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I think its just like any other issue where ideologues at the extremes pervert the truth with grotesque anecdotes when the issue, like anything else, is on a continuum of fact.
There are the pompously privileged who look at the genuinely needy and smugly start in with the inane drivel about "living within your means".
Of course, there are those who just can't seem to accept the basic inequalities of life and insist on throwing their lives into massive turmoil and risk by taking on unsustainable debt and spending levels to live a life they cannot afford because they see other people who have things they want.
Most people are somewhere in between. As a consumerist society where our collective prosperity is (theoretically at least) tethered to our willingness to spend ourselves into oblivion, you can massively up your lot in life by learning to live BELOW your means and use the surplus only when it advances your station in life (to buy real property, to start a business, to invest), as opposed to buying crap that's just crap. The formula is very simple but getting people to follow it is very hard.
I've seen people with $300 in the bank get a $5500 tax return and spend it on a watch.
Maybe if you don't like the "means" that you have to work with, it would be a good idea to look at how you can improve yourself to increase your standard of living.
I don't see how complaining about rich people will make anyone's life better. However, spending less that what you bring in, saving, investing, looking for ways to improve yourself--how could that be bad?
I wouldn't expect anyone to be able to afford a $750,000 house. But you could go in with relatives or friends and buy a house you can afford. Then fix it up nights and weekends and sell it in a few years and buy a nicer one. But that would involve actual work and staying on a careful budget and--Oh, God--living within your means. Probably too hard. Easier to complain.
Quote:
Originally Posted by freemkt
BZZT!
Very difficult to pull that off for burger flippers.
I live in one of the regular family sized homes cost $750k metro areas. I also make well above average income. Using that adage of buying a home 3x your income means I can afford a one bedroom condo in an average neighborhood and have a ~45 minute commute (each way). And to get the 20% downpayment i would need to save all of my take home pay for a over year. And i do mean all of it. Literally spend zero dollars.
Lowering my minimum living standards would add 30 - 60 extra minutes each way for a commute. or I could live in a very, very dangerous area and add 15-30 minutes each way, and save 30% on the cost of housing and less safety, convinence and access to necessities. My wishlist to buy is not unrealistc at all, but probably is unlikely unless i get a big windfall. Entry level homes are being purchased by cash buyers so it would be hard for me to compete.
What happens to people making average income?
Right now the average rent in my city is only affordable to people who make 2-3x the average renter's income.
Living within your means is luckily something we don't have to be reminded of. You literally cannot live too far outside your means. You do only by loans and credit debt, upon which it doesn't take too long till you max out.
So the phrase not even need be said, it's not something we can choose not to do
You can live outside your means by not paying your rent or mortgage until you are evicted or foreclosed.
Homeowners can do this much much better than renters.
I live in one of the regular family sized homes cost $750k metro areas. I also make well above average income. Using that adage of buying a home 3x your income means I can afford a one bedroom condo in an average neighborhood and have a ~45 minute commute (each way). And to get the 20% downpayment i would need to save all of my take home pay for a over year. And i do mean all of it. Literally spend zero dollars.
Lowering my minimum living standards would add 30 - 60 extra minutes each way for a commute. or I could live in a very, very dangerous area and add 15-30 minutes each way, and save 30% on the cost of housing and less safety, convinence and access to necessities. My wishlist to buy is not unrealistc at all, but probably is unlikely unless i get a big windfall. Entry level homes are being purchased by cash buyers so it would be hard for me to compete.
What happens to people making average income?
Right now the average rent in my city is only affordable to people who make 2-3x the average renter's income.
There's a point where you simply have to have roommates. A lot of people are doing it out of necessity, not choice.
Sorry but living within your means is applicable for all economic classes. If your low income and try to live as if you're high income, you're digging yourself a hole. Rather figure out how and put the effort into getting into a higher income situation if you want to live better...that's what I did.
Not true. Low income in a lot of places (most?) in this country don't meet basic survival expenses.
Budgeting and planning are useless when one's basic needs cost more than one's income.
Also, most of the budgets that I see posted on this forum are completely unrealistic.
Often healthcare costs and transportation hosts are less than 50% of what it really costs.
There's a point where you simply have to have roommates. A lot of people are doing it out of necessity, not choice.
This will work for some people, not all.
Those that have families are risking divorce by taking on roommates. Divorce exacerbates financial troubles, it doesn't cure them (unless you are a female receiving tax free child support and alimony).
Not true. Low income in a lot of places (most?) in this country don't meet basic survival expenses.
Budgeting and planning are useless when one's basic needs cost more than one's income.
Also, most of the budgets that I see posted on this forum are completely unrealistic.
Often healthcare costs and transportation hosts are less than 50% of what it really costs.
Don't have kids you can't afford, don't have pets you can't afford, don't have a car if you can't afford ALL of the associated costs, even the irregular ones, don't have a house you can't afford, and don't live without roommates if you can't afford it. If you have a car you cannot afford to fix, in order to live in the suburbs instead of near work, because housing near work is only affordable if you have roommates, then you cannot afford to live without roommates.
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