{"id":54872,"date":"2019-06-10T04:15:57","date_gmt":"2019-06-10T11:15:57","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=54872"},"modified":"2019-06-16T10:10:57","modified_gmt":"2019-06-16T17:10:57","slug":"how-i-live-on-less-than-40000-annually-kai-from-california","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html","title":{"rendered":"How I Live on Less than $40,000 Annually: Kai from California"},"content":{"rendered":"<div id=\"attachment_55121\" style=\"width: 399px\" class=\"wp-caption alignright\"><a href=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-55121\" class=\" wp-image-55121\" src=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1.jpg\" alt=\"\" width=\"389\" height=\"278\" srcset=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1.jpg 2560w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1-300x214.jpg 300w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1-768x548.jpg 768w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1-1024x730.jpg 1024w\" sizes=\"auto, (max-width: 389px) 100vw, 389px\" \/><\/a><p id=\"caption-attachment-55121\" class=\"wp-caption-text\">Mt. Diablo is not far from Kai&#8217;s home, which he and his wife bought in 2013 via a short sale. Later on, he used a severance package to pay off the mortgage.<\/p><\/div>\n<p>My name is Kai, and I live in Concord, California. <span class=\"s1\">I&#8217;m 41 years old and married, with two kids, an 11 year-old daughter and 10 year-old son.<\/span><\/p>\n<p><span class=\"s2\">Like Len, I&#8217;m an engineer by training; I also have an MBA. Today I&#8217;m primarily a stay at home parent, but I&#8217;m currently doing community non-profit work too. My wife works <span class=\"s1\">in marketing for a cosmetics company in San Francisco. <\/span><\/span><\/p>\n<p><span class=\"s2\">I was born and raised in Los Angeles, but moved to the San Francisco Bay Area after graduating to work for corporate America. <\/span>I left the corporate world in 2014 when the older one was in first grade and younger one was in Pre-K. We made good money, but we were paying other people to raise our kids and teach them different values than ours.<\/p>\n<p><span class=\"s1\">Except for a very short period of my life, I&#8217;ve always been financially responsible. My wife and I both grew up very poor, which influenced our low-cost lifestyle. Thanks to that &#8212; and diligently saving &#8212; <\/span><span class=\"s1\">I consider ourselves to be financially independent, although my wife plans on working for another year or two. Or so she says.<\/span><\/p>\n<p><strong>My Expenses<\/strong><\/p>\n<p>I <a href=\"https:\/\/lenpenzo.com\/blog\/id14307-why-i-prefer-a-spreadsheet-to-track-expenses-manage-my-finances-2.html\" target=\"_blank\" rel=\"noopener noreferrer\">use a spreadsheet to manage my finances<\/a>. The breakdown of my expenses is as follows:<\/p>\n<p><a href=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/05\/40k-HerbertFromCA.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-54876 aligncenter\" src=\"http:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/05\/40k-HerbertFromCA.png\" alt=\"\" width=\"530\" height=\"440\" srcset=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/05\/40k-HerbertFromCA.png 858w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/05\/40k-HerbertFromCA-300x249.png 300w, https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/05\/40k-HerbertFromCA-768x637.png 768w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><\/a><\/p>\n<p class=\"p1\"><span class=\"s1\">We have a nice home, which we bought in 2013 via a short sale just after the market bottomed; I saw a deer and a bunny running outside this morning. Our home has 5 bedrooms and 3.5 baths in <\/span><span class=\"s1\">3168 square feet<\/span><span class=\"s1\">. <\/span><span class=\"s1\">The <\/span><span class=\"s2\">property tax is currently <\/span>$9375 per year. The<span class=\"s1\"> short sale was a roller coaster experience; the offer was made around Mother&#8217;s Day but we didn&#8217;t close the transaction until early November. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">While I was working, my salary paid the bills, while my wife&#8217;s went to the mortgage and extra payments. Eventually I got laid off, however &#8212; so I <\/span><span class=\"s1\">took advantage of my severance package to retire the loan. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">We don&#8217;t drive too much. I have a 2007 Mazda5 with about 120,000 miles on it, and my wife drives a 2013 Honda Fit with 35,000 miles. We bought both of them new. <a href=\"https:\/\/lenpenzo.com\/blog\/id19085-i-finally-broke-down-and-bought-a-new-car-yes-new.html\" target=\"_blank\" rel=\"noopener noreferrer\">Buying new cars<\/a> is the one expense that I disagree with my wife on, but I refuse to fall on my sword for this.<\/span><\/p>\n<p><span class=\"s2\">For entertainment, I primarily focus on reading, staying active in the community, and playing Pokemon Go.<\/span><\/p>\n<p><strong>My Savings<\/strong><\/p>\n<p class=\"p1\"><span class=\"s1\">Over the years, we have saved and saved and saved. <\/span>The stock market has also been very kind during the past decade and our living expenses are very low. As a result, during that time we have been able to gradually accumulate about 50 times our annual expenses in pre- and post-tax retirement savings accounts.<\/p>\n<p><strong>Closing Thoughts<\/strong><\/p>\n<p class=\"p1\"><span class=\"s1\">My son is a coin collector. We just looked at his coin collection this morning under a microscope. I was showing him steps from Montecello and the Lincoln Memorial. On one of his field trips I chaperoned this year, he found a silver mercury dime on the sidewalk from 1908. It&#8217;s his favorite coin. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">When we go to the supermarket, he always looks at <a href=\"https:\/\/lenpenzo.com\/blog\/id3683-why-it-pays-to-not-get-behind-the-nice-lady-in-a-supermarket-line-2.html\" target=\"_blank\" rel=\"noopener noreferrer\">the Coinstar machines<\/a>. Apparently, they don&#8217;t take pre 1965 quarters and dimes &#8212; instead they get shunted back to the change return. He&#8217;s found maybe five silver coins in the change return in the past year. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">We were playing Pokemon Go last Sunday at the mall and he found over $5 in change from change returns. He was quite excited &#8212; the boy loves his coins!<\/span><\/p>\n<p>***<\/p>\n<p><em>If you&#8217;re like Kai &#8212; a household CEO who is successfully making ends meet on roughly $40,000 per year or less &#8212; then <a href=\"https:\/\/lenpenzo.com\/blog\/id20157-wanted-readers-who-make-ends-meet-on-40000-annually-or-less.html\">I&#8217;d love to hear from you<\/a>! Contact me at <strong>Len@LenPenzo.com<\/strong> and be sure to put $40,000 in the subject line. If I publish your story, you&#8217;ll get a $25 gift card, or an American Silver Eagle!<\/em><\/p>\n<p style=\"text-align: right;\"><span style=\"font-size: smaller;\">Photo Credit: Oleg Alexandrov<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>My name is Kai, and I live in Concord, California. I&#8217;m 41 years old and married, with two kids, an 11 year-old daughter and 10 year-old son. Like Len, I&#8217;m an engineer by training; I also have an MBA. Today I&#8217;m primarily a stay at home parent, but I&#8217;m currently doing community non-profit work too. [&hellip;]<\/p>\n","protected":false},"author":189,"featured_media":55121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","pmpro_default_level":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[480],"tags":[],"class_list":{"0":"post-54872","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-frugal-living","8":"pmpro-has-access","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How I Live on Less than $40,000 Annually: Kai from California<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lenpenzo.com\/blog\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How I Live on Less than $40,000 Annually: Kai from California\" \/>\n<meta property=\"og:description\" content=\"My name is Kai, and I live in Concord, California. I&#8217;m 41 years old and married, with two kids, an 11 year-old daughter and 10 year-old son. Like Len, I&#8217;m an engineer by training; I also have an MBA. Today I&#8217;m primarily a stay at home parent, but I&#8217;m currently doing community non-profit work too. [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lenpenzo.com\/blog\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\" \/>\n<meta property=\"og:site_name\" content=\"Len Penzo dot Com\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/LenPenzo\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-10T11:15:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-16T17:10:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lenpenzo.com\/blog\/wp-content\/uploads\/2019\/06\/40k-KaiFromCA-2-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1826\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kai\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LenPenzo\" \/>\n<meta name=\"twitter:site\" content=\"@LenPenzo\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kai\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\"},\"author\":{\"name\":\"Kai\",\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/#\\\/schema\\\/person\\\/1a31024258f20a12c6074ebaf4c6f753\"},\"headline\":\"How I Live on Less than $40,000 Annually: Kai from California\",\"datePublished\":\"2019-06-10T11:15:57+00:00\",\"dateModified\":\"2019-06-16T17:10:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\"},\"wordCount\":675,\"commentCount\":12,\"publisher\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/40k-KaiFromCA-2-1.jpg\",\"articleSection\":[\"Frugal Living\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\",\"url\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\",\"name\":\"How I Live on Less than $40,000 Annually: Kai from California\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/40k-KaiFromCA-2-1.jpg\",\"datePublished\":\"2019-06-10T11:15:57+00:00\",\"dateModified\":\"2019-06-16T17:10:57+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/id54872-how-i-live-on-less-than-40000-annually-kai-from-california.html#primaryimage\",\"url\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/40k-KaiFromCA-2-1.jpg\",\"contentUrl\":\"https:\\\/\\\/lenpenzo.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/40k-KaiFromCA-2-1.jpg\",\"width\":2560,\"height\":1826,\"caption\":\"Mt. 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Diablo is not far from Kai's home, which he bought in 2013 via a short sale. 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