The document analyzes the living costs for three individuals - Eric, Nishad, and Chris - living in Boston, MA. It outlines their incomes, taxes, savings, housing costs, utilities, transportation, health insurance, food, and other expenses. After accounting for all necessities, the small amounts remaining - between $116.77-$316.77 - illustrate that a $40,000 salary in Boston is just enough to cover basic costs with a little left over for discretionary expenses or savings. The analysis concludes that the costs of living reveal salaries that seem substantial are actually barely enough to live decently in an expensive city like Boston.

1. The Cost of Living: Boston, MA Chris Kim, Eric Tian, NishadKulkarni

2. Location Boston, Massachusetts

3. Total Income: Initial & Post Taxation Eric TianOccupation: Chimney Sweeper Initial Income: $45,000.00 FICA: $2542.50 Post-Tax: $38180.00 Total: $35637.50 *Based on 2011 Tax rates

4. Total Income: Initial & Post Taxation NishadKulkarniOccupation: Highrise Window Cleaner Initial Income: $45,000.00 FICA: $2542.50 Post-Tax: $38180.00 Total: $35637.50

5. Total Income: Initial & Post Taxation Chris KimOccupation: MIT Groundskeeper Initial Income: $40,000.00 FICA: $2260 Post-Tax: $34295 Total: $32035

6. Savings(20% of Adjusted Income) $7127.50 Eric Saving’s Account at Discover Bank: $6000 APY: 1.15% Checking Account at CHASE: $1127.50 $7127.50 Nishad Saving’s Account at Discover Bank: $6000 APY: 1.15% Checking Account at CHASE: $1127.50

7. Savings(20% of Adjusted Income) $6407 Chris Saving’s Account at Discover Bank: $5000 APY: 1.15% Checking Account at CHASE: $1407

8. Remaining Income After Savings Eric: $35637.50 - $7127.50 = $28510 Nishad: $35637.50 - $7127.50 = $28510 Chris: $32035 - $6407 = $25628

9. Housing Address: 514 Cambridge St City: Boston, MA Zip Code: 02134

10. Housing Costs Lease Term: 1 year Deposit: $ 500 Living Cost: $ 25,200 / Year ($2100 / Month) Renter's Insurance Cost: $486.00 / Year ($40.50 / Month) Size: 1000 sq. ft. Apartment No garage 3 Bedrooms 1.5 Bathrooms

11. Remaining Income Eric: $28510 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$19781.33 Nishad: $28510 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$19781.33 Chris: $25628 - $166.67 (Deposit) - $8400 (Living Cost) - $162 (Renter’s Insurance) =$16899.33

12. Health Care: Celticare Saver HSA Eric: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance After Deductible Individual Coverage Nishad: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance After Deductible Individual Coverage

13. Health Care: Celticare Saver HSA Chris: $2842.56 annually $236.88 / month Celticare Saver HSA $2000 Deductible 20% Coinsurance After Deductible Individual Coverage

14. Remaining Income Eric: $19781.33 - $2842.56 (Annual Health Care) = $16938.77 Nishad: $19781.33 - $2842.56 (Annual Health Care) = $16938.77 Chris: $16899.33 - $2842.56 (Annual Health Care) = $14056.77

15. Transportation EricMBTA LinkPass (Bus / Subway Pass) $720 AnnuallyNishadMBTA LinkPass (Bus / Subway Pass) $720 AnnuallyChrisMBTA LinkPass (Bus / Subway Pass) $720 Annually Not much need for car in Boston.

16. Remaining Income Eric: $16938.77 - $720 (Transportation) = $16218.77 Nishad: $16938.77 - $720 (Transportation) = $16218.77 Chris: $14056.77 - $720 (Transportation) = $13336.77

17. Utilities (Annual Basis, Shared Costs) Internet: $840 Cell Phone Bill: $2520 Heating, Electricity, Gas: $1896 Total: $5256

18. Remaining Income Eric: $16218.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $14466.77 Nishad: $16218.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $14466.77 Chris: $13336.77 - $280 (Internet) - $840 (Smart Phone) - $632 (Heating, Electricity, Gas) = $11584.77

19. Food and Furniture Eric · Food: $7,200 · Household Furniture: $750 (split cost) ‍· Laptop: $1,600‍ (Macbook Pro) · Household Supplies: $200 Nishad · Food: $7,200 ‍· Household Furniture: $750 (split cost) ‍· Laptop: $1,600 (Macbook Pro)‍ · Household Supplies: $200

20. Food and Furniture Chris · Food: $7,200 ‍· Household Furniture: $750 (split cost) ‍· Laptop: $1,600‍ (Macbook Pro) ‍· Household Supplies: $200

21. Remaining Income Eric: $14466.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $5216.77 Nishad: $14466.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $5216.77 Chris: $11584.77 - $7200 (Food) - $250 (Furniture) - $1600 (Laptop) - $200 (Household Supplies) = $2334.77

22. Extracurricular Activities Eric Clothes: $1600Misc: $2000Sightseeing: (Historic Landmarks,museum) $1000Season Boating Pass: $300 Nishad Clothes: $1500Video Games: $800Sightseeing: $1000Season Boating Pass: $300Misc: $1500

23. Extracurricular Activities Chris Clothes: $1500Gym Pass: $600

24. Remaining Income Eric: $5216.77 - $1600 (Clothes) - $2000 (Misc.) - $1000 (Sightseeing) – $300 (Season Boating Pass) = $316.77 Nishad: $5216.77 - $1500 (Clothes) - $800 (Video Games) - $1000 (Sightseeing) - $300 (Season Boating Pass) - $1500 (Misc.) = $116.77 Chris: $2334.77 - $1500 (Clothes) - $600 (Gym Pass) = $234.77

25. Summary Eric Savings: $7127.5 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular Activities: $4900 Remaining Income: $316.77 Nishad Savings: $7127.5 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular Activities: $5100 Remaining Income: $116.77

26. Summary Chris Savings: $6407 Housing Cost: $8728.67 Health Care: $2842.56 Transportation: $720 Utilities: $1752 Food/Furniture: $9250 Extracurricular Activities: $2100 Remaining Income: $234.77

27. Analysis When we were younger, we actually believed that all of the money in someone’s salary can be either spent or saved. This project has helped us see that these were false beliefs. In fact, after state, federal, and social security taxes, we were left with only approximately 70% of our initial earnings. Futhermore, we realized that there are certain necessities to maintain life, and that these have to be paid for. After these costs, which included household supplies, rent, food, clothes, and insurance, we were severely disappointed at the small amount of money we had remaining. We realized that $40,000, a salary that seemed substantial at first, was just enough to cover all necessary expenses. A salary of $40,000 is surprisingly just barely enough to live a decent life and still save a little bit for the future. You have helped us see life as the bureaucracy that it is, and for that, we thank you.

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