So, I had the millennial talk with an old guy at the gym. He was talking smack about healthy guys in their 20s and 30s still living at home with the parents. I'll try to make this quick....
In a nutshell, he save around $1m, with house paid off, has 6 cars paid off and insured, and says he doesn't get it. He lives comfortably with all his stuff.
6 cars? So you pay $120 a month for insurance?
Yes.
About $2000 /year for property tax?
No, about $900.
Ah, so you bought it in the 60's?
Yes.
So you live on about $20k a year?
Yes.
Ok, to give you perspective, my house, at 1100 sf, and a new ford focus, bought today, thru the banking system, with comp and collision insurance, because the bank requires it, would put me in need of making $80k per year, just to survive.
No way!
My house is worth 250k atm. That's $1800 to $2k per month just to live. Car, $300 per month. Insurance, $250-300 with a super clean record and low mileage discount. Assume 300 utilities, 200 for gas, 800 groceries, 600 for medical, 300 retirement. That's 50k out of pocket per year.
Thats not 80k.
Taxes are rough 30% of your income. That's 56k take home. You now have 6k per year to do anything else and cover any random expenses. To live in a 3 bed, 1.5 bath townhome in an ok neighborhood with no yard against a busy street. What if my wife needs a new car?
.....
Oh, and I make nowhere near $80k per year. How many jobs do you know that make $80k per year or more without 10+ years of experience?
.....