$100-150k may seem huge, but it holds no importance in front of most Americans. According to them, this amount serves no importance or value besides their monthly expenses. Sometimes, it makes it even more difficult for them to run their basic errands. Appears surprising! Let's unravel some important facts about why $100-150k salaries aren't enough for many Americans.
Huge Amount of Taxes
Tax lodging on multiple products may be the most precise reason for a financially constrained life. A commenter shared about his experience that almost half of his pay got spent on the substantial tax burden. The taxes are everywhere on sales, property, income, medicine, computer software, gas, liquor, poultry, food, and many more. Everything got immersed in between and beyond taxes.
Rental Fees
People living in rental apartments had to face ups and downs because of rising inflation. An individual shared his thoughts that he is suffering and getting pissed off by paying a lot of rental fees. His landlord has increased rent twice this year, which made him pay 46% more than the initial rent. According to him, he is paying half of his salary to rent, and his landlord is increasing rent to become competitive in the market.
Inflation
Inflation is considered one of the prime factors for unstable living. One of the Americans expresses how his living has become affected by the rise in inflation. He stressed that although his salary is more than $100k. However, all his salary vanishes off in household expenses, power, internet, health insurance, and rent costs. All his income got spent over a matter of days, and he has nothing to save because of rising inflation on every product.
Potential Car Payments
Living in an urban area without a car seems anonymous. Somebody mentions that he has been living in NYC since the 90s. He has two cars. But the expenses of these two cars, their manufacturing and incident travel costs seem so high that he barely makes ends meet. To maintain his budget, he cut off all unnecessary expenses like birthdays, Christmas, Father's Day, Mother's Day, and more. He usually cuts his vacation and lies to his homies that he wants home comfort.
Student's Expenses and Debt
Among all the expenses, the most dwelling part that needs to be brought up is Student Debt. A medical student has shared that to get a high-paying salary, one has to be graduated from a well-reputed university. According to him, a paycheck of $100/150k requires advanced degrees, which is quite expensive. Some students like him had to take loans to pay for school expenses. He is earning $150k and is paying $1500/month for medical school debt.
Health Insurance Cost
Health Insurance for a family plus deductible costs seems nowhere. An office worker shared that a massive amount of his money goes for health insurance. He claimed that along with health insurance, he is paying a deductible cost that is around $1500 to $6000. He switched his job somewhere last year and has to pay the deductible twice, amounting to around $13k in healthcare costs.
Kid's Day Care
Daycare for kids is another common factor for raising instability towards monthly expenses. A father shared that he is having two kids. Meeting the expenses of these two kids is quite brutal and painful. He had tried to accommodate and pick the cheapest one, but all the daycares were not very comparable in terms of costs. As he stated, he is paying $2100 for two of his kids, which is quite difficult for him because of burdened expenses.
Food Groceries
Food is an essential component of life that cannot be negated. Due to the increase in inflation and living costs, food items are growing costly. One of the Contributors has shed light on his food grocery expenses. He articulated the fact that he is a family of 4, and his monthly expenses for food and groceries lie around €600. His wife is also contributing to lunch as a benefit to enable smooth going.
Specified Living Area
The cost of living in the place or area you live matters a lot. An NYC citizen has stated that he is living a stressful financial life compared to the people living in Dubuque, Iowa. He has $70K, but he is trying his best to spend his money in a meaningful way. He owns a house and a car. His pursuit is cheap, and it is quite sensible to make meaningful purchases. He tried to be within his financial means and didn't try to exceed them.
Lifestyle Choices
While among rising costs and inflation, preferred lifestyle choices can be the crucial factor for deciding whether you can live a stress-free or stressful life. Someone has acknowledged that although he is earning a low monthly wage, his way of living has made him financially free. He is quite sensible in terms of spending money and only prefers reasonable choices. He usually doesn't favor expensive buying; that's why he is happy among other Americans.
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