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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/>.
"Season Rental Passes & Membership :: Charles River Canoe & Kayak." Charles River Canoe & Kayak :: Weston Ski Track :: Kendall Square Community Ice Skating :: Kayaking, Canoeing, Ice Skating & Cross-Country Skiing in Boston, Massachusetts. Web. 08 June 2011. <http://www.paddleboston.com/rentals/season_pass.php>.
"Typical Utility Costs in Boston | Oh My Apartment." Oh My Apartment from ApartmentRatings.com. Web. 08 June 2011. <http://ohmyapt.apartmentratings.com/typical-utility-costs-in-boston.html>.