“Woman Shocked After Calculating Her Ideal Salary, Realizes 60K Isn’t Enough”

The purpose of having money is to afford the lifestyle you truly desire. However, if you live to impress others, no amount of money will ever be sufficient. Conversely, by focusing on what genuinely matters to you, it’s possible to determine the amount of income required to live your actual dream life—not the one others prescribe for you.

TikToker Rebecca Sowden (@rebecca.sowden), who describes herself as a “recovering super spender,” tackle this question in a viral video. She asks, “What income do you need to live your ideal life?” and dives deep into her calculations with a journal and pen.

Rebecca’s first priority is saving for retirement, starting with maxing out her 401k at $23,000. She also seeks to maximize her Roth IRA at $7,000. Savings for a brand-new $40,000 car she plans to pay off in 40 years require $10,000 annually, covering tax, interest, and other fees.

Travel is another priority for Rebecca, who allocates $8,000 annually for international trips, which also covers her husband’s travel costs.

Moving onto living expenses, she calculates $5,000 a month for a mortgage, utilities, and other related costs—a total of $60,000 annually just for a living space. Additional living expenses, such as internet, phone bills, and subscriptions, total around $450 per month, or $5,400 a year.

Rebecca then tackles her food and transportation budget, estimating an annual expense of $12,000 for these necessities. She also wants to allocate an additional $20,000 for investments, although she admits she’s not entirely confident about this figure.

She plans to reserve $10,000 for an “emergency fund” to cover unexpected expenses like holiday costs or unforeseen events.

Summing up all these expenditures, Rebecca arrives at a total of $155,400 after taxes. She then calculates that she needs an annual income of $215,000 in California to meet these financial goals.

Reflecting on her high school days, Rebecca admits she once thought an annual salary of $60,000 would be sufficient. However, real-world experience and number-crunching revealed the inadequacy of that assumption. She expressed further surprise when realizing her estimate didn’t include luxury items or children, prompting her to contemplate the soaring cost of living in the U.S. today.

Many viewers resonated with Rebecca’s realizations, sharing similar experiences and noting that she didn’t factor in children. Others remarked on the significant variation in living costs based on location.