One reason we can’t afford the middle class lifestyle most of our parents had is the government. Quantitative easing and huge cash infusions by Obama in 2009 and 2010 more than tripled the money supply. There is nothing we can do about that, other than not vote Democrat. However, there are things that the average person can do but many would never consider.
In my area, you can purchase a doublewide on acreage for about half the cost of equivalent floor space on a tiny lot in a subdivision of traditional homes. The schools in my rural county are all A and B rated and it’s a quick drive for many of the people working in the capital city. Finding a good school in Tallahassee means living in the most expensive area in the county. The rest of the schools resemble prisons and many are failing or close to it.
The next highest cost item many people buy is a car. Many of the low end renters I have, who live paycheck to paycheck, have better cars than I do. To suggest they repair the old present car or buy a less expensive car or even a used car will net you a bad look. People have the view that they must have the best of whatever they buy. I know a man who, while well employed, is living too close to the edge. He found a sale on TV’s at Walmart and purchased a huge screen TV to replace the perfectly functional 54 inch TV he had been watching. I didn’t ask how much it cost, but I noticed he had many movie channels. My internet only connection is what I consider a staggering $54/ month. I am guessing his internet costs what would have been a car payment ten years ago. Does he have any savings? Absolutely not.
Then there are discretionary costs like eating out. One day I calculated what I spent at work on coffee and lunches. I stopped buying both as the number added up to WAY more than I wanted to spend. Thirty years of savings later and I am buying rentals to make up the income I lost because I got cheated out of my retirement by circumstances.
Most of the people I know will never be able to retire. I worked my whole life and discovered that if I live to the age my parents achieved, I will have nothing to live on. So, here I am working even though I am living in pain.
I would suggest people think about their future rather than just arriving there as if by accident. And, remember, a time may come when even though you need to work, you can’t really work.
My wife is looking at houses in the next county and one of the houses on her list is selling for $63k. The mortgage would be like $250 a month
I worked a decent job at my last place, ALL of the janitors who came in at night had much better cars than mine. Same thing with the folks across the street (renters, the owner and I are old buddies and HE has an old car, also)- their cars are way tricked out; I’m driving a 2003 Silverado.
They're not interested in what they can afford. Here in the north Texas area is a local car dealer that runs ads showing fancy cars while loudly proclaiming "Get the car you deserve!!".