Author Topic: How Much Do You Need?  (Read 4053 times)

halfthemoney

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How Much Do You Need?
« on: August 30, 2014, 09:57:56 AM »

RFAAOATB

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Re: How Much Do You Need?
« Reply #1 on: August 30, 2014, 12:50:37 PM »
Apparently a lot more than 100k.

Elderwood17

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Re: How Much Do You Need?
« Reply #2 on: August 30, 2014, 07:48:56 PM »
Articles like this seem to excuse the behavior of spending all your money.  My siblings quote these kinds of articles as "proof" that there spending is below normal levels and couldn't possibly be more frugal, even as they outspend me two to one.

RetiredAt63

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Re: How Much Do You Need?
« Reply #3 on: August 30, 2014, 09:27:23 PM »
The author lost me here - where is the logic in saying that people are paying a lot for a decent house near decent schools, and the next thing he says is that his hypothetical budget includes private school for a child under 10.  That is elementary school!

"On the other hand, I am often in the position of defending middle-class Americans who are slowly slipping further and further behind, even while it seems like they make a lot of money.
I think they are forced to pay too much money for decent housing near decent schools, and that pretty much wrecks every budget, whether or not they splurge on restaurant food and nice shoes. Add in occasional thoughts about lack of retirement savings and college costs, and you have a lot of restless parents.
For the purposes of discussion, we're talking about a hypothetical four-person household: A married couple with two children younger than 10. We're going to assume both parents work and that the family must pay for child care for one while the other goes to a medium-priced private school. They live and work near one of America's largest cities"

RFAAOATB

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Re: How Much Do You Need?
« Reply #4 on: August 31, 2014, 09:20:49 AM »
The author lost me here - where is the logic in saying that people are paying a lot for a decent house near decent schools, and the next thing he says is that his hypothetical budget includes private school for a child under 10.  That is elementary school!

My guess... Decent schools attract decent housing, but private schools are better.  So to get both good housing and good schools you have to buy in a good school neighborhood to get the best house, and afford private school to get the best school.

halfthemoney

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LalsConstant

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Re: How Much Do You Need?
« Reply #6 on: September 08, 2014, 08:05:13 AM »
It amuses me the author first determines the median income is under 60k and is then amazed when people live on that amount.  Does he truly believe the average person borrows a year's income every year?

I understand if the average person has student loans and a mortgage they are going to have debt that is several times more than their income but the idea is they pay it down eventually.

Entertaining read.

pom

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Re: How Much Do You Need?
« Reply #7 on: September 08, 2014, 11:14:10 AM »
It amuses me the author first determines the median income is under 60k and is then amazed when people live on that amount.  Does he truly believe the average person borrows a year's income every year?


I totally agree with you, he said that the average family earns $54 000 and as I don't see people dying in the street they must do ok with $54 0000.

If, like the author, you make assumptions to arrive to a result and that result does not match reality you can assume either assume that reality is wrong or that your assumptions are. It is 99,9% of the time the later.

ambimammular

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Re: How Much Do You Need?
« Reply #8 on: September 08, 2014, 06:53:12 PM »
I'd like to see our forum take a survey. Can some talented mustachian whip up questions and graphs?

Controlled for city/rural cost of living, please.