ITT: the working class shitting on each other just like the billionaires intended

Only 3 718$ payments left on my car and I paid off 4/5 credit cards. Turned them all off to. Just being slow with my Best Buy credit card.

oh no. are those poor people ok? they cant budget 150k? i feel really bad for them. is there perhaps a venmo? I make less than 50k, but gosh, i didnt realize they had it so hard.

What this article fails to mention is that all houses within 2hrs of the San Francisco Bay Area are close to a million dollars plus at least 1k a month in property taxes. With insufficient public transportation cars are a necessity

$150k household income is not enough to afford a house, middle class standard of living, children, and retirement savings since you don’t have a pension. at least in my area.

it’ll get you lower middle class, maybe.

I’m not saying these people should be having money issues, they need to budget appropriately. but what used to be possible 20 years ago just isn’t now, you need to choose one big thing to drop, whether that’s a detached house, children, expensive hobbies, trips, etc

there’s too much shifting of the goal posts for what middle class is, I think it has slipped too far downwards

I find car insurance more outrageous than car payments.

POV: You’re a USian on disability benefits who is just assumed to be able to survive on 12k a year whilst being literally disabled and unable to do most things healthy people can. And now people with 150k a year, 10 times my income, are complaining. 👁️👄👁️

We don’t make this much but do make enough it seems like we ought to be easily comfortable (two good salaries, cars paid off) but -

How did we get here? Nobody comes out the gate making that much, we each started out making little to nothing, then went to school, had kids, got school debt and a credit card for the monthly deficit, paid off the school debt, the credit card still paying on so long after. It’s still the deficit debt, for emergency situations that come up. I funded HSA so those are not usually medical now but dogs, car repairs, house repairs. We are making progress but it’s dead expensive and slow to do so.

Basically those people making so much and credit card debt may be paying off their path to making so much.

And I know better than to complain, having been in much worse situations.

About 38% of all new jobs created in the five years before the pandemic paid above-average wages, VantageScore’s data shows. But this year that share has fallen to 7%, signaling that companies are creating fewer white-collar positions. That poses a challenge to higher-income Americans who suffer a job loss because it may be tougher to find new employment than in previous years.

I feels like this is very important as it actually the reason why they’re struggling on repayment, because technically they aren’t making 150k per year but 0 per year.

But the financial management criticism still sound.

I remember talking with some Americans a few years ago, they worked in the tech industry, so definitely on the upper side of the income range. And even they said they were feeling the crunch around 2022-2023. I can only imagine how it felt for the regular people.

Quite the contrast with the official numbers which claimed the American economy is growing. Let’s just say that the election outcome was not surprising.

Not to detract from the statement being made but many people will sign away all their money regardless of their income.

I was curious what this might look like, so I ran some numbers. It would be easy to hit this in a high cost of living area where rent will easily run 5-6k per month, but what about a medium cost of living place? I assumed a family of 4 with both parents working for 75k each and a 20% total tax rate (FICA, federal, state). All of this is based on what I know of typical cost of living items in the US.

After Tax Income (monthly) 10000

Housing 2500 Child care 1500 2 Car Payments (25k each) 1000 Groceries 800 Medical (incl. insurance) 800 401k (6% deduction) 750 2 Student Loans (30k each) 700 Utilities 400 Auto Insurance 300 Total Core Expenses 8750 Leftover for Discretionary 1250

So, you’d have 1250 per month to cover clothing, auto fuel, dining out, pets, fun money, subscriptions, activities for the kids, gifts, etc. You could easily run that to zero or below every month.

Now, there may be some room to cut in this budget, like not funding your retirement and giving up your 401k match or living in a much smaller home. But I would also say some of these numbers are very generous. Rent could be over 3k, most people don’t have a 25k car loan, if you own your home you can get hit with random major repair costs, and probably most parents would laugh at my estimated child care cost.

I think a key takeaway here is that kids are really expensive. Aside from the child care costs, most people with kids will want a little more living space than is doable in an apartment and kids go through food and clothes like crazy. You could probably chop at least 2-3k per month off this budget if it was a couple living in an apartment closer into the city core, with shorter commutes and maybe even options for public transit, biking, or walking.

I qualified for a needs based preschool for the kid. The cutoff was 11k a month. They consider anything less to be struggling. It seemed laughably high, but it must be based on what they’ve surveyed.

Credit cards and car payments must be part of that. We have neither type of debt and get by with a fraction of that need cap! But the average car I see around here is either a new F150 pickup or a Dodge Charger, neither of which come cheap.

Well that’s just living beyond your means. We really need to teach financial responsibility in schools. But we won’t, because then people might liberate themselves from bondage and then who’d work all the service jobs that white collar types want to abuse?

Skill issue. Bought a house recently and our combined income at the time was a little under £50k. Honestly not even struggling, my bike cost £600 once and that was over a year ago.