47% of Americans don’t have $400 in savings

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Before I begin this article I want to make clear that this blog isn’t about eliminating taxes and/or about the stigma of the American people being desecrated by some evil plot from our government to enslave us through taxation.

I am originally from Miami, Florida, oh yeah, the sunshine state! Where your average margarita will cost you based on the paradisiac scenery and the half-naked server bringing it to you. Where there is more luxury per square inch than a diamond pit in Sierra Leone. Where the income of those who live and work in these exotic and glamorous lands seem to surpass the average paycheck!

I think not! Perhaps it isn’t the fact that Floridians have a greater financial abundance. Actually, it’s the fact that their paychecks aren’t crucified with extensive taxations that allows them to live life more comfortably.

I moved to the Washington DC area in search of a better income and a more prosperous life for my family and I. I had just graduated from college, have a wife and two small children and a dream to succeed in life (I have a dream!). After receiving a “lucrative” offer (lucrative for a junior mortal like myself) to come work for a government contractor, I decided to go for it and fear no evil.

Come to find out, Virginia has both state and government tax. Double the taxes taken from other states like Florida. According to desertnews.com, the median income in Virginia is $62,666 where the average paycheck deduction fluctuates between 22% and 25%. Now do the math, $62K comes out to $3,994 per month after taxes ($47,928 per year) and the average annual expenses for two working adults with two children is $33,091.

This will leave an average family with just $14,837 left per year for additional expenses, savings and or vacation. $1236 per month doesn’t sound so bad right? WRONG! If a middle class family decides to buy a home, where would they get the 20% needed to begin the purchase? How does a father or mother afford to give a substantial down payment to buy a car? If you have a medical emergency, how do you afford not to work?

According to theatlantic.com, 47% of Americans would not be able to come up with $400 for an emergency. THAT IS INSANE!

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States like Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming don’t have state taxes and therefore leave an extra chunk of change left in your pocket. If the average income of $62K gets deducted from Florida’s average tax deduction of 11% that would leave you with $4598 per month! That’s $604 more a month than those residing in states like Virginia. I don’t know about your house but in mine, $600 pesos, go a long way!

Moral of the blog:

  1. Before you take a leap of faith and go to another state, make sure you research income vs expense ratios for that state. Don’t get caught up in a situation where you and your family are getting less money per month because of over taxing and lack of research.
  2. Make sure you have a clear view of what your expenses will amount to be and how to start saving money each month.
  3. Choose affordability over luxury. It’s better to have a nice, affordable home than a luxurious pad that leaves you with a broke bank.

Time to say adios!

Keep checking with us here at whogivesablogg.wordpress.com regularly.

Go forth and do great things!

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