Even households earning $150,000 a year are struggling with credit card and car payments
Even households earning $150,000 a year are struggling with credit card and car payments
cross-posted from: https://lemmy.world/post/33704049
Wanted to add, "Fuck Cars!!"
Car payments for decades of one's life are not the way to go.
$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
Imo the entire concept of the middle class should be abandoned as capitalist propaganda. There's the rich and there's the working class. Anything else is a distraction to keep us from focusing on the rich stealing from the workers. Bezos owns a $500,000,000 yacht while thousands of his employees rely on government assistance programs which are funded by taxes he doesn't even pay.
children? when we've hit the climate crisis tipping point? no thanks, i'd rather not bring people into this world who are going to die a painful death from a climate related catastrophe.
It feels like the whole world has been an externalized cost for the very rich.
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
Yeah public transit in the bay area is famously trash. You just need one more lane.
Move to sacramento and spend six hours each morning on the commute so you dont have to use amtrak like some cucked little bitch who likes to sleep and read.
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. 👁️👄👁️
The system is designed to keep everyone living cheque to cheque
There's room for all of us to be angry. I think it's reasonable to complain if you work 50 hours a week for that income, have to be away from your family, who also need to be housed and clothed and to eat and care for their health, and all you have is scraps left over and aren't saving much, if any.
When you make $150k, you usually have to live in a preposterously expensive area and have your entire life structured around your job. You eat better meals and have a better car so you can work better, and if you don't you're fired because someone else will. Student loans are how you got there to begin. It costs a lot money to work.
Disability benefits? That's not real. I think you're thinking of "bureaucratic dead ends".
Felt that when the UK started talking about the cost of living. I remember someone on TV crying about how they couldn't afford food on their £35k salary. This was several years ago too.
At the time I was having to live off £8k in apprenticeship wages.
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.
Well the rich are gaining obscene amounts of money. So many of the large companies are pulling in record profits. So in that sense, the american economy is growing. The peoblem is theyre squeezing the rest of us for that.
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.
Between that and Biden refusing to take action regarding Gaza, the election was forfeited in 2023.
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.
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.
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?
Here's how America "works":
Fuck you, there is barely any public transportation, and anyone who uses it or some non personal csr transist system is literally hated by most of society.
Oh and of course, cost of housing goes up exponentially as you try to live closer to where jobs actually exist.
Also, cars are all wildly unaffordable, and most places won't even consider hiring you if you don't have one.
seriously. car payments crushing people? understandable to an extent, cars are required for most americans. credit card debt? thats a personal issue.
Ehhhh I wouldn't be so sure
It's really easy to fall into when you're month to month.
You just barely scraped by on the rent and essential bills. Now you have $36.29 to make it through the next 2 weeks.
But hey, you do have that credit card with a few thousand available. You need to get food for the house and $36 ain't gonna feed the kids. You'll be frugal. Maybe $200 or so. You'll pay it off next month.
But next month it's the same story. Minimum payment it is.
And next month
And next month
And then you need emergency dental surgery
And then...
You're only one bad hospital visit away from that same thing
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 find car insurance more outrageous than car payments.
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.
120k per year is like, 80th percentile in the US.
Yeah, this is California in particular and I think it's the median 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.
Not to detract from the statement being made but many people will sign away all their money regardless of their income.
More income means more spendy spend
I would rather use it to pay off the mortgage and cut back on hours worked
Uh, if you’re struggling making $150k a year you’re just piss poor at managing money. My wife and I make less than that and have almost paid off everything and we are about to go pay cash for a new vehicle in the $70k range.
Wtf are those goons doing?!?
Yes and no. I lived in the Bay Area of California, 150k salary would not fly in some parts. Fifteen years ago I knew a gal in college that lived in SF, she and 3 others were splitting $5k a month for a pretty standard 3/2 house.
I now live in small town Texas (much happier). For $150k a year I could live like a king.
150k for a family is not that much in california, especially if its two people working for a combined 150k.
Having medical problems. Paying for kids in college. Surviving past financial mistakes they made when they were younger and not as informed.
Or trying to live meagerly in California.
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.
Amazing. Class war between poor and middleclass while billionaires laugh all the way to their private jet