Quote:
Originally Posted by MAXUM
Actually if you look at that graph much of what is there hasn't changed much.
Let's just take the big three:
Cost of a house, in 1975 that mortgage would have cost you 9.45% APR so as a percentage of income it the P&I payment in '75 was more expensive when comparted to both today's dollars and current interest rates hovering at less than half of that.
OK I'll concede the cost of a new car is twice that of 1975 BUT BUT BUT… I will point out a couple key differences. Anything that was made in 1975 was a piece of crap you'd be lucky to get 5 years and 75K out of before the stuff fell apart, rusted all to hell or just plain broke to the point of having to replace it as engineering back then was awful. Now a days one can easily buy a 15K used car and arguably it would far surpass the longevity and reliability of say your average 1975 Ford Pinto or Chevy Vega. Buying new these days is just plain dumb, not when you can buy off lease cars for a fraction of what they cost new. It gets even better when they hit 100K which is where I love to buy them then drive them another 100 or 200K.
College these days is expensive but I'll tell you what my daughter just graduated this spring from Manchester Community College with an Associates degree, where her credits are 100% transferrable into the state school system to finish out a 4 year program, and most will be accepted anywhere else. Cost you ask? 14K for both years combined. So it begs the question why would you send your kids to a place where they are racking up 30, 40, 50K + per year especially over the first couple of years? DUH?
It is about choices and it can be done.
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Yes, it can be done if you have no ambition to do more than needs to be done to just get by. Most people want more than just to get by so in that case both parents must work. Unless one parent is making a lot of money.
My son inlaw told me a few weeks ago that a family of 5 needs to make at least $300,000 a year to live in Metro Boston today. He works 2 jobs and my daughter works full time with three kids. They want more than just to get by. So with out actually asking them how much they make I'm assuming they make at least that if not more. Could they make it on one salary, maybe but I doubt it.