Posted to Resource Articles
by Maryann Kelly on Tue, 01/22/2008 - 11:51am
As a financial planner, the most important figure I ask clients to estimate before they meet with me is the cost per month of comfortably supporting the family. Almost always, I have to increase that figure by 30 percent to arrive at the real number. This is particularly critical if you are in the middle of a divorce and suporting your family.
I live in West Los Angeles where the cost of living has grown very high for families — particularly the cost of housing and education. Private elementary school alone now costs $25,000 to $30,000 per child per year here.
Stop now and list your monthly expenses. If you add up that list, then increase the total by 30 percent, you'll most likely arrive at the amount you will need to sustain yourself and cover emergencies, holidays and a short vacation. How does that look? If the number is a lot more than you're taking in, accept the situation as challenge. And, most importantly, find ways to increase your income.
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