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Anonymous
Hi FAs or those in same circumstances,
TIA! Cash Expenses:50-55k per annum Savings+Portfolio:$200k?
Can we transit to single income now? What is the rough income of your clients in similar situations?
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Zac
13 Mar 2021
Noob at Idiots Invest
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I'm not an FA, but do I see a lot of people asking, "How much is enough?" or "Is it enough if I have..." sort of questions. It's natural to ask these sort of questions, but it's also a bit pointless because ultimately, nobody is in your shoes except you.
In short, I don't think anyone can provide an answer that completely accounts for your situation. You really need to assess your circumstances and ask if you are okay to take a massive pay cut as a couple. There isn't any right or wrong to this.
But it will be a massive pay cut.
On paper, a $70k gross income works out to just about $56k take home. If you included income tax in your annual expenses, that means you spend just about every single cent you make (based on $55k annual expenses).
This is not a number that most financial planners will tell you is okay. In fact, I don't think anyone here will encourage you to basically "spend as much as you earn". But ultimately, ask yourself: are you comfortable with that? If you are, then by all means, go ahead.βββ