I frequently have a debate with people regarding the true and full cost in America to support a family of four. In my area of the nation it seems to be around $100,000 K minimum. People often debate that this number is way too high. It seems to me that many are only looking at what their present needs are and forget to include retirement, college savings, student loans, debt pay down, the rising cost of health insurance, the rising cost of children as they age into their teen years, saving for vacations, and saving in general.
It is difficult to understand what our financial situations are since it is so ingrained throughout our personality and life. Often we do not wish to acknowledge what our real situation is. Sometimes people are very well off and do not wish to lose the drive that comes from the fear of poverty. Others it seems are complicit in a self delusion to let themselves believe that if the bank will give them a new car loan that they must be financially alright. People often seem to permit television, social standards, and peer groups to provide a view of what a healthy financial situation is and the result can make for an ill prepared financial life.
In my estimation we may only have 20-40 years of effective work life. In that time we need to be able to provide for a lifetime of financial needs. Our financial past in the form of debt, present as in providing for the daily expense of life, and future as in retirement funds, must come largely from the fruits of our labors over what really is a short portion of our lives. It seems to me that most are under estimating what it costs to provide for all that is really need to support modern life.
What are some thoughts on what it takes to fully support a family of four taking into account all benefits, saving requirements, and debt service?
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