Came across an article claiming you need 350k/yr income to live a middle class life (and upon reading it, you realize they mean to live a middle class life in the most expensive parts of the US). The article has this budget for someone making money and living there. I love looking at these, because they expose the crazyness of what we think is normal.
Their housing cost is OK for where they live - about a third of their takehome. They will struggle a bit on this. Bring it down to 25%, and that would give them 1500-2000 more per month to play with, but I think the suggestion in the article is that's not possible. Sure, let's leave that alone.
Their big issue is their overspending. Every month, they spend:
- 2100 on food, - on top of this, some chunk of 350 on toys
- 400 on clothes
- 650 on vacations throughout the year, - and oh yeah, PLUS another 500 on entertainment
That's somewhere around $3700/mo on fun... And then throw a stupid 400/mo car payment on top of that.
Did you know almost 80% of millionaires never inherited a thing, and a full 33% of millionaires never made household income over 100k?
It's more about how you handle the money you have, not how much you make. You can survive (and even thrive) on pretty much any income pretty much any where, as long as your intentional.