[kerryiob]

A few important things that aren't being discussed:

If your income level drops, it should be relatively easy to cut back on food expenses. You can simply eat less or buy less expensive food. Not great options, but possible. On the other hand, if you income level drops, it's can be very difficult to reduce housing costs fast. Thus I would think that people are more vulnerable to unexpected drops in income.

Same thing goes for medical costs. It can be very difficult to reduce those without sacrificing health.

Another big issue is that in 1962 most households were single income. Most mothers were at home. If the husband lost his job, there were 2 potential wage earners that could theoretically renter the job market to regain the needed income. Today most households are dual income, and require all of that income to pay the bills. So if one personal loses their job, there isn't a backup worker able to enter the workforce if needed. So again, more vulnerability to reduced income.

[usaar333]

Great points.

> On the other hand, if you income level drops, it's can be very difficult to reduce housing costs fast. Thus I would think that people are more vulnerable to unexpected drops in income.

I was shocked to see how high housing was. 31.3% just for rent or mortgage? You are screwed in a two person household if someone loses a job.

And 5.4% for utilities? I assume that includes mobile, but that feels incredibly high.

[Tloewald]

What's the median household income post tax? Can't find a good figure but it's around $50k pretax. Which is I guess 40k ish post tax, $3.5k or so per month. So 5% of that is $175.

Phone, cable, water, trash, electricity?