boston period 4

The Cost of Living: Boston, MA

Chris Kim, Eric Tian, Nishad Kulkarni

Location Boston, Massachusetts

Total Income: Initial & Post Taxation

Eric TianOccupation: Chimney Sweeper

Initial Income: $45,000.00 FICA: $2542.50 Post-Tax: $38180.00 Total: $35637.50

*Based on 2011 Tax rates

Total Income: Initial & Post Taxation

Nishad KulkarniOccupation: Highrise Window Cleaner

Initial Income: $45,000.00 FICA: $2542.50 Post-Tax: $38180.00 Total: $35637.50

Total Income: Initial & Post Taxation

Chris KimOccupation: MIT Groundskeeper

Initial Income: $40,000.00 FICA: $2260 Post-Tax: $34295 Total: $32035

Savings(20% of Adjusted Income)

$7127.50 Eric

Saving’s Account at Discover Bank:

$6000 APY: 1.15%

Checking Account at CHASE:

$1127.50

$7127.50 Nishad

Saving’s Account at Discover Bank:

$6000 APY: 1.15%

Checking Account at CHASE:

$1127.50

Savings(20% of Adjusted Income)

$6407 Chris

Saving’s Account at Discover Bank:

$5000 APY: 1.15%

Checking Account at CHASE:

$1407

Remaining Income After Savings

Eric: $35637.50 - $7127.50 = $28510

Nishad: $35637.50 - $7127.50 = $28510

Chris: $32035 - $6407 = $25628

Housing

Address: 514 Cambridge St City: Boston, MA Zip Code: 02134

Housing Costs

Lease Term: 1 year Deposit: $ 500 Living Cost: $ 25,200 / Year ($2100 / Month) Renter's Insurance Cost: $486.00 / Year

($40.50 / Month) Size: 1000 sq. ft. Apartment No garage 3 Bedrooms 1.5 Bathrooms

Remaining Income

Eric: $28510 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$19781.33

Nishad: $28510 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$19781.33

Chris: $25628 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$16899.33

Health Care: Celticare Saver HSA Eric: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance

After Deductible Individual Coverage

Nishad: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance

After Deductible Individual Coverage

Health Care: Celticare Saver HSA Chris: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance

After Deductible Individual Coverage

Remaining Income

Eric: $19781.33 - $2842.56 (Annual Health Care) = $16938.77

Nishad: $19781.33 - $2842.56 (Annual Health Care) = $16938.77

Chris: $16899.33 - $2842.56 (Annual Health Care) = $14056.77

Transportation

EricMBTA LinkPass (Bus / Subway Pass) $720 Annually

NishadMBTA LinkPass (Bus / Subway Pass) $720 Annually

ChrisMBTA LinkPass (Bus / Subway Pass) $720

Annually Not much need for car in Boston.

Remaining Income

Eric: $16938.77 - $720 (Transportation) = $16218.77

Nishad: $16938.77 - $720 (Transportation) = $16218.77

Chris: $14056.77 - $720 (Transportation) = $13336.77

Utilities (Annual Basis, Shared Costs)

Internet: $840 Cell Phone Bill: $2520 Heating, Electricity, Gas: $1896

Total: $5256

Remaining Income

Eric: $16218.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $14466.77

Nishad: $16218.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $14466.77

Chris: $13336.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $11584.77

Food and Furniture

Eric · Food: $7,200 · Household

Furniture: $750 (split cost)

· Laptop: $1,600 (Macbook Pro)

· Household Supplies: $200

Nishad · Food: $7,200 · Household

Furniture: $750 (split cost)

· Laptop: $1,600 (Macbook Pro)

· Household Supplies: $200

Food and Furniture

Chris · Food: $7,200

· Household Furniture: $750 (split cost)

· Laptop: $1,600 (Macbook Pro)

· Household Supplies: $200

Remaining Income

Eric: $14466.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $5216.77

Nishad: $14466.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $5216.77

Chris: $11584.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $2334.77

Extracurricular Activities

Eric Clothes: $1600

Misc: $2000Sightseeing: (Historic Landmarks,museum) $1000Season Boating Pass: $300

Nishad Clothes: $1500

Video Games: $800Sightseeing: $1000Season Boating Pass: $300Misc: $1500

Extracurricular Activities

Chris Clothes: $1500

Gym Pass: $600

Remaining Income

Eric: $5216.77 - $1600 (Clothes) - $2000 (Misc.) - $1000 (Sightseeing) – $300 (Season Boating Pass) = $316.77

Nishad: $5216.77 - $1500 (Clothes) - $800 (Video Games) - $1000 (Sightseeing) - $300 (Season Boating Pass) - $1500 (Misc.) = $116.77

Chris: $2334.77 - $1500 (Clothes) - $600 (Gym Pass) = $234.77

Summary

Eric Savings: $7127.5 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular

Activities: $4900 Remaining Income:

$316.77

Nishad Savings: $7127.5 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular

Activities: $5100 Remaining Income:

$116.77

Summary

Chris Savings: $6407 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular

Activities: $2100 Remaining Income:

$234.77

AnalysisWhen we were younger, we actually believed that all of the money in someone’s salary can be either spent or saved. This project has helped us see that these were false beliefs. In fact, after state, federal, and social security taxes, we were left with only approximately 70% of our initial earnings. Futhermore, we realized that there are certain necessities to maintain life, and that these have to be paid for. After these costs, which included household supplies, rent, food, clothes, and insurance, we were severely disappointed at the small amount of money we had remaining. We realized that $40,000, a salary that seemed substantial at first, was just enough to cover all necessary expenses. A salary of $40,000 is surprisingly just barely enough to live a decent life and still save a little bit for the future. You have helped us see life as the bureaucracy that it is, and for that, we thank you.

Bibliography

"Allston Tower LLC in Allston, MA." Apartments for Rent & Homes for Rent - Rent.com® Apartment Finder. Web. 08 June 2011. <http://www.rent.com/rentals/massachusetts/boston-and-vicinity/allston/allston-tower-llc/442325/3/>.

"Celticare Saver HSA." EHealth Insurance. Web. 8 June 2011. <https://www.ehealthinsurance.com/ehi/ifp/plan-details?planKey=1117700:4&productLine=IFP&ifpUIState.planDetailsBackUrl=/ifp/best-sellers>.

"MBTA.com Information on Fares and Gifts." MBTA.com Official Website for Greater Boston's Public Transportation System. Web. 08 June 2011. <http://www.mbta.com/fares_and_passes/passes/>.

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