Tuesday, June 30, 2015

Annual Family Expense

This is my estimate for annual cost of living for a family of 4. I currently have 4 properties that I am in the process of turning into cash flow positive. The hope is that I will have enough rental income so that I can live for free thereby eliminating housing as part of my expense.

Childcare 42000
Food 23000
Vacation 18000
Car 9600
Gas 5000
Car Insurance 2000
Life Insurance 2500
Clothes 9500
Children's Lessons 12000
Miscellaneous 10000

Total $133,600

This still require that I make $270,000 a year. I will put $40,000 in my SEP-IRA. With $230,000 left and assuming 40% tax which will leave me with $138,000. The plus side of this equation is that if I have a family of 4 by default I will have a wife with income all of which will be icing on the cake.

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