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Is this an accurate thought?

bill bradskibill bradski Member Posts: 30 ✭✭
edited May 2006 in General Discussion
I was thinking, 50 years ago the normal American family had a working Dad and a mom who stayed home, kids played outside. Divorce was uncommon(my understanding anyway).

Many of those children grew up and got married and both parents worked two jobs, most cases the Dad was still the primary bread winner and the mom had some sort of supplemental income and still took care of the kids. Divorce became more frequent.


I look around at everything these days, you can spend thirty grand on a used car, houses in most areas are well over the quarter million mark for the average home, many places offer "interest only", or 40 year mortgage payments. I was thinking in the reletively near future after I finish grad school I am going to be making some pretty reasonable money (70-80K in most areas of the country). Is that enough for a single guy to live off of or is society progressing to where a family has to have both a man and woman working themselves to death to be able to enjoy life? I'd like to have a car, truck, house, bla, bla, bla. Is a single income going to be enough in ten or twenty years to live decent?

Comments

  • tsavo303tsavo303 Member Posts: 8,913 ✭✭✭
    edited November -1
    depends on how much you want to consume.
    If you marry the wrong woman, or listen to every ad you see, you could never make enough
  • slipgateslipgate Member Posts: 12,741
    edited November -1
    Ha! I couldn't even afford to buy my own house today! Lucky for me I bought before the real estate climb. I paid $194k and now it is worth $650k (6 years later).

    Eventually everyone will be house poor and the only ones making any money will be the banks. Many californians are already spending 90+% of their income on living expenses.

    You'd better invest wisely now while you have some disposable income because you will need it later in life.
  • Sav99Sav99 Member Posts: 16,037 ✭✭✭
    edited November -1
    From my experience the key is a realistic spending plan, planning for the future and self discipline. Most Americans dont live within their means and consequently pay large sums of interest. Keep perfect credit and stay deliberate with your financial decisions.
    To answer the question I think $70k - $80k in possible.
    My Dad always said "if you watch your pennies the dollars will take care of themselves".
  • gagirlgagirl Member Posts: 5,408
    edited November -1
    good rule of thumb is to always live below your means.
  • bpostbpost Member Posts: 32,669 ✭✭✭✭
    edited November -1
    Live below your means. pay cash for everything except the home. Pay it off in 15 years. Have a budget and stick to it!

    If you do these things you will retire young and wealthy. Do what the remainder of America is doing and die penniless having never retired.

    The tax burden and the "I want it now" attitute is destroying the fabric of our financial freedom. The borrower is truly slave to the lender.

    Visa is not good for life. Visa is a suck upon the blood of America. It's your money. Why give it to VISA?
  • woodshermitwoodshermit Member Posts: 2,589
    edited November -1
    If you are wondering if $70 to $80k is a liveable wage, imagine what it must be like to live at or close to minimum wage? Now, I realize that most "professionals" work in excess of 40 hrs per week, but, if you are making $70k, you are earning $33.65 per hour for a 40 hr wk. If you factor in a benefit package that includes health insurance and, perhaps, help with a retirement account, that hourly wage and annual salary increases by quite a bit. There are millions of hard working folks in this country who manage to more or less get by on much less and may not have any benefits.
  • AlbertLumAlbertLum Member Posts: 1,343 ✭✭✭✭✭
    edited November -1
    americans save the least amount of their income as anyone, but that makes for a good cosumer economy
  • dcon12dcon12 Member Posts: 32,038 ✭✭✭✭
    edited November -1
    quote:Originally posted by AlbertLum
    a good cosumer economy


    Is that a good thing? Don
  • hughbetchahughbetcha Member Posts: 7,801 ✭✭✭
    edited November -1
    quote:Originally posted by tsavo303
    depends on how much you want to consume.
    If you marry the wrong woman, or listen to every ad you see, you could never make enough


    That's the facts Jack!
  • ElMuertoMonkeyElMuertoMonkey Member Posts: 12,898
    edited November -1
    bill,

    Welcome to the future. Big Business, in collusion with the federal government, has seen to it that the Middle Class will be pulverized as they seek to pander to the low class welfare recipients and the fat-@$$ CEO's with our tax dollars.
  • Da-TankDa-Tank Member Posts: 3,718 ✭✭
    edited November -1
    Move as close to east Ky as you can. buy a house there and live there, commute. We got the lowest housing cost and cost of living in the country. Average house 155,000.00 in Houston suburb is 35,000.00
    here. food is so cheap I am now eating like a king.
    I'm retired. One thing is the same( cars & trucks)
  • kristovkristov Member Posts: 6,633
    edited November -1
    Where you chose to live will make all the difference in just how far the $70K will go. In many parts of the country you will be in the top tier of wage earners while in an area like mine (So. Orange County CA), you will be middle class...at best. Housing is the big issue and $500,000 is the median price for a home in Orange County so a mortgage here will swallow up a MAJOR portion of your income, not to mention the high property taxes. A $300,000 mortgage at todays interest rates is going to be in the $1900 range and trust me when I say that a mortgage is only a single part of the costs of home ownership.

    I graduated from USC in 1980 with a master of engineering degree and I was already married to my first wife, who held a PhD as a chemical engineer (petroleum). We were both working for Union Oil and we thought we had all the money in the world! Living in a home way too expensive for our incomes, new Mercedes for each of us, expensive vacations, season tickets to the Lakers (when they were worth watching), a big gun collection for me and enough clothes for the wife (who was a beautiful blonde) to fill up an overseas storage container- but she looked fantastic in all of them! We were deeply involved in the oil futures market and making a killing so we kept spending money like we had a printing press out in the garage. Sadly we did not have that printing press and when the oil bubble burst we were BROKE! I was laid off from Union Oil and our money issues hastened our divorce (which would have happenend any way).

    I will tell you that same things the other members here did: Don't get too caught up in the idea of how much money it sounds like you are making. You need to take a realistic look at how much money you need to live a comfortable lifestyle and then invest the rest. Concentrate on getting your house and then wait several years before you go out and purchase all of those new toys. If you need a pickup truck go out and buy a good used one and drive it until the wheels fall off and invest the money you'll be saving instead of buying that brand new truck. I own my own engineering business and my wife also earns good money as a university professor so we have a very high combined income (although not as high a Mrs K seems to think) and don't lack for anything (my two daughters are spoiled rotten) but it took us quite a while to get where we are today and money was very tight for quite a few years as my business got started and we bought our new home. 25 years ago I wanted everything NOW and paid the price (flat broke and a ruined marriage). I learned from that mistake and it has paid off for my current wife and myself today. Don't be in a big hurry to spend your money right at the start. If you invest carefully and get your home squared away you will be living in fine style with plenty of toys several years down the road.
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