How do people afford to raise a family, buy a house and own brand new cars on an average income?
- 1 month ago
Because they start off with $2000 used cars.... and a small house. Plus the "average" income is a lot higher than you would think. For every one of us poor Joes that are working for peanuts, there are people with degrees and good jobs pulling down 6 figures. (Go to school kids).
- 1 month ago
It's government policy that creates these high prices for housing and subsequent high rents. The economic theory was different in the 1970's with high inflation and high interest rates. It kept prices less attractive because people didn't want to buy things unless they could save for it and purchase with cash. Amazon and most big retailers would fight this kind of practice by the Fed if it were done today because people would buy less, a lot less. Sears decided to make credit cards widely available to help with this and other retailers followed, but few takers. No such thing as Master Card or Visa yet and no ATM's! Good heavens, how did people survive! A consumer based economy, what's that? The 1970's were a wonderful time however. You only needed $1,500 or so for a down payment on a house. I rented my apartment in San Francisco for $225 a month on a year lease not far from Nob Hill in 1974. It was still cheap to film TV shows there so you had quite a few roadblocks to navigate on streets. California just started charging tuition for state colleges for the first time. Young people complained about having to pay to go to college because it wasn't free anymore. People spent more time doing things with friends that were free and most things still were. Forest Service campsites were free. Traveling inside the US was cheap except for gas. Hotels were 75% cheaper than today, just not so many. Phoenix and Seattle were offering incentives for young people to move there, so why think of being an expat like today! 'A $10,000 house in Seattle can be yours and free tax incentives to move here. Oh please, just move to our fair city! Please! Please!' The editor of the Arizona Republic said that Phoenix would never be a place where young people would live because it was just too hot. Denver finally allowed you to be a Colorado citizen if you just proved you had a job. What a deal! 'Oh please move to our state, please!!' Traveling overseas was expensive before deregulation. Most countries were off limits during the Cold War. Europe was still rebuilding from WWII. What? Yes, yes, yes! Except for Paris and Rome, there was no such thing as a tourist based economy yet. Would you like to have a world like that today? Your consumer power would be a lot lot less. Could you live that way and be happy not galivanting around the world like Americans do today (minus covid-19)? I don't think young people today would.
- Christin KLv 71 month ago
By budgeting carefully, spending only on what they need, not stuff they don't, and by not living on credit cards or loans. They shop carefully. They spend carefully. They keep track of where they spend and how much. Anyone can do this. It just takes discipline, and paying attention to what you do with your money.
People who can afford things you don't think they should are usually savers. They learn saving early on, and stick to it. And they never get caught unawares by expenses because they buy what they have carefully, not on impulse.
- SlumlordLv 71 month ago
They buy a cheap house, cheap cars, and are very frugal with other expenses. I admit this is getting harder and harder to do every year, but its still possible. No a bad idea to work hard get an above average paying job and take a 2nd job if you can.
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- SlickterpLv 71 month ago
Heavy debt usually.
- Coffee DrinkerLv 71 month ago
Most of the people who own a house and drive brand new cars have above average incomes.
And even then, they often have large loans on the house and cars. They just happen to have enough income to make the payments
- R PLv 71 month ago
They are most likely "swimmimg" in debt and living paycheck to paycheck.
- babyboomer1001Lv 71 month ago
What do you consider an average income? In order to have all that you mentioned, you need to have a good salary.
- Anonymous1 month ago
Well they can afford the payments not necessarily the debt.
- jimanddottaylorLv 71 month ago
Not on an average income. Best if you inherit the house and buy a 3 year old car.