When I was making 55k/yr 4 yes ago we had about 300-400$/month in clearance. Now I'm making 85k/yr and my rent is only 200$ more but we still barely make it. Inflation has sucked up all excess
In the same boat. Inflation has eaten up all financial gains ive seen since graduating college in 2016 and then some. Im worse off than I was the day I got the diploma and walked into the real world now with 3 kids to feed.
People say you can't expect to have a lifestyle from the 1950s like leave it to beaver. Why not? What changed so dramatically? What happened to dad working 40 hrs a week with a high school education and being ablr to buy a house a car and take a little vacation. What is happening when 2 full-time salaries is a struggle
He says it’s absurd. However, if you look at inflation over the last 20 years, it’s in line with what it was to be middle class in the 90s. 50,000 in the 90s is 100 grand now. Our money has just become worthless.
You understand people today have so much more BS. Netflix, Hulu, prime, smartphone, high speed Internet and tons of other monthly fees besides ordering every little thing from Amazon. Live within your means and realize you don't need everything the Jones's have. Nobody cares about your crap.
@tayk-47usa41 Buddy I just looked at your profile picture. You look like a 90s baby. You didn't even have a concept of money at that time. Now shut up.
Daycare is the absolute biggest rip off. My mortgage $480, car payment is $350, daycare for two kids is $1,400. My wife and I lived like kings in our low income town before children.
I make $106k in the midwest and can MAYBE put $800 away/month with normal expenses. 1 tree trimming, mechanic bill, or dead water heater and I'm going downhill that month. I pay $800/mnth in child support, have zero car loans, zero debt, and live a very modest lifestyle in every way. I never take vacations and rarely spend much money on myself. I have no idea how people making $60k do it.
Imagine living in Seattle making $60k. It’s rough out here. Wish we never moved from our small suburban town. Now I pay crazy student bills, have to pay a good $2000 per month in rent and utilities alone (unless I live with several roommates of questionable character), can’t afford a car, live in crime-riddled neighborhoods. It’s rough out here.
@@ExternusArmy Damn, that would suck. Had a grandmother in Seattle (she's long since passed) but I seem to remember it being very nice and even affordable, but that was 30+ years ago. Hang in there man.
Yes, lifestyle creep is very real. But also, everything costs WAY more than it did a decade or two ago. It's not absurd to say $100k is the new middle class. I made a hair under that this year, to provide for myself, my wife, and my 2 young kids. No car payments, no mortgage, no student loans, no childcare costs, reasonable rent cost (relative to modern prices), and fairly minimal credit card debt. We thrift shop the kids clothes. Our idea of splurging is a moderately priced date night. Don't get me wrong, we aren't in danger of going hungry or anything. We are comfortable enough and thankful. But it's truly hard to save anything, because groceries, gas, rent, and many other necessities are so expensive now.
@nealcassady-yn3bh Why would you buy a child a new car? Get something older and paid for. Don't put the kid into debt first thing out of the gate. They will be fine. Teach them how to save and maintain it. All vehicles need maintenance, yes, even new ones.
It wasn’t this way even five years ago. We need to look at what’s happening in our economy. Inflation has gone down but prices haven’t. Corporate greed is killing us. When are Americans going to wake up and realize the corporate world just wants to keep us like feudal, servants and peasants. Make us so afraid of losing our jobs. Trying to prevent people from unionizing. It’s the same old thing over and over again that’s happened throughout history. United States is no matter than any other country in the world at any given time. we may no longer have a monarchy or a royal elite, but we have the corporate world and the rich people who run it that are doing the same damn thing.
Corporations didn’t just now decide to become greedy. The government printed copious amounts of money and gave it away to everyone under the sun while the supply side was suppressed. So much money was printed that it shifted equilibrium.
@@rbw31 disinflation- a state of declining inflation. Price levels are still rising but slower. Deflation- a state of falling price levels Inflation coming down does not mean prices are coming down. Inflation is cumulative and has harsh consequences for middle and low income earners. Which is why economists were warning of this but the powers that be want to believe social work majors over financial experts/ economic scientists.
We just paid for a big expense with a credit card. We had saved the money first and paid the card in full, as we always do. The minimum payment the company wanted was $68 on a $12,000 balance. And I’m sure the interest rate is 20% or more. Making minimum payments will bury you.
100% real. I grew up in a 70k combined household and we were middle class but my parents lived paycheck to paycheck. This was in GA btw where the cost of living is low. My wife and I recently were blessed to get good jobs and moved to PA. We currently cleared just over 200k as a household the last two years. We want to buy a house but refuse to do it until we have at least 75k saved (over 40k already saved) just to make sure we are going in with the right mindset and safety net before buying a home.
May I suggest you (possibly) surpass the $75k goal and keep adding to it until interest rates go down. Bc you’re not going to be able to get as much bang for your buck with the current rate lingering around 6.5% Thankfully, my husband and I bought our house while the interest rate was still reasonable at 3.625% our mortgage is just $2900, but if you put in the details of our house on Zillow with the 6.5% interest rate and exact same purchase price and down payment on our house - the mortgage would be $4500 not including property tax, home insurance, home warranty. I’ve read the feds will cut interest rates this year reducing it by 1-2% with hopes of reaching 4% anywhere between July and December 2024 (Forbes posted an article earlier this week)
@remmond3769 remember during COVID the housing market went up so much and the rates were actually steady or going down at that time as well. But then house values never went back down, interest rates sky rocketed and the housing market got stagnant but didn’t drop. So house prices are high and interest rates are high now. My husband and I were looking for houses in 2019 they were about $450k and 4% interest in our CA town. When COVID happened we took a break house hunting to not risk exposure. When we saw the house prices rising astronomically here in CA we decided to purchase something before it was no longer affordable. We ended up with $710k and 3.625% interest rate. The month before we bought interest rates were about 2.95% so we felt like we got screwed over getting a house almost double than originally planned and a higher interest rate. But when rates started going up to 6-7% we realized and became grateful for our locked-in mortgage. As for not buying in 2019, that part totally screwed us lol.
Buy a 4plex instead. Live there for a year move out and rent. Then buy your house. Buy the asset that pays for the liabilities. A house is a liability. Period. If it doesn't pay you it enslaves you. You could be house hacking and saving what you spend in rent. Investing that money into more assets that produce income.
I make just over 100k. I have been priced out of any home I am willing to live in (500k+ purchase is worth being picky) and being forced to rent in order to live within 30 minute commute to my work. Our cars are paid off, no other debt whatsoever, and maybe eat out twice a year. Debt is not to blame when the market and economy is what forces people into middle class.
Good job bringing up the cost of homeownership, lots of people that rent don’t appreciate the stress and frequency of stuff breaking in a home until they’re on the hook for it.
People who rent are well aware of how often landlords actually have to spend money to fix things. I rented my last apartment for 11 years. In that time exactly two things broke - my front door lock and a fridge. It’s deeply inaccurate to suggest home owners field a plethora of expenses all the time. I now own my home.
We'll ignore the fact that in the last 30 - 40 years we've gone from the average house costing about 1.5 years of the average salary to the average house costing about 5 years of the average salary. But yeah, we're all lazy and irresponsible.
Uh, not quite mate. We’ve gone from median house price being about 3-5x median income 30-40 years ago, to now being about 10-20x income depending your region. It’s much worse.
@@tylermceachern3085 You might be right. Maybe I’m thinking of more local data and not US national. US median individual income:property is about 7x US median household income:property is about 5x In Sydney, Aus it’s about 17x and I think Canada’s major cities are roughly as bad or a little worse.
@@OnlyAchievingHere Ah. Yeah I was looking at the US national averages. Obviously this could vary greatly by region or country. Either way it's going up for all of us ... and it sucks.
He's not saying everyone is lazy and irresponsible; if anything, he's saying most are uneducated financially. I've lived totally fine and comfortably on $35k/yr while I'm finishing school. I'll leave with only about $10k (or less) in student loans, which I can easily pay off in a few years. I have a fairly new (2015) car fully paid off, insurance paid, $5k sitting in case I need it for an emergency. I'm not saying I'm any kind of financial guru, but if you're careful, it simply isn't that hard to stay afloat.
I have been following the baby steps for years now. I live really tight, no debt, swapped the car to a paid motorcycle to save money, and yet it is gonna take me around 5 years to save enough for a 20% down on a house. At this point I am getting really tired to rear these rich people blame us for being poor.
American life is set up for dual earner households, so they're gasslighting single people. With that said, it's still important to keep trying even if it takes a long time. It's not our fault that our salaries haven't kept up with the cost of living.
you just need 5%. Dont wait, and Ramsey actually backs that. Id still say a 15 year mortgage, too. It can be done but it took us moving from CA to do it. The sacrifice has actually been worth it for us, created more peace to move.
Don’t wait for the 20% down. As long as you can wrangle some excellent credit, some programs will even allow 2.5% down and the only difference is .25 higher interest and .25% pmi these numbers are peanuts in comparison to starting to build equity. Also, pmi can be dropped off once your over 20% and you will probably get a better interest rate during that refinance. Find a mortgage broker, not a bank, in your area to talk to and see if other government programs exist to help you. Buy before rates drop, or be prepared to spend a lot more for your home.
This is just insane to me. I live in Germany and make 48,000€ per year (~51.5k USD), which is considered slightly below the average salary for someone with my level of education and professional experience. I do not have any debt or loan payments whatsoever; I can comfortably afford anything I want to buy and at the end of the month I still have around 1,000€ leftover that go into my savings account. I guess the secret to avoiding credit card debt is straight up not buying shit you can't afford.
@@rbw31 Yes I'm aware, basically the only thing that is cheaper in the United States than in Germany are automobiles, but that doesn't stop Americans from indebting themselves on that end too. In Germany there are of course also many many people who drive around in cars they can't afford, but these will most of the time be leases where they get rid of it after 3 years. Financing a $80k vehicle on a salary of $50k before tax is unhead of here, but apparently quite normal in the US.
@@wowdogeful please also remember Healthcare costs. I pay about $19,000 a year between medical insurance and actual Healthcare costs with my high deductible policy. $51,000 in Germany is probably similar to $100,000 in U.S. once you consider all the benefits Germans get for free. Free education and free medical would be a pretty dramatic game change.
@@rbw31He doesn't need to keep that in mind. He lives in Germany not America. Medical care is not provided for free. All must have health insurance. You don't know a lot about what you are commenting on it seems.
As of Dec. 2023 Williamson county median home price is $833,450. With 3% down, monthly mortgage is 5,320 which is about 64k/year. That's just paying for your house! Get with the times guys if you want to keep credibility.
@@AaBbCcDdEeF I used stats and facts with direct examples from the county where Ramsey Solutions is located. Please re-read my comment before making such statements.
This is spot on- me and my wife make a little over 110,000 a year with two kids. Even if you live a frugal lifestyle which we try to do prices have gone up in so many areas that it is almost impossible to save money let alone pay all of our bills. I try not to worry about it but it is constantly on my mind.
We live in MA, we were doing great before all of this inflation. Now we are paycheck to paycheck. I thought I got to the point in life where I was beyond that. Thank God I don’t have a car payment and I saved enough money to buy a car when I need one the next time.
People gotta wake up and realize this shit storm stems from inflation and increases in prices... The minimum wage, tax increases, and printing more money is going to make everyone broke af... But that's what the Dems want so you are dependent on handouts and keep voting for them because "they care and help"... it's all a ploy. Vote Trump 2024
Homeownership IS way more expensive than rent - we just had a new roof last fall $20k, we have a 4-story beech tree 30’ from the house that is sick and we need to take it down, $8k. We are having our gutters cleaned and covered, $1,200. Those are the types of things that come up, and you need to be prepared for them - on top of the mortgage, insurance, utilities, groceries, etc etc. it’s great to own a home don’t get me wrong, but it’s a never ending parade of added expenses to maintain.
Washing machine dies? Can’t call the landlord. Pipe burst? Can’t call the landlord. Septic tanks needs to be drained? Can’t call the landlord. Home ownership is so much more expensive than renting
@@theamazinghippopotomonstro9942 it IS, could you afford all the expenses we just unexpectedly had without going into crippling debt? When you rent, it’s just just rent. BUT like I also said - you have no lasting asset
Rent where I live is about 2400/month, childcare is 1900-2500/month. Making 100k a year comes out to about 5.5k/month after taxes, retirement contributions and insurance. Still got utilities, groceries, gas, insurances and clothes for kids who grow too fast. Throw in a random birthday/wedding/baby shower gift and we’d go over every month.
Things getting expensive is not a problem, its happened forever. What is a problem is when things get more expensive and adjusteded for inflation, wages have stayed stagnent for 40 years.
It's not just lifestyle creep. It depends where you live, how many people you support with your salary, and how much childcare is. Live in NYC as a single parent with no debt and taking no vacations and never going out to eat and you will still be almost paycheck to paycheck. We need quality, affordable childcare STAT.
100k=70k after California taxes. 100k barely keeps you above water. The team is really out of touch with reality. We’re not saying you can’t survive on 100k; we’re saying you won’t be middle class.
@@bogdan78pop at 100k its about 28% plus a little more if your paying for part of comapny medical. It come out to around $2,800 a biweekly paycheck. I used to always use 30% for rough calculations when I was hourly. and no its not enough money. in our area 100k wont get you a house unless you were living rent free to save for a few years and put a hefty down payment on a home.
I’m an avid Ramsey follower, we are debt free minus our mortgage, we have our emergency fund and we are in the category of $100k/year….BUT…we are still struggling. Inflation is no joke. We don’t waste our money on mindless items or eat out every meal. I never buy anything we don’t need. We are a family of four and I’ve gone through our budget over and over trying to find ways to save a significant amount of money. I could cancel a few subscriptions and not eat out for lunch but that’s just a few hundred a month MAYBE. BTW, we don’t have a huge mortgage either. It’s less than 25% of my take home pay.
It’s not lifestyle creep. The Ramsey people have their heads in the sand to sell their product which is to stay debt free. Something I totally agree with btw. I’m debt free except for a very cheap car payment to build my credit for buying a house, but after the doubling of housing prices, interest rates, and inflation, I don’t really have any hope until I can find a way to increase my income. 2 years ago a mortgage would have been less than my rent, now the cheapest homes within 100 miles would increase my housing costs by 50%.
In the exact same boat. Well, we’re renting at the moment with a down payment ready to go… But the cost of living these days is insane. I don’t understand how I haven’t heard anyone else struggling much right now… I guess everyone has just assumed the debt-induced life style and gave up caring.
“Lifestyle creep is real” Eggs are $5 Food has tripled! This isn’t debtful living and being paycheck to paycheck, this is the fact that you can’t even get approved for a home loan unless you make 100, even if you’re 20% down on an $400,000 house. That is what makes 100 the middle class. It means even if you’re doing everything right, you’re still strapped or you can’t move out of your starter house to get chickens so you dont have to spend $5 for eggs Also, I understand what they’re saying, that you need to buckle down and get rid of debt- but if the cost-of-living is so high, that means getting out of debt and saving for a house or about three times, as long as they were years ago. Wheres John Delaney- because that’s a new level of stress, and he needs to be on the show more!
yes! and with the dumbing down of our children at the schools and lowering their standards of learning they are not getting well paying jobs when they get out of school. It is all collapsing in on itself.
I can live on $50k, if I made $100k then I'd just save the extra $50k and then have cash built up later in life. There's practically no excuse for living paycheck to paycheck at $100k+ salaries.
I make 30 an hour in long island ny. I take home 900 a week after taxes. Average studio apartment, the most basic form of housing(besides shares), is about 1700-2000. On 60,000, basic rent is ~40-50% of income. The traditional 25% on housing is dead
@@luisguerrero2795you must work 23-25 hours a week around here 16/hr is roughly 540-545 take home with a 3.75% school tax tacked on top. I make $34.80/hr and bring home 2320-2350 biweekly with minimal overtime only clocking in 10-12 mins early, something is not adding up.
In Canada, $100000 pre-tax is $60000 take home. Then $4000 annual property tax. In our province, 15% sales tax on almost everything. Trudeau's "carbon tax" caused higher prices on EVERYTHING. $100000 is now lower middle class.
I make about 60k in LA, 1k rent (my share with two roommates), no car (or any of the accompanying expenses), no CC debt, no wild nights out, about 350 per month in student loans, basic retirement contributions, and in my part of the world I would absolutely need 100k to live in a mold free code compliant apartment in walking distance to public transpo lines, and have a comparable standard of living how any single fully employed woman in her 30s would have been able to expect to in 1985.
I graduated college in 1985. My first job as a (single woman) teacher paid $14,650. I divided one box of mac and cheese into 3 nights of dinner along with a piece of bread and butter. Times were tough then, too!
Supporting a family on 100k in a good area is rough with zero debt if you’re a saver investor and you don’t eat processed garbage food. Monthly take home after taxes, investing, gas, rent and real food is only $1200 for all utilities, clothing, activities, supplies, maintenance & gifts for 4 people. 🙄 There’s no room for a car payment or student loan.
At the end of the day, it all depends on you! I get the typical expenses and all! (Mortgage, house expenses, etc) But some people don’t live below their means! So many are living like others that may have more money than they do! When making $100,000 a year, why are living a life style like someone making $150,000 a year! Or if ur making $50,000 a year, why are u living a life style like someone making $100,000 a year
We are screwed. My monthly mortgage is the same as one tenth of my parents 1990 mortgage total value. In 1990 my electrician dad was earning £40 an hour. 30 years later, as an electrician, im earning exactly the same. I'm so broke. I have no pension, never go out, worry about buying shoes etc. I am profoundly frugal and like most people am living paycheck to paycheck 😢
We walked away from a 3,700 monthly mortgage even though we qualified for a home loan at 459,000. That mortgage combined with monthly living expenses would have taken up 100% of my husbands income alone. We loved the house but not enough to go into insane debt for. We have 0 revolving debt and over 100,000 in assets. I found a home for 2,000 a month rent in the same neighborhood we were going to buy in with a paid hoa and we can utilize with hoa pool. We will save up enough so that we can afford to buy at a better time.
@@zzzzz45zzzzz79 we are a military couple moving back to the states from Israel. After all the stress we’ve endured we want stability and a great school district. Our kids will start elementary school at the best there is for the area we are being stationed at.
The bank will always tell you that you can "afford" way more than you really can. A $3,700 mortgage is pretty wild even if you have an upper class income.
There’s so many factors. Not sure about the US but in the UK you get taxed 40% on earnings above 50k. On top of that, house prices are crazy, cost of living has increased considerably. The government don’t want people to be independent and self sufficient. They want to keep the majority of society under their thumb and in poverty.
My wife and I own a nice little 1000 sq ft. 3br house, own 3 cars (newest one is a 2010 Honda), go out to eat all the time, and just went to Ireland for 2 weeks. We clear $60k a year.
it really depends on where you live, both the missus and i make six figures, we used to live in town, it wasn't tough by any means but once we moved 30km out of the city, life got real cheap real quick. Location really does matter.
“If you’re drowning in payments you’ll never have enough” that’s facts. Some people who are working class no matter how much raises and money you give them they will never live within their means and always be broke.
I live very comfortably on $67k in Los Angeles I drive a paid for 2018 Prius and my rent is only $800 for a small room in a nice house with utilities included
It’s not lifestyle creep. It’s the fact that in order to make 6 figures you’re forced to get a job in a high cost area so then you have to live around there to go to your job which locks you into expensive living. If more remote work was available and the house prices/ rents were more reasonable, this wouldn’t be an issue
It is life style creep. My wife and i make $160k combined in a low cost of living area. Stay out of debt, say no to mindless consumerism, delay gratification.
No, its not lifestyle creep. People with actual high salaries need to live in those expensive areas to be able to commute within a reasonable time….and even then, their high salaries STILL isn’t high enough to buy a home in those surrounding areas. The whole work from home thing would’ve been great if office-based companies employed this because then people can move out to low cost areas they can actually afford. You are clearly an exception because your place of work is also in your low economic areas OR you take 2 hours to get to the office (IF you even work from an office) and you’re okay with that. People who value their time are not.
@@VBoo459 nope, wrong on all accounts. I live in Arkansas as a union industrial electrician. I make $70/hr and i live 15 min from work. You do realize that the world is far more complex than you may realize, right?
“Playing the part” is exactly the trap I fell into. Two years after seeing Dave every day I speak to myself in the shower patting myself on the back and thanking Dave. We have freed up 5k EACH MONTH! And generated a further 2.5k each month in tax savings! All through budgeting and saving. It’s terrifying that we spent 10 years wasting this amount of money. We are on course to pay off our house ten years early and with a fair wind and a bit of luck will be set for a lovely retirement. Thanks Dave ❤
@@sambira it’s not always about keeping up with others. sometimes when you’ve reached a salary goal you allow yourself luxuries and the slip isn’t keeping up with anyone but your self .
@@11227denis I work in software sales after a career in software development. My partner owns a laundry company. Not sure if that info helps. But essentially the secret ingredients is being able to sell. And if you have your own company you can earn orders of magnitude compared to the 9-5 with added flexibility. What industry do you work in currently and the I can help you?
Yeah except that’s 60k a year post tax. If two people make 40k a year pretax that would be their salaries combined. You’re savings is literally some others whole income. So yeah it’s easier
I bought a 2600 square foot house for $194k. I was spending $1700 a month on rent, and now I spend $1600 on a mortgage. Then the price of my house went up to $300k within 4-5 years, I am so glad I didn’t listen to this housing advice!! lol I’d never have enough for a house
They never mention how salaries have been deliberately suppressed for DECADES. That $100k salary dollar-for-dollar match with inflation should be around $150k in 2024 dollars. So, yes, $100k is LOW if that's the new bar for "middle class" for the majority.
It's the back in my day burgers used to cost 5 cents fallacy. As we get older, we don't readjust to inflation. 1 million isn't the million you got used to 40 years ago.
Family of 4: Mortgage: 1600 mo. Health insurance: 400 mo 2 car payments 400 mo Car insurance: 200 mo Phone internet water electric: 400 mo Gas for 2 vehicles: 400 mo I make 4200 mo (70k gross yr) I am bleeding 500 mo on average due to food and other expenses. To truly make it i would need 85k a year. Wife has to stay at home because child is special needs. No credit card bill thank goodness.
I know these probably aren't the Ramsey criteria, but to afford the mortgage on a median price home after putting 20% down and staying under 28% gross income, you need to make $98k per year. Assuming median-price homes are intended for the middle class, this checks out.
Buy a cheap home! Don't get a $200k home. I got a duplex and lived on one side, and fixed the other to rent. Took 15 years to pay it off. It can be done even if you make $38k per year.
@@leechburglights you aren't buying duplexes for a good price today because everyone and their mother did what you dis 20 years ago and factor the income from the other side into the price when selling. Typical duplexes today that aren't run down run for the price of 3 SFHs in the same area. Prove me wrong by listing the dozens of duplexes for sale right now in your local area that is selling for the same price as just two separate SFHs in the same condition and area.... can you even find one??? are you saying that median priced homes aren't for the middle class?
@@thehomeless_trucker I'm saying buy what you can afford. Plan to buy and don't just take a chance on something. My rent income was $325 a month with trash, sewage, water pollution, water, and electric. I didn't make anything till the house was paid off. And there are more than reasonable places to buy but people don't want to do the hard work. It sucks bit that's the way it goes. As for the median price of homes, don't pay that much plain and simple. Get out of the mindset that everything you buy has to be the average of what everyone else has. Nobody is impressed whe watching someone flaunt thei good fortune. I've lived below my means for years on a crappy salary and learned how to do it thanks to life experience. I'm grateful for it. Because now I know I can retire and enjoy life. I won't be living like a king, but I will have peace because I didn't keep up with what everyone else was doing.
@@leechburglightsthat only works in certain parts of the U. S. Where I live a run down house is 600k and a duplex starts at 900k. Our whole family is here so nobody wants to move to a humid bargain area of the U.S. It’s absolutely paradise but nobody (unless they make over 200k) is paying their mortgage off in 15 years.
I figure I need 75k a year to just feed the family and pay basic bills. All cars paid off. No health insurance. No savings in that calculation. No vacations. Don't eat out. Cheapest rent in the state damn near. I have it set up easy compared to most and I still need 100k+ if I ever want to sniff retirement in like 30+ years. This economy was forced on us and it the boomers fault.
Cars are pretty much forced upon American citizens, but yes people probably need to do more shopping around and care less about their image to reduce their car payments. If you’re not sharing the rent/mortgage on a home with roommates, and if you add kids into the mix, it’s very easy to blow through an entire salary. Some of it will be frivolous spending, but that won’t amount to more than the other proportions assuming you’re not in debt
@@Strategies2010 Cars are needed, but buying a $30k car isn't. Where a lot of people get themselves into trouble is they buy a way more expensive car than they really need.
@@JB-bj4cs about 50K for my wife, son and I because I’m the sole provider. No debt or payments. Just rent and bills and still have decent money left over. Not a fancy life. But a nice one.
So I make a little more but here is my breakdown: Taxes & Benefits: 31% Retirement:17% Leaving me with 54% for expenses: House: 26% (that is low bought less house then maximum) Utilities (mild climate): 5% Car: 6% (for two cars includes insurance)* *Need the cars for transport due to living further out which is offset with lower house cost That leaves me 17% to actually live on (food, clothes, gas, repairs & maintenance for home and car. Since I am cheap, and no longer have kids, I actually have a few dollars left over. If I weren't cheap, had kids, or had student loans I would be negative. People need a place to live, transportation to get to a job, eat, and pay student loans. So they can't save for retirement (I mean that is not even an option), and stopped having kids to just make it by. Because the average person makes much less. Over half the expenses could be housing, retirement, and student loans - all things Boomers either paid SIGNIFICANTLY less for or received outright free. Wages never offset these costs. And that is why someone starting out at $100K can be paycheck to paycheck. Make less and you drop the retirement, or hope for student loan relief. Ans try to live with your parents.
Made 6 figures the first time in my life in 2023. The $28,000 in state & federal taxes I paid really f#%*ing hurt. That’s a good down payment on a home just taken off the top every year…taxation is theft and they squander/launder it. It is feeling to me like the ol tree of liberty needs to be watered again.
It’s not all on inflation tho while that does play a part a lot of it is honestly people especially these days are wayyyy too stupid with money have zero real responsibility, and way too materialistic. So many people would much rather let debt pile up and put more of it on credit cards and push payments of bills back, if it means they can secure the newest IPhone or the newest video game system to the newest model of something. They’d rather drop money they don’t have on things they want because it’s plays more into them having “fun” than it does being an adult and putting that money to bills, etc. you have people who will spend all this money on a nice fancy car when they can’t afford it or could go simple and basic but then turn around and live in some dump of an apartment or living with their parents paying no bills but still have no money or savings even with a job. There’s no state or place where you live or real reasoning you should have an insanely high car payment for no reason at all besides the stigma of “owning a nice out of your price range car” prices aren’t great and are still high but in no world should you be paying 400+ a month for a car you can’t afford anyhow that’s just being greedy and living above your means simply because you’re spoiled and feel entitled to do so.. you could’ve easily gotten a basic car or something used or semi used but instead wanted to buy a new car or a shiny sports car cuz it makes you look cool even tho you can’t really afford it but hey none of that matters cuz it’s “not your fault” it’s inflations fault, it’s the governments fault, it’s a companies fault, it’s not your fault you’re making bad financial choices oh nooo not at all it’s everyone else’s fault.. 🙄
@@shaneyafanaro not reading all of that as reading the first shows your wrong. Inflation in the last 5 years is up like 35% so unless your wages have increased by that you have had a pay cut. Simples.
It's not absurd at all. 100k now is like when my parents made 50k while I was growing up. Even in the rural south, you're paying $2k/month to rent a small 3br house. Insurances have gone through the roof as has food costs, etc. Average family of 4 is paying $1,200 more a month than they did in January 2021. That's almost an extra $15k a year to just survive and live the exact same way. Only thing absurd is Americans tolerating this economy.
I’m speaking from a place of ignorance because I am not too knowledgeable on economics but in theory what could the American population do to fight back against inflation?
This is why learning a skill or trade is very valuable... nowadays you gotta have your own business to live the lifestyle you want. A 100 grand a year ain't sh*t now. Trust me I know
I take home 90k a year. I’m close to hitting 1m in my investment account. It’s all about money management. If you can’t make it happen taking home 90k Then you’re doing something wrong. 100k is a great amount in most of the country. Trust me I know.
@Jasiel.95 Almost nobody uses those trucks. The beds have gotten smaller and smaller while the cabs have gotten wider, longer, and taller for NO reason.
Basically be poor don’t have an average new car (ie: Honda accord), don’t live in a house buy a trailer instead, no vacations ever, and you can be apart of the middle class. That’s not the middle class or at least not what it was.
You used to be able to work 1 job own a home and a modest new car take 1 vacation a year and be considered middle class. Now people are drowning in debt to live that way because they can’t admit that they’re not middle class.
It’s not always the fancy stuff or playing the part. Let’s say $2500 mortgage, $1500 daycare (more if you have two kids) $500 for two cars, say $400 student loan debt, $800 groceries, $300 all other house stuff, utilities, kid clothes, car insurance, doctor copays/prescriptions, gas for car.. that can set you back a huge amount and there’s not much wiggle room.
In your scenario: mortgage: reasonable. Daycare: probably should have one stay home, but eventually that goes away. You can save for it too. Probably the toughest thing on the list. Student loans, shouldn't have em. Community college+ save+ work+state school. 800 groceries is a little high if you're actually meal planning, and 500 in car payments is ridiculous. Like stark raving mad ridiculous, even though everyone is doing it. Since most people don't need anything other than a sedan and cars last 200k miles. There's little wiggle room at first, but you would have quite a bit after a year of you take out the car payment and control the spending. You would be doing this while living in a pretty nice house by most standards if you're in the Midwest, around 270k on a 30 year even with these ridiculous interest rates. You'd be doing even better if you rented.
@@stkbloc9717you’re missing the entire point. OP said $100k is better than middle class. It’s not. If you can’t even afford a kid and regular home on your income YOU ARE NOT MIDDLE CLASS. That’s the point
My main point is it’s not really like playing a part and buying lululemon and $80,000 cars and crap lol. We definitely should have done some things differently but a lot of those numbers I put are just what seems to be kind of people living regular lives. Also student loans.. yes I wish I went to community college but I was an actual child when I signed up for college (yes 17 is not a legal adult). Also can’t wait for my kids to be out of school, it costs $2520 for both.. however I bring home more than twice that a month so we need me to stay at work
$100k household income is a middle class lifestyle. For my family of 4, I have about $1,000 a month to put towards saving goals (new vehicle, home improvements/major repairs, family vacations, holidays) on $110k. That is with no debt outside the mortgage. And yes the said $100k salary not household income. For most families those are 2 different numbers, for my family and many others its the same thing.
@@JeanValjean875my assumption is that the people objecting and saying $100k is middle class are people with families, like me. It definitely doesn’t go as far as it used to.
That just payroll. Tack on another 7%-10% for sales, 5%-10% for state income, 1%-5% for property, and other fees and permit expenses. Americans will be taxed 50% of every dollar they make.
Middle class as a family or single?? Median rent prices for your local area in Tennessee and divide that by 25% , no car payment, but with regular expenses, not penny pinching on groceries.... sorry, if you have to have your calculator out when grocery shopping, you aren't middle class... add in taxes, 25% to retirement, add cost of health insurance, add in say 10% of that income for fun/extras... now please tell me what that gross income comes out to be... remember, middle class means you arent struggling... dont be like Dave and be allergic to math. You arent middle class in your area if you need two roomates.
@kathyharmon2093 I never said not to have a food budget.... I never nik pick prices and I spend roughly the amount every month. When I grocery shopped ingredients for meals already planned for that week, A calculator wasn't needed because the meals I already chosen weren't expensive meals to make. If going over your reasonable food budget slightly makes you run out of money, you're too broke and you're very much living paycheck to paycheck.
Sounds like you need to drop yourself down one rung on the socioeconomic ladder, and squeeze every penny out of your new lower budget. If you have debt, hammer your highest interest debt first. I can say from bitter personal experience that it s***s to force yourself to do that, but it will pay off in the future.
What helped me value more my income was when I had my first job and I learned of the value of my income and what is a necessity and what is a luxury . I started at the bottom and learned from it . Delayed gratification is a key role and eliminating all debt .
I’m 40 years old & just yesterday I cleared all my debt, no car finance,no credit card, no loans & I live a very minimalist life. If you stick to the rule of ‘if I can’t afford it I can’t buy it’ then I think you’ll be ok.
You have to think about the cyclical issue. People that don't come from money and don't get help and keep getting kicked down struggling. It's not just their fault it's their parents fault for saying "you should pay me to live here" knowing they didn't help their kids get credit to rent somewhere else for less and become financial vultures on their kids. Do not tell me these people do not exist. These were literally my parents. Literally I had to get myself out of a hole that my dad dug.
That’s definitely true, and my husband and I make it work with less than half of that since we’re just starting out. However, inflation is also insane. Groceries are more expensive and rent is more expensive. We make it work because we don’t have much debt and we don’t have car payments, but that does not negate the economy being trash. It’s absolutely a struggle to make it
In my country, it was caused by a combination of government incompatense and foreign vulture funds. They'd buy up houses and land wait years. Then sold it back to the government at 3 times the price. Add to that mass immigration and you've got a powder keg with a short burning fuse.
In part, greedy developers gouging the locals with dreams of home ownership and rampant NIMBYism taking advantage of outdated zoning laws do a lot more harm than some rich people coming from outside.
Nup. The housing crisis comes down to the following factors. 1. Population. There are too many people and not enough houses for them all. 2. Population growth. The number of people is growing at a rate not only faster than new houses could be built, but also irregular so medium to long term infrastructure planning can't occur 3. Flipping. People entering the property market in a home they can actually afford, holding the property for 90 days then selling it for more than it's worth to make a big enough profit to monkey branch to a more expensive property than doing that again and again until they get to the house they want. The wake of that is high housing prices, and now homes can have 5 or more owners in a single year. 4. Tiktok landlords. People who think being approved for a mortgage is a business and expect their tenants to not only pay 100% of the mortgage but to also make immediate profits. 5. AirBnB landlords. People buying up housing stock, or in some cases even just renting homes, to turn it into a hotel through airbnb, stayz or whatever. 6. Overly burdensome regulations that make it unprofitable for developers to build anything but "luxury" developments. 7. Real estate investor politicians. The people making the regulations, passing laws and developing programs around home building, home ownership and rentals, also have a personal, vested interest in housing and rental prices not only staying high, but ever increasing. That's where things like quota based housing affordability schemes. The point isn't to help you buy a house for you. The point is to create artificial demand to a specific amount so the market doesn't cool. And everyone who is already a home owner, which is 2/3rd of voters, go along with it because it increases their net worth. And those same people would be upset and take it out at the polls if the prices went down in any meaningful way to increase genuine affordability. It's never just this one thing. It's always multiple factors and competing interests contributing varied amounts to an overall problem. That's why problems aren't actually easy to solve.
I agree. Undesirable areas are undesirable for a reason 😂 sure I can buy a $10k house outright in Ohio, but who would do that? If it works for you then it works
Nice home for $165k in rural western Pennsylvania paid 37% down. Financed for 15 years. Payment is $950 per month... I put an additional $500 monthly to the mortgage. Will be paid off in under 7 years. Im a single guy who did this on his own. I decided not to keep up with the Jone's.
@@mcrwattsthat’s wonderful that you benefited from that 2.5% loan…. But you are proving the point that things have changed. Be thankful you were living at the right time and in the right position to take advantage of a cheap interest rate.
@@84jamesp Fair enough, but if we're going to count those taxes, why not also count the benefits those taxes offer you that make your material affluence possible in the first place?
In the time it took me to almost triple my salary (about 4 years) my cost of living almost tripled. No car payment No debt Grocery cost tripled Gas doubled Utilities doubled Rent anywhere nearby when up 2-3x Taxes doubled I got insurance finally and started eating healthy food, got a gym membership and have a hobby that costs me
This guy is absolutely right. When you start adding all up then $100k a year seems just average income now days, he is also 💯 about owning a house is not for everybody and it is not apples to apples if you believe that because you pay similar amount in rent then you should be ok with a similar mortgage. I still believe buying a house vs renting is the best choice to make but certainly it is not for anyone.
My husband doesn't even make 50,000 but we have plenty. I make it work and stretch. We have one car, don't buy crap, don't pay for subscriptions, don't buy disposable products, don't eat out but once a month, make my own bread and yogurt and find little ways to earn a few bucks by selling succulents or baking bread. You can be very content and satisfied with little even when it's hard. 😊
My husband and i definitely don't even live like we are middle class... He make a middle class salary, but because he has to pay for his mother's living expenses and contribute to other costs of living... We are barely scraping by. I'm a stay at home mom because it would ne more expensive if i worked and let someone else watch my children... We don't go out, we rarely order takeout unless I'm sick... It's so depressing. We can't even think about owning a home.
@@xSayPleasex I have no car. I have 6 Titanium Campagnolo bicycles Friday I’m riding 190miles to Dallas 2 days pedaling to catch a flight to CA. For a 300mile bike ride down the coast. I’ve been cycling long distance for 50yrs
I am so glad that my upbringing, while not being the best in the world, wasn’t based off of thinking you deserved this or that, “So buy it” even if you knew you couldn’t afford it. It took me being an adult to understand how we didn’t live above our means. I appreciate my parents for that lesson. They didn’t have much but they made sure we had the basics. People who focus on what things should look like if you are in a certain field or make a certain amount of money are beyond confusing to me. The stress that’s placed on yourself to keep up the facade isn’t worth it. I’ve also learned that comparison is the thief of joy. Good for the next person who has a lot of “things”. I’m no less of a person because I don’t.
Praise God, He protected me. In college I was offered a credit card. I didn't have a peace so I didn't get one until I was 38 yrs old. I have only owned used cars, and I worked my way through college. Because I was working so hard, My mom once said, "You spend your 20s getting into debt and your 30s getting out of debt. " but I didn't have a peace about getting in to debt. So I told her, I never want to be debt. And I'm so grateful that through Scriptures, Jesus taught me this.
I barely make 50k and I don't live paycheck to paycheck. I'm saving 15% for retirement each check, have almost 6 months in emergency savings, and am watching my net worth slowly rise. I did this by making good friends and having enough humility to put community over personal desires and now have two close friends to share expenses with and we all actually like living together, and we all know that if we start taking advantage or being late on rent for too long we will quickly find ourselves paying more than double to live alone. Living alone is a luxury most people can't afford, but we treat independence like a virtue. It isn't.
Neither of them stopped to think about how much of this is caused by "I can get this thing if I just put myself in debt!" Maybe don't do that and see how it goes. I live off of $400 a week. I can get by with that. It's rough sometimes, but I get theough it, and still manage to find a few bucks to put into savings. I seriously find it difficult to believe these 6-figure earners are scraping the bottom of the barrel. Like, what the hell are you doing that is causing you to live paycheck-to-paycheck the same way I am when you make nearly 5x what I do?
Exactly he said the one thing why im against homeownership you have to pay for every repair maintenance, etc unlike renting or living in an apartment you dont pay for those things.
It's not so much a particular number. Poor = I cannot stop working without being immediately forced out on the street (or I'm there already) Middle class = I can stop working for a little while, but not permanently Rich = I don’t have to work
Never heard it phrased it like that before because i can guarentee 99% of “rich people” still work or run some kind of business its just a matter of how hands on are they really.
I mean yeah, he thinks a mortgage payment is 2 grand in a place where rent is two grand. If you live somewhere with 2k average rent, the average home price will be much more than that.
Never finished high school here in MN. Worked my ass off to work and save as much as possible before I had to move out from my parents house at 21. I continued to work, do the overtime and find a better job. I never wasted money on things I didn’t need. I’m happy to announce I’ve purchased a condo at 24, a new truck and have around $40k in my retirement. It starts with parenting and discipline. You have to want to be financially responsible like you want to breathe. I currently make only around $52k pretax but was fortunate enough to discipline myself early on. I didn’t have ANY financial help. I’m sure there are others worse off…but we all have our problems….the first step is acknowledging them and working to fix them.
It’s funny he saying that. I’m a truck driver, no kids, and I live in the road so no rent. I have been cleaning tf out of my debt and all I’m ending this year with is student loans. All of my expenses are under $900 as of now but when I get this other stuff knocked out it will be about $630. I’m not buying no house or anything until I get this ish under control. Not many individuals make 6 figures but a 3rd of households (I’m assuming couples basically) make 6 figures. So I need to be smart about a few things. I’m not paying $700 for a car note that’s dead lol
$100k salary guy here. My mortgage was setup when I made $30k less a year, my only car payment is less than the average, I have no student loan debt, low credit card debt, etc. Inflation has STILL hit me hard trying to raise a family of 5! And my wife also works! Inflation has really put a hurting on a lot of ppl last few years
My guy really blaming lifestyle creep and not that housing/rent, groceries, energy, gas, cars, and basically all other necessities of life have gone up 50-200% in the past 4 years
I feel like they were talking about me. I did a macro analysis of my budget these past few years. I should have close to $500k in my 401k, but credit cards, divorce settlement and such really held me back.
If you borrow all that money for school car house credit card for other stuff then you better expect to pay for it. Maybe don’t live beyond your means the first 5-10 years instead.
Well, it would help if the government didn't tax us triple what they used to and send all that money to other countries... You know.... All that shit they "didn't vote for"... I'm not in this boat thankfully, I'm renting and have a little credit card balance to deal with but it's not their fault. When it should be easily dealt with and it's not because everything is absurdly priced, that's when it's their fault, and we're way past that.
I made $13/hr in 2019. Had my own apartment, I was poor but I made it. This year, I make $21/hr, and I am more poor than ever. No other costs. My car payment is less than it was back then, but my rent alone, for the exact same apartment, is now $1450 a month. For the exact. Same. Apartment. Food, no change in what I eat, I went from spending $150-200 a month to over $350 a month on food. Gas, utilities, the list goes on.
My dad makes insanely good money in the IT field he's in right now, and even when his bonus at the end of the year is as much as what i make in a year, he still finds struggles in his finances, and this man is so frugal he wont turn on his heat or a.c unless his wife makes him now.
100k where I live in upper middle class for a household of 2. You can have a decent house, car just have to be smart with your money. So happy I paid my house off full
“Living beyond your means” I live by this statement haha also why I play video games. Most times it’s one time purchase for hundreds of hours of entertainment. *altho I do like to spend a night in town and eat at exotic restaurants *
It also depends where you live. 100k in New York are different from 100k in Oklahoma.
Wow haven't heard that one before
No shit
Gambling and drinking addiction has entered the chat. That's what you get in Oklahoma.
Plenty of cheap places in New York
@@thefunfam1433 Is the goal to live in cheap places or nice places that are affordable? Sounds like a crappy living situation
When I was making 55k/yr 4 yes ago we had about 300-400$/month in clearance. Now I'm making 85k/yr and my rent is only 200$ more but we still barely make it. Inflation has sucked up all excess
In the same boat. Inflation has eaten up all financial gains ive seen since graduating college in 2016 and then some. Im worse off than I was the day I got the diploma and walked into the real world now with 3 kids to feed.
JFC stop having kids. They're expensive AF@@dutchcountryoutdoors
And it still hasn't balanced. It will get worse because of what biden and democrats did.
Straight fact
Budget better.
People say you can't expect to have a lifestyle from the 1950s like leave it to beaver. Why not? What changed so dramatically? What happened to dad working 40 hrs a week with a high school education and being ablr to buy a house a car and take a little vacation. What is happening when 2 full-time salaries is a struggle
@@Michael-e4n8v What changed? Reaganism
yeah that's impossible, the dad, and mom working together can't do that.
Free trade, union busting
He says it’s absurd. However, if you look at inflation over the last 20 years, it’s in line with what it was to be middle class in the 90s. 50,000 in the 90s is 100 grand now. Our money has just become worthless.
And wages are stagnant. Been the same for way too long
Not just yours bro. 😂
you could still live like a person in the 90s today on a 50k salary. People consumed way less
You understand people today have so much more BS. Netflix, Hulu, prime, smartphone, high speed Internet and tons of other monthly fees besides ordering every little thing from Amazon. Live within your means and realize you don't need everything the Jones's have. Nobody cares about your crap.
@tayk-47usa41
Buddy I just looked at your profile picture. You look like a 90s baby. You didn't even have a concept of money at that time. Now shut up.
Daycare is the absolute biggest rip off. My mortgage $480, car payment is $350, daycare for two kids is $1,400. My wife and I lived like kings in our low income town before children.
moral of the story don't have kids unless your parents are retired and want to be daycare for free
Here's a novel idea. Raise your kids.
Return to your town
I don't think they left the town @@RubenDeanda-lb9wr
@@reesercliffOr move to a better country. Daycare is free where I live.
I make $106k in the midwest and can MAYBE put $800 away/month with normal expenses. 1 tree trimming, mechanic bill, or dead water heater and I'm going downhill that month. I pay $800/mnth in child support, have zero car loans, zero debt, and live a very modest lifestyle in every way. I never take vacations and rarely spend much money on myself. I have no idea how people making $60k do it.
Imagine living in Seattle making $60k. It’s rough out here. Wish we never moved from our small suburban town. Now I pay crazy student bills, have to pay a good $2000 per month in rent and utilities alone (unless I live with several roommates of questionable character), can’t afford a car, live in crime-riddled neighborhoods.
It’s rough out here.
@@ExternusArmy Damn, that would suck. Had a grandmother in Seattle (she's long since passed) but I seem to remember it being very nice and even affordable, but that was 30+ years ago. Hang in there man.
Yeah man the repairs and maintenance on a house is a killer!!
try 30k buddy
One or more of your expenses is too high. Maybe it’s your mortgage and maybe it’s your grocery bills
Yes, lifestyle creep is very real. But also, everything costs WAY more than it did a decade or two ago. It's not absurd to say $100k is the new middle class. I made a hair under that this year, to provide for myself, my wife, and my 2 young kids. No car payments, no mortgage, no student loans, no childcare costs, reasonable rent cost (relative to modern prices), and fairly minimal credit card debt. We thrift shop the kids clothes. Our idea of splurging is a moderately priced date night. Don't get me wrong, we aren't in danger of going hungry or anything. We are comfortable enough and thankful. But it's truly hard to save anything, because groceries, gas, rent, and many other necessities are so expensive now.
Yet this dude votes for policies and elected officials that implement laws that curb his wealth🤣🤣🤣🤣Make it make sense!!!!🤡🤦
@nealcassady-yn3bh Why would you buy a child a new car? Get something older and paid for. Don't put the kid into debt first thing out of the gate. They will be fine. Teach them how to save and maintain it. All vehicles need maintenance, yes, even new ones.
Stop voting for liberals who caused the inflation.
Break down your budget
Thats your issue right there luckily for me i dont have kids and live rent free since i live in a 3 family house so my tenants cover the mortgage.
It wasn’t this way even five years ago. We need to look at what’s happening in our economy. Inflation has gone down but prices haven’t. Corporate greed is killing us. When are Americans going to wake up and realize the corporate world just wants to keep us like feudal, servants and peasants. Make us so afraid of losing our jobs. Trying to prevent people from unionizing. It’s the same old thing over and over again that’s happened throughout history. United States is no matter than any other country in the world at any given time. we may no longer have a monarchy or a royal elite, but we have the corporate world and the rich people who run it that are doing the same damn thing.
Inflation hasn't gone down
Prices and inflation is the same thing. If inflation is down so are prices
Truth. Stop blaming people.
Corporations didn’t just now decide to become greedy. The government printed copious amounts of money and gave it away to everyone under the sun while the supply side was suppressed. So much money was printed that it shifted equilibrium.
@@rbw31 disinflation- a state of declining inflation. Price levels are still rising but slower.
Deflation- a state of falling price levels
Inflation coming down does not mean prices are coming down. Inflation is cumulative and has harsh consequences for middle and low income earners. Which is why economists were warning of this but the powers that be want to believe social work majors over financial experts/ economic scientists.
We just paid for a big expense with a credit card. We had saved the money first and paid the card in full, as we always do. The minimum payment the company wanted was $68 on a $12,000 balance. And I’m sure the interest rate is 20% or more. Making minimum payments will bury you.
100% real. I grew up in a 70k combined household and we were middle class but my parents lived paycheck to paycheck. This was in GA btw where the cost of living is low. My wife and I recently were blessed to get good jobs and moved to PA. We currently cleared just over 200k as a household the last two years. We want to buy a house but refuse to do it until we have at least 75k saved (over 40k already saved) just to make sure we are going in with the right mindset and safety net before buying a home.
Income was 70k, and house values were the same 70k?
May I suggest you (possibly) surpass the $75k goal and keep adding to it until interest rates go down. Bc you’re not going to be able to get as much bang for your buck with the current rate lingering around 6.5%
Thankfully, my husband and I bought our house while the interest rate was still reasonable at 3.625% our mortgage is just $2900, but if you put in the details of our house on Zillow with the 6.5% interest rate and exact same purchase price and down payment on our house - the mortgage would be $4500 not including property tax, home insurance, home warranty.
I’ve read the feds will cut interest rates this year reducing it by 1-2% with hopes of reaching 4% anywhere between July and December 2024 (Forbes posted an article earlier this week)
Wish the news felt this way. Because I'm a gen z and I totally feel this
@remmond3769 remember during COVID the housing market went up so much and the rates were actually steady or going down at that time as well. But then house values never went back down, interest rates sky rocketed and the housing market got stagnant but didn’t drop. So house prices are high and interest rates are high now. My husband and I were looking for houses in 2019 they were about $450k and 4% interest in our CA town. When COVID happened we took a break house hunting to not risk exposure. When we saw the house prices rising astronomically here in CA we decided to purchase something before it was no longer affordable. We ended up with $710k and 3.625% interest rate. The month before we bought interest rates were about 2.95% so we felt like we got screwed over getting a house almost double than originally planned and a higher interest rate. But when rates started going up to 6-7% we realized and became grateful for our locked-in mortgage. As for not buying in 2019, that part totally screwed us lol.
Buy a 4plex instead. Live there for a year move out and rent. Then buy your house. Buy the asset that pays for the liabilities. A house is a liability. Period. If it doesn't pay you it enslaves you. You could be house hacking and saving what you spend in rent. Investing that money into more assets that produce income.
I make just over 100k. I have been priced out of any home I am willing to live in (500k+ purchase is worth being picky) and being forced to rent in order to live within 30 minute commute to my work. Our cars are paid off, no other debt whatsoever, and maybe eat out twice a year. Debt is not to blame when the market and economy is what forces people into middle class.
$500,000 seems quite high for your salary. How much can you borrow on $100k
True that. Hopefully sanity returns in the housing market
Bro you seriously only eat out twice a year? That's fucking wild I'm impressed
@@Quattro_Joe 500k w/ 10-20% down your looking at a payment of 1800-2500 depending on insurance cost bla bla bla totally possible
@@Quattro_Joethey probably don’t want to live in a bad area
Good job bringing up the cost of homeownership, lots of people that rent don’t appreciate the stress and frequency of stuff breaking in a home until they’re on the hook for it.
I've put in a 14k well, a 21k roof, a 13k drain field, etc, etc.
People who rent are well aware of how often landlords actually have to spend money to fix things. I rented my last apartment for 11 years. In that time exactly two things broke - my front door lock and a fridge. It’s deeply inaccurate to suggest home owners field a plethora of expenses all the time.
I now own my home.
We'll ignore the fact that in the last 30 - 40 years we've gone from the average house costing about 1.5 years of the average salary to the average house costing about 5 years of the average salary. But yeah, we're all lazy and irresponsible.
Uh, not quite mate.
We’ve gone from median house price being about 3-5x median income 30-40 years ago, to now being about 10-20x income depending your region.
It’s much worse.
@@OnlyAchievingHere Not from the stats I looked up, but either way it's not good.
@@tylermceachern3085 You might be right. Maybe I’m thinking of more local data and not US national.
US median individual income:property is about 7x
US median household income:property is about 5x
In Sydney, Aus it’s about 17x and I think Canada’s major cities are roughly as bad or a little worse.
@@OnlyAchievingHere Ah. Yeah I was looking at the US national averages. Obviously this could vary greatly by region or country. Either way it's going up for all of us ... and it sucks.
He's not saying everyone is lazy and irresponsible; if anything, he's saying most are uneducated financially. I've lived totally fine and comfortably on $35k/yr while I'm finishing school. I'll leave with only about $10k (or less) in student loans, which I can easily pay off in a few years. I have a fairly new (2015) car fully paid off, insurance paid, $5k sitting in case I need it for an emergency. I'm not saying I'm any kind of financial guru, but if you're careful, it simply isn't that hard to stay afloat.
I have been following the baby steps for years now. I live really tight, no debt, swapped the car to a paid motorcycle to save money, and yet it is gonna take me around 5 years to save enough for a 20% down on a house. At this point I am getting really tired to rear these rich people blame us for being poor.
American life is set up for dual earner households, so they're gasslighting single people. With that said, it's still important to keep trying even if it takes a long time. It's not our fault that our salaries haven't kept up with the cost of living.
you just need 5%. Dont wait, and Ramsey actually backs that. Id still say a 15 year mortgage, too. It can be done but it took us moving from CA to do it. The sacrifice has actually been worth it for us, created more peace to move.
Don’t wait for the 20% down. As long as you can wrangle some excellent credit, some programs will even allow 2.5% down and the only difference is .25 higher interest and .25% pmi these numbers are peanuts in comparison to starting to build equity. Also, pmi can be dropped off once your over 20% and you will probably get a better interest rate during that refinance.
Find a mortgage broker, not a bank, in your area to talk to and see if other government programs exist to help you. Buy before rates drop, or be prepared to spend a lot more for your home.
How much do you make?
100k is nothing even in Texas
This is just insane to me. I live in Germany and make 48,000€ per year (~51.5k USD), which is considered slightly below the average salary for someone with my level of education and professional experience. I do not have any debt or loan payments whatsoever; I can comfortably afford anything I want to buy and at the end of the month I still have around 1,000€ leftover that go into my savings account. I guess the secret to avoiding credit card debt is straight up not buying shit you can't afford.
In Germany medical and preschools are free while groceries and rent are 2-3x cheaper than in USA . Keep that in mind
@@rbw31 Yes I'm aware, basically the only thing that is cheaper in the United States than in Germany are automobiles, but that doesn't stop Americans from indebting themselves on that end too. In Germany there are of course also many many people who drive around in cars they can't afford, but these will most of the time be leases where they get rid of it after 3 years. Financing a $80k vehicle on a salary of $50k before tax is unhead of here, but apparently quite normal in the US.
@@wowdogeful please also remember Healthcare costs. I pay about $19,000 a year between medical insurance and actual Healthcare costs with my high deductible policy. $51,000 in Germany is probably similar to $100,000 in U.S. once you consider all the benefits Germans get for free. Free education and free medical would be a pretty dramatic game change.
@@rbw31He doesn't need to keep that in mind. He lives in Germany not America. Medical care is not provided for free. All must have health insurance. You don't know a lot about what you are commenting on it seems.
Yea I got into debt and then it’s hard to get out. Credit card use for everything
As of Dec. 2023 Williamson county median home price is $833,450. With 3% down, monthly mortgage is 5,320 which is about 64k/year. That's just paying for your house! Get with the times guys if you want to keep credibility.
I guarantee you that these two make 2 or 3x this amount!
They are using facts and statistics.
@@AaBbCcDdEeF and what did I just use dude ? Look it up. It's stats.
@@AaBbCcDdEeF I used stats and facts with direct examples from the county where Ramsey Solutions is located. Please re-read my comment before making such statements.
That’s twice the median prices across the USA. Fancy neighbor this W county must be
This is spot on- me and my wife make a little over 110,000 a year with two kids. Even if you live a frugal lifestyle which we try to do prices have gone up in so many areas that it is almost impossible to save money let alone pay all of our bills. I try not to worry about it but it is constantly on my mind.
You’re not along brotha. It really affects my happiness.
We live in MA, we were doing great before all of this inflation. Now we are paycheck to paycheck. I thought I got to the point in life where I was beyond that. Thank God I don’t have a car payment and I saved enough money to buy a car when I need one the next time.
People gotta wake up and realize this shit storm stems from inflation and increases in prices... The minimum wage, tax increases, and printing more money is going to make everyone broke af... But that's what the Dems want so you are dependent on handouts and keep voting for them because "they care and help"... it's all a ploy. Vote Trump 2024
Homeownership IS way more expensive than rent - we just had a new roof last fall $20k, we have a 4-story beech tree 30’ from the house that is sick and we need to take it down, $8k. We are having our gutters cleaned and covered, $1,200. Those are the types of things that come up, and you need to be prepared for them - on top of the mortgage, insurance, utilities, groceries, etc etc. it’s great to own a home don’t get me wrong, but it’s a never ending parade of added expenses to maintain.
Washing machine dies? Can’t call the landlord. Pipe burst? Can’t call the landlord. Septic tanks needs to be drained? Can’t call the landlord. Home ownership is so much more expensive than renting
@@DontBeStatusQuoI don’t think it’s worth unless your home is entirely paid off
True but if *on average* home ownership was more expensive than rent, renting wouldn't be a thing
Most of the places around me, the landlord never responds and you have to fix it yourself anyway@@DontBeStatusQuo
@@theamazinghippopotomonstro9942 it IS, could you afford all the expenses we just unexpectedly had without going into crippling debt? When you rent, it’s just just rent. BUT like I also said - you have no lasting asset
Rent where I live is about 2400/month, childcare is 1900-2500/month. Making 100k a year comes out to about 5.5k/month after taxes, retirement contributions and insurance. Still got utilities, groceries, gas, insurances and clothes for kids who grow too fast. Throw in a random birthday/wedding/baby shower gift and we’d go over every month.
F taxes they take too much and just use to f demoralize and destablize the world.
Things getting expensive is not a problem, its happened forever. What is a problem is when things get more expensive and adjusteded for inflation, wages have stayed stagnent for 40 years.
People constantly ignore the things that have gotten far cheaper.
It's not just lifestyle creep. It depends where you live, how many people you support with your salary, and how much childcare is. Live in NYC as a single parent with no debt and taking no vacations and never going out to eat and you will still be almost paycheck to paycheck. We need quality, affordable childcare STAT.
Oh god, yeah we need more government services because they do what they do already so well!! And at such a low cost!
being a single parent you already made a big mistake financially.
100k=70k after California taxes. 100k barely keeps you above water. The team is really out of touch with reality. We’re not saying you can’t survive on 100k; we’re saying you won’t be middle class.
So California taxes are 30% of your income....???
@@bogdan78pop at 100k its about 28% plus a little more if your paying for part of comapny medical. It come out to around $2,800 a biweekly paycheck. I used to always use 30% for rough calculations when I was hourly.
and no its not enough money. in our area 100k wont get you a house unless you were living rent free to save for a few years and put a hefty down payment on a home.
@@matthewquinn9709 You said California taxes.....not federal , state , Medicare and SS......be more specific.....!!!
Can confirm $130k=80k after taxes, SS, health insurance and 401k as a single household 24 year old
You need to do your research rather than ask someone to be specific because you’re lazy. Even in the U.K. at 100k taxes are 40%
I’m an avid Ramsey follower, we are debt free minus our mortgage, we have our emergency fund and we are in the category of $100k/year….BUT…we are still struggling. Inflation is no joke. We don’t waste our money on mindless items or eat out every meal. I never buy anything we don’t need. We are a family of four and I’ve gone through our budget over and over trying to find ways to save a significant amount of money. I could cancel a few subscriptions and not eat out for lunch but that’s just a few hundred a month MAYBE. BTW, we don’t have a huge mortgage either. It’s less than 25% of my take home pay.
fr rl, I literally just paid $20 for milk, cheese, and instant coffee. I'm self assured in saying me and my "lifestyle-creep" not the problem.
It’s not lifestyle creep. The Ramsey people have their heads in the sand to sell their product which is to stay debt free. Something I totally agree with btw. I’m debt free except for a very cheap car payment to build my credit for buying a house, but after the doubling of housing prices, interest rates, and inflation, I don’t really have any hope until I can find a way to increase my income. 2 years ago a mortgage would have been less than my rent, now the cheapest homes within 100 miles would increase my housing costs by 50%.
In the exact same boat. Well, we’re renting at the moment with a down payment ready to go…
But the cost of living these days is insane. I don’t understand how I haven’t heard anyone else struggling much right now… I guess everyone has just assumed the debt-induced life style and gave up caring.
Something else is up. Look at your tracking again.
I would say for a family you definitely need more than 100K. For a single person, I think you could do good with 100K.
“Lifestyle creep is real”
Eggs are $5
Food has tripled!
This isn’t debtful living and being paycheck to paycheck, this is the fact that you can’t even get approved for a home loan unless you make 100, even if you’re 20% down on an $400,000 house. That is what makes 100 the middle class. It means even if you’re doing everything right, you’re still strapped or you can’t move out of your starter house to get chickens so you dont have to spend $5 for eggs
Also, I understand what they’re saying, that you need to buckle down and get rid of debt- but if the cost-of-living is so high, that means getting out of debt and saving for a house or about three times, as long as they were years ago.
Wheres John Delaney- because that’s a new level of stress, and he needs to be on the show more!
Depends on where you live
Ouch, where do you live?
We live in a thriving college town on the east coast with plenty of high-paying jobs and a dozen eggs cost $2.09.
I’m halfway to being middle class… and my stats are all half these numbers and in NY. WNY.
Where tf do you live that eggs are 5 bucks
@@eddiemalvin its all bullshit. Hes buying groceries at a convenience store
Apparently the most recent data says $170k is what you need to be middle class based on historical earnings and buying power.
source?
where? LA?
Wtf does this even mean 💀 who even likes this comment
yes! and with the dumbing down of our children at the schools and lowering their standards of learning they are not getting well paying jobs when they get out of school. It is all collapsing in on itself.
I can live on $50k, if I made $100k then I'd just save the extra $50k and then have cash built up later in life. There's practically no excuse for living paycheck to paycheck at $100k+ salaries.
I make 30 an hour in long island ny. I take home 900 a week after taxes. Average studio apartment, the most basic form of housing(besides shares), is about 1700-2000. On 60,000, basic rent is ~40-50% of income. The traditional 25% on housing is dead
GTF out of here 900 a week bro? Leave you deserve freedom
Shut the front door, I make $50 per hour and only take home $900 after all deductions and taxes. How is that possible?
@@adamvoss4402 Are taxes that bad there? If so, no wonder everyone is leaving that state.
@@channell11yes.
@@luisguerrero2795you must work 23-25 hours a week around here 16/hr is roughly 540-545 take home with a 3.75% school tax tacked on top. I make $34.80/hr and bring home 2320-2350 biweekly with minimal overtime only clocking in 10-12 mins early, something is not adding up.
In Canada, $100000 pre-tax is $60000 take home. Then $4000 annual property tax. In our province, 15% sales tax on almost everything. Trudeau's "carbon tax" caused higher prices on EVERYTHING. $100000 is now lower middle class.
Ya, places like Toronto $250k is now middle class
I make about 60k in LA, 1k rent (my share with two roommates), no car (or any of the accompanying expenses), no CC debt, no wild nights out, about 350 per month in student loans, basic retirement contributions, and in my part of the world I would absolutely need 100k to live in a mold free code compliant apartment in walking distance to public transpo lines, and have a comparable standard of living how any single fully employed woman in her 30s would have been able to expect to in 1985.
Same excuse. Different decade. I used to hear this same lame excuse in the 90s 😂. It's weird how history repeats itself
I graduated college in 1985. My first job as a (single woman) teacher paid $14,650. I divided one box of mac and cheese into 3 nights of dinner along with a piece of bread and butter. Times were tough then, too!
Time to leave CA and live much better.
Supporting a family on 100k in a good area is rough with zero debt if you’re a saver investor and you don’t eat processed garbage food. Monthly take home after taxes, investing, gas, rent and real food is only $1200 for all utilities, clothing, activities, supplies, maintenance & gifts for 4 people. 🙄 There’s no room for a car payment or student loan.
At the end of the day, it all depends on you!
I get the typical expenses and all! (Mortgage, house expenses, etc)
But some people don’t live below their means!
So many are living like others that may have more money than they do!
When making $100,000 a year, why are living a life style like someone making $150,000 a year!
Or if ur making $50,000 a year, why are u living a life style like someone making $100,000 a year
We are screwed. My monthly mortgage is the same as one tenth of my parents 1990 mortgage total value. In 1990 my electrician dad was earning £40 an hour. 30 years later, as an electrician, im earning exactly the same. I'm so broke. I have no pension, never go out, worry about buying shoes etc. I am profoundly frugal and like most people am living paycheck to paycheck 😢
Move to Aus. Sparkies rake it in over here
Come to Canada😂
@@locholoco do not come to Canada.
We walked away from a 3,700 monthly mortgage even though we qualified for a home loan at 459,000. That mortgage combined with monthly living expenses would have taken up 100% of my husbands income alone. We loved the house but not enough to go into insane debt for. We have 0 revolving debt and over 100,000 in assets. I found a home for 2,000 a month rent in the same neighborhood we were going to buy in with a paid hoa and we can utilize with hoa pool. We will save up enough so that we can afford to buy at a better time.
You should move somewhere you can afford to live 💪
@@zzzzz45zzzzz79 we are a military couple moving back to the states from Israel. After all the stress we’ve endured we want stability and a great school district. Our kids will start elementary school at the best there is for the area we are being stationed at.
Are you a dependa or do you contribute financially?
The bank will always tell you that you can "afford" way more than you really can. A $3,700 mortgage is pretty wild even if you have an upper class income.
There’s so many factors. Not sure about the US but in the UK you get taxed 40% on earnings above 50k. On top of that, house prices are crazy, cost of living has increased considerably. The government don’t want people to be independent and self sufficient. They want to keep the majority of society under their thumb and in poverty.
My wife and I own a nice little 1000 sq ft. 3br house, own 3 cars (newest one is a 2010 Honda), go out to eat all the time, and just went to Ireland for 2 weeks. We clear $60k a year.
Well done!!
Where do you live though…
Nice corner of the rust belt?
it really depends on where you live, both the missus and i make six figures, we used to live in town, it wasn't tough by any means but once we moved 30km out of the city, life got real cheap real quick. Location really does matter.
They are probably financing it all on debt
“If you’re drowning in payments you’ll never have enough” that’s facts. Some people who are working class no matter how much raises and money you give them they will never live within their means and always be broke.
and that's why all these assholes are bitching. All the while ordering Door Dash and stopping for 6 dollar coffee. And having 3 or 4 kids.
I live very comfortably on $67k in Los Angeles I drive a paid for 2018 Prius and my rent is only $800 for a small room in a nice house with utilities included
It’s not lifestyle creep. It’s the fact that in order to make 6 figures you’re forced to get a job in a high cost area so then you have to live around there to go to your job which locks you into expensive living. If more remote work was available and the house prices/ rents were more reasonable, this wouldn’t be an issue
It is life style creep. My wife and i make $160k combined in a low cost of living area. Stay out of debt, say no to mindless consumerism, delay gratification.
No, its not lifestyle creep. People with actual high salaries need to live in those expensive areas to be able to commute within a reasonable time….and even then, their high salaries STILL isn’t high enough to buy a home in those surrounding areas. The whole work from home thing would’ve been great if office-based companies employed this because then people can move out to low cost areas they can actually afford. You are clearly an exception because your place of work is also in your low economic areas OR you take 2 hours to get to the office (IF you even work from an office) and you’re okay with that. People who value their time are not.
@@VBoo459 nope, wrong on all accounts. I live in Arkansas as a union industrial electrician. I make $70/hr and i live 15 min from work. You do realize that the world is far more complex than you may realize, right?
I make over 100k right out of college and I live in NW Arkansas… your not forced to live in a high cost area for that kind of money.
@@danstevens64so neither of you make 100k. You just confirmed his point. You couldn't do it by yourselves.
“Playing the part” is exactly the trap I fell into. Two years after seeing Dave every day I speak to myself in the shower patting myself on the back and thanking Dave. We have freed up 5k EACH MONTH! And generated a further 2.5k each month in tax savings! All through budgeting and saving. It’s terrifying that we spent 10 years wasting this amount of money. We are on course to pay off our house ten years early and with a fair wind and a bit of luck will be set for a lovely retirement. Thanks Dave ❤
Ya don't have to "play the part". That's the problem. Keeping up with the Jones is never a good thing.
@@sambira it’s not always about keeping up with others. sometimes when you’ve reached a salary goal you allow yourself luxuries and the slip isn’t keeping up with anyone but your self .
What do you and perhaps your partner do for a living? I ask because I am interested in that savings delta.
@@11227denis I work in software sales after a career in software development. My partner owns a laundry company. Not sure if that info helps. But essentially the secret ingredients is being able to sell. And if you have your own company you can earn orders of magnitude compared to the 9-5 with added flexibility. What industry do you work in currently and the I can help you?
Yeah except that’s 60k a year post tax. If two people make 40k a year pretax that would be their salaries combined. You’re savings is literally some others whole income. So yeah it’s easier
I bought a 2600 square foot house for $194k. I was spending $1700 a month on rent, and now I spend $1600 on a mortgage. Then the price of my house went up to $300k within 4-5 years, I am so glad I didn’t listen to this housing advice!! lol I’d never have enough for a house
Your house is worth more because of that good old inflation 😅😂
@@rbw31 but his mortgage is the same as it was 5 years ago. If he was renting his rent would adjust every year with inflation.
No debt anymore. Thank you Ramsey!
Most 100k+ earners live in expensive areas where a mortgage is going to be closer to 5000 than 2000
They never mention how salaries have been deliberately suppressed for DECADES. That $100k salary dollar-for-dollar match with inflation should be around $150k in 2024 dollars. So, yes, $100k is LOW if that's the new bar for "middle class" for the majority.
It's the back in my day burgers used to cost 5 cents fallacy. As we get older, we don't readjust to inflation. 1 million isn't the million you got used to 40 years ago.
Family of 4:
Mortgage: 1600 mo.
Health insurance: 400 mo
2 car payments 400 mo
Car insurance: 200 mo
Phone internet water electric: 400 mo
Gas for 2 vehicles: 400 mo
I make 4200 mo (70k gross yr)
I am bleeding 500 mo on average due to food and other expenses. To truly make it i would need 85k a year. Wife has to stay at home because child is special needs. No credit card bill thank goodness.
Why do you have 2 car payments?!?! They’d probably advise you to get rid of 1 car + all it’s expenses. Free up some money for yourself ffs.
@@VBoo459 wife needs a vehicle and i need one. Was on top of the world when wife worked, but thats no longer possible.
This is reality, life has gotten expensive. Your breakdown looks very common
I know these probably aren't the Ramsey criteria, but to afford the mortgage on a median price home after putting 20% down and staying under 28% gross income, you need to make $98k per year. Assuming median-price homes are intended for the middle class, this checks out.
Buy a cheap home! Don't get a $200k home. I got a duplex and lived on one side, and fixed the other to rent. Took 15 years to pay it off. It can be done even if you make $38k per year.
@@leechburglights you aren't buying duplexes for a good price today because everyone and their mother did what you dis 20 years ago and factor the income from the other side into the price when selling. Typical duplexes today that aren't run down run for the price of 3 SFHs in the same area. Prove me wrong by listing the dozens of duplexes for sale right now in your local area that is selling for the same price as just two separate SFHs in the same condition and area.... can you even find one??? are you saying that median priced homes aren't for the middle class?
@@thehomeless_trucker I'm saying buy what you can afford. Plan to buy and don't just take a chance on something. My rent income was $325 a month with trash, sewage, water pollution, water, and electric. I didn't make anything till the house was paid off. And there are more than reasonable places to buy but people don't want to do the hard work. It sucks bit that's the way it goes.
As for the median price of homes, don't pay that much plain and simple. Get out of the mindset that everything you buy has to be the average of what everyone else has. Nobody is impressed whe watching someone flaunt thei good fortune. I've lived below my means for years on a crappy salary and learned how to do it thanks to life experience. I'm grateful for it. Because now I know I can retire and enjoy life. I won't be living like a king, but I will have peace because I didn't keep up with what everyone else was doing.
@@leechburglightsyou missed the point. If you have to buy a crappy home when you make less than 100k salary, then 100k is middle class by definition.
@@leechburglightsthat only works in certain parts of the U. S. Where I live a run down house is 600k and a duplex starts at 900k. Our whole family is here so nobody wants to move to a humid bargain area of the U.S. It’s absolutely paradise but nobody (unless they make over 200k) is paying their mortgage off in 15 years.
They’re doing this to themselves though. A 700 dollar car payment is a choice, not a law of nature.
I figure I need 75k a year to just feed the family and pay basic bills. All cars paid off. No health insurance. No savings in that calculation. No vacations. Don't eat out. Cheapest rent in the state damn near. I have it set up easy compared to most and I still need 100k+ if I ever want to sniff retirement in like 30+ years. This economy was forced on us and it the boomers fault.
Cars are pretty much forced upon American citizens, but yes people probably need to do more shopping around and care less about their image to reduce their car payments. If you’re not sharing the rent/mortgage on a home with roommates, and if you add kids into the mix, it’s very easy to blow through an entire salary. Some of it will be frivolous spending, but that won’t amount to more than the other proportions assuming you’re not in debt
@@Strategies2010 Cars are needed, but buying a $30k car isn't. Where a lot of people get themselves into trouble is they buy a way more expensive car than they really need.
@@JB-bj4cs about 50K for my wife, son and I because I’m the sole provider. No debt or payments. Just rent and bills and still have decent money left over. Not a fancy life. But a nice one.
So I make a little more but here is my breakdown:
Taxes & Benefits: 31%
Retirement:17%
Leaving me with 54% for expenses:
House: 26% (that is low bought less house then maximum)
Utilities (mild climate): 5%
Car: 6% (for two cars includes insurance)*
*Need the cars for transport due to living further out which is offset with lower house cost
That leaves me 17% to actually live on (food, clothes, gas, repairs & maintenance for home and car. Since I am cheap, and no longer have kids, I actually have a few dollars left over.
If I weren't cheap, had kids, or had student loans I would be negative.
People need a place to live, transportation to get to a job, eat, and pay student loans. So they can't save for retirement (I mean that is not even an option), and stopped having kids to just make it by. Because the average person makes much less.
Over half the expenses could be housing, retirement, and student loans - all things Boomers either paid SIGNIFICANTLY less for or received outright free. Wages never offset these costs. And that is why someone starting out at $100K can be paycheck to paycheck. Make less and you drop the retirement, or hope for student loan relief. Ans try to live with your parents.
Made 6 figures the first time in my life in 2023. The $28,000 in state & federal taxes I paid really f#%*ing hurt. That’s a good down payment on a home just taken off the top every year…taxation is theft and they squander/launder it. It is feeling to me like the ol tree of liberty needs to be watered again.
It's called inflation. You know the thing you guys ignore for all your employees.
r/im14andthisisdeep
It’s not all on inflation tho while that does play a part a lot of it is honestly people especially these days are wayyyy too stupid with money have zero real responsibility, and way too materialistic. So many people would much rather let debt pile up and put more of it on credit cards and push payments of bills back, if it means they can secure the newest IPhone or the newest video game system to the newest model of something. They’d rather drop money they don’t have on things they want because it’s plays more into them having “fun” than it does being an adult and putting that money to bills, etc. you have people who will spend all this money on a nice fancy car when they can’t afford it or could go simple and basic but then turn around and live in some dump of an apartment or living with their parents paying no bills but still have no money or savings even with a job. There’s no state or place where you live or real reasoning you should have an insanely high car payment for no reason at all besides the stigma of “owning a nice out of your price range car” prices aren’t great and are still high but in no world should you be paying 400+ a month for a car you can’t afford anyhow that’s just being greedy and living above your means simply because you’re spoiled and feel entitled to do so.. you could’ve easily gotten a basic car or something used or semi used but instead wanted to buy a new car or a shiny sports car cuz it makes you look cool even tho you can’t really afford it but hey none of that matters cuz it’s “not your fault” it’s inflations fault, it’s the governments fault, it’s a companies fault, it’s not your fault you’re making bad financial choices oh nooo not at all it’s everyone else’s fault.. 🙄
@@shaneyafanaro not reading all of that as reading the first shows your wrong. Inflation in the last 5 years is up like 35% so unless your wages have increased by that you have had a pay cut. Simples.
It's not absurd at all. 100k now is like when my parents made 50k while I was growing up. Even in the rural south, you're paying $2k/month to rent a small 3br house. Insurances have gone through the roof as has food costs, etc. Average family of 4 is paying $1,200 more a month than they did in January 2021. That's almost an extra $15k a year to just survive and live the exact same way. Only thing absurd is Americans tolerating this economy.
I’m speaking from a place of ignorance because I am not too knowledgeable on economics but in theory what could the American population do to fight back against inflation?
That is horrifying! My first 100K was in 1999. In 2000 I made $110,000! How can that possibly be OK 25 years latter???💸
My 2017 sr5 tacoma says no you don't have to play the part, even once you're making 200k.
2017... that's pretty posh if you ask me
This is why learning a skill or trade is very valuable... nowadays you gotta have your own business to live the lifestyle you want. A 100 grand a year ain't sh*t now. Trust me I know
It’s really not 🤦♂️
I take home 90k a year. I’m close to hitting 1m in my investment account. It’s all about money management. If you can’t make it happen taking home 90k Then you’re doing something wrong. 100k is a great amount in most of the country. Trust me I know.
Homie you're not making 200k as a Plumber no matter what kinda cope you wanna tell yourself.
Facts
If my car payment is more then $200 I’m out stop buying these big ass trucks and get yourself a Honda.
Yeah I don't get how 700 is average, I've never had a car payment over 300, seems crazy
Why do they just brush over that shit?
Maybe they use the truck?
Word.
@Jasiel.95 Almost nobody uses those trucks. The beds have gotten smaller and smaller while the cabs have gotten wider, longer, and taller for NO reason.
Basically be poor don’t have an average new car (ie: Honda accord), don’t live in a house buy a trailer instead, no vacations ever, and you can be apart of the middle class. That’s not the middle class or at least not what it was.
You used to be able to work 1 job own a home and a modest new car take 1 vacation a year and be considered middle class. Now people are drowning in debt to live that way because they can’t admit that they’re not middle class.
It’s not always the fancy stuff or playing the part. Let’s say $2500 mortgage, $1500 daycare (more if you have two kids) $500 for two cars, say $400 student loan debt, $800 groceries, $300 all other house stuff, utilities, kid clothes, car insurance, doctor copays/prescriptions, gas for car.. that can set you back a huge amount and there’s not much wiggle room.
I agree but people should have more common sense about having kids and buying houses before they’re ready and financing cars
@@stkbloc9717Progress is not linear. Things can happen, kids can happen, you can get laid off, you can get sick
In your scenario: mortgage: reasonable. Daycare: probably should have one stay home, but eventually that goes away. You can save for it too. Probably the toughest thing on the list. Student loans, shouldn't have em. Community college+ save+ work+state school. 800 groceries is a little high if you're actually meal planning, and 500 in car payments is ridiculous. Like stark raving mad ridiculous, even though everyone is doing it. Since most people don't need anything other than a sedan and cars last 200k miles. There's little wiggle room at first, but you would have quite a bit after a year of you take out the car payment and control the spending. You would be doing this while living in a pretty nice house by most standards if you're in the Midwest, around 270k on a 30 year even with these ridiculous interest rates. You'd be doing even better if you rented.
@@stkbloc9717you’re missing the entire point. OP said $100k is better than middle class. It’s not. If you can’t even afford a kid and regular home on your income YOU ARE NOT MIDDLE CLASS. That’s the point
My main point is it’s not really like playing a part and buying lululemon and $80,000 cars and crap lol. We definitely should have done some things differently but a lot of those numbers I put are just what seems to be kind of people living regular lives. Also student loans.. yes I wish I went to community college but I was an actual child when I signed up for college (yes 17 is not a legal adult). Also can’t wait for my kids to be out of school, it costs $2520 for both.. however I bring home more than twice that a month so we need me to stay at work
$100k household income is a middle class lifestyle. For my family of 4, I have about $1,000 a month to put towards saving goals (new vehicle, home improvements/major repairs, family vacations, holidays) on $110k. That is with no debt outside the mortgage.
And yes the said $100k salary not household income. For most families those are 2 different numbers, for my family and many others its the same thing.
Yes! I feel the same way!
Well, yeah, of course life is more expensive if you have a whole family to take care of.
@@JeanValjean875my assumption is that the people objecting and saying $100k is middle class are people with families, like me. It definitely doesn’t go as far as it used to.
@@SkyroofNova72Imagine $100K with two of you working. The childcare alone would easily go to 25% of gross pay.
@SkyroofNova72 I mean, maybe? It wasn't explicitly stated in the video. For a single person living alone, $100K goes petty far.
100k would be extremely comfy for me, and Ive already been through the life style creep and other financial blunders.
Don't forget taxes which might be around 30%
That just payroll. Tack on another 7%-10% for sales, 5%-10% for state income, 1%-5% for property, and other fees and permit expenses. Americans will be taxed 50% of every dollar they make.
Middle class as a family or single?? Median rent prices for your local area in Tennessee and divide that by 25% , no car payment, but with regular expenses, not penny pinching on groceries.... sorry, if you have to have your calculator out when grocery shopping, you aren't middle class... add in taxes, 25% to retirement, add cost of health insurance, add in say 10% of that income for fun/extras... now please tell me what that gross income comes out to be... remember, middle class means you arent struggling... dont be like Dave and be allergic to math. You arent middle class in your area if you need two roomates.
If you don’t have your calculator out at the grocery store you’re dumb, that is one area that can sink a ship 😑
@kathyharmon2093 I never said not to have a food budget.... I never nik pick prices and I spend roughly the amount every month.
When I grocery shopped ingredients for meals already planned for that week, A calculator wasn't needed because the meals I already chosen weren't expensive meals to make. If going over your reasonable food budget slightly makes you run out of money, you're too broke and you're very much living paycheck to paycheck.
The absurd part is it's right. Major cities you can't make it on 100k. You won't qualify for a house anywhere
Yup, currently making 100k and living paycheck to paycheck
Sounds like you need to drop yourself down one rung on the socioeconomic ladder, and squeeze every penny out of your new lower budget. If you have debt, hammer your highest interest debt first.
I can say from bitter personal experience that it s***s to force yourself to do that, but it will pay off in the future.
💯 More money more problems is what most live by.
Buy assets that make rich if you liabilities will make you poor.
What helped me value more my income was when I had my first job and I learned of the value of my income and what is a necessity and what is a luxury . I started at the bottom and learned from it . Delayed gratification is a key role and eliminating all debt .
I’m 40 years old & just yesterday I cleared all my debt, no car finance,no credit card, no loans & I live a very minimalist life. If you stick to the rule of ‘if I can’t afford it I can’t buy it’ then I think you’ll be ok.
Awe, congrats man! That’s no small feat. I’m hoping to do the same within 3 years.
Congratulations! Well done
living below your means, People today suffer from shiny object syndrome.
You have to think about the cyclical issue. People that don't come from money and don't get help and keep getting kicked down struggling. It's not just their fault it's their parents fault for saying "you should pay me to live here" knowing they didn't help their kids get credit to rent somewhere else for less and become financial vultures on their kids.
Do not tell me these people do not exist. These were literally my parents. Literally I had to get myself out of a hole that my dad dug.
I'm sad that 54 people agree with you, and I hope you read the full text of my other comment to find out why I'm ashamed of you. You're out of touch.
I literally just paid $20 for milk, cheese, and instant coffee. I'm self assured in saying me and my "lifestyle-creep" not the fucking problem.
@blah914 did you
shop at Whole Foods?
@@storyjunkie35 nope. local corner. which has the same pricing as the next local corner. and the next one.
That’s definitely true, and my husband and I make it work with less than half of that since we’re just starting out. However, inflation is also insane. Groceries are more expensive and rent is more expensive. We make it work because we don’t have much debt and we don’t have car payments, but that does not negate the economy being trash. It’s absolutely a struggle to make it
From what I'm figuring out, the blame for the housing crisis is foreign investors buying the land and doing nothing with it.
In my country, it was caused by a combination of government incompatense and foreign vulture funds. They'd buy up houses and land wait years. Then sold it back to the government at 3 times the price. Add to that mass immigration and you've got a powder keg with a short burning fuse.
They'll have lost their ass when it crashes
Domestic landlords suck ass too
In part, greedy developers gouging the locals with dreams of home ownership and rampant NIMBYism taking advantage of outdated zoning laws do a lot more harm than some rich people coming from outside.
Nup. The housing crisis comes down to the following factors.
1. Population. There are too many people and not enough houses for them all.
2. Population growth. The number of people is growing at a rate not only faster than new houses could be built, but also irregular so medium to long term infrastructure planning can't occur
3. Flipping. People entering the property market in a home they can actually afford, holding the property for 90 days then selling it for more than it's worth to make a big enough profit to monkey branch to a more expensive property than doing that again and again until they get to the house they want. The wake of that is high housing prices, and now homes can have 5 or more owners in a single year.
4. Tiktok landlords. People who think being approved for a mortgage is a business and expect their tenants to not only pay 100% of the mortgage but to also make immediate profits.
5. AirBnB landlords. People buying up housing stock, or in some cases even just renting homes, to turn it into a hotel through airbnb, stayz or whatever.
6. Overly burdensome regulations that make it unprofitable for developers to build anything but "luxury" developments.
7. Real estate investor politicians. The people making the regulations, passing laws and developing programs around home building, home ownership and rentals, also have a personal, vested interest in housing and rental prices not only staying high, but ever increasing. That's where things like quota based housing affordability schemes. The point isn't to help you buy a house for you. The point is to create artificial demand to a specific amount so the market doesn't cool.
And everyone who is already a home owner, which is 2/3rd of voters, go along with it because it increases their net worth. And those same people would be upset and take it out at the polls if the prices went down in any meaningful way to increase genuine affordability.
It's never just this one thing. It's always multiple factors and competing interests contributing varied amounts to an overall problem. That's why problems aren't actually easy to solve.
A more absurd statement is finding a $2,000 mortgage, especially if you follow the Ramsey plan of only doing a 15 year fixed.
I agree. Undesirable areas are undesirable for a reason 😂 sure I can buy a $10k house outright in Ohio, but who would do that? If it works for you then it works
Nice home for $165k in rural western Pennsylvania paid 37% down. Financed for 15 years. Payment is $950 per month... I put an additional $500 monthly to the mortgage. Will be paid off in under 7 years. Im a single guy who did this on his own. I decided not to keep up with the Jone's.
I pay 2000 a month on a 15year fixed...
I put 12k down on a 250k house locked @2.5%
@@mcrwattskey word ✨2.5%✨
@@mcrwattsthat’s wonderful that you benefited from that 2.5% loan…. But you are proving the point that things have changed. Be thankful you were living at the right time and in the right position to take advantage of a cheap interest rate.
I'm a nurse and I'm struggling, times right now are absolutely absurd
100k turns into close to 50k after taxes if you're single
No it doesn't. Even in California, where I live, it's 67K. Stop being such a complainer and drama queen.
@@ljss6805 you're not counting all the other taxes on everyday living food etc. It's actually probably closer to 38k after that tbh
@@84jamesp Fair enough, but if we're going to count those taxes, why not also count the benefits those taxes offer you that make your material affluence possible in the first place?
In the time it took me to almost triple my salary (about 4 years) my cost of living almost tripled.
No car payment
No debt
Grocery cost tripled
Gas doubled
Utilities doubled
Rent anywhere nearby when up 2-3x
Taxes doubled
I got insurance finally and started eating healthy food, got a gym membership and have a hobby that costs me
This guy is absolutely right. When you start adding all up then $100k a year seems just average income now days, he is also 💯 about owning a house is not for everybody and it is not apples to apples if you believe that because you pay similar amount in rent then you should be ok with a similar mortgage.
I still believe buying a house vs renting is the best choice to make but certainly it is not for anyone.
My husband doesn't even make 50,000 but we have plenty. I make it work and stretch. We have one car, don't buy crap, don't pay for subscriptions, don't buy disposable products, don't eat out but once a month, make my own bread and yogurt and find little ways to earn a few bucks by selling succulents or baking bread. You can be very content and satisfied with little even when it's hard. 😊
So true👍
But I'd die without my $12 daily starbucks!!!!
You had me at "it'll never be enough if you're drowning in debt payments." Amen, sir!
My husband and i definitely don't even live like we are middle class... He make a middle class salary, but because he has to pay for his mother's living expenses and contribute to other costs of living... We are barely scraping by. I'm a stay at home mom because it would ne more expensive if i worked and let someone else watch my children... We don't go out, we rarely order takeout unless I'm sick... It's so depressing. We can't even think about owning a home.
Me. I make $48k. I paid cash for my small house. I have no car. No credit cards. No debt at all. Life is great
Do you live in the middle of nowhere?
sounds good to me.
@@Radio-sg3dh
Coleman Tx. Yes
@@PInk77W1 Do you mean no car PAYMENT or no car at all?
How do you get around "in the middle of nowhere" then?
@@xSayPleasex
I have no car. I have 6
Titanium Campagnolo bicycles
Friday I’m riding 190miles to Dallas
2 days pedaling
to catch a flight to CA. For a 300mile bike ride down the coast. I’ve been cycling long distance for 50yrs
$100k is more like $65k after you pay taxes, contribute to retirement and pay medical premiums.
This is true. I make about 100k and my take home pay is about 64k and I live in a state with no state income tax.
Yup. Same as it’s always been…….
I make $110K but only bring home $60K after deductions.
@@blueb4829hello! Question what about if you make $40k a month do you get that or get less. I get paid 19per hour and end of year will be 38-40k
$55,400 for me but I am also maxing out my 401k. I'm not living paycheck to paycheck but inflation has made an impact on life.
I am so glad that my upbringing, while not being the best in the world, wasn’t based off of thinking you deserved this or that, “So buy it” even if you knew you couldn’t afford it. It took me being an adult to understand how we didn’t live above our means. I appreciate my parents for that lesson. They didn’t have much but they made sure we had the basics.
People who focus on what things should look like if you are in a certain field or make a certain amount of money are beyond confusing to me. The stress that’s placed on yourself to keep up the facade isn’t worth it.
I’ve also learned that comparison is the thief of joy. Good for the next person who has a lot of “things”. I’m no less of a person because I don’t.
Praise God, He protected me. In college I was offered a credit card. I didn't have a peace so I didn't get one until I was 38 yrs old. I have only owned used cars, and I worked my way through college. Because I was working so hard, My mom once said, "You spend your 20s getting into debt and your 30s getting out of debt. " but I didn't have a peace about getting in to debt. So I told her, I never want to be debt. And I'm so grateful that through Scriptures, Jesus taught me this.
100 grand is entry level comfort for a single person
I barely make 50k and I don't live paycheck to paycheck. I'm saving 15% for retirement each check, have almost 6 months in emergency savings, and am watching my net worth slowly rise. I did this by making good friends and having enough humility to put community over personal desires and now have two close friends to share expenses with and we all actually like living together, and we all know that if we start taking advantage or being late on rent for too long we will quickly find ourselves paying more than double to live alone. Living alone is a luxury most people can't afford, but we treat independence like a virtue. It isn't.
I will say if you want to live comfortably with a family, mom and dad both need to make 6 figures, have both cars paid off, and student loans paid off
Neither of them stopped to think about how much of this is caused by "I can get this thing if I just put myself in debt!"
Maybe don't do that and see how it goes.
I live off of $400 a week. I can get by with that. It's rough sometimes, but I get theough it, and still manage to find a few bucks to put into savings.
I seriously find it difficult to believe these 6-figure earners are scraping the bottom of the barrel. Like, what the hell are you doing that is causing you to live paycheck-to-paycheck the same way I am when you make nearly 5x what I do?
All you have to do is look at things like Starbucks existing every 10 feet to know that people waste money on trash constantly.
Exactly he said the one thing why im against homeownership you have to pay for every repair maintenance, etc unlike renting or living in an apartment you dont pay for those things.
It's not so much a particular number.
Poor = I cannot stop working without being immediately forced out on the street (or I'm there already)
Middle class = I can stop working for a little while, but not permanently
Rich = I don’t have to work
Bingo!
Never heard it phrased it like that before because i can guarentee 99% of “rich people” still work or run some kind of business its just a matter of how hands on are they really.
@matthill2957 That's probably true, but my point is whether they *have to* work.
Lol, these clowns are so far out of touch
I mean yeah, he thinks a mortgage payment is 2 grand in a place where rent is two grand. If you live somewhere with 2k average rent, the average home price will be much more than that.
@@mad0uche ^
Thank you for this! With God I am getting my finances in order now. Keep this information coming I need it.
Never finished high school here in MN. Worked my ass off to work and save as much as possible before I had to move out from my parents house at 21. I continued to work, do the overtime and find a better job. I never wasted money on things I didn’t need. I’m happy to announce I’ve purchased a condo at 24, a new truck and have around $40k in my retirement. It starts with parenting and discipline. You have to want to be financially responsible like you want to breathe. I currently make only around $52k pretax but was fortunate enough to discipline myself early on. I didn’t have ANY financial help. I’m sure there are others worse off…but we all have our problems….the first step is acknowledging them and working to fix them.
It’s funny he saying that. I’m a truck driver, no kids, and I live in the road so no rent. I have been cleaning tf out of my debt and all I’m ending this year with is student loans. All of my expenses are under $900 as of now but when I get this other stuff knocked out it will be about $630. I’m not buying no house or anything until I get this ish under control. Not many individuals make 6 figures but a 3rd of households (I’m assuming couples basically) make 6 figures. So I need to be smart about a few things. I’m not paying $700 for a car note that’s dead lol
$100k salary guy here. My mortgage was setup when I made $30k less a year, my only car payment is less than the average, I have no student loan debt, low credit card debt, etc. Inflation has STILL hit me hard trying to raise a family of 5! And my wife also works! Inflation has really put a hurting on a lot of ppl last few years
I agree what he said about homeownership people seem to think that a mortgage is the same as rent and it's 100% not
My guy really blaming lifestyle creep and not that housing/rent, groceries, energy, gas, cars, and basically all other necessities of life have gone up 50-200% in the past 4 years
I feel like they were talking about me. I did a macro analysis of my budget these past few years. I should have close to $500k in my 401k, but credit cards, divorce settlement and such really held me back.
If you borrow all that money for school car house credit card for other stuff then you better expect to pay for it.
Maybe don’t live beyond your means the first 5-10 years instead.
Well, it would help if the government didn't tax us triple what they used to and send all that money to other countries... You know.... All that shit they "didn't vote for"... I'm not in this boat thankfully, I'm renting and have a little credit card balance to deal with but it's not their fault. When it should be easily dealt with and it's not because everything is absurdly priced, that's when it's their fault, and we're way past that.
I made $13/hr in 2019. Had my own apartment, I was poor but I made it.
This year, I make $21/hr, and I am more poor than ever. No other costs. My car payment is less than it was back then, but my rent alone, for the exact same apartment, is now $1450 a month. For the exact. Same. Apartment.
Food, no change in what I eat, I went from spending $150-200 a month to over $350 a month on food.
Gas, utilities, the list goes on.
My dad makes insanely good money in the IT field he's in right now, and even when his bonus at the end of the year is as much as what i make in a year, he still finds struggles in his finances, and this man is so frugal he wont turn on his heat or a.c unless his wife makes him now.
100k where I live in upper middle class for a household of 2. You can have a decent house, car just have to be smart with your money. So happy I paid my house off full
“Living beyond your means” I live by this statement haha also why I play video games. Most times it’s one time purchase for hundreds of hours of entertainment. *altho I do like to spend a night in town and eat at exotic restaurants *
No mortgage. $350 car payment, some CC debt about $300/month, no student loans. $120k 2 kids still at home and sometimes still stretched.
The cost of everything has doubled the amount we used to pay for the past 20 years. And yet our salary/hourly pay barely goes up.