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I notice that these articles almost always feature people living in the most expensive areas of the country.
I think this is the biggest part. A young couple making ~$250k with 2 kids in daycare in LA it seems reasonable that after putting ~$15-$20k/yr in their 401ks they could feel like they are living close to paycheck to paycheck.
- I could easily see a PITI on a recent home purchase, i.e. last 3-4 years, in a HCOL being ~$45-$50k/yr.
- Take out ~$70k in taxes (assuming Married Filing Jointly)
- Take out ~$20k in 401k and HSAs
- Take out ~$30-$40k in daycare
You are already at $170k of the $250k gone.
Add in a few car payments, student loan debt, groceries, clothing and that could conservatively be another ~$30k.
Of course, if everyone decided the following, they might be able to pay their bills with no problem, and save as well:
1. That it really isn't a necessity to live in a 4,000 + sq. ft. house
2. That it really isn't a necessity to buy/lease a new car every three years, and that that car needn't be an Audi, Mercedes, BMW, Land Rover, et. al. (Let's not even talk about the grotesque Sport Utility Pigs, like the Chevy Subdivision)
3. That it really isn't a necessity to buy a Starbucks coffee multiple times a day
4. That it really isn't a necessity to buy a $5,000 Wolf stove, when a $1,500 GE one would work just fine
5. That it really isn't a necessity that every child go to a top 25 private university at $80,000 a year or nothing
5. Etc., etc., etc.
I could go on, but you get the point. Excessive housing costs are only a part of the picture. Delayed gratification and self-control are clearly a thing of the past.
Did you read the article or are you just stewing in outrage over a headline?
Upon giving the article a read (about a topic that has come up time and time again over the years because it's fantastic click generator), most of these households who are supposedly living paycheck to paycheck also report that they are *not* struggling to pay their bills. Seventy-eight percent report that they're largely doing better than ever, so there's that, too.
It amuses me to no end that when looking over the graphics embedded in the article, that it only compares Millennial versus Boomer (plus) households because, of course, it's necessary to keep the animosity going between the two generations--two generations who are really two sides of the same darn coin in so many ways. So glad that to be a member of the perennially overlooked X Generation, lol.
It is exceedingly strange, isn't it, that this whole Gen Z (OK, Boomer!)/Millenial thing completely misses Gen X. Count yourself lucky, I guess. As a late Boomer myself, I can't imagine resenting my grandparents' generation as a youngin' (my parents, yes, but the proximity and friction was much more immediate). We live in strange times, indeed!
It is exceedingly strange, isn't it, that this whole Gen Z (OK, Boomer!)/Millenial thing completely misses Gen X. Count yourself lucky, I guess. As a late Boomer myself, I can't imagine resenting my grandparents' generation as a youngin' (my parents, yes, but the proximity and friction was much more immediate). We live in strange times, indeed!
I'm not sure what you mean. As a millenial I have boomer parents. Many X'ers also have boomer parents since the boomer generation was slightly longer at 19 years versus the perceived 15/16 years for X/Millenial. I think most of the bashing is for their parents generation, not the grandparents.
With that being said, I don't understand bashing ANY generation especially since we all know people are different regardless of when they were born. To me, it's the equivalent of believing in Astronomy where whatever stars were above when I was born would determine my personality somehow.
My in-laws make $250K combined and I'm dying to know their expenses and amount saved per month, but I'm not going to ask.
Best not to pry, but I'm sure there are at least a few empty nesters here with similar incomes who could give you an idea of how they spend and save if you are curious.
Here's how basic living expenses pencil out for us in the Denver metro...
Mortgage: none
HOA: $125
Property taxes: $291 ($3500/12)
Power: $89 (level billing)
Water: $35-$150, depending on the time of year
Cellular: none (reimbursed by husband's employer)
Internet: none (reimbursed by husband's employer)
Car payment: none
Gas: ~$85 at the moment
Insurance (auto & house): $321
Insurance (life): $120
Groceries and sundries: $650
Eating out & entertainment: $200
Pet: $100
Those are our typical monthly bills. Everything else up to $5000/month is discretionary spending or an intermittent bill. Our annual income bounces between $250k and $300k.
I think this is the biggest part. A young couple making ~$250k with 2 kids in daycare in LA it seems reasonable that after putting ~$15-$20k/yr in their 401ks they could feel like they are living close to paycheck to paycheck.
- I could easily see a PITI on a recent home purchase, i.e. last 3-4 years, in a HCOL being ~$45-$50k/yr.
- Take out ~$70k in taxes (assuming Married Filing Jointly)
- Take out ~$20k in 401k and HSAs
- Take out ~$30-$40k in daycare
You are already at $170k of the $250k gone.
Add in a few car payments, student loan debt, groceries, clothing and that could conservatively be another ~$30k.
So you have ~$50k left for everything else.
Ick! Imagine having to live off $50k for discretionary expenses. Peasants
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