The Secret to Living Well on $20,000 a Year

Reader Comments
Back to blog

I am a single mom of a 6 year old. I made $21,000 last year and receive no child support or government assistance. My grandmother does watch my daughter when I work at my full time job in the summer so that helps a lot. I own my own home in a decent neighborhood. I have health insurance through my work for my daughter and myself...$190.00 every two weeks. I put 20% of my paycheck into my 401k. I have basic bills...gas, electric, mortgage. I have a cell phone for $25.00 a month. I don't have cable, but I do splurge on internet and Netflix. I have a little money left over for clothes, food, and fun stuff. Money management and free child care go a long way. We have everything we need and then some:)

Angie of MI 12:58AM May 17, 2013

Terrible. So you can do it but don't get sick, have no savings and don't think about your future. Eat pasta dishes and have a relationship based on board games in a park. Sounds like a good life. How do employers get away with paying so little? I read this article in hopes of finding tips on how I can do it. I left even more depressed. This exactly how I live and it's not living.

Dgerb of NJ 1:12AM February 07, 2013

The secret to living well of with a family of any number is to plan it.
If you can't support yourself on 20k, why in the hell are y'all even thinking about kids?
Now if you say you didn't have a choice, or things just happen, then man up and quit bitching.
Everybody has a choice. This guy chooses to live comfortably alone and do what he loves. What did you choose?

Claire of MO 6:46AM January 23, 2013

That is a single person...I want to know the secret of living well off that kind of money for a family of four with a dog

Christina of WA 6:12PM January 20, 2013

I dont understand why people think being single makes it easier to live on 20k a year, i'm single and therefore I have to pay all my bills, I dont have a husband or teenager that can go to work to help- its just me. I'm single white female that doesnt have a bunch of different daddy kids, I'm american which doesnt stand for much anymore these days, dont have a drug or alcohol problem, have and education, have always worked one or two jobs, yet still can't get paid what I'm worth and need to borrow every month just to make ends meet. I only have internet, no cable and yet my living expenses still come to $1000 a month thats not including car, car insurance, phone, monthly dental bill because one filling was $300, can't afford car repairs or health insurance even though I work for a prestigious car company you'd never know it by how I live, and food and gas- I'm short at least $3-400 every month- so cry me a river if you have two incomes.

namesless of FL 4:20PM January 11, 2013

Ummm He is single and while $20,000.00 still is not much in this economy for a single person, he is single. What about a family that is living on $20,000.00? Or an older couple? My husband and I are going to be making $18,000.00 when he retires for good. Right now he has a job and we are doing all we can to save as much as we can.
When he retires I will probably give up my car because that is $2,000.00 a year we can use in our pocket. With the car we have less than $200.00 extra a month when we pay our bills and save for those once or twice yearly bills. Clothes dollars for both of us on that budget are less than $300.00 and after the first of the year when health insurance and medical cost go up we may not have any extra money for clothes at all. But we will get by we have done it before and there are ways.
God has always taken care of us.

Sue of CA 8:15AM December 19, 2012

I agree with Amanda. A single guy on 20k per year? Really? Ho hum. Look at a family of 4 living on that. I'm in Orlando. Electric down here for my 900 sq ft apt is 260 per month. Rent in my income restricted neighborhood is 878 per month. Everything is way more here, except for the rate of pay.

Kate of FL 2:56AM December 13, 2012

I agree, Margo. Plus, not having health insurance is not an option for me. Period, the end.

Julie of MN 2:47PM November 08, 2012

Sounds like a fun adventureous life. I'd love to travel in my RV and meet people all around the country. Good luck on your future adventures.

Nancy of CA 8:14PM October 25, 2012

I agree with the others you picked a single guy. Really? You see how he lives try living on 25000 with 4 kids and two parents. That's us we online have utilities because the place we rent supplies them other wise no way. Unless you find a family that is living well on 20,000 a year don't even try.

Amanda of TX 3:15PM October 25, 2012