per month.

$5000-6000 per month is needed.

[checking]

Too many variables between families.

What can be said is that families get use to their income. Easy to accommodate more, but if it reverses, it becomes hard to adapt back to the former stage. In a sense, agriculture works with those variables better than most other businesses because it is part of our business.

Hope you are not feeling it.

[grassfarmer]

I'd say $3 to $4K comfortably. Don't spend much on clothes or eating out/entertainment like some do. I find it surprising how a landline, cell phones and internet service adds up in a month though. These are not costs our forbearers had.

[AlbertaFarmer5]

I'd say $3 to $4K comfortably. Don't spend much on clothes or eating out/entertainment like some do. I find it surprising how a landline, cell phones and internet service adds up in a month though. These are not costs our forbearers had.

Off topic, but I don't consider cell phone or internet to be a cost. The connectivity and information both save me so much time and money compared to the good old days of walking home or walking to neighbors everytime something goes wrong, or need parts or advice, or need help chasing a cow or most anything else. Diagnosing something with internet, sending pictures to vet or mechanic, watching radar and weather, etc etc. Certainly doesn't deserve to be in personal expenses category.

[makar]

I agree ab5, just because i can burn wood who thinks a furnace is a luxury.

[wd9]

Average family income in Canada is 70k.

[GDR]

Average family income in Canada is 70k.

I think lots of farmers get confused and mislead by averages and norms when looking at income. I would say 70k from working would be similar to 35k or even less of farm income. Lots of write offs we can use not available to others. When I quit working i was surprised how much less life cost, commuting was expensive, work clothes, ate lunch out often all adds up. Plus in our case our food bill is drastically less with our own meat and large garden.

Housing and recreation costs have exploded in recent years, those families with school age children in rental houses are doomed.

[farmaholic]

I think lots of farmers get confused and mislead by averages and norms when looking at income. I would say 70k from working would be similar to 35k or even less of farm income. Lots of write offs we can use not available to others. When I quit working i was surprised how much less life cost, commuting was expensive, work clothes, ate lunch out often all adds up. Plus in our case our food bill is drastically less with our own meat and large garden.

Housing and recreation costs have exploded in recent years, those families with school age children in rental houses are doomed.

Ok GDR, now you're going to get it!

...."When I quit working I"..... WTF are you retired?

[grassfarmer]

Off topic, but I don't consider cell phone or internet to be a cost....

Maybe you meant a net cost or an unnecessary cost? It is a cost - anything I get a bill for that I have to pay is a cost whether that can be considered a business or personal cost or part allocated as each. I wasn't arguing that these things don't have value - just that combined they add up. In my case they total more than my electricity costs - for both house and farm business!