Zer here. I always thought making 100k was the holy grail… I’m now two years in to making 100k and I can confirm it only goes as far as my stupidity lets it go
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
It's not enough to buy a house (without a spouse making at least as much) or really enough to retire. But if you're comfortable living in micro studios and working until you drop, it's fine.
@@asongfromunderthefloorboards well, that depends on the location you are living in. You cant use the living cost and mortgage payment in big city and apply it to a suburban or rural area. Most of RUclips videos and social media use the number accumulated from big cities so really take it with grain of salt 🧘♂️
@@plbraveheart Yes, obviously. But there are few jobs in low-cost rural areas that make $150k. I wouldn't want to live in the middle of nowhere anyway but some people are able to work purely remote. So they could live in Iowa and work in a company in the Bay. But that also means if you lose your job, you have to only look at fully-remote jobs.
@@plbraveheart "Suburban" also doesn't mean "cheap". I live in a Seattle suburb. Many suburbs here, including mine, are more expensive than Seattle proper.
@@asongfromunderthefloorboards You are acting like cities have a monopoly on work. Also, we live in a world where a ton of potatoes is worth 70 euros, when prices are high. One thousand euros a month are literally enough for a family of three to live a very comfortable life, if they didn't buy into the narrative that everything is better in a city.
I just bought a low priced home in Washington (232K) on a 60K salary. Sadly I only have 10K in my 401K. I’m in my mid-forties and this is my first home.
Nice! I live in a one bedroom 740 sq. ft. apartment. I make 71K and my monthly rent is $2272 after all the "stuff." I live in Riverside, Ca. The hope is to move into a two-bedroom by the end of the year. I'm also paying $202 on a storage unit that I'm trying to clear out.
Congratulations?! You have plenty of time to make up that retirement. You’re just gonna live on significantly less than what your salary should say you live like.
I have a family of 4 and work 2 jobs for a total of $84k a year. Money is tight, our vacations consist of hanging out at Costco, and the thought of owning a home seems impossible. All that being said, we are incredibly happy. I love both my jobs, we have a roof over our head, and I can pay bills. Money isnt everything folks.
30K but I work 144 hours a week (including sleep time) and CA taxes are evil! Now I make 69K and in 10 years, I'll make six figures! But I'll be too old by then :(
You probably wont see this but your videos lately have been killer. Really digging into the anxiety of our generations (18-35) and everything people that struggle to think about in our modern era of social media
I don't get why these housing affordability surveys only ever talk about the median home price. If you're in the youngest 25% of all adults you don't need a house that's more expensive than 50% of all houses.
They also only discuss affordability vs. the median income, not household income. Realistically, most people buy houses as couples with both working, so double the median income and it puts Gen Z right on the money with being able to buy, and most of them are young at the moment so that median wage will shift upwards over the next few years. They're very much in line with previous generations it's just that you need two incomes to buy a house, which is nothing new. That has been the norm for younger Gen Xers and Millennials. It's only the Boomers and older Gen Xers that could buy a house with a single income and they benefited most from the transition to two income households.
Because if you'd looked at the housing market, you'd notice the severe dearth of supply in more affordable homes. In my market, we have been under 3 months supply (firmly seller's market) since 2017 and I'd guess the average price of homes in the bottom 50th percentile (below median cost) is at least 3/4 to 4/5 median--there's just nothing but dumps from the 60's or earlier and not updated ever for under $300k; most only bought to be flipped and resold for more after cheapo renovations. And most "affordable" non-dumps are condos/townhomes with pricey HOAs that put them right in line with median for monthly payments even if the purchase price is lower. When so many properties are extremely unaffordable, the more "affordable" inventory that does come up gets dogpiled and bidding warred. There's a reason the first time home buyer age is the highest in history and going up.
Obviously a single income needs a 3 bedroom single family home. You can't possibly get married first and buy a small 2 bedroom fixer upper like the majority of genx and millenials did
@@PrisonerD realistically you could look at the data and find that median household income is still under 80k… The housing market is unaffordable right now more so than ever before. That being said its still on people to get their finances in order so that when they can afford they are in position to pull the trigger. That redit user isn’t actually making a good point by referencing a lack of plumbing in the 40s. What about the 60s, 70s, 80s, 90s, 00s, or 10s? Housing wasn’t anywhere near its current price to income ratio during any of those times despite many of those year seeing dual income households buying and plumbing being standard.
For your example of purchasing a house in the early 80's, you forgot to account for prevailing interest rates back then, which were significantly higher than they are now, peaking around 18% in 1981.
Even if you account for that, the mortgage on the house was still much less than the mortgage on comparable houses in comparable neighborhoods now. Example wouldn't be as extreme, but still comparatively easier to buy a house back then, than it is now... by about 4 times.
@@darkevilazn yes but homes then were also a lot smaller and simpler than now from what I read.. no granite counter tops, marble in bathroom etc A more useful measure would be price/cost per sq.ft.
I was 26 years old when I found out I was happier making less with the woman I loved than making more without her. Best choice I ever made. Money doesnt buy happiness but financial literacy does take a lot of stress away.
@@mbank3832 and those ain't the women for you! Go where you're appreciated ❤ I could care less how much my partner makes as long as he's ambitious, driven, and hard-working. It's better to find someone you can build WITH than build FOR
I’ve only recently stumbled on this in my life as well. I was obsessed, initially, with making hella money but it almost cost me my partner. So much happier together now
I’m a baby boomer retired professional. I believe my good fortune was being born at the right time. I’m very sad about the lack of opportunity that today’s young people have. My kids are in their early 40’s, own their own businesses, and homes and make a 1%er wage. I’m certain that having their college paid by me was a big factor in their “head start”. Your advice is pristine. Wish that secondary education included responsible financial education.
No it's because you accepted the Federal reserve Note as currency and because of this it's been infinitely debased since its inception in 1913. As long as American citizens are using Federal reserve notes as money they're going to be unbelievably poor
Your a good person for giving your kids that opportunity. No debt when you're starting a professional life is a huge deal. No one should be 22 years old and have tens of thousands of dollars of debt hanging over their head.
While income and money is important, being content in what you have should also be discussed. 171k is something many will never make, so we will need to come up with alternatives. Hopefully things will normalize, but I don't anticipate many employers upping salaries by double let alone 3.5x.
Now let's look at how much money a man should make according to a modern woman who is single. Yes, we could live cheaper like in the 50's but is our jobs as secure as in the 50's? Is the price of education today relatively the same as in the 50's? Are the education requirements the same today as in the 50's?
In Toronto here, 38 years old and household income is 175k CAD with a 950k mortgage (home valued at 1.9 million. We thrift, we dont buy anything without a coupon, sell on marketplace and have two kids under 3. We're surviving and hopefully with lowered interest rates, we'll be thriving again.
There are multiple factors: location, expenses, parental status and lifestyle. Living has gotten more expensive and its hard to be happy when you cant afford to live anymore.
With everything that I've learned in recent years and the mistakes I've made, one thing I'll never understand is how some people just don't know where their money is going.
I’m 22 and even I can Google that the mortgage rate in 1980 was well above the 6% you put in your calculator. The average mortgage rate in 1980 was 13.74% and in 1981 was 16.64%. Considering the actual interest rate in the 80’s makes homes today (with 6-7%) about equivalent in DTI. Yes, todays housing market isn’t great but it’s spreading misinformation to act like it’s so much harder to own a house now than previous generations
I'm gen z and I make $35k a year. It's more than enough. It got me a mortgage 2 years ago, I save more than $500 a month for home repairs, and I have a few hundred extra dollars each month for my hobbies. I have no idea why people insist on living in cities where $150k a year is the minimum required to live, especially if they DON'T have the skills required to make that much.
I think the idea of not going to college, and then somehow starting a business is very unrealistic for the vast majority of people. Most businesses fail and require capital.
It's actually quite interesting how things have changed. I attended a short entrepreneurship course during the summer last year and they prefaced it by saying that the reason the federal government is sponsoring these programs is because entrepreneurship rates have been going down with each subsequent generation, partly because of the resources like you said, and partly because of all the personal risk it creates vs. just working under an employer. With how established so many businesses and industries are, it must be hellish to start a new business, especially if you're creating a new market.
I also think having some work experience might help most people become better business owners. You gain some knowledge without taking on all the risk. You also learn how to manage employees and how to or not to operate a business.
I agree, even though I'm an example of someone who made it work. I realize I'm in the minority of people lucky to have pulled it off, and would not recommend it to family or friends.
What I hate is the lack of durable affordable items without bells and whistles. Its hard to find base model cars , for an affordable price , that are decently durable, super rough to find manual transmissions in anything but the cheapest/ most expensive cars these days. Also rough to find appliances that are not full of electronic components and are "smart". I work in IT, and I own a washer/dryer from the early 2000s, cause the innovations in that space are frills and nothing has much changed with the basic concept of these appliances. Same goes with cars, I am the point I need to fly down out of the rust belt to find and buy cars that are at minimum a decade old, once again not that Im anti tech, just I want a solid built no frills auto to do the job I need it to do. I plug my phone into it and there is no need for 99% of the tech features that stoneage auto companies add to your purchase. The biggest thing that scares me , I used to be able to afford going to a restaurant once a month, but now I avoid them all together. I shop at Aldi and even there I see the prices starting to creep up in the last 4 years. It really is concerning seeing myself get poorer even though my salary has a growth year to year. Meanwhile my local government is spending money faster than someone with a coke habit.
I live in the south where I make 50k a year between 2 jobs. It is absolutely impossible to simply exist, even here, where it's the lowest cost of living in the country.
Good video but I still think College is necessary. Yes, its possible to succeed without college but on a "risk-averse" mindset, people tend to still do better with a college degree than non-college degree folks. Just be mindful of how much you want to spend on college (to your point of maybe going to community college first) and what major you are choosing. If you are spending $200K at a liberal college on a social science degree, you are going to have a bad time when you graduate.
Bro, my property tax in LA is $15,595 per year. Hell yeah 150k isn't enough. Gross: 150k Federal & state income taxes: 101.2k net Mortgage: (1m balance, Home value 1.9m) = 85.6k Don't forget about: - Insurance - Maintenance - Water - Power - Trash This is just my home!! Just after taxes and my mortgage, that 150k salary is down to $19,000 dollars LMAO hahahahahaha. As my uncle says, you can survive on the average household income of 70k in LA, but you are NOT living. You're just a glorified tax slave. Me, personally, to breathe without stress, i'd recommend a household income of 190k.
Making ~220k a year in the SF Bay Area and each house is min. $1M. Pretty much impossible even with this great income. Of course unless I decide to barely scrape by…
Gen Z wants everything RIGHT NOW. My 19 old nephew is positive he is going to be a millionaire in 2 years. He doesn't have a job.🤦♀ They've grown up with social media and they don't realize that most of it is lies and people just faking it.
Social media is a huge reason for that. There was this video on Jack Morgan RLP where these 3 Gen Z kids each claiming they make $200-$250K. So they spread these lies and the followers actually believe them. It gets worse with all those get rich gurus talking about how they make millions with a morning routine. 😂 Sadly then it creates the unrealistic expectations that everyone needs to make $500K or millions as if it’s a normal thing.
Social media is a cesspool, everyone is getting scammed by “influencers” but because younger people have less life experience is distorting their reality more than old people combined that most lack financial literacy even highly educated people have poor financial literacy, most don’t know delay gratification although we are the smartest generation at Same time we are the dumbest, we are in a real pickle, they want everything done now 😢
Just graduated with an engineering degree last may now working as a software engineer. I’m 24. Make 88k. Basically 0 in retirement but I paid off my 20k in student loans and now have 12k in savings for an emergency fund. Kinda following the Ramsey baby steps
@@asongfromunderthefloorboards I’m curious who you’re saying is better to listen to. Currently I’ve been consuming a lot of Ramsey, Humphrey, Graham Stephan, The financial Diet, George Kamel (Ramsey), Erin Talks Money and a few others. As someone with very little money saved I feel like the baby steps, especially 1-4 (not sure how I feel about 3b) gave me a lot of direction, in addition to just trying to find ways to live below my means.
27M, data science Over employed. Salaries: 137k, 125k, 118k 401k: 85k Brokerage: 73k Roth IRA: 37k (started at 18 maxed for like 5 years) Been OE FOR 2Js for 1Yr, starting j3 April first
We don't do an actual budget, but I do keep track of our spending. For 2023 our combined income was about $120k and we were able to save about 40% of our take home. So it is definitely doable. I should also note that we didn't go on a vacation last year because we are saving for a remodel.
We need to stop comparing eras unless we are going to compare apples to apples. Back in your grandparents or great grandparents era they weren’t having vacations unless you took a road trip to a family members house. You were probably sleeping in the car and not a hotel and food was packed you weren’t going to get fast food. Back then people lived within or below their means to make the ends meet. If people today cut all the things they cut back then it may be possible to live off one income. But nobody will want to only have one car for the house, only have one tv, one phone, share rooms, etc. every era has its pros and cons and it’s on us to play the best hand we are dealt with. You do not need anywhere near $170k to make a good living. You need to prioritize.
GENIUS COMMENT. I think his point about how the standards of living were lower back then really struck a nerve for me. Kids today are merely comparing incomes and home prices but not looking at any other metrics to determine what this really means. When I was a kid, eating at Pizza Hut was considered a luxury and we didn't go on any vacations other than one random car trip (day trip) to the Jersey Shore. We wore hand-me-downs or thrift clothes, not Lululemons or Nikes. Gen Zs these days want to live a luxurious lifestyle but complain about their salaries whereas it took people in the past many years of hard work and saving to afford a home.
Being a 23-year-old that is still in college I have noticed that a liberal arts degree is one that would not pay itself when trying to get into the workforce, while I do believe that we should learn a few things in that area, I do not recommend having it be an entire degree of its own.
I bought my house 2 years ago (600k) on a 150k salary, and it took me 7 years. i'm not gonna lie, it was a struggle saving up for 20% dp the house prices are way out of control.
i think one major problem is that the housing market is being driven up by investment firms and artificially inflated to the point that most people aren't able to afford them anymore. Furthermore, the coasts are where the jobs are so those are the highest priced housing markets, for good reason, and they are the primary markets being targeted by the firms.
Institutional investors own fewer than 3% of single family homes. They are NOT the reason for the price increase. Johnny down the street wants to move but doesn't because he's locked into a 2.75% mortgage. That's why home prices are high.
Playing a Gen-Z advocate, my grandfather made 50 grand in the 1990 and his house cost him $96K. Now you can make 50K if you are fortunate and the house will cost you 250K+! The math ain’t mathin. Gen X and Y if they are informed would know this and not be so hard on Gen-Zs Yes they still need to work but towards what?
You are comparing a 25 year old starting his career at 50k to someone at the end of their career making 50k over 30 years ago? My advice to Gen Z is don’t expect to start out at the top. Work. Save. Buy something small to start. And if you live in one of those ridiculously high housing markets, consider moving. Life is a lot better in many areas of the country.
@@jvan927 50k made 30 years ago is worth infinite compared to 100K right now. 30 years on the back end of printing money makes that 100K worthless. The US dollar is a Fiat. It can be printed infinitely. you somehow wonder how you got poor after it got printed infinitely
@@TrevorHamberger This! No one gets it, at all. They keep harping on needing a larger amount of money but are clueless as to why that is. Even in these responses most get it wrong, it's all because of the infinite money printing machine, nothing else matters. I can still buy a tailored silk suit for the same amount of gold that could buy a tailored silk suit over 100 years ago. Can't say that about dollars.
You probably live in a very cheap area, which means incomes are also cheap. The best you can get in Seattle is a condo for $350-450 plus $500-1000/mo HOA. So you're talking at least $3500/mo at current interest rates. The cheapest SFH that are move-in ready (i.e., not falling apart) are $750k. Median is $1M. So you could make $150k but you can't buy a house. You need at least $213k household income to be able to buy the median house in Seattle and it's a stretch. California is basically twice that. If you live in an area where houses are still like $200k, then you could make $150k and pay off your house in a few years. But that salary in those areas are very rare.
Millennial here.. I think “enough” for me is having 60% max take home for necessities and 40% for savings and leisure. Many of us are crippled by student loan debt and that’s the biggest downfall imo when looking for housing.
I would argue his point on college. I am was in business (accounting) and needed to be working towards a degree to just get an interview. I know not all fields are like this but it is needed for accounting
@@nucphyschem1 problem with Comp Sci is the market is ridiculously oversaturated. So unless you’re an extraordinary SWE with tons and tons of projects, you won’t even get an interview without a degree - considering many are applying with projects and the degree
@@mikezerker6925getting married and working towards financial goals as a team is literally a superpower. My wife are in a position to retire in our 30s because we've built our careers and lives together and are on the same page with our long term goals and short term spending habits. This definitely would not have been possible alone.
If can't be financially stable on 150k you probably buy things you shouldn't with money you don't actually have. I have friends that live in not outrageous cost of living areas without owning things that cost them outrageous money per month who are pretty content with what they make. They also make around 150k plus a year
I live in SF and make 150k gross a year. Its not enough. It would be if I lived in a van and pocketed most of that cash and dumped it into the stock market for a few years but as it stands. Its not enough and the bay area is cancer.
I always loved to study, so going to college and later even getting my masters was important to me, but I have to say: it can be cheaper and overall easier to pursue education outside of the US. If that’s a dream for you as it was for me, it might be useful to keep that in mind.
35yo single male here. Make about 200k with 150k in retirement. Started maxing my contributions last year. I spent my twenties paying back 60k in student loans, which was a scarring experience. I rent a shabby apartment for 2k and I already know I’ll never own a home in my area. I’m hoping to escape the corporate grind too and the last thing I want is to feel trapped in debt again.
I really dont understand what people mean when they say that it has gotten too expensive to live. We live in such abundance in almost all aspects these days. I’ve never felt unhappy and I’ve never felt like I can’t do whatever I want to do. Maybe my expectations are low? Maybe I truly am just that fortunate? I don’t really believe that’s the case though… I think people make themselves unhappy by dwelling on a negative mindset. Life is good!!! Live and enjoy it!
Can’t talk about the usa, but not counting housing craziness, a lot of things are expensive relative to before so it’s a shock ngl but I think is not as bad as people talk about,only a few products are mad like olive oil 12€/L while before was5/6€/L, housing tho is fckd imo
I truly feel like I’m in a different world, seeing all of these high incomes on social media. In reality, the average person makes below 6 figures. I make more than the median in my demographic where I live and am saving a lot. Living can be low or high depending on your zip code.
23 years old making around $90k a yr and am getting ready to buy my first property, likely by the end of the year. I get to save a good portion of my monthly income by living here in Cleveland OH. Moving to those “undesirable” areas can definitely help build a foundation for the future.
I grew up in the 60s and 70s in a 1200 sq ft house. Our first house bought in 1980 was 950 sq ft and second house in 1987 was 1200 sq ft. That was fine for me to start out. In our later 30s we got a 2000 sq ft. house. Kids were 12 and 7. Our millennial son bought his house in 2009 and it was 2000 sq ft. Every generation wants something similar to what they grew up in. But is this realistic?
I’m millennial (younger), and while I agree I’d like something close to the 2000 sq ft I grew up in, in my housing search, I couldn’t find many houses below 1500 sq ft. Even in the ~1000 sf house I ended up in, almost all in my neighborhood that used to be of a similar size to mine has either been added on to or replaced with a bigger house. Starter homes aren’t being built like they used to so it’s hard to buy them.
We need better policies people. Inflation will keep going up if spending doesn’t slow down~ also, every time minimum wage goes up everything else has to also.
Millennial (30yo) here. I think that the younger you are, the more you need. You have a longer runway to retirement and the risk of getting laid off, risk of job loss due to AI etc is higher. You'd need a higher income to offset these risks and build a nest egg (e.g. from investing) earlier on in life. If I can guarantee a sustained income, 100k after taxes is probably ok.
Nice to know that I basically got to get married to a woman that makes $20 an hr like me just to buy a house in this sh*thole city called Memphis. Might as well stay in my apartment and ask my mom can i store my stuff in her shed. And no i dont have student loans or a car payment or even a phone payment. Only rent, child support, and utilities. But im grateful because I've been homeless a couple of times. One because my family put me out and the 2nd time was 2020 when i lost my job before Covid hit so I had no unemployment or stimulus. Im 39 by the way.
As a millennial I can see why Gen Z and Alpha will need $170k+ to feel secure and comfortable. Something The Financial Diet covered before that's applicable for these generations, is that basically, they're growing up in what is like growing up in a low income family. I grew up very low income near poverty line, and as TDF mentioned, it takes someone from a low income background at least 20 years of nothing going wrong in life (zero layoffs, zero family or personal medical emergencies, zero evictions/displacement events) to catch up to their privileged peers' first adult milestone like buying a 1st home in their 30s. Gen Z and Alpha will need a MUCH higher income to match that timeline or else their timeline will mirror those of us who grew up in or near poverty, where reaching key adult milestones will happen around 1-2 decades later compared to peers who have Bank of Mom and Dad.
44 years old here & I just started contributing last year to a 401k & roth @ 13k atm , earning 73k including side hustle in NYC. I am currently only contributing my job's match as I pay down $72k in debts. Pimpin ain't easy 😫
75k grosses 6,300 a month sure but we really should be talking net. After taxes my bf who makes 76k a year only gets around 3,600. After 5% 401k contributions, medial taxes etc...
I have a huge problem with that calculation of median home price over income. The median income is 38K, but there is at least 12% federal tax, and there are usually more burden like state tax, healthcare deductions. You also have to consider basic living need. I don't think gen Z can save even 15K with a 38K annual income. That calculation of 10 years seems more like a mock instead of being serious.
The only way that could be remotely possible is by having your lifestyle subsidized by someone else to the point where you literally don’t pay any of your own expenses. Which just isn’t realistic
@@imitationpitayaI agree. It will be generational wealth passed down for the well-off family kids. The middle class and below just need to learn how to live off grass, sand, etc. to even consider getting a decent house.
Renters leaching off of middle class and lower class workers are the main issue with home pricing many states have a rental to homeowner rate of 30% some up to 50% rentals can be important for people moving but this is crazy and definitely driving up cost. Also for child care it used to be grandparents not taking care of their grandchildren like they used to as often.
If you are buried in student loans debt, auto loans and other consumer debt and also a mortgage then they are correct. I am now debt free but prior to that I was barely existing on $177k salary. Yup….those were crazy times. Glad that is behind me
Probably the worst financial disaster is divorce, or marrying a huge spender. If you are not “well off” the basic needs figure, you gonna be crushed to oblivion.
I'm in my mid-40s and in the top quintile for both income and wealth. It doesn't surprise me that Gen Z wants to go back to single income households. They're not even thinking about getting married or even dating so they need to be able to afford to live on their own.
So I actually live in the Metro Detroit area and it's not nearly as bad as people think it is, though I do live in the surburbs. But the home affordability and overall COL is low compared to other parts of the country, even when you take the state income tax into account.
Millennial, 38, single, $215k total income, $625k retirement fund, no house, emergency savings but that’s about it. House is not in the cards for a while. NYC is pricey…
About getting 2 years of community college before going for a 4 year degree: the 4 year college might not be up front about how many of your credits will transfer over. You may find yourself repeating some classes.
The fact that you need to be quite highly specialized to make 150k and it barely makes you middle class in any major city, I would way yeah. It's not enough to be happy.
My girlfriend and i(26 and 28) make a combined €100k yearly. We have a low rent house, one old and cheap car and generally don't spend needlessly. The result is that we are technically very financially secure, we could live off half our income if we really had to. If we would spend all the money we have left over we could drive 2 new cars, go out for dinner atleast once a week and go on many vacations a year. But we don't do that, because we need to own a home to really be secure one day. The problem is the housing market. In our country and area we need about €550-650k for decent long term single family home we could start a family in. That means we would need a combined income of closer to 150-175k Or save 150-200k with our current income. It would take us, both working full time, saving up 40% of our net income, 9 years!! To save that money. By the time we would be 34 and 37 years old.
I haven't finished the video yet But in reading some of the comments no one is saying networking Sometimes i wear my college hat or gloves to interviews to get a conversation going " Oh he was in my physics classes, he's smart" Literally got this guy the job Also word of mouth, we've Hired people because others have worked with them and attest to their charter Also not hiring people because of things we heard So 🤷🏿♀️
I promise you that 70k is not what it seems like living in San Diego. And no, I will not be able to make anything approximating that salary in Indiana or west Texas where housing is cheaper
Thanks for watching all! Let me know what your thoughts are down below :)
You forgot to mention science and engineering for a reason to go to college. They are still worth it 👍
Zer here. I always thought making 100k was the holy grail… I’m now two years in to making 100k and I can confirm it only goes as far as my stupidity lets it go
damn
Then don't be stupid! Live like nobody else, so later you can live like nobody else!
That's OK. U seemed smart as u realised these. U can be better. It is about learning!!!!!
That's $136,000 canadian... absurd... literally double what IM making..... which is double the mean...
Fix your shit
Thank you for confirming gen z is stupid.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks, I just googled her I'm really impressed with his credentials. I reached out to her since I need all the assistance I can get.
On social media, it's never enough.... Even in Dubai they don't have enough.
It's not enough to buy a house (without a spouse making at least as much) or really enough to retire. But if you're comfortable living in micro studios and working until you drop, it's fine.
@@asongfromunderthefloorboards well, that depends on the location you are living in. You cant use the living cost and mortgage payment in big city and apply it to a suburban or rural area. Most of RUclips videos and social media use the number accumulated from big cities so really take it with grain of salt 🧘♂️
@@plbraveheart Yes, obviously. But there are few jobs in low-cost rural areas that make $150k.
I wouldn't want to live in the middle of nowhere anyway but some people are able to work purely remote. So they could live in Iowa and work in a company in the Bay. But that also means if you lose your job, you have to only look at fully-remote jobs.
@@plbraveheart "Suburban" also doesn't mean "cheap". I live in a Seattle suburb. Many suburbs here, including mine, are more expensive than Seattle proper.
@@asongfromunderthefloorboards
You are acting like cities have a monopoly on work.
Also, we live in a world where a ton of potatoes is worth 70 euros, when prices are high.
One thousand euros a month are literally enough for a family of three to live a very comfortable life, if they didn't buy into the narrative that everything is better in a city.
I just bought a low priced home in Washington (232K) on a 60K salary. Sadly I only have 10K in my 401K. I’m in my mid-forties and this is my first home.
Nice! I live in a one bedroom 740 sq. ft. apartment. I make 71K and my monthly rent is $2272 after all the "stuff." I live in Riverside, Ca. The hope is to move into a two-bedroom by the end of the year. I'm also paying $202 on a storage unit that I'm trying to clear out.
Wtf! Where can I find these in a safe neighborhood!
You need to max out your 401k contributions as soon as you possibly can.
@@Digitalknifepartyhe will never do that!!
Congratulations?! You have plenty of time to make up that retirement. You’re just gonna live on significantly less than what your salary should say you live like.
I have a family of 4 and work 2 jobs for a total of $84k a year. Money is tight, our vacations consist of hanging out at Costco, and the thought of owning a home seems impossible.
All that being said, we are incredibly happy. I love both my jobs, we have a roof over our head, and I can pay bills. Money isnt everything folks.
This random person is proud of you for having this perspective. Keep it up. Set that example.
@@aspenwagon04 Thanks, random person!
Kudos to you! I have also learned that the most important things in life are truly priceless.
That’s excellent!! Does your significant other work?
@@nigelsreptarachnids5931 Nope, she stays at home with the kids.
What the hell is going on in Lexington Kentucky
Uk basketball is always one of the top college teams in the nation. That's most of it. And the horse racing.
Gen X graduated college in 1989 and thought if I earned $40K/year, I had made it. My starting salary was $26k
26K that’s a lot? My starting salary was 14K
@@djtwister6997 Back in my day I made 6k
30K but I work 144 hours a week (including sleep time) and CA taxes are evil! Now I make 69K and in 10 years, I'll make six figures! But I'll be too old by then :(
You probably wont see this but your videos lately have been killer. Really digging into the anxiety of our generations (18-35) and everything people that struggle to think about in our modern era of social media
0:04 what an oddly precise number
A spouse is the cheat code; dual income and accountability concerning financial goals.
That sure helps! Mutual accountability, support and encouragement!
I don't get why these housing affordability surveys only ever talk about the median home price. If you're in the youngest 25% of all adults you don't need a house that's more expensive than 50% of all houses.
They also only discuss affordability vs. the median income, not household income. Realistically, most people buy houses as couples with both working, so double the median income and it puts Gen Z right on the money with being able to buy, and most of them are young at the moment so that median wage will shift upwards over the next few years. They're very much in line with previous generations it's just that you need two incomes to buy a house, which is nothing new. That has been the norm for younger Gen Xers and Millennials. It's only the Boomers and older Gen Xers that could buy a house with a single income and they benefited most from the transition to two income households.
Because if you'd looked at the housing market, you'd notice the severe dearth of supply in more affordable homes. In my market, we have been under 3 months supply (firmly seller's market) since 2017 and I'd guess the average price of homes in the bottom 50th percentile (below median cost) is at least 3/4 to 4/5 median--there's just nothing but dumps from the 60's or earlier and not updated ever for under $300k; most only bought to be flipped and resold for more after cheapo renovations. And most "affordable" non-dumps are condos/townhomes with pricey HOAs that put them right in line with median for monthly payments even if the purchase price is lower.
When so many properties are extremely unaffordable, the more "affordable" inventory that does come up gets dogpiled and bidding warred. There's a reason the first time home buyer age is the highest in history and going up.
Obviously a single income needs a 3 bedroom single family home. You can't possibly get married first and buy a small 2 bedroom fixer upper like the majority of genx and millenials did
@@PrisonerD realistically you could look at the data and find that median household income is still under 80k…
The housing market is unaffordable right now more so than ever before. That being said its still on people to get their finances in order so that when they can afford they are in position to pull the trigger.
That redit user isn’t actually making a good point by referencing a lack of plumbing in the 40s. What about the 60s, 70s, 80s, 90s, 00s, or 10s? Housing wasn’t anywhere near its current price to income ratio during any of those times despite many of those year seeing dual income households buying and plumbing being standard.
Yep. The nicer houses are for families. I don’t need a mansion just 1000 sq ft or so
For your example of purchasing a house in the early 80's, you forgot to account for prevailing interest rates back then, which were significantly higher than they are now, peaking around 18% in 1981.
Even if you account for that, the mortgage on the house was still much less than the mortgage on comparable houses in comparable neighborhoods now. Example wouldn't be as extreme, but still comparatively easier to buy a house back then, than it is now... by about 4 times.
@@darkevilazn yes but homes then were also a lot smaller and simpler than now from what I read.. no granite counter tops, marble in bathroom etc
A more useful measure would be price/cost per sq.ft.
They also would have gotten to refinance their low mortgage to drop the % rate down by half or more within 5 to 10 years.
I was 26 years old when I found out I was happier making less with the woman I loved than making more without her. Best choice I ever made. Money doesnt buy happiness but financial literacy does take a lot of stress away.
right on.
There is a price to be paid for those dollars. Learned that at 29 yrs old.
Lucky that your woman is ok with you making less money. Someone women expect men to make large number before considering them 😔
@@mbank3832 and those ain't the women for you! Go where you're appreciated ❤ I could care less how much my partner makes as long as he's ambitious, driven, and hard-working. It's better to find someone you can build WITH than build FOR
I’ve only recently stumbled on this in my life as well. I was obsessed, initially, with making hella money but it almost cost me my partner. So much happier together now
I’m a baby boomer retired professional. I believe my good fortune was being born at the right time. I’m very sad about the lack of opportunity that today’s young people have. My kids are in their early 40’s, own their own businesses, and homes and make a 1%er wage. I’m certain that having their college paid by me was a big factor in their “head start”. Your advice is pristine. Wish that secondary education included responsible financial education.
No it's because you accepted the Federal reserve Note as currency and because of this it's been infinitely debased since its inception in 1913. As long as American citizens are using Federal reserve notes as money they're going to be unbelievably poor
Your a good person for giving your kids that opportunity. No debt when you're starting a professional life is a huge deal. No one should be 22 years old and have tens of thousands of dollars of debt hanging over their head.
While income and money is important, being content in what you have should also be discussed. 171k is something many will never make, so we will need to come up with alternatives.
Hopefully things will normalize, but I don't anticipate many employers upping salaries by double let alone 3.5x.
Now let's look at how much money a man should make according to a modern woman who is single. Yes, we could live cheaper like in the 50's but is our jobs as secure as in the 50's? Is the price of education today relatively the same as in the 50's? Are the education requirements the same today as in the 50's?
In Toronto here, 38 years old and household income is 175k CAD with a 950k mortgage (home valued at 1.9 million. We thrift, we dont buy anything without a coupon, sell on marketplace and have two kids under 3. We're surviving and hopefully with lowered interest rates, we'll be thriving again.
Lower the interest rates and then the price of everything goes up tho
More inflation.
There are multiple factors: location, expenses, parental status and lifestyle. Living has gotten more expensive and its hard to be happy when you cant afford to live anymore.
Most of the U.S. is fine at 150k, Gen Z just a little special.
Just because we can afford the monthly payment on a house doesn’t mean we can afford the house. 😏
So very, very true!
With everything that I've learned in recent years and the mistakes I've made, one thing I'll never understand is how some people just don't know where their money is going.
I’m 22 and even I can Google that the mortgage rate in 1980 was well above the 6% you put in your calculator. The average mortgage rate in 1980 was 13.74% and in 1981 was 16.64%. Considering the actual interest rate in the 80’s makes homes today (with 6-7%) about equivalent in DTI.
Yes, todays housing market isn’t great but it’s spreading misinformation to act like it’s so much harder to own a house now than previous generations
The wealth transfer seems like the only hope for millennials
The system isnt working for them.. its no wonder the majority now identify as socialists. Socialism isnt the right solution, but a solution indeed.
I'm gen z and I make $35k a year. It's more than enough. It got me a mortgage 2 years ago, I save more than $500 a month for home repairs, and I have a few hundred extra dollars each month for my hobbies. I have no idea why people insist on living in cities where $150k a year is the minimum required to live, especially if they DON'T have the skills required to make that much.
Materialistic people can’t survive on that because they keep buying crap to fill the void.
Am 37 and make less than 36k . That’s with over time. I think your doing way better than me
Congrats!
You must live somewhere that gets cold?
@@matthewsmith2362 Missouri, so not quite that bad.
I think the idea of not going to college, and then somehow starting a business is very unrealistic for the vast majority of people. Most businesses fail and require capital.
It's actually quite interesting how things have changed. I attended a short entrepreneurship course during the summer last year and they prefaced it by saying that the reason the federal government is sponsoring these programs is because entrepreneurship rates have been going down with each subsequent generation, partly because of the resources like you said, and partly because of all the personal risk it creates vs. just working under an employer. With how established so many businesses and industries are, it must be hellish to start a new business, especially if you're creating a new market.
I also think having some work experience might help most people become better business owners. You gain some knowledge without taking on all the risk. You also learn how to manage employees and how to or not to operate a business.
@@jerrykwan150the government has regulated the shit out of businesses
And you gotta have that place open 7 days a week to get that extra recognition and following. I can’t work 7 days a week, 5 days is the maximum
I agree, even though I'm an example of someone who made it work. I realize I'm in the minority of people lucky to have pulled it off, and would not recommend it to family or friends.
😂 wow for the first time in history I don't think anybody wants to be in the future
That's because they don't know what happiness is.
I feel Gen-Z these days love to travel and live "the life" and have expensive hobbies, many flex the $400/month gym membership
What I hate is the lack of durable affordable items without bells and whistles. Its hard to find base model cars , for an affordable price , that are decently durable, super rough to find manual transmissions in anything but the cheapest/ most expensive cars these days. Also rough to find appliances that are not full of electronic components and are "smart". I work in IT, and I own a washer/dryer from the early 2000s, cause the innovations in that space are frills and nothing has much changed with the basic concept of these appliances. Same goes with cars, I am the point I need to fly down out of the rust belt to find and buy cars that are at minimum a decade old, once again not that Im anti tech, just I want a solid built no frills auto to do the job I need it to do. I plug my phone into it and there is no need for 99% of the tech features that stoneage auto companies add to your purchase. The biggest thing that scares me , I used to be able to afford going to a restaurant once a month, but now I avoid them all together. I shop at Aldi and even there I see the prices starting to creep up in the last 4 years. It really is concerning seeing myself get poorer even though my salary has a growth year to year. Meanwhile my local government is spending money faster than someone with a coke habit.
Dude if you work in IT and are not changing jobs every 2-4 years you are doing yourself a disservice in terms of wages.
All those affordable cities are terrible
I live in the south where I make 50k a year between 2 jobs. It is absolutely impossible to simply exist, even here, where it's the lowest cost of living in the country.
Currently in the south can confirm. Much cheaper than Cali where I'm from
Having an expensive car and a big house does not equal happiness. Live within your means and you will be happy.
Good video but I still think College is necessary. Yes, its possible to succeed without college but on a "risk-averse" mindset, people tend to still do better with a college degree than non-college degree folks.
Just be mindful of how much you want to spend on college (to your point of maybe going to community college first) and what major you are choosing. If you are spending $200K at a liberal college on a social science degree, you are going to have a bad time when you graduate.
Bro, my property tax in LA is $15,595 per year. Hell yeah 150k isn't enough.
Gross: 150k
Federal & state income taxes: 101.2k net
Mortgage: (1m balance, Home value 1.9m) = 85.6k
Don't forget about:
- Insurance
- Maintenance
- Water
- Power
- Trash
This is just my home!!
Just after taxes and my mortgage, that 150k salary is down to $19,000 dollars LMAO hahahahahaha. As my uncle says, you can survive on the average household income of 70k in LA, but you are NOT living. You're just a glorified tax slave. Me, personally, to breathe without stress, i'd recommend a household income of 190k.
Making ~220k a year in the SF Bay Area and each house is min. $1M. Pretty much impossible even with this great income. Of course unless I decide to barely scrape by…
Just make that 220k, live in a shed for 2k and gtfo. if you are working remote even better. Move somewhere else and dont notify your work lol.
Gen Z wants everything RIGHT NOW. My 19 old nephew is positive he is going to be a millionaire in 2 years. He doesn't have a job.🤦♀ They've grown up with social media and they don't realize that most of it is lies and people just faking it.
Social media is a huge reason for that. There was this video on Jack Morgan RLP where these 3 Gen Z kids each claiming they make $200-$250K. So they spread these lies and the followers actually believe them. It gets worse with all those get rich gurus talking about how they make millions with a morning routine. 😂
Sadly then it creates the unrealistic expectations that everyone needs to make $500K or millions as if it’s a normal thing.
Social media is a cesspool, everyone is getting scammed by “influencers” but because younger people have less life experience is distorting their reality more than old people combined that most lack financial literacy even highly educated people have poor financial literacy, most don’t know delay gratification although we are the smartest generation at Same time we are the dumbest, we are in a real pickle, they want everything done now 😢
College is worth it if you go into a good field and have a plan to tackle the debt you accumulate. The connections you make are huge
Just graduated with an engineering degree last may now working as a software engineer. I’m 24. Make 88k. Basically 0 in retirement but I paid off my 20k in student loans and now have 12k in savings for an emergency fund. Kinda following the Ramsey baby steps
Definitely take Ramsey with a lot of salt. There's better people out there to listen to.
@@asongfromunderthefloorboards I’m curious who you’re saying is better to listen to. Currently I’ve been consuming a lot of Ramsey, Humphrey, Graham Stephan, The financial Diet, George Kamel (Ramsey), Erin Talks Money and a few others. As someone with very little money saved I feel like the baby steps, especially 1-4 (not sure how I feel about 3b) gave me a lot of direction, in addition to just trying to find ways to live below my means.
27M, data science
Over employed.
Salaries: 137k, 125k, 118k
401k: 85k
Brokerage: 73k
Roth IRA: 37k (started at 18 maxed for like 5 years)
Been OE FOR 2Js for 1Yr, starting j3 April first
We don't do an actual budget, but I do keep track of our spending. For 2023 our combined income was about $120k and we were able to save about 40% of our take home. So it is definitely doable. I should also note that we didn't go on a vacation last year because we are saving for a remodel.
Where do you live? $120K might be high for your location.
@@TheFirstRealChewy Pittsburgh. Not being near a coastal city definitely helps with costs.
That’s good after paying mortgage and still able to save that much. Kudos to you guys!
Need $350K per year minimum to feel secure here in SoCal.
Lmao 😂
🤯
No amount of money can make you feel secure in that shit hole.
no you don't.
As someone that lives by himself without sharing an apartment in SoCal and not even making half that.... No.
We need to stop comparing eras unless we are going to compare apples to apples. Back in your grandparents or great grandparents era they weren’t having vacations unless you took a road trip to a family members house. You were probably sleeping in the car and not a hotel and food was packed you weren’t going to get fast food.
Back then people lived within or below their means to make the ends meet. If people today cut all the things they cut back then it may be possible to live off one income. But nobody will want to only have one car for the house, only have one tv, one phone, share rooms, etc. every era has its pros and cons and it’s on us to play the best hand we are dealt with. You do not need anywhere near $170k to make a good living. You need to prioritize.
GENIUS COMMENT. I think his point about how the standards of living were lower back then really struck a nerve for me. Kids today are merely comparing incomes and home prices but not looking at any other metrics to determine what this really means. When I was a kid, eating at Pizza Hut was considered a luxury and we didn't go on any vacations other than one random car trip (day trip) to the Jersey Shore. We wore hand-me-downs or thrift clothes, not Lululemons or Nikes. Gen Zs these days want to live a luxurious lifestyle but complain about their salaries whereas it took people in the past many years of hard work and saving to afford a home.
Being a 23-year-old that is still in college I have noticed that a liberal arts degree is one that would not pay itself when trying to get into the workforce, while I do believe that we should learn a few things in that area, I do not recommend having it be an entire degree of its own.
I bought my house 2 years ago (600k) on a 150k salary, and it took me 7 years.
i'm not gonna lie, it was a struggle saving up for 20% dp the house prices are way out of control.
Do you feel house poor ?
Other than inflation, The financial crisis really fucked us all newer generations over. And we have only aged up corporate leaders to blame for.
i think one major problem is that the housing market is being driven up by investment firms and artificially inflated to the point that most people aren't able to afford them anymore. Furthermore, the coasts are where the jobs are so those are the highest priced housing markets, for good reason, and they are the primary markets being targeted by the firms.
Institutional investors own fewer than 3% of single family homes. They are NOT the reason for the price increase. Johnny down the street wants to move but doesn't because he's locked into a 2.75% mortgage. That's why home prices are high.
Playing a Gen-Z advocate, my grandfather made 50 grand in the 1990 and his house cost him $96K. Now you can make 50K if you are fortunate and the house will cost you 250K+! The math ain’t mathin. Gen X and Y if they are informed would know this and not be so hard on Gen-Zs Yes they still need to work but towards what?
You don't own a home. You pay property tax. You're not the owner
You are comparing a 25 year old starting his career at 50k to someone at the end of their career making 50k over 30 years ago? My advice to Gen Z is don’t expect to start out at the top. Work. Save. Buy something small to start. And if you live in one of those ridiculously high housing markets, consider moving. Life is a lot better in many areas of the country.
@@jvan927 50k made 30 years ago is worth infinite compared to 100K right now. 30 years on the back end of printing money makes that 100K worthless. The US dollar is a Fiat. It can be printed infinitely. you somehow wonder how you got poor after it got printed infinitely
@@TrevorHamberger It depends on where you live. You can buy a pretty nice house making $100k where I live.
@@TrevorHamberger This! No one gets it, at all. They keep harping on needing a larger amount of money but are clueless as to why that is.
Even in these responses most get it wrong, it's all because of the infinite money printing machine, nothing else matters.
I can still buy a tailored silk suit for the same amount of gold that could buy a tailored silk suit over 100 years ago.
Can't say that about dollars.
I live in Denver one of the most expensive places in the USA, bought my own 3 story house with 60k a year. Manage your money, Gen Z.
The question is what year did you buy it.
I'm not even in $100k, but I spend way less than my means so that I won't be broke :)
Weird it’s like costs on everything but income has doubled over the last few years… what could be driving this need? 🤔
I totally agree on the college rant. I hope people are waking up to this mess.
Gen Z here make just over 100k working great for me I really don’t understand what y’all be doing with your money
If I made 150k per year I could pay off my house that I just bought 2 months ago.
You probably live in a very cheap area, which means incomes are also cheap. The best you can get in Seattle is a condo for $350-450 plus $500-1000/mo HOA. So you're talking at least $3500/mo at current interest rates.
The cheapest SFH that are move-in ready (i.e., not falling apart) are $750k. Median is $1M.
So you could make $150k but you can't buy a house. You need at least $213k household income to be able to buy the median house in Seattle and it's a stretch.
California is basically twice that.
If you live in an area where houses are still like $200k, then you could make $150k and pay off your house in a few years. But that salary in those areas are very rare.
Millennial here.. I think “enough” for me is having 60% max take home for necessities and 40% for savings and leisure. Many of us are crippled by student loan debt and that’s the biggest downfall imo when looking for housing.
I make 150k and I am 26. And I can guarantee it’s not enough. I live in upstate NY
I would argue his point on college. I am was in business (accounting) and needed to be working towards a degree to just get an interview. I know not all fields are like this but it is needed for accounting
That or any STEM field even though I will argue Comp Sci should be a trade and not an engineering degree
@@nucphyschem1 problem with Comp Sci is the market is ridiculously oversaturated. So unless you’re an extraordinary SWE with tons and tons of projects, you won’t even get an interview without a degree - considering many are applying with projects and the degree
You picked a specific profession that requires a degree for licensing. It's the exception, not the rule.
So it's not a very logical point to argue.
Most homeowners are married. Dual income matters.
Man I'm 23 chilling on $54k and live alone.
I left this comment based on the title alone, I didn't see when he said median Gen Z income
Stay single! ✊
@@mikezerker6925 aye aye captain 🫡
@@mikezerker6925 I'm married, but we both file as single and it saved us $1400.
@@mikezerker6925getting married and working towards financial goals as a team is literally a superpower. My wife are in a position to retire in our 30s because we've built our careers and lives together and are on the same page with our long term goals and short term spending habits. This definitely would not have been possible alone.
I don't think it's to be "happy", moreso than it is to be financially stable....very different things.
If can't be financially stable on 150k you probably buy things you shouldn't with money you don't actually have. I have friends that live in not outrageous cost of living areas without owning things that cost them outrageous money per month who are pretty content with what they make. They also make around 150k plus a year
I live in SF and make 150k gross a year. Its not enough. It would be if I lived in a van and pocketed most of that cash and dumped it into the stock market for a few years but as it stands. Its not enough and the bay area is cancer.
I always loved to study, so going to college and later even getting my masters was important to me, but I have to say: it can be cheaper and overall easier to pursue education outside of the US. If that’s a dream for you as it was for me, it might be useful to keep that in mind.
35yo single male here. Make about 200k with 150k in retirement. Started maxing my contributions last year. I spent my twenties paying back 60k in student loans, which was a scarring experience. I rent a shabby apartment for 2k and I already know I’ll never own a home in my area. I’m hoping to escape the corporate grind too and the last thing I want is to feel trapped in debt again.
I really dont understand what people mean when they say that it has gotten too expensive to live. We live in such abundance in almost all aspects these days. I’ve never felt unhappy and I’ve never felt like I can’t do whatever I want to do. Maybe my expectations are low? Maybe I truly am just that fortunate? I don’t really believe that’s the case though… I think people make themselves unhappy by dwelling on a negative mindset. Life is good!!! Live and enjoy it!
Can’t talk about the usa, but not counting housing craziness, a lot of things are expensive relative to before so it’s a shock ngl but I think is not as bad as people talk about,only a few products are mad like olive oil 12€/L while before was5/6€/L, housing tho is fckd imo
I truly feel like I’m in a different world, seeing all of these high incomes on social media. In reality, the average person makes below 6 figures. I make more than the median in my demographic where I live and am saving a lot. Living can be low or high depending on your zip code.
Most of us 5 figure earners definitely aren’t flexing on social media or in comments sections like this
To be fair, the state I'm in statistically shows you need 121k to live comfortably.
Damn...i wish i made $150k, thats 5x more than i make a year after taxes
23 years old making around $90k a yr and am getting ready to buy my first property, likely by the end of the year. I get to save a good portion of my monthly income by living here in Cleveland OH. Moving to those “undesirable” areas can definitely help build a foundation for the future.
I grew up in the 60s and 70s in a 1200 sq ft house. Our first house bought in 1980 was 950 sq ft and second house in 1987 was 1200 sq ft. That was fine for me to start out. In our later 30s we got a 2000 sq ft. house. Kids were 12 and 7. Our millennial son bought his house in 2009 and it was 2000 sq ft. Every generation wants something similar to what they grew up in. But is this realistic?
I’m millennial (younger), and while I agree I’d like something close to the 2000 sq ft I grew up in, in my housing search, I couldn’t find many houses below 1500 sq ft. Even in the ~1000 sf house I ended up in, almost all in my neighborhood that used to be of a similar size to mine has either been added on to or replaced with a bigger house. Starter homes aren’t being built like they used to so it’s hard to buy them.
If you honestly believe $150k isn't enough today, you have some serious debt/spending problems......
Ain't no way....
We need better policies people. Inflation will keep going up if spending doesn’t slow down~ also, every time minimum wage goes up everything else has to also.
Millennial (30yo) here. I think that the younger you are, the more you need. You have a longer runway to retirement and the risk of getting laid off, risk of job loss due to AI etc is higher. You'd need a higher income to offset these risks and build a nest egg (e.g. from investing) earlier on in life. If I can guarantee a sustained income, 100k after taxes is probably ok.
Nice to know that I basically got to get married to a woman that makes $20 an hr like me just to buy a house in this sh*thole city called Memphis. Might as well stay in my apartment and ask my mom can i store my stuff in her shed. And no i dont have student loans or a car payment or even a phone payment. Only rent, child support, and utilities. But im grateful because I've been homeless a couple of times. One because my family put me out and the 2nd time was 2020 when i lost my job before Covid hit so I had no unemployment or stimulus.
Im 39 by the way.
software developer in Austria with 80k brutto. No debt, saved over 200k. Europe is also cheaper then USA. Your thoughts?
Europe is not cheaper than USA, gas, houses and everything is cheaper in USA, sure maybe not medical care but still
As a millennial I can see why Gen Z and Alpha will need $170k+ to feel secure and comfortable. Something The Financial Diet covered before that's applicable for these generations, is that basically, they're growing up in what is like growing up in a low income family. I grew up very low income near poverty line, and as TDF mentioned, it takes someone from a low income background at least 20 years of nothing going wrong in life (zero layoffs, zero family or personal medical emergencies, zero evictions/displacement events) to catch up to their privileged peers' first adult milestone like buying a 1st home in their 30s. Gen Z and Alpha will need a MUCH higher income to match that timeline or else their timeline will mirror those of us who grew up in or near poverty, where reaching key adult milestones will happen around 1-2 decades later compared to peers who have Bank of Mom and Dad.
44 years old here & I just started contributing last year to a 401k & roth @ 13k atm , earning 73k including side hustle in NYC. I am currently only contributing my job's match as I pay down $72k in debts. Pimpin ain't easy 😫
75k grosses 6,300 a month sure but we really should be talking net.
After taxes my bf who makes 76k a year only gets around 3,600.
After 5% 401k contributions, medial taxes etc...
I have a huge problem with that calculation of median home price over income. The median income is 38K, but there is at least 12% federal tax, and there are usually more burden like state tax, healthcare deductions. You also have to consider basic living need. I don't think gen Z can save even 15K with a 38K annual income. That calculation of 10 years seems more like a mock instead of being serious.
The only way that could be remotely possible is by having your lifestyle subsidized by someone else to the point where you literally don’t pay any of your own expenses. Which just isn’t realistic
@@imitationpitayaI agree. It will be generational wealth passed down for the well-off family kids. The middle class and below just need to learn how to live off grass, sand, etc. to even consider getting a decent house.
Gf makes 100k/yr, maxes out all tax advantaged accounts, but she would be happier bringing home 100k net rather than gross.
Renters leaching off of middle class and lower class workers are the main issue with home pricing many states have a rental to homeowner rate of 30% some up to 50% rentals can be important for people moving but this is crazy and definitely driving up cost. Also for child care it used to be grandparents not taking care of their grandchildren like they used to as often.
If you are buried in student loans debt, auto loans and other consumer debt and also a mortgage then they are correct. I am now debt free but prior to that I was barely existing on $177k salary. Yup….those were crazy times. Glad that is behind me
Probably the worst financial disaster is divorce, or marrying a huge spender. If you are not “well off” the basic needs figure, you gonna be crushed to oblivion.
If you want to buy a house today, all you need to do is save a bunch of money while paying huge amounts for rent to the ruling class. Simple.
Love this analysis!
I'm in my mid-40s and in the top quintile for both income and wealth. It doesn't surprise me that Gen Z wants to go back to single income households. They're not even thinking about getting married or even dating so they need to be able to afford to live on their own.
So I actually live in the Metro Detroit area and it's not nearly as bad as people think it is, though I do live in the surburbs. But the home affordability and overall COL is low compared to other parts of the country, even when you take the state income tax into account.
Millennial, 38, single, $215k total income, $625k retirement fund, no house, emergency savings but that’s about it. House is not in the cards for a while. NYC is pricey…
That's poor in California. So leave and vote better.
Of course you can’t buy happiness with money. You don’t have ENOUGH money for it.
About getting 2 years of community college before going for a 4 year degree: the 4 year college might not be up front about how many of your credits will transfer over. You may find yourself repeating some classes.
The fact that you need to be quite highly specialized to make 150k and it barely makes you middle class in any major city, I would way yeah. It's not enough to be happy.
They’re absolutely right. Anything below 150k is poor
i currently make 121k before taxes. If i had a car i would actually be living paycheck to paycheck lmao
I see so many people with newer cars on the road, either there are that many high-income earners or everyone is drowning in debt.
An argument could be made that Genzie also wants to “live life” and travel, which leaves them to believe that they need more money
My girlfriend and i(26 and 28) make a combined €100k yearly. We have a low rent house, one old and cheap car and generally don't spend needlessly.
The result is that we are technically very financially secure, we could live off half our income if we really had to. If we would spend all the money we have left over we could drive 2 new cars, go out for dinner atleast once a week and go on many vacations a year.
But we don't do that, because we need to own a home to really be secure one day.
The problem is the housing market.
In our country and area we need about €550-650k for decent long term single family home we could start a family in.
That means we would need a combined income of closer to 150-175k Or save 150-200k with our current income.
It would take us, both working full time, saving up 40% of our net income, 9 years!! To save that money.
By the time we would be 34 and 37 years old.
What country in Europe?
I haven't finished the video yet
But in reading some of the comments no one is saying networking
Sometimes i wear my college hat or gloves to interviews to get a conversation going
" Oh he was in my physics classes, he's smart"
Literally got this guy the job
Also word of mouth, we've Hired people because others have worked with them and attest to their charter
Also not hiring people because of things we heard
So 🤷🏿♀️
I promise you that 70k is not what it seems like living in San Diego. And no, I will not be able to make anything approximating that salary in Indiana or west Texas where housing is cheaper
My job can make me $100K+/yr. Plenty of people support families in the USA on less.
Many people are not living intelligently.
What a ridiculous notion. Even if you're into work life balance, you don't need $150K per year pamper yourself
Depends on where you live such as desirable schools, neighborhoods, investment, and saving.
WoW shoutout. Tauren Shaman back in the day 👊
I'm medically retired that gets 50k year that adjusts with inflation. I still feel I'm not making enough.