House-Poor - Emerging Pattern Among the $250k Earners

 

"One-Third of Americans Making $250,000 Live Paycheck-to-Paycheck, Survey Finds" Bloomberg, June 1, 2022.

The survey had been by Pymnts and LendingClub. That one-third was mostly millennials (we boomers were found to be more frugal). And what was eating up the paycheck was mostly housing expenses, at least since infllation hit. For example, a house in a good neighborhood in California could consume 40% of pre-tax income. You got it: Being house-poor is the emerging pattern.

That doesn't leave much over for what else has to be paid for monthly. Think about how much groceries put a dent in income. Then with gasoline so high the cost of transportation is wild. If there are children, that can push home-owning millennials into insolvency.

The timing is perfect to review the ancient version of the American Dream: Having one's own house. What could replace it? Minimilism. Or living beneath one's income. Such as lifestyle could help ensure there will be enough in a nest egg to have freedom of choice in work situations and to take the exit ramp into retirement on one's own terms. 

Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com

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