actually quality of life is much better today because most of our needs take up a much smaller % of our paycheck than it did 50yrs ago. The only reason people think its harder to live today, is because we spend our money on so much more non-necessities than people did 50yrs ago. $300 game systems, cell phone + landline as opposed to just one of them, data plans on cell phones, satellite TV instead of free broadcast, people buy bigger homes than they need, buying the more expensive car instead of the cheaper ones, we buy way more clothes than our grandparents did, we eat out way much more often than our grandparents did. I've seen lots of families with a stay at home mom live on 40K a year and not complain too much..and then I see lots of families with 2 parents working making 100K a year complaining that they don't have any money. Its a lifestyle choice that many people don't realize they make.
I'm laughing when I see people that say 100k isn't much. People need to get over the material bull**** like having a huge house and a fancy car as a way to measure wealth. I don't make anywhere close to 100k. I live in an expensive city and my half of the rent + utilities usually runs between $1,050-$1,150. My student loan payments are about $765/mo. In the past 16 months, I've been able to vacation in NYC (twice), Phoenix, Vegas, and Bermuda. I bought a big flat screen TV to watch all of my favorite teams in HD, I still go out and have fun a decent amount of the time, I took off work and sat in the fourth row when the Rockets came to my city. What else do I need? On top of doing this, not making anywhere near 100k, in my first sixteen months out of school, I've been able to build my savings to around $9,000 and have $4,500 in my 401k (I have been contributing for about 8 months or so). It seems like people think they are entitled to have luxury in life. I have made sacrifices to be able to save and travel, but I recognize that you have to go without things in order to experience the stuff you really enjoy. I don't own a car and take public transportation/walk everywhere (yes, I realize many people don't have this option), I take a loaf of bread to work and eat ham and cheese sandwiches, and I eat at home most of the time. I feel incredibly fortunate to have the opportunity I have right now. Tomorrow, I could lose my job, but I'm not going to act like it is an indignity to make 100k because I'd have to live in a "junk house and drive a busted BMW." If I have to wait tables tomorrow, I'll feel fortunate for the opportunity. Having fun and enjoying life is only as expensive as you make it.
if you believe what your realtor and bank tells you. you don't own anything if you have to finance it. if you have finance, you're in debt. if you're in debt, you're not building wealth unless the house is providing rental income. as a primary residence, houses are time and money sinks plain and simple. historically, prices just keep up with inflation. and you can't recuperate interest, lawn costs, HOAs, cost of a new furnace and roof, etc. all costs that should be deducted from your "investment". there's truth to the saying "house rich, cash poor". should people never buy houses? of course not. but i'm willing to bet the majority of anyone's income goes straight to housing. add to this the fact that home owners are not likely to live close to their jobs. the extra gas/mileage/commute is an indirect cost of home ownership. more money down the sink.
This is true if you spend a boat load of extra money on your crib then you would spend each month to live somewhere, but unless you live with your moms you are going to have to pay rent to live somewhere. You can either pay someone else and have nothing 15/20/30 years from now or you can pay off a home in that timeframe and have an asset that you can pass down to your children or someone. Or sell at some point in time and get some of that $$ back (can't do that just renting from somebody). And if you pay off your house by 50 or 60 or so and don't die for a while then you have freed up a ton of $$ in your later years. Owning a house is not for everyone but I can't say it's money down the sink because at the end of the day you are going to have to spend $$ on shelter.
Wherever you live, people are going to have some irrational standard of gauging your status. Just smile and move on. I wish people were less sheep-like and didn't have to have every new phone, a frequent new car, and a new house simply because of the need for status. Who cares about "status"? I'd rather live modestly, drive an '03 car and have season tickets than rush to the bank to cash my check so I can redistribute my bank account into mortgage and car payments and watch Clyde Drexler commentary.
I'm guessing you're single with no kids... When I was single and first out of college, I lived like a millionaire on 35K/year. No cc debt, no school loans, paid off car, money in the bank, 10% of income towards retirement and a mortgage under 100K. Wife and kids change everything.
Retired in 92 which was too soon, now 72% range and one good medical bill with insurance can ruin your year or two. Had to take loan on house that was paid for .
The alternative is to pay rent. Rent gives you nothing. That is out of pocket money you will never recoup. Yes, if you finance, you don't have wealth initially, but each year your mortgage payments create wealth. If you want your cash, you can later sell it, and guess what, tax free. Now, if you are stupid, and overpay for a house, than you are screwing yourself.
Ouch. My P&I payment = $330.51 My utilities including phone/cable/internet cost about that much most months.
