scrappinghappy
Pearl Clutcher
“I’m late, I’m late for a very important date. No time to say “Hello.” Goodbye. I’m late...."
Posts: 4,307
Jun 26, 2014 19:30:06 GMT
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Post by scrappinghappy on Jul 5, 2014 14:12:04 GMT
USA says you need an annual income of $130,000 to live the American DreamThey haven't included much. No summer camp, $2500 per year savings for college per kid really isn't much when public colleges are upward of $18000 per YEAR, no dance, no sports, no orthodontics, no religious tithing or fees, no hobbies, no real estate taxes, no gifts, one vacation - no visits to family, no gas costs, no commuting expenses, no insurance, very little house maintenance. So if you earn the national median income of $51,000 and live in a relatively low cost of living community, how do you manage?
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RosieKat
Drama Llama
PeaJect #12
Posts: 5,535
Jun 25, 2014 19:28:04 GMT
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Post by RosieKat on Jul 5, 2014 15:39:38 GMT
I can believe it. In our area, the general cost of living is about average, maybe a tiny smidge higher. DH earns a decent but not exorbitant income, but I am able to be a SAHM with budgeting. (It's definitely not $130000!) We have 2 kids and they do get to do activities, but it's a tradeoff for other things. We also do things like have me volunteer to help plan camps and that saves us money. (For example, they each got 2 weeks of a very popular camp at church for free because I'm on the planning team - saving us about $550-600 right there.) I use my time as barter.
I'm not complaining in the slightest. We overall have a nice life, but I would say it doesn't meet the ideal "American Dream."
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Post by mikklynn on Jul 5, 2014 15:48:31 GMT
We are doing ok, but I worry about my kids in their early 30's. DS & DIL live paycheck to paycheck. Neither are good with money and save nothing. DD is great with money, but has student loans from returning to school after multiple layoffs. She'll be fine, but likely won't be able to buy a home for many years.
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Post by KelleeM on Jul 5, 2014 15:55:00 GMT
My dh retired a year and a half ago. He really didn't have a great plan in place and had a lot of bumps in the road. I work full time but was out on disability for part of last year and part of this year. I earn a decent wage but we live in an area with a pretty high cost of living. I am 52 years old and have never owned a home. At this point I doubt I ever will. We are okay and the only debt we have is the car we bought two months ago (got 1.99% interest though) but we're definitely not living the dream!
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Post by melanell on Jul 5, 2014 15:59:47 GMT
I think "The American Dream" has changed a lot since someone first coined the phrase.
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Post by fruitysuet on Jul 5, 2014 16:07:45 GMT
I'm not an American but looking at that extras list I can pretty much say that our spending on those areas is as low as possible. Very limited vacations (and not always annually and certainly not outside the UK), rarely eat out or have take out food, rarely go out to the cinema or anywhere else and certainly no room for savings. What savings we did have have been spent. My DH is self employed in the building industry and the recession really took it's toll on our income. We're also at the point that we have got to sell the house and downgrade considerably as our mortgage is the largest of our outgoings (and the only debt we have).
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scorpeao
Pearl Clutcher
Posts: 4,521
Location: NorCal USA
Jun 25, 2014 21:04:54 GMT
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Post by scorpeao on Jul 5, 2014 16:13:15 GMT
I don't know about that number. If I made that amount I'd be living beyond the american dream. Currently I make about 1/3 that, and I'm not poor by any means, but there's not a lot extra.
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Post by karensay on Jul 5, 2014 16:26:14 GMT
We are more in the under $30K range. We make enough to pay the bills. SCRAP-ON!
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StephDRebel
Drama Llama
Posts: 6,691
Location: Ohio
Jul 5, 2014 1:53:49 GMT
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Post by StephDRebel on Jul 5, 2014 16:44:26 GMT
There aren't many people in my area making even close to that- i'm in a poor rural area but in the village i'm in people seem to do ok. The dream is a bit different here though, it's a good thing in my world. With so many people divorcing, i'm surprised child support isn't even mentioned in them- I wonder what those averages are and how big an impact they have on a families personal income. I know my blended family is paying out $16,800/year in child support, in some cases it evens out, in mine so far in 2014 i've only had $31 come in from child support. That's a definite game changer, i'm hugely grateful that we're able to absorb it and still cover all the areas that need financing. From city data- Estimated median household income in 2012: $20,106 (it was $24,250 in 2000) Laurelville: $20,106 OH: $46,829 Estimated per capita income in 2012: $14,581 Read more: www.city-data.com/city/Laurelville-Ohio.html#ixzz36c3FsUiA
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Judy26
Pearl Clutcher
MOTFY Bitchy Nursemaid
Posts: 2,969
Location: NW PA
Jun 25, 2014 23:50:38 GMT
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Post by Judy26 on Jul 5, 2014 17:11:25 GMT
I think it's a tradeoff when it comes to where you live and the amenities that are available to you. I live in The Back of the Beyond. Our cost of living is much lower than most. DH is retired with a small pension. I am a school teacher. We have been able to buy a nice house and a small cottage on the river. We have helped all kids with college. We eat well but not extravagantly. We drive nice but not new cars.
The trade off is that we live in an area with no shopping, cultural activities, etc. We have to travel 2 hours for major sports, theatre, and restaurants. Many people would not like living with so little to do in their lives. I left the area when I was young but came back to raise a family. Our American Dream is very reachable but lacks the consumerism that many consider part of their dream.
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Post by myboysnme on Jul 5, 2014 17:21:00 GMT
It depends where you live, and how much your rent or mortgage is. That is the main thing. Then it depends if you have access to public transportation and how much gas you have to buy to get where you need to go.
Our joint income is under $130K, but we only bring home about half of what we make because of deductions for medical, dental, short term disability, retirement contributions, charitables for tax deductions, etc. So in fact we jointly bring home about $60K and that's why things are so tight.
Now I could move to a nearby city where my housing costs could be 1/3 less at least, but my housing value would be much less as well.
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Post by pierkiss on Jul 5, 2014 17:23:28 GMT
I am not convinced the american dream exists anymore.
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lindas
Pearl Clutcher
Posts: 4,275
Jun 26, 2014 5:46:37 GMT
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Post by lindas on Jul 5, 2014 18:36:33 GMT
I guess it's how you define the American Dream. When the phrase was first used in 1931 it meant the that each person had the right to pursue happiness and the freedom to strive for a better life through hard work and ambition. After the Depression I think it came to mean making more money and owning more things. We became a much more materialistic country after the depression.
if you have a job, a roof over your head, enough money to cover your needs and a happy, healthy family life then you're living the American dream.
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Deleted
Posts: 0
Sept 28, 2024 22:21:21 GMT
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Post by Deleted on Jul 5, 2014 18:42:04 GMT
I work in rural health care and I see every day how little people make (income wise). I admit to living a sheltered life and didn't realize how many low income people there really are in the US until I got this job. It was an eye opening first few weeks for me! Even my employees who are medical assistants or front desk people only make $12 an hour. I don't know how they are able to live, pay bills, put shoes on their kids feet - let alone have them in sports, take vacations and do anything fun.
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Post by my2apps2 on Jul 5, 2014 18:45:03 GMT
I guess it's how you define the American Dream. When the phrase was first used in 1931 it meant the that each person had the right to pursue happiness and the freedom to strive for a better life through hard work and ambition. After the Depression I think it came to mean making more money and owning more things. We became a much more materialistic country after the depression.
if you have a job, a roof over your head, enough money to cover your needs and a happy, healthy family life then you're living the American dream. I tend to agree with this. We certainly aren't wealthy, but we live in a nice area that is relatively safe, drive decent (albeit older) cars, our children don't get a ton of extras but they certainly don't want for much, we have a full fridge and are healthy. We don't own our home or make a ton of money, but we are very blessed in what we do have...and are thankful for it. My husband recently went on a mission trip to Latvia and I have a dear friend who just spearheaded the building of an orphanage in Uganda so perhaps I have just recently had my eyes opened to how blessed we really are in this country...but we are, truly fortunate to live in a place where there is so much opportunity and wealth. Just my opinion.
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Post by Linda on Jul 5, 2014 19:45:20 GMT
We're no where near 130K (less than half that). We're paycheque to paycheque for the most part. We live in a mobile home on acreage and our vehicles are 10+ years old and paid for (the van turned 10 in May and has less than 400 miles to 200K; the truck is nearly 20 and has similar mileage; and DS's truck is 36 years old (but low mileage - he got a gem).
I don't work outside the home but I sew and can and cook from scratch - we don't hire babysitters/daycare ever; family vacations are rare and usually just a weekend away within driving distance. We do Scouts but not sports/lessons etc... DS paid for his own college (community college) but he/we couldn't afford for him to finish up at University - he's going back online this fall. Our big splurge this year was a membership to the community pool - at $75/month and just for June and July.
No cable/satellite (we do have Netflix). I don't have a mobile phone; DH has straighttalk and so do the older two (DS pays for his own and DD contributes to hers - both of their phones were handmedowns)
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Post by melanell on Jul 6, 2014 2:00:28 GMT
I completely agree. I tend to view that phrase as it was originally intended, not as it may be viewed now, which is, to my way of thinking, a much more materialistic way. I feel very happy with my life despite not bringing in near $130,00 a year
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Deleted
Posts: 0
Sept 28, 2024 22:21:21 GMT
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Post by Deleted on Jul 6, 2014 3:01:22 GMT
I'm not sure when the American Dream started to include spending almost $12,000 on an AWD SUV.
I think the American Dream is a lot more about the freedoms we have in this country and a lot less about things.
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Post by anniefb on Jul 6, 2014 3:18:55 GMT
Similar situation here in New Zealand. The median salary here is about NZ$55k which equates to about US$48k. It's pretty tough for a lot of people. But in other ways, I think we're really blessed - great quality of life, a strong sense of community in most places, a safe and peaceful environment most of the time.
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Deleted
Posts: 0
Sept 28, 2024 22:21:21 GMT
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Post by Deleted on Jul 6, 2014 4:43:27 GMT
See I still believe that if you are born in this country you are living the American dream. If you aren't happy with your current situation, knowing the American dream is possible should motivate you to move things and change your life.
The ability to define your own American dream is what makes this country great.
Don't settle.
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Post by smokeynspike on Jul 7, 2014 3:05:41 GMT
I don't think you need to make that much to live the American Dream.
I do think though that if you are one of those people who feels the need to have a huge house with a large payment, two car payments at all times, and keep up with the Jones' that you will have a hard time living on less than 100k.
We make less than that and have lots of disposable income. But we don't feel the need to be house poor (we do own though), we make the choice to only have one car payment at a time (generally), drive our cars ten years (at least), and we only had one child (not by choice but that is what we were dealt).
I also think that what type of job you have and what benefits package they offer play a huge part in your quality of life. DH has a great job with nice benefits. We only pay $250 for health benefits for our family of three. They match contributions to our HSA account and we contribute to my retirement account. We also plan on working until 70.
Melissa
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Post by myboysnme on Jul 7, 2014 3:08:33 GMT
The American Dream is basically that your kids have more than you do. I don't think most kids will achieve more than their parents like they did in previous generations.
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Post by traceys on Jul 7, 2014 3:19:46 GMT
I agree with those who say the dream is about more than material possessions. I didn't make close to 130K when I was working, and I sure don't after retirement, but I'm happy with my life. I definitely have everything I need, and then some.
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Post by auntkelly on Jul 7, 2014 3:55:40 GMT
As others have already said, I've never thought of the American dream as being about money. I think it's more about having the freedom to decide what you will make of your life.
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Post by Pahina722 on Jul 7, 2014 3:56:32 GMT
Thanks for that link! The American Dream is the topic for one of the essays that my Comp I students write, so I'm always looking for current articles on related ideas. The USA Today one will work really well.
I find it interesting how much the American Dream has changed from my parents' and grandparents' generations. For example, my father grew up in a 1,000 square foot house with one bathroom and two closets. When my grandparents died, I bought the house from my father, yet couldn't handle how lacking in 'modern' conveniences it was and moved after only three years. When the hurricanes take out our power for a couple of weeks, it feels as if the world has ended---yet my grandparents lived in hot, humid Florida with no air-conditioning for most of their lives. They didn't have cellphones, IPads, DVRs, internet . . . . and managed to live happily without them. We've gotten so spoiled that we now consider luxuries to be necessities.
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Post by freecharlie on Jul 7, 2014 4:09:44 GMT
Part of that "American Dream" included $32,000 in taxes. I can tell you that we don't pay that much in taxes. We take a vacation, but try to keep it around $2000 if possible, the kids play every sport they can and are both in scouts. We have a car payment and own two outright. Our savings and 401k are not as high as we would like.
We don't own our home. When we moved to this area we weren't sure we would like it. Now we like the house we live in and pay a reasonable amount in rent.
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Post by melanell on Jul 8, 2014 14:00:53 GMT
Some people simply spend more money than others. You can hit many of the categories mentioned in the "Extras" and spend far less than 17K to do so.
Same with the essentials.
We take vacations, we eat out *occasionally*, we feel entertained. We have internet and cell phones, but we skip cable & satellite because we just don't want them.
We also spend less on the essentials.
So I imagine there are many people out there who still manage to have those things, but who spend far, far less to have it.
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Post by melanell on Jul 8, 2014 14:04:27 GMT
So true. Just in that article you can see that. When mentioning vehicles, they chose a 4WD SUV as their choice. Now that was their choice as an essential. We drive a smaller vehicle, and therefore spend less filling it and maintaining it. My husband rides a bike to work for at least 6 months out of the year. No gas and even less money to maintain it. And trust me, he's much happier the months he is taking that bike to and from work than when he is driving. The problem with an article like that is that it's impossible to come up with an example that works for everyone. They try for an average, but really, that just means there will be many people thinking that amount is far too high and others thinking they could never get by on so little.
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Post by Laurie on Jul 8, 2014 15:00:52 GMT
I think it is sad that we spend $8K (on average) more on taxes than we do on housing, groceries and utilities combined! That is ridiculous!
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Post by quinlove on Jul 8, 2014 15:16:44 GMT
[/span]if you have a job, a roof over your head, enough money to cover your needs and a happy, healthy family life then you're living the American dream.
[/quote] Hope my editing worked. I totally agree with this.
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