Income a family of four need to live comfortably by state in the U.S.

[ZZman]

That is mind blowing. We raised our two kids on anywhere from 50-70,000 over the years. We only hit 6 figures once when I retired and cashed in my sick/vacation time and 457 retirement.

 

[Astro14]

Its all sort of relative.

1992 was pretty crappy for sure - just coming out of recession. However housing @ 3x annual income was about historical mean. Currently its 5X, with mortgage rates around 7%. So just simple math says a typical payment now is about 30% more than in 1992, relative to median income. Of course finding a good job then vs now was much harder.

I was fortunate to graduate college in the late 90's boom - so I was able to get a good job. However I purchased my first house in 2006.

You win some you loose some.

I think my point, put differently, is that it takes about the same percentage of income to buy a house today as it did for me back then, but you get so much more.

Houses are bigger and more luxurious. Cars are bigger, faster, more efficient, with far more luxuries and amenities.

Everyone who is starting out today, is starting out with so much more built in to their expectations than we had.

Example - We had broadcast TV over the air. Free, but zero selection. Now every one is used to streaming everything on demand. Our Sony Trinitron tube TV cost the equivalent of $1,000 today, but was 480 broadcast over the air resolution. Today, that much money gets you a really nice 8K UHD.

We live in an age of incredible luxury and convenience that everyone takes for granted. Yes, living is expensive.

But the standard of living is so much higher than it was 32 years ago.

 

[JHZR2]

That is mind blowing. We raised our two kids on anywhere from 50-70,000 over the years. We only hit 6 figures once when I retired and cashed in my sick/vacation time and 457 retirement.

How many years ago?? Since the post-Covid era???

 

[JHZR2]

What is this thing you call savings?

I guess one of those discriminators between the folks who live the ethereal “comfortable” metric of OP, and those that do not.

 

[ZZman]

How many years ago?? Since the post-Covid era???

Late 80's thru late 2000's

 

[demarpaint]

I think my point, put differently, is that it takes about the same percentage of income to buy a house today as it did for me back then, but you get so much more.

Houses are bigger and more luxurious. Cars are bigger, faster, more efficient, with far more luxuries and amenities.

Everyone who is starting out today, is starting out with so much more built in to their expectations than we had.

Example - We had broadcast TV over the air. Free, but zero selection. Now every one is used to streaming everything on demand. Our Sony Trinitron tube TV cost the equivalent of $1,000 today, but was 480 broadcast over the air resolution. Today, that much money gets you a really nice 8K UHD.

We live in an age of incredible luxury and convenience that everyone takes for granted. Yes, living is expensive.

But the standard of living is so much higher than it was 32 years ago.

I think the biggest problem today that differs from when I bought my first house in 1982 is this: There are a lot of people today that feel things they can't afford should be handed to them on a silver platter free of charge. I'll have to end it with that not to break any rules, but look at what is being handed out today vs. then, and look what people are expecting to be handed to them now vs then. I worked hard for what I have, and when I borrowed money I paid it back, including my college loan.

 

[97prizm]

265k seems high for Colorado. I've read that the Incoeresting chart. Of course it is in a MACRO basis. I wonder how state income and state/ local sales tax figure into the equationView attachment 218958

265 seems high for Colorado. I heard recently that back in 2020 $101,000 would qualify someone for a home in the Denver metro area. it's now $175,000

 

[4WD]

I think the word "comfortably" is probably very subjective here. But I am grateful I never had kids.

I’m grateful I had kids and plenty money to raise them with no school loans …

 

[mrsilv04]

In Illinois, a family of four can live comfortably on half of that.... once you get south of I-70.

 

[joekingcorvette]

Last I checked many people of South Dakota are cash poor and asset rich...

That's kind of a blanket statement and difficult to sum up in a few sentences. . Kind of like on Bob's the oil guy where the guy with the $80,000 vehicle is put on a high approval list and the guy with the 10 year old well kept car and several hundred thousand dollars in the bank or assets is looked down upon. I guess to sum it up one needs to handle their own resources accordingly.

 

[SC Maintenance]

Your kids are lucky. I wish I got money from my parents for that kind of thing. They helped with rent in college, that’s it, and I’m grateful for that. I paid tuition by taking loans and working two jobs while in school. I was cut off completely after that. Paid my way through grad school. Got a job and bought a foreclosure as the housing recession waned by taking a loan against my 401k.

I’m now a manager and I sometimes interview kids who have never worked a job in their lives. Just school experience on their resumes, and unpaid internships (must be nice). I ask them if they’ve ever had a job, nope. Not even a high school gig.

Coaching grit and resilience are going to be in-demand managerial skills, that’s for sure.

When I went off to college I think my mother gave me some sheets and a pillow.

I paid for my kids college pretty much. Well paying better description. They both have part time jobs and went in to a profession I approved of at an in state school. Maybe it will keep me out of a home, maybe it will not

 

[walterjay]

Define comfortably

Owning multiple properties all over. Nice VW and Maverick hybrid is my definition.

 

[Zee09]

Owning multiple properties all over. Nice VW and Maverick hybrid is my definition.

Must be more of your rich friends

 

[walterjay]

All I can say is if that chart is right I will be headed into bankruptcy sooner than expected.

I live in a pretty affluent area and I know darn well that people as a rule are not making that kind of money around here.

 

[SC Maintenance]

All I can say is if that chart is right I will be headed into bankruptcy sooner than expected.

I live in a pretty affluent area and I know darn well that people as a rule are not making that kind of money around here.

The question is what would it cost to get into your lifestyle today.

If I had to buy into my neighborhood and my vehicles today I could afford it, but I sure would not be happy about it. Pretty sure lots of my neighbors couldn't afford it outright.

 

[Cujet]

Before I retired last week, my salary was insufficient to live comfortably anywhere in the USA, according to this presentation.

I guess I'm just cheap and know how to get by on less. It helps that my wife does not waste money on anything.

 

[Astro14]

Before I retired last week, my salary was insufficient to live comfortably anywhere in the USA, according to this presentation.

I guess I'm just cheap and know how to get by on less. It helps that my wife does not waste money on anything.

I think the original chart defines “comfortably” at a very high level, somewhere at or above the 90th percentile of income, with the ability to save 20% as stated on the chart.

Well, yeah, with income in the top ten percent, you sure better be comfortable!

 

[LDB]

I wonder what these numbers were 4 years ago?

 

[GMBoy]

When I moved from Maryland to Texas in 2005 I made out very well - house in MD sold same day over list price and the house purchased in Texas we bought below asking price and WOW! a mansion compared to what we had in MD and for a lot less money. Then in 2013 sold that house - again same day for over listing price and built our current home on 10 acres purchased cheap in 2011. We beat the system twice and made out very well. Today?? NOT A CHANCE as now Texas is no better than California or other states as the housing prices are severely high and property taxes are out of control. You can still get more for your money in Texas but the value for the dollar has shrunk drastically compared to 10 yrs ago or even 5.

 

[tbm5690]

Expectations are absolutely out of control, that's the bottom line. The chart is what most people THINK they need to get by comfortably. But, give everyone a raise to the dollar amount on the chart and it doesn't fix anything....expectations and lifestyle bloat with additional income. My wife and I got married and chose to stay in a one bedroom 600 sq. ft. apartment for over 3 years so that we could sock away 40% of our take-home into the house fund. Turns out that if you set savings goals and are actually willing to adjust your lifestyle for a season to meet them things become affordable.