Living On 43K A Year in Seattle | Boomer Money

i think money is very important and it can control you or you have to control it it's very simple about making sure you don't spend more than you have coming in but that's not always easy to do my name is mike i live in seattle my last full year of working as a high school teacher in 2015 my gross annual pay was 72 000 a year [Music] this video is sponsored by chime an award-winning financial app that is changing the way people feel about money they have a bunch of different tools that help you avoid the pitfalls of traditional financial institutions and help you keep peace of mind traditional financial institutions actually make a lot of money off of overdraft fees annual fees and interest but with chime there are no overdraft fees no annual fees and no interest and you don't even need a credit check to apply they also have no fees at atms at over 60 000 in network locations that are conveniently located in places like target and walgreens chime allows you to help build your credit safely with their secured chime credit builder visa credit card times credit builder card works by allowing you to transfer money from your spending account to your chime credit builder secured account so that you are never spending more money than you actually have so the money you have transferred over can also seamlessly pay your balance on time when you turn on safer credit building with credit builder you're just using the money you already have and you're already spending and you might as well help build your credit by paying off your monthly bill on time don't know how to build credit with chimes credit builder's secured visa credit card you can get help building credit with no annual fees or interest and no credit check required to apply i'll have chime links below so you guys can get more info and now let's get on to how my dad spends his money mike taught high school history for 34 years in the seattle area today he lives mostly off his pension and social security he has not withdrawn his 401k or roth ira five years after retiring as a teacher i'm now making with my pension and social security i'm bringing home about 3 600 a month to supplement my income i substitute usually a couple days a week and i make 200 a day gross on that job here's how i budget my money the old school handwritten down method right now i don't have a good handle on how much i spend on food but for our house mortgage i pay three thousand dollars a month and i pay an extra 400 to pay down the mortgage sooner car insurance is around 130 a month the thing i do regarding gas is there's one gas station up the street here that is the cheapest in town if you pay cash hello there let me get some gas on number seven this is the best gas price that you'll find in south seattle that i know of i spent about 50 bucks of gas on this car the audi a month my energy bill for gas and electricity is a little over 200 a month our cell phone bill and i have a new cell phone i'm paying on a monthly basis it's around 150 a month cable and internet is around 200 a month we put everything all of our purchases for food and entertainment on a credit card that can range anywhere from three thousand maybe twenty five hundred to clear up to six thousand that's pretty much it we have garbage and our water bill [Music] our wedding we're very frugal we paid just a minimum amount for a classic presbyterian church on top of queen anne hill it was maybe a hundred dollars to rent it for the night and it was right after christmas we got married on december 27th so there were christmas trees that they were giving away on christmas lots so we grabbed six or seven of them and we put red bows and twinkly lights on them so that was the main backdrop for our wedding we had our reception following the wedding at the seattle aquarium and my brother-in-law worked for the aquarium and he was able to lease the entire aquarium for the entire night for around a hundred dollars our wedding total probably cost about two thousand dollars [Music] [Applause] the biggest investment anyone will make in your life is your house and i having been in the navy had the gi bill in my favor and usually buying a house you have to have a pretty good size down payment with the gi bill you have zero down so christine and i after being married and having eric in our lives our firstborn started looking for a house we found a house for sale by owner on queen anne in the old neighborhood and they were just little bungalows and it was for sale for 85 000 the house in queen anne was a two-story bungalow with the upstairs living space was around 1200 square feet and it was really old but we loved it and we ended up getting it [Music] okay this house is now estimated on redfin as a little over a million dollars i'm a little disappointed at the condition of the house looking at it it's not maintained as well as how i left it but heck that was 1991 i think or 1990 when we sold it i completely changed all the siding on the outside the siding around the front and all down the side all the exterior the most obvious thing was the it had the big front porch that had a western style railing system and we quickly envisioned having round columns and more of a classic classic looking front porch we put it on the market and sold it for 175 000 so we just about doubled our money [Music] one of the reasons we decided to sell was because we started looking at houses in the suburbs that were almost twice as big brand new honestly a little better place to raise kids the new house in the suburbs which was about 1800 square feet was thousand 176 almost exactly what we sold the queen out a house for and so you but you did get a mortgage on it what'd you do with the money that you made we put a good chunk down on it but we also use some of the money for just to upgrade ourselves you know a better car furniture upgraded our lifestyle a lot all right so here's the house that shelby and her siblings grew up in she was born in this house actually not in it we bought it in about 1991 i think and for 176 000 2006 we moved across town scariest financial time was we had made the decision in about 2006 to sell our federal way house in the suburbs that we bought after the queen anne house we didn't like it anymore we didn't like the layout the neighborhood had changed and we wanted something different i told my wife there was this one house that i thought she might like so we came right at this spot and i stopped at the top of this hill and i said well it's down here and she just lit up and said michael this is what i was talking about we bought it and she just loved it she loved the setting and i did too but i was also looking at it and seeing oh boy projects galore what did your kids think about it oh the kids were not happy about this move okay so in 2006 no one could have predicted the housing market [Music] we had purchased this house in federal way that i'm in now and we hadn't sold the other house but we had a buyer a contingency offer and the offer fell through they backed out that there was a scare in the mark housing market at that time the market was getting worse and worse and worse and so we realized we're stuck with the other house we're stuck with two houses the housing market did crash um at that time you know and it was a gradual slide i mean you could feel it but you really didn't believe it and you kept thinking it's going to turn around it's going to turn around and it never did for two or three years prices on houses just kept going down and down and down and so we're stuck so that was the frustration it was a little bit scary and we were very reluctant landlords we didn't want to be landlords one thing i think is interesting is even when the housing market crashed and the house was worth way less than it was before yeah you could still rent it out for what the mortgage was yeah so even though it was like a pretty terrible situation it was still manageable just kind of annoying to be a landlord right right when i see the house in good shape and being well cared for now it actually makes me feel good that we sold it and quit renting it and it was better for the neighbors too so this is where i'm currently subbing at this school it's been very interesting a year and a half with kids not being in school kids kind of forgot how to behave in a lot of ways so everybody's working hard to get it back financially do you think being a teacher makes sense now i think pay wise it pays pretty good how much does being a teacher in washington state pay now pays a lot better than most parts of the country i think a beginning teacher is going to enter at about 50 000 salary increases by taking more classes and by experience and getting a master's degree and getting what they call nationally board certified like if you're a teacher with 15 years you're making close to 100k now oh really yeah yeah that's actually pretty good and you get summers off you get like two weeks for christmas and stuff like you could do a whole nother gig yeah keep in mind you take classes you know a lot of those summers especially your first say 15 years of teaching okay yeah sure did you find in the evenings you had to do a lot of work oh yeah yeah a lot you don't even leave when you're allowed to like eight hour day or whatever you typically stay an extra hour hour and a half and you know in the latter years of my teaching i stayed until i knew i was set for the next day because i didn't want to go home and think about it right i do know teachers though that get there at seven and leave at 2 30. [Music] one of my passions is golf last summer my wife agreed at my urging to join a country club it's about 500 a month for the two of us and so that's where i golf and i can golf unlimited for that amount this 2008 audi which i bought in 2016 was 13 500. but brand new it was a 45 000 car i had two little convertible sports car when i was young and i just wanted one and i was kind of set on either a bmw or an audi so i've i looked for a long time and so that's that's why why can't millennials buy houses the reason they can't afford homes is because they spend all their money on avocado toast and lattes so quit doing that and you can buy a house no all kidding aside the cost of a house relative to income is a lot higher than it used to be and people have so many other extra things that are perceived as things you have to have rather than things you want to have having a 100 a month cell phone bill is like nothing cable internet um spotify you know your music sound whatever there's so many add-ons that just pile up and and since people haven't taken out of their credit card or their checking account you don't even see them they're just gone hey when i was 18 and i left my house because my family had a lot of troubles and there was a divorce and my mom was a working mom with my two little brothers i knew i was never going to be able to go home and if you're a millennial today and you have the ability to live at home there's nothing wrong with that if you can do it to help save you money so you're ready for a move it's smart don't be embarrassed about it work on your relationship with your parents and take advantage of that opportunity so one thing i always said was my my house will always be open to my kids if they need to come back for any reason

Channel: Shelby Church

Views: 12,472

Keywords: shelby, church, first time credit card, how to build credit, no credit check, no credit credit cards, millennal money, cnbc, boomer money, boomer, retired, retirement, spending money, money, personal finance

Id: _P73yWZ52Pk

Length: 13min 27sec (807 seconds)

Published: Fri Dec 17 2021