Outside of life events like fires, accidents, etc. How was a normal adult working a normal job unable to pay off their house or condo within ten years.
I'm legitimately baffled. I live in the midwest near a city. Housing prices have gone way up but they're still achievable. As in, if I work for 20 years I can't see how this won't be paid off. Which is how it was explained to me 10+ years ago. But there's a problem with that.
I make 40k a year and my job only required some time at a community college. 40k a year is not impressive. But the wages haven't kept up with the market. Even if I were only making 20k a decade ago, that's more than the price of an entire condo from back then.
Where did these peoples' money go. When I was growing up we knew a family that went on vacation 1-2 times a year. This was because "their house is fully paid off so they have more money to spend."
My whole life I kept thinking about how smart they must have been with their money. Motherlover, how was this not the default state of every mentally stable adult? I could outright buy a shitty 2 bedroom house (from ten years ago) in my hometown right now. I've only meaningfully saved for four years.
I've heard some excuses over the years but now that I have perspective they're all dumb.
No it does not. Do you know how much I spent on groceries five years ago? A couple hundred. Do you know how much I spend on them now? A couple hundred + inflation. When you are making 80k a year you are not obligated to buy some r-slur subaru new off the lot every summer. You can keep buying normal used cars. You actually don't need to go to a steakhouse every weekend. That was a joke but I knew a family that went to rainforest cafe every weekend because "the kids like it." They LOST THEIR HOME, got hooked on coke, and died. Bi-weekly visits to gamestop and Toys R Us too.
What in all that is holy could you possibly be buying that eats up tens of thousands of dollars a year. Especially in current year. Literally what. I don't even have a guess. Am I naive and all my small town midwest neighbors are secretly crackheads?
Oh okay good that's great why are you still working into your 60s and 70s again where the absolute frick did this money go.
What insurance policy do you have that eats up 10k a year. Are you just blasting your hose and space heaters 24/7? I used to take hour long showers almost daily. My water bill was not financially crippling. I heard this excuse so much that I was afraid to go to the doctor or dentist for years once I was on my own insurance. The job I have covers it. I pay $0 to have my teeth cleaned twice a year. I am not obese so I don't have crippling ailments.
This one might be feasible but based on how much utter bullshit was behind literally every other excuse I've heard this also seems like it could be a stretch. Again, if the kid is not crippled in some way where could the money possibly be going. I easily spent less than 1k on myself over the past year for fun. You're telling me that you can't pick up some toys from a garage sale and maybe buy them a console/ bike every couple of years? How much do youth leagues cost for sports, $80 a season?
WHERE DID ALL OF THESE PEOPLES' MONEY GO???
This whole rant was made assuming someone lived in a single-income house and I just realized that it's even worse than I thought because all these families I'm remembering were dual income.
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100% lifestyle creep. cook your own food, wrap up your peepee, drive used jap cars, make a reasonable budget for discretionary and you'll be mostly fine even nowadays (house prices do suck
but w/e)
but i have coworkers who:
i was talking to another coworker
and explaining to him some basic financial shit like index funds, rule of 72, etc. and he looked like he'd seen jesus. in his own words "this is why it's good to have white friends" 
but according to him nobody in his family or friend groups ever knew or told him anything about this. basic financial literacy is nonexistent among poors, and it wouldn't surprise me if a bunch of people in generations past who seemed middle class were spiritually and mentally poor, just being artificially elevated above their natural station by a perfect storm of advantageous economic factors
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I knew someone who spent a ton on some kind of fancy car when they were fresh out of college only to completely wreck it and break a leg less than a year later.
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Poverty is a mindset
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keep yourself safe
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a lot of idiots that start making 150k/year plus just eat out three meals a day and spend $2500-$4000/m after tax on food, and live in a nice apt.
“i live paycheck to paycheck in the big city”
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The dual-incomes are just bad with money. The single-income poorcel is the one having a harder time.
It's about getting the initial down payment so the monthly mortgage is affordable and comparable to rent, so a neighbor doesn't go broke just to say "these walls and roof are mine".
On average, rent is 30% of take-home pay. Using your $40K example (lets pretend that's net, not gross), you take home $3,333 per month, and rent costs you $999 per month. That same monthly amount is a loan around $180K.
Does that go far where you live or will that get you a shack in ghettoville? Where I live, that would be a small overgrown plot of land with nothing on it.
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Avg for a 1br is like 1600, 1700 though, which is what kills single income people. It takes 33% and turned it into approx 50% of your take home
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I hear ya. That's why so many people have to either have roommates or live with a partner as a rentoid for so long ... it brings their own rent cost back down to 25-30% so then they can maybe start thinking about saving for the long term.
But depending on where they live, housing and general COL may be outpacing take-home wages. So by the time they're in a comfortable spot and ready to buy, they still can't.
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I.e. boomercide must occur to liberate the young
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In my home town that'd be an old 1200-2000 sqft POS. But like ten years ago these same houses I'm looking at for under $180k were going for 30-50k. Modern day housing prices are unreasonable but growing up (more than ten years ago) I was always hearing moaning about financial woes. Idk what these people were doing.
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They were spending beyond their means, a tale as old as time. I forget the term for it, "income creep" or something like that ... it's as you make more money, you start spending more money on frivolous things.
The smart thing to do is treat yourself every now and again, but otherwise live exactly the same way. Throw all that extra money into savings, which you can then invest, buy a home with, etc etc.
Instead, most people start going out to the bar more, going to restaurants or ordering delivery, buy higher-cost clothing or cars, things like that. They think "finally, I can reward myself" and instead of it being a one-off treat, they make it their new normal lifestyle.
15-20 years ago, people were doing that to such an extent - and were being encouraged to do so - that we got the whole bank/housing crash of 2007/2008.
Money went further back then though also, our economy is kinda fricked right now. I remember seeing starter homes in my area for $200-$300K 10 years ago, those same houses are now $700K-plus.
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Most people are terrible at math and life style creep affects nearly everyone. If you can avoid being an r-slur, you'll probably be very well off someday.
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Humans are not good with the concept of money, which is why communism is the only humane course. Something about how they'd feel if they didn't spend money on breakfast yesterday morning.
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I know that like literal mud hut africans struggle with that idea but they don't make much anyway and they spend it all on booze.
Were my suburban neighbors just sinking hundreds of dollars at the bar every weekend? Like even then, that doesn't account for what I'm told gets taken up by "life expenses."
Also laughing remembering the google DEI document that told managers that latinx didn't respect the concept of time so you could give them less benefits by increasing their salary at a disproportionate amount.
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You need to understand that at a base level, a huge percentage of people, even less poor or not BIPOC, are close to this. You give them a credit card, and their berry gathering instincts kick in and they gotta spend.
And little luxuries add up. You eat at a steak house every weekend, get take out every other day, buy a new gadget every year, take a vacation to Disneyfrick, you can burn through a "middle class" budget living a middle class appearing life.
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There you got, same principle. They spend it all on useless stuff which you may not see on the surface.
Lmao, least racist corporate “diversity departments”
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Some people are like
@FBIshill and keep all their money in savings accounts and don't have any investments.
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Lifestyle creep, credit cards, general r-slurredness with spending. Eating out catches up to you quickly which is a lesson I still have not fully learned
but I'm at least saving about 20% of my income and throwing ~5% at my debt.
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