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by falcolas 3553 days ago
Not really, once you include the other costs of living (and having children).

$1.8k housing, plus $500 for property taxes and insurance, $1,000 for two vehicles (payments, insurance (damned teenage drivers), gas, maintenance), $500 into savings for household emergencies, $800 to feed four, $100 per person for clothing, the occasional ice cream, paying off medical deductables... and you're quickly looking at needing over $5,000 a month gross just to get by.

5,000 / 0.7 * 12 = $85,000

Toss in 10% savings and 10% retirement, and you're well over $100,000.

Sure, you can cut corners and live off a lot less than that, but I'm comparing it to the standard of living had by people 40 years ago.

1 comments

Right -- the $1,800 was inclusive of property taxes and insurance ("all-in"). And again -- there are great houses available for under half that ($900/mo all-in).

(Random nitpick: if you're earning the median income, paying a mortgage while contributing to retirement; and have 2 kids, you are not paying anything close to 30% of your income in income taxes.)

Also you are right that if you save ~30% of your median income ($500 + 10% savings + 10% retirement), the month-to-month gets a little tighter. But then you can retire early. :-)

I'm not arguing that everything is roses, just that tens of millions of people live at the median income and own houses, cars, etc.

You'd have done much better here arguing about the costs of childcare or higher education. Those are a bloodbath, no matter where you are.