In other news, Americans are still drowning in debt and broke as fuck…
CNBC’s Jessica Dickler reports that while 78 precent of full time workers say they live paycheck to paycheck, 71 percent are in debt, and nearly 10 percent of those making $100,000 or more say they can’t make ends meet, according to CareerBuilder.
“Seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent last year, according to a recent report from CareerBuilder.
Overall, 71 percent of all U.S. workers said they’re now in debt, up from 68 percent a year ago, CareerBuilder said.
Sorry, but if you’re making over $100,000 and you can’t make ends meet, you’re fucking up by the numbers. Move, downsize, commute further to work, cook more at home. Sure, a glorified closet in high-rent cities like San Francisco and New York start at $3K / month – but driving an extra 20 miles will cut that down enough to pay down debt and make your depression-era grandparents proud.
$1 million in the bank will conservatively net you $30 – $40k / year in passive income with enough left over for your kids to blow on cruises and cars they think they ‘earned’ by being your offspring. Social Security, if it’s still around, will provide another $20-$24k if you receive maximum benefits. If you can’t comfortably live on $100K now, much less save up for retirement, you’ll be in good company at the state-run retirement ghettos when it all runs out.
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100k per annum so you take home 75K or less. Spend 36 on rent and your fucked.
Another problem is normal Americans haven’t gotten a raise in 40 fucking years but I guess you already knew that.
Most Americans are glutonous whores.. They are urged to be. Remember the cure for 9/11. Go out and do some shopping! How old are you ZPN?
Unpossible. With such surplus of well paying jobs that immigrants have to be let in to fill all positions.
https://tinyurl.com/ydyr76qv
$100k a year is nothing. A mortgage for a decent place is $35k a year. Having a kid these days costs $20-25k with good insurance.
Agree zero. If you can’t live on 100k a year then you need to get out of NYC/SFO or seriously look at your living situation. I watched all my idiot friends get out of college at their first job and immediately buy the 60K bmw/mercedes, huge nice apartment etc… while they still have to pay down college debt. Saving for retirement – wtf is that. Going out to eat for lunch and 5 nights a week, dropping a ton of money partying on the weekend. 20 years later and they’ve got little to nothing saved up and still living paycheck to paycheck but at least they keep leasing a new car every few years.
I took a job in a small midwest town with an old line firm that still had a pension plan and 401k match. Could easily buy a nice new car and a great apartment, but I’m out all the time so why. Started out with a one bedroom apt paying $135 a month rent in an older 1970s apt building, but in a nice area surrounded by other apartment buildings that were built new, kept driving my cars till at least 10 years old. Saved 18-20% of every paycheck. Did that for 8 years living way beneath my means before finally moving out of the midwest for a big raise. Could easily buy 5 year old house with 20% down payment. 20 years later I could pay off the house if I wanted to, but I’m making more investing my cash than the mtg so just keep paying by the schedule. House has almost doubled in price. Over million in retirement funds, and hundreds of thousands outside retirement. Will get some nice spending money of $3500 a year at age 65 from that pension plan from that first company (pension plan is solid as firm got bought buy a much larger solid Insurance co which isn’t going anywhere). Still drive my cars into the ground (never got into spending huge money on transportation). Take many golf trips with the boys every year and belong to top 100 golf club, go to Hawaii and Japan for vacations with my family every year and should never have to worry about money as long as I don’t go nuts.
They should drill the power of compounding into college kids over and over again. I could have stopped saving any money after those 8 years and I’d still have more saved than most of my college friends.
Great that you have been able to remain disciplined for as long as you have. I’ve tried to instill that mentality, at least somewhat, in my kids by having them live home for a few years after college so they can save some money before moving into NYC, which is somewhat of a rite of passage in the NY metro area burbs. Many of their friends have moved into the city right after school so they are saving absolutely nothing and probably still living off their parents to an extent. I told my kids, stay home for a few years and then, when you’re earning more money and can better afford living in Manhattan AND have some savings in the bank, the city experience will be much more enjoyable. They will be comfortable while many of they’re friends are still sweating it out.
That said, in terms of investing, you should prepare yourself for the inevitable collapse of the USD. It’s coming and even those who have done things right for many years will be hurt.
everyone’s interpretation is different, but unless you’re saving over 51% of your net paycheck, then you’re living from paycheck-to-paycheck is some ways.
personal savings can be viewed just like operating margins for a business. paycheck/top line is fixed/flat with slight downward pressure for most. operating expense is constantly going up. Therefore margins are tough to maintain, much less grow.
The cost of living in America has greatly outpaced income potential. It’s a difficult game for even financially savy people to play. It does not surprise me that the general population is the way it is.
momono- my apologies but your story simply doesn’t apply and not available in today’s society. There are no 1 bedroom apartments for $135 a month. If we expressed it as a % of your paycheck at the time, it’s way less than what today’s price would be.
Next, getting an entry level job is extremely difficult. Finding one that has a pension plan AND a 401k is not happening. Very tough to obtain a college degree with no debt too.
Even the savings of 18-20% (definitely agree with you on this on doing it), you had a risk free savings rate % compounding that we do not have today. You probably had 5-6% minimum from your savings account or bank CD. Today that’s 0.001%. Nothing.
Thoughtful and interesting comments above.
I urge young people NOT to make assumptions about the future, because you never know what life has around the next corner. Start saving and investing money early, even if it is just a little every month. It adds up.
If you are lucky, you’ll get to be old. In that situation wealth you accumulated makes a big difference in how you go out.