Hari Seldon
Member
Inflation is definitely out of control right now.
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60% of millennials earning over $100,000 say they're living paycheck to paycheck
- Thread starter godhandiscen
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CrankyJay™
Member
Living on the cheaper side now so I can hopefully live it up in retirement later in life. Maybe I’m the sucker.
FunkMiller
Member
Jesus Christ. Any time I feel bad about living in the U.K., I have to remember stuff like this.
Edit: for comparison… my dad suffered a heart attack two years ago. Needed bypass surgery. Two week stay in hospital, numerous exams and tests like CT and MRI. Rehabilitation care team for a month, twice a day, on going home.
All free.
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Hari Seldon
Member
I mean there is no defending our healthcare in the US lmao. It is a shit tornado from top to bottom. The only hope you have is to be in a high enough tier of job that you get baller health insurance and then you don't worry about it.
FunkMiller
Member
I can certainly understand why people on 100k have a worse time in the US than they would in the U.K. You’re potentially talking tens of thousands of dollars just for the insurance, let alone if you get anything actually wrong with you. I don’t know how you guys do it. I’d be permanently terrified of getting sick or hurting myself because of the bill!
Kenpachii
Member
Never got that logic, i pay like what 120 a month, that's what 1400 a year.
For example cancer treatment is like what 150k on average, that's what 107 years of payments rofl.
Honestly i feel like any country without half decent healthcare is straight up a 3rd world country at this point.
Here i have to absolutely give zero shits if i tommorow get hit by a truck, or get cancer or get anything. I call the doctor, ambulance picks me up, stay at the hospital for a day or however long is nessesary, get fixed up of all my issue's, get all kinds of aftercare and free bandages etc and done, get even paid from my work because hey they understand.
Don't even get a bill.
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StreetsofBeige
Gold Member
That sounds great as you got a good plan I guess.
However, lots of Americans have horror stories about big bills. So somehow they arent getting 100% coverage for $120/mth.
Raven117
Member
Same man. I live considerably below my means, invest what I save, and hope I don't have to work forever.
jshackles
Gentlemen, we can rebuild it. We have the capability to make the world's first enhanced store. Steam will be that store. Better than it was before.
I've kinda just come to terms with the fact that I'll have to work forever.
If it turns out that I don't, I'll be pretty surprised. But happy.
LectureMaster
Gold Member
My best man and his wife pretty much earn that much, they basically live retire life in early 30 for they all cash'ed their house from family support.
Been working hard to buy a house and the pandemic and inflation fucked me hard. Guess I have to wait another year.
Been working hard to buy a house and the pandemic and inflation fucked me hard. Guess I have to wait another year.
At 100K, I'd be super set with the cost of living here but I'm still relatively comfortable making a little over 60K right now and can get the most of my earnings by budgeting with YNAB. I've been using it for years and have it down to a science. When you know what every dollar does it's really easy to make adjustments.
If my ex-wife and I were still together we'd be around 120K combined by this point and living super comfortably here in San Antonio. Our relationship didn't survive a move from Lubbock, TX and temporary drop in income (104K - 91K) to have a much better quality of life as we got established in a new city. Took less than 2 years for us to surpass our previous earnings by a good margin.
If my ex-wife and I were still together we'd be around 120K combined by this point and living super comfortably here in San Antonio. Our relationship didn't survive a move from Lubbock, TX and temporary drop in income (104K - 91K) to have a much better quality of life as we got established in a new city. Took less than 2 years for us to surpass our previous earnings by a good margin.
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NecrosaroIII
Ultimate DQ Fan
I was basically living in poverty living in socal with 50k a year. Lived in the ghetto. Was buying 25 year old cars off Facebook. Could afford to go out to the movies once in a while and save like 50 bucks a month. But between student loans, gas fees ( I was paying $500 a month).
No I'm married. Combined my wife and I made about 150k. We're comfortable. Still not able to save up as much as I'd like. And we can't afford a child. But we live in a nicer location. And soon ill be permanently remote so I won't have to pay as much for gas anymore.
No I'm married. Combined my wife and I made about 150k. We're comfortable. Still not able to save up as much as I'd like. And we can't afford a child. But we live in a nicer location. And soon ill be permanently remote so I won't have to pay as much for gas anymore.
TaylorSwiftFan
Member
Millenials in Australia:
- spend more on transport by 10% a month (on average spend $120 a month on ridesharing)
- spend more on food by 18% a month ($144 a month on Ubereats, etc.)
- Recreationally, spend 29% more a month on things like hobbies, entertainment and holidays.
Platinumstorm
Member
I live in an expensive pay to play location. I could have bought 4-5 of the largest homes where I grew up for the price of my townhome, but I wouldn't have mountains, skiing, or even a bike trail. I have no credit score issues.
I have no contribution from my company for retirement, but get large raises which I up my % of 401k for. I only did no contributions it one year to get ahead of housing appraisal rates on a year to year basis which were far exceeding my yearly contributions. I will contribute enough to max out my 401k +extra for stonk this year. Basically there is no lifestyle creep for me and the whole raise is in investments.
I've done a lot of calculations on buying a mid 2010s SUV vs new electric SUV. There should be cost parity in about 10 years with the biggest risk factor being decreasing costs of electric vehicles over time or me totaling it in random crash. It's not financially wise, agreed, might still do it anyhow; we'll see. I am giving this a massive amount of thought. It's hard to not take advantage of the tax incentives of the EVs in the current environment, when I'm pushing over $3.50 for gas right now, and live in an area with trash tier air quality due to inversions.
We are permanently terrified.
Haint
Member
No city with a population of 100-200K+ pays any kind of professional occupation $30K/yr. Union vs. non-unionized blue collar occupations (e.g. trades/manufacturing) are pretty much the only industries you'd see massive discrepancies. Any kind of engineer, medical professional, business administrator, etc that earned $100K+ in LA would at minimum earn $70-80K in Nebraska's larger metros, while in demand professions could easily match or exceed their LA salary. You don't have to move to backwoods towns with 500 people to get away from $2,000,000 800 Sq/Ft shacks/apartments, there are plenty of mid sized cities with high paying jobs and affordable cost of living.
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It amazes me how much you hate life.
Cyberpunkd
Member
People want to be where ‘the action’ is. Case in point real estate in France - the government gives major benefits to moving out of Paris and buying apartments under construction for massive fiscal benefits and lower charges. Nope, if you come from a certain background you only consider living in Paris. Living in a suburbs is considered a failure.
StreetsofBeige
Gold Member
No different than any city with some decent economics. Downtown where the action is so costs a lot more. Not all the time though. Some US cities I've been to have shitty downtowns. I dont see how people would be flocking to a desolate area when work is over. All comes down to if someone wants:
1. To be where the action is
2. They are doing it for investment/appreciation (assuming it keeps going up)
3. If they care or not being a renter or an owner
Downtown Toronto, good condos now go for around $800-1000/sq ft. So for lets say $800,000 you get a modest condo. Or you can move half hr away and find an old starter townhome, or move to the burbs like Brampton or Whitby or something and get a small detached home. Or move an hour away and get a family sized detached house. I might be a bit off on the math, but you get the idea. And the trend seems to be things keep going up 5%/yr. So you snooze you lose.
Hard to get a decent place now if you're just starting for the first time as a young person looking for ownership. Not hard to buy a place 10 years ago for people making decent money. But they missed out. I dont expect anyone making bad salaries to ever buy a place because they just dont have enough earning power to ever save enough. But for the vets whove' been working for a while and making decent coin, you had your chance. Dont complain in 2021 homes are too costly. You could had bought condos and small houses 10+ years ago and then roll the appreciation to more homes banking equity. Your fault for missing the boat. You only had...... 10+ years to act.
I dont know what property prices are like in SF and major tech hubs with sky high prices (if they've stabilized or still going up), but if someone can scrape by living pay stub to pay stub it can totally be worth it if prices keep going up. Then dump it at some point and move to a cheap place and bank the difference.
Cyberpunkd
Member
That's basically the case, we missed on buying the condo 5 years ago and are catching up right now, better later than never. Everyone saying 'don't buy, rent' doesn't know what they are talking about, especially if you plan to have kids. Even more with remote work when you can find a buyer for your condo in central Paris (it's not like US downtown, people are living and going out in Paris 24/7) you can get yourself a manor 1hr away when the time is right.
SlimySnake
Flashless at the Golden Globes
I know a few people in UK and I am not a fan of their health care system. This person I know constantly complained about chest pains and had all the signs of major blockage. She was put on a waiting list for one of those heart camera scans. By the time her turn came, three out of the 4 arteries were completely blocked and the 4th was partially blocked. Doctors couldnt believe that she was still alive. Thats when she got the best care because she was at deaths door. But I blame them for letting it get to that stage.
I am not a fan of the U.S health care system either. I routinely $6k out of pocket every year even though I spend over $6k on insurance premiums every year, but at least I dont have to go on a waiting list for preventive scans.
Of course, the ironic thing is that the U.S medicare system works the same way as U.K and it ends up costing everyone a lot of money because people delay going to the doctor until they end up in emergency rooms and then all have to foot the bill.
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SlimySnake
Flashless at the Golden Globes
After federal, city, state, medicare, and social security taxes, health insurance, and 401k contributions, their take home pay is somewhere around $65k.
INC
Member
Then hoorah, we earn more than these peasants!
eddie4
Genuinely Generous
You can live comfortably on 100k. Stop getting that 60k car loan, stop having 30 subscriptions a month, stop renting a place that's out of your budget, stop eating out all the time. Millennials are living paycheck to paycheck because they're lazy and they spend money on convenience while also wanting to look like they have money.
CGiRanger
Banned
I feel this is accurate for a single person yeah. For a couple or especially with kids it won't be that easy if they're living in a costly environment/city (unless they can move and maintain that salary)
StreetsofBeige
Gold Member
Ya. And dont forget to cut back that "two trips to Mexico" to one.
And if they want home ownership, got to lose the attitude to only want nice places close to the core. If you can only afford a small condo on the outskirts of town to buy, then thats all your getting qualified for. But if they want to live pay stub to pay stub renting, thats fine. That a certain lifestyle.
Just don't complain you cant afford a home, or the whining that they cant afford a big family house with a double car garage and backyard like their parents did in 1985.
Different era, different costs. Cant compare and have the right to buy a big house for $250,000 like they did. What you got now is higher pay, way lower mortgage rates, and for $250k you can get a small apartment in the burbs.
Now if you want a big house for cheap, move to Iowa or Saskatchewan.
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CrankyJay™
Member
LOL, most of those aren't contributing to their 401ks. They need to keep up with the Jones'.
CrankyJay™
Member
Well, there's another idea. Don't have kids if you can't afford them.
FunkMiller
Member
Oh, the NHS is far from perfect, but when things become an emergency they always seem to up their game and do a great job. The person you heard about is more of an exception rather than the rule, but things do get missed, and staff do get overstretched.
I actually think my other fellow countrymen in Australia have got it about right with their medical system. It’s a bit of both the US and the UK. Medicare is generally excellent and free (or really cheap) but those that can pay can have a higher level of service. Nobody gets left behind, but premiums are far more manageable for the people who can go private. I’ve never waited long in Australia for medical treatment - always seen a doc within 24 hours, and never had to spend out much either.
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NeoIkaruGAF
Gold Member
100,000 a year in Italy before tax would be considered being rich, lol.
The average yearly income in Italy is below €30,000.
The average yearly income in Italy is below €30,000.
FactoryOfDeception
Neo Member
Pretty much this except for it's not even a millennial problem is just a general people problem living beyond their means. You don't need a brand new car, you don't need the most expensive house on the block and you don't need to eat out all the time. People choose to live a certain lifestyle which is generally portrays thenself as earning more money than they really do.
Prof. Tivor Tontomo
Banned
There are parts of New York and California where 100k a year is living in the ghetto in a home depot bathroom sized apartment for $2500 a month. Then you have high taxes and higher prices for consumables and material possessions compared to other states.
Then you have to shop at Neiman Marcus or fifth avenue while having $10 coffee at star huck everyday paying $100+ for your phone after spending $1200 on an Iphone ever year, and monthly payments on a $65,000 tesla because you wanna be hip, those dont help things.
Then you have to shop at Neiman Marcus or fifth avenue while having $10 coffee at star huck everyday paying $100+ for your phone after spending $1200 on an Iphone ever year, and monthly payments on a $65,000 tesla because you wanna be hip, those dont help things.
Prof. Tivor Tontomo
Banned
For some people who's families were already in big cities, it's hard to put yourself in a position to move. That's if you dont have too much holding you down in the city. You graduate college for a job that pays less than 27k a year you are kind of in a bind if you grew up in those expensive areas. There's the room mate route but that's already a gamble in the city, gambling on it outside of the city is very risky, and you'd need to be hired for a job that pays the same or more before then unless you live in a state like West Virginia.
AngelaLifman
Neo Member
60% of millennials earning over $100,000 say they're living paycheck to paycheck
Millennials known as HENRYs — high earner, not rich yet — prefer a comfy lifestyle, but a new survey found that means things can get tight.www.businessinsider.com
I remember that I was living paycheck to paycheck until I turned 26 or so when I realized how badly consumerism was dragging me down. What helped me massively was a friend who recommended me this tool:
YNAB
Working hard with nothing to show for it? Use your money more efficiently and control your spending and saving with the YNAB app.www.youneedabudget.com
Nowadays, I help other friends by introducing them to investing and similar budget tools. Also, I realize that $100k isn’t a lot nowadays, and when you graduate with crippling college debt, it is a different ball game; I went to a public state school anticipating this.
What do you think GAF?
PS: I heard YNAB is kinda shitty and expensive nowadays, but just trying the tool helps you grab the concept of budgeting and gives you visibility into your worst spending habits. A very interesting study about millennials. I also have never heard of the HENRY term before, thanks for the enlightenment. I am currently interested in the millennial generation in an economic context. I probed a little about this and other generations at https://eduzaurus.com/free-essay-samples/millennial-generation/ and really wanted to know more. It turns out that there are so many generations out there now(like boomers, X, etc.). By the way, help me decide. What years were millennials born? Which option do you lean towards more?
A very interesting study about millennials. I also have never heard of the HENRY term before, thanks for the enlightenment. By the way, help me decide. What years were millennials born? Which option do you lean towards more?
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StreetsofBeige
Gold Member
Biggest drains on money are housing (rent/mortgage) and car payments. Get these to reasonable levels and even someone making $50,000 can get by. Maybe even less. Just about everything else you buy is the same price whether you're a millionaire or flipping burgers. Stores arent going to charge a rich guy double for a pair of jeans than a poor guy.
But live in an expensive city, downtown, a nice condo, vacations to the carribean twice a year and drive a new 3 series BMW at age 28 and that sweet tech company salary goes down the drain.
If you want to live it up, be prepared to spend it up.
But live in an expensive city, downtown, a nice condo, vacations to the carribean twice a year and drive a new 3 series BMW at age 28 and that sweet tech company salary goes down the drain.
If you want to live it up, be prepared to spend it up.
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BarringGaffner
Member
Yes millennials (aged 25-40) should have bought a house 10-20 years ago. Good point 10/10.
StreetsofBeige
Gold Member
Maybe read next time.
Also, in cities with high appreciating home prices, it's never too late. Guess what? If someone saved money and finally bit the bullet buying a place even just one year ago, their place is probably up 5%+ already. People I know who bought an expensive place years ago an hour away for $750k now have their place worth over $1M.
If you want to make money, you got to start early. But if you start late you can still do it but have to change the strategy. It's like stocks. Just because some people got into buying a stock at $5 ten years ago, doesn't mean you cant make money off it because it's now at $40.
One thing you'll notice is that most people who make good money on homes and stocks have historically modest starting spending habits since they know they need to build up their money to invest and grow it. Nobody buying investment homes and stock shares are buying BMWs at age 28 and being broke. You cant even qualify for a mortgage for an investment property if you got no money to sink into it. If someone is that broke, you cant even get a mortgage for yourself to live in. But hey, you got a nice car.
The average person getting rich over time (not doctors, lawyers or CEO types who have big salaries) have what they have over decades of asset appreciation. Not asset depreciation like buying shit and blowing money on trips to Mexico.
Millennials got the money. They just need to stop whining and save money and put it towards appreciating assets. If people making $50,000 can get by, while a $100,000+ youngin' is struggling, they got problems.
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YoshiMadness
Member
I guess it depends on where you live as well. I recently quit a job I was at for about 6 years making a little more than $16 an hour, and that's considered very good pay in my area. Or at least it was before everyone started raising their wages. And besides becoming miserable at a job I used to love, the toxic work environment, being overworked, short staffed and all that, that's also part of the reason I left. Because I was working 12 hour shifts at a factory job, doing hard physical labor, playing catch-up from the previous shift, and constantly running around like a chicken with my head cut off, while employee morale was ridiculously low, and all the different shifts hated each other, all the drama and people constantly trying to get each other in trouble (although I will say I did love the people on my crew, those are some great men and women), having to use machinery that's older than I am, the ridiculous nepotism and asskissing, etc. Among many other problems. And I saw that Wal-Mart was hiring $15 an hour, Sheetz $14 an hour, etc. And I thought to myself, "why the fuck am I staying here and killing myself physically and mentally every goddamn night when I can make almost the same amount of money doing way less work?"
Anyways, sorry for the rant, but I'd love to make 100k a year. That's rich people money where I'm from. Guess I shoulda went to college or a trade school, although I suppose it's never too late to start. Maybe I should.
I'm not trying to insult anyone btw. I realize cost of living and all that varies. 100k is way less in, say, California than it is in Northwest Pennsylvania, which is where I live.
Also, I'm glad I decided to get a 401k. It has been a lifesaver, and has allowed me to quit my job and get my life back in order in the first place.
Anyways, sorry for the rant, but I'd love to make 100k a year. That's rich people money where I'm from. Guess I shoulda went to college or a trade school, although I suppose it's never too late to start. Maybe I should.
I'm not trying to insult anyone btw. I realize cost of living and all that varies. 100k is way less in, say, California than it is in Northwest Pennsylvania, which is where I live.
Also, I'm glad I decided to get a 401k. It has been a lifesaver, and has allowed me to quit my job and get my life back in order in the first place.
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BarringGaffner
Member
You wrote ‘you retards’. If you wanted us to continue to read that you were talking about the same peers, you should have wrote ‘those retards’. Maybe use correct grammar so we don’t have to guess what you’re saying.
Anecdotal evidence aside, we know that millennials and younger generations simply do not have the same amount of wealth as older ones. Telling people to buy houses when they are living paycheck to paycheck is silly.
Definitely depends on the area you live and how you choose to live. Here in Washington State in area around Kirkland, Bellevue, Redmond or Seattle (close to all the high tech companies) prices are in freaking sane and you could quickly burn through cash just on rent/mortgage, gas, and tolls. We bought our house in 2003 and we paid about $235k about 30 minutes from Microsoft campus. Zillow told me my house is now worth $650k. Here, housing prices are skyrocketing at unsustainable levels while salaries are slowly increasing. I can see millenials having an issue in this area if they aren't wise with how they spend their money. 100k after taxes and 401k you are looking at $70k. 2500 per month rent/mortgage (generous) and now you are down to $40k. Gas. Tolls, food, utilities.
I am wondering if the house prices will finally stabilize with more people working from home. Now you don't need to live next to one of the high tech campuses. LOL Hell they told me I never need to come in and same for my wife. If we didn't have kids still in school I would move in a heart beat.
I am wondering if the house prices will finally stabilize with more people working from home. Now you don't need to live next to one of the high tech campuses. LOL Hell they told me I never need to come in and same for my wife. If we didn't have kids still in school I would move in a heart beat.
StreetsofBeige
Gold Member
If someone is making over $100,000 and still having trouble buying a home in their 20s, 30s or even 40s, they got issues.
Spend less or aim the sights down a few notches.
It's a different era. Expecting to buy a giant family home like mom and dad bought in 1985 for $160,000 at a 12% mortgage rate(!) isn't happening anywhere anymore. If the going rate is a small modest condo for $300,000+, and thats all you can qualify for then that's what you got.
And if someone doesn't like it and would rather spend all their money so they cant qualify for anything but a Mercedes loan, that's fine. That's the lifestyle they want to live, then dont cry about not having money to buy a small home with a six digit salary.
TheUsual
Gold Member
I'm finally escaping Chicago in less than a month. Moving to another state as I accepted a new position at another company.
My fiancee and I knew the current place we live in would be the last place we live in the city at.
$2000 a month rent will definitely do that. We found a much better place for only $1350 a month to rent in our new city. We're going to use that extra money to save for a house down payment. Our cost living will be way more in our favor now and we have friends and family in the relative area.
I wouldn't say we're living paycheck to paycheck but we want a little extra comfort. Illinois is just becoming way too expensive overall so this transition is worth it. We didn't want to move to the suburbs because that's where we felt if we did that in Illinois, we would never leave.
My fiancee and I knew the current place we live in would be the last place we live in the city at.
$2000 a month rent will definitely do that. We found a much better place for only $1350 a month to rent in our new city. We're going to use that extra money to save for a house down payment. Our cost living will be way more in our favor now and we have friends and family in the relative area.
I wouldn't say we're living paycheck to paycheck but we want a little extra comfort. Illinois is just becoming way too expensive overall so this transition is worth it. We didn't want to move to the suburbs because that's where we felt if we did that in Illinois, we would never leave.
StreetsofBeige
Gold Member
A lot of high cost living simply comes from demand. And most cities (especially ones with nice downtowns where the action is) costs the most to live, along with gated mansion areas.
The typical young person likes being close to the action instead of living far away for cheap. Makes sense. They want to live it up and go clubbing. There's no 27 year olds saying they want to move to Orangeville, Ontario when downtown Toronto is an hour away. When people get older, most get away from the core since they have a family and kids and want a bigger quieter place. It's not even the money thing really.
The key difference now vs. decades ago is the hot and happening core has home prices and rent skyrocketing to levels of "I'm living like a broke guy" when way back downtown or lakeshore properties werent so skewed to high prices.
So people with high salaries forcing themselves to live among the fun crowd will be broke. By the time they get out later wanting to buy, home prices probably went up another 20%, and they probably want a super nice place because they work at a nice job. So want a slick place that matches. By that time it might be too late as they fell behind.
Depending on how much money someone has saved, their annual income, and the place they want to eventually buy, they might be falling behind more and ore after every year.
That's why for people with decent money (I dont expect people with shit paying jobs to ever afford to buy), best way to afford buying a home is do it early and modestly. Blowing your wad and trying to buy a super slick place at 35, you just lost yourself a lot of ground. And pending the income level and want they want, might not ever be able to afford buying ever. Waited too long and too stubborn to buy something affordable farther away.
And thats totally fine if they accept the reality. But for whiners saying they cant afford a place while getting paid six digits + probably a decent bonus on top of it is being greedy.
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Truth. You don't want to be 65 to 70 still paying off the mortgage..
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AJUMP23
Parody of actual AJUMP23
Yes to an extent there is a severe lack of restraint. But they also tend to want to live i high cost areas that take a large portion of their earnings in rent.
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