Team Staff Salary Cuts & Layoffs (MOD: and local city impacts from lockout)
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08-28-2012, 06:33 PM
Join Date: Feb 2006
Originally Posted by
Absolutely. I'm speaking of one individual with no spouse or dependents. A family of four living on 40k is considered poverty level if I'm not mistaken.
Even a family of four living on 80k (ie, both spouses making 40k) isn't exactly in the clear. Children are extremely expensive and people of child-bearing age are typically saddled with significant debt from college loans, car loans, mortgage, etc. Cut off half their income and they default on those debts in order to support their children, which starts a negative financial snowball involving bad credit, higher interest rates on future loans, etc.
You lose maybe 20k in taxes, 15k in rent and utilities (for Vancouver at least). If you're lucky enough not to have any debt you're not in great shape but ok. The problem is if you want to help your kids out for college (so they don't have student debt) then you won't even be able to begin building up savings for retirement until your mid 40's or early 50's. Then retirement is quickly looming.
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